HB 953

83(R) - 2013
Economic & Small Business Development

Vote Recommendation

  • Positive
  • Neutral
  • Neutral
  • Positive
  • Neutral


Angie Chen Button

Bill Caption

Relating to a franchise tax credit for research and development activities performed in conjunction with institutions of higher education; authorizing a tax credit.

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for HB953: an impact of $0 through the biennium ending August 31, 2015. However, the bill will have a direct impact of a revenue loss to the Property Tax Relief Fund of ($10,300,000) for the 2014-15 biennium. Any loss to the Property Tax Relief Fund must be made up with an equal amount of General Revenue to fund the Foundation School Program. No fiscal implication to units of local government is anticipated. Tax Fee Equity Note: No statistically significant impact on the overall distribution of a state tax or fee burden among individuals and businesses is anticipated from the provisions of this bill.

Bill Analysis

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.