34 TAC §3.578
The Comptroller of Public Accounts adopts a new §3.578,
concerning economic development credits, without changes to the proposed text
as published in the June 22, 2001, issue of the
Texas Register
(26 TexReg 4660).
This new section is the result of Tax Code, new Subchapter O, §§171.721
- 171.730, new Subchapter P, §§171.751 - 171.761, and new Subchapter
Q, §§171.801 - 171.811. This section provides franchise tax guidelines
for eligibility and calculation of three credits: research and development,
job creation, and capital investment. The section is in accordance with Senate
Bill 441 passed by the 76th Legislature, 1999. A corporation may claim a research
and development credit, a jobs creation credit, and an investment credit only
for expenses and payments incurred, qualified investments or expenditures
made, or new jobs created in Texas on or after January 1, 2000.
No comments were received regarding adoption of the new section.
This new section is adopted under Tax Code, §111.002, which
provides the comptroller with the authority to prescribe, adopt, and enforce
rules relating to the administration and enforcement of the provisions of
Tax Code, Title 2.
The new section implements Tax Code, §§171.721 - 171.811.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on August 7, 2001.
TRD-200104509
Martin Cherry
Deputy General Counsel for Tax Policy and Agency Affairs
Comptroller of Public Accounts
Effective date: August 27, 2001
Proposal publication date: June 22, 2001
For further information, please call: (512) 463-4062