Texas Register

RULE §3.599Margin: Research and Development Activities Credit
ISSUE 10/15/2021
ACTION Final/Adopted
Preamble Texas Admin Code Rule

  (1)If a report was originally due and filed after the effective date of this section and a credit allowed under this section was not claimed, a taxable entity may file an amended report within the statute of limitation to claim a credit, if the taxable entity or a member of its combined group does not have an active Registration Number for that period. See §3.584 of this title for information about filing an amended report.

  (2)If a taxable entity or member of the combined group has or had a Registration Number for a period for which it intends to claim a credit allowed under this section, the taxable entity or member of the combined group must submit a written request to cancel the registration before claiming a credit. The written request must contain the following information:

    (A)the tax period(s) covered by the report for which it intends to claim a credit allowed under this section; and

    (B)a statement whether any tax-exempt purchases were made. If tax-exempt purchases were made, include an original or amended sales and use tax report with tax due, penalty, and interest for the sales tax periods that cover the tax-exempt purchases.

  (3)If a report was filed claiming a credit allowed under this section and the taxable entity later decides to claim a sales and use tax exemption under Tax Code, §151.3182, the taxable entity must:

    (A)file an amended franchise tax report that does not claim the credit under this section and pay any tax, penalty, and interest due;

    (B)apply for a Registration Number; and

    (C)file a request for a sales and use tax refund for taxes paid on purchases under Tax Code, §151.3182.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on October 4, 2021


William Hamner

Special Counsel for Tax Administration

Comptroller of Public Accounts

Effective date: October 24, 2021

Proposal publication date: April 16, 2021

For further information, please call: (512) 475-2220

Next Page Previous Page

Link to Texas Secretary of State Home Page | link to Texas Register home page | link to Texas Administrative Code home page | link to Open Meetings home page