taxes

Franchise Tax Credits

There are several ways for entities to earn franchise tax credits. Learn more about these options by selecting the links below. Note the expiration dates for each credit type.

Franchise Tax Credits
Credit type Must establish credit by Carryforward
Qualified research and development activities
  1. Subchapter T
  2. Subchapter M
  3. Subchapter O
  1. Jan. 1, 2026, or later
  2. Dec. 31, 2025
  3. Can no longer establish a credit
  1. 20-year credit carryforward
  2. 20-year credit carryforward
  3. Credit carryforward expires Dec. 31, 2027
Housing Development Credit No credit or credit carryforward may be claimed on reports originally due after Dec. 31, 2035 10-year credit carryforward; 3-year credit carryback. Credit carryforward expires Dec. 31, 2035
Historic structure rehabilitation No expiration date on establishing a credit 5-year credit carryforward
Texas Strong Families Credit Credit available for the 2027 through 2029 reports 5-year credit carryforward
Clean energy projects
(Earliest possible date available is Sept. 1, 2018)		 No expiration date on establishing a credit; Only 3 projects allowed 20-year credit carryforward
Temporary credit for Business Loss Carryfoward Can no longer establish a credit Unused credits cannot be carried forward to reports originally due on or after Sept. 1, 2027