Texas Register

TITLE 34 PUBLIC FINANCE
PART 1COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 3TAX ADMINISTRATION
SUBCHAPTER VFRANCHISE TAX
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

TRD-202103916

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



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