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Summary: HB 953 would permit a franchise tax credit for businesses that partner with public or private institutions of higher education for the purposes of research development.
Analysis: We support comprehensive tax reform that is visible, broad-based, and low. HB 953 moves in the right direction by removing the tax burden for businesses by providing a tax credit. The fact that there are so many exemptions in existing tax code and in proposed legislation speaks volumes about the unnecessarily complicated tax structure. This legislation helps alleviate the problem by limiting government's scope by at least relieving the tax burden on businesses that support research development.
The state should work towards eliminating the franchise tax and removing regulatory burdens that inhibit the free market from thriving. As a result, by removing the franchise tax, this would treat all industries fairly while incentivizing businesses to operate in Texas. We encourage legislators to support HB 953 and work towards comprehensive reform.