TAB Calls for Extension of R&D Tax Credits to Boost Texas Economy
New study finds extension would create thousands of jobs and generate billions in economic output over next decade |
AUSTIN, TEXAS – Today, the Texas Association of Business (TAB) called on Texas lawmakers to approve an extension of research and development (R&D) tax credits. These credits are responsible for massive economic growth and an extension would create thousands of jobs and generate billions in economic output over the next decade, according to a new study published by Texans for Innovation. The current R&D tax credit is set to expire in 2026 if not reauthorized by the Texas Legislature. This would be a devastating loss for the business community and our state's economic potential.
Legislation filed this week – SB 2206 by Senators Paul Bettencourt and Joan Huffman and HB 4393 by Representative Charlie Geren – would offer a Franchise Tax credit for qualified research expenses that will encourage R&D investment across the state.
TAB President & CEO Glenn Hamer applauded the legislators for addressing the need to extend the expiring credits:
“With key R&D incentives set to expire, Texas risks losing ground to other states in research and development spending. Extending these incentives is critical to attracting high-tech industries, creating jobs, and maintaining Texas’ position as a national leader in technology and innovation. Ensuring long-term support for R&D strengthens our economy, workforce, and overall competitiveness.”
Members of Texans for Innovation include the Texas Association of Business, Texas Association of Manufacturers, Texas Healthcare and Bioscience Institute, Texas Taxpayers and Research Association, Texas Chemistry Council, Texas Oil & Gas Association, Texas Economic Development Council, Dallas Regional Chamber of Commerce, Greater Houston Partnership, North Texas Commission, Opportunity Austin, and Lockheed Martin.
To read the full study published by Texans for Innovation, click here.
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| TAB is the Texas State Chamber, representing companies of every size and industry. The Association’s purpose is to champion the best business climate in the world, unleashing the power of free enterprise to enhance lives for generations. Follow TAB on Facebook, Twitter, and LinkedIn. |
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