Texas House Bill HB800

Texas 2013 - 83rd Regular

Caption

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.