Relating to a sales and use tax exemption and a franchise tax credit related to certain research and development activities.
Impact
The implementation of HB 800 is expected to reduce the financial burdens on companies actively involved in research and development, facilitating further investment in innovation. This could lead to the establishment of partnerships between private companies and educational institutions, enhancing the state's capacity for research and innovation. Furthermore, proposals in the bill are designed to bolster the creation of high-paying jobs, ultimately benefiting the overall Texas economy. The legislation aligns with the state's objective of maximizing its competitiveness in the global market.
Summary
House Bill 800 proposes a sales and use tax exemption and a franchise tax credit aimed at stimulating research and development activities within Texas. The bill highlights the significant role of research in driving economic growth, asserting that Texas's expenditure on research and development is insufficient compared to its economic output. By offering these financial incentives, the bill seeks to make Texas a more attractive location for businesses engaged in research, thereby aiming to foster a more robust high-tech sector and stimulate job creation.
Contention
Despite its intent to promote economic activity, the bill may face scrutiny regarding the adequacy of resources allocated to research versus other areas of state expenditure. Critics may argue that the focus on tax credits and exemptions favors larger corporations over smaller, potentially innovative companies that might not qualify for such benefits. Additionally, there could be debates on how effectively the credits and exemptions would translate to real job growth and economic development, raising questions about accountability and evaluation of the outcomes of such incentives.
Relating to an exemption from ad valorem taxation of a portion of the appraised value of tangible personal property that is held or used for the production of income and a franchise tax credit for the payment of certain related ad valorem taxes.
Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.
Relating to providing property tax relief through the public school finance system, exemptions, and limitations on taxes and providing franchise tax relief.
Relating to measures to enhance and maintain the quality of state universities, including funding and incentives to support emerging public research universities, to the abolition of the higher education fund, to the institutional groupings under the Texas Higher Education Coordinating Board's accountability system, to the independent status of Lamar Institute of Technology, to research conducted by public universities and other state entities, and to the authorization of revenue bonds for certain institutions of higher education.
Relating to university funding, including university funding for excellence, the national research university fund, the abolition of the higher education fund, and the institutional groupings established by the Texas Higher Education Coordinating Board.
Relating to the national research university fund and the allocation of amounts appropriated from the fund, the abolition of the higher education fund, and the institutional groupings established by the Texas Higher Education Coordinating Board.