![]() Some highlights of the proposed changes offered by the Texas Comptroller include, among other things: adoption of the federal Four-Part test that determines whether research activities are “qualified research” conducted in Texas expansion of the definition of “qualified research expense” to include definitions of “in-house research expenses” and “contract research expenses” any research with respect to internal use software would be an excluded research activity (but there would be guidance on certain types of software that are not excluded as such) a taxpayer would be prohibited from claiming a manufacturing or resale sales tax exemption for tangible property claimed as a research expense and taxpayers would be required to establish expenses claimed are eligible for the credit with clear and convincing evidence supported by contemporaneous documentation. Taxpayers may only claim one of the two offerings-either the franchise tax credit or the sales tax exemption-for any qualifying research expenses that occur in Texas.Specifics of the proposals can be found in Texas Register Volume 46, Number 16 (April 16, 2021). Texas has proposed amendments to the franchise tax research and development activities tax credit, and the research and development sales tax exemption. “Qualifying loan or grant proceeds” means the amount of money received by a taxable entity that: (1) is: (a) a loan or grant under the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, as amended by the Paycheck Protection Program (PPP) Flexibility Act Consolidated Appropriations Act (CAA) American Rescue Plan Act (ARPA) and the PPP Extension Act (b) a shuttered venue operator grant under the CAA, as amended by the ARPA (c) microloan program recovery assistance under the CAA or (d) a grant from the restaurant revitalization fund established under the ARPA and (2) is not included in the taxable entity’s gross income for purposes of federal income taxation under certain sections the CAA or ARPA. Under Franchise Tax regulations, a taxable entity must exclude from its total revenue qualifying loan or grant proceeds. 2021, H1514.Įffective May 8, 2021, and applicable only to a report originally due on or after January 1, 2021, Texas will exclude from Texas Franchise Tax certain federal loans and grants issued due to the coronavirus (COVID-19) pandemic. For specific text of the bill, please see L. The comptroller can waive the requirement of filing a claim and pay or deliver property directly to a person who does not file a claim if: (1) the person receiving the property is the reported owner of the property (2) the comptroller reasonably believes the person is entitled to receive the property or payment and (3) the property has a value of less than $5,000. The comptroller can sell a security not listed on an established exchange by any commercially reasonable method. However, the comptroller cannot sell a security listed on an established stock exchange for less than the price prevailing on the exchange at the time of sale. ![]() The comptroller can sell or otherwise liquidate a security delivered to the comptroller. The notice must be delivered no later than the 60th day before the date the property is delivered to the Texas Comptroller of Public Accounts. The written notice required to be given by a holder to the owner of property valued at more than $250, must be delivered by mail to the last known address of the owner or by email. View the list of items exempt from sales tax during this sales tax holiday.Įffective May 18, 2021, Texas has updated and clarified the State provisions governing the Texas unclaimed property program to reduce administrative burden, improve effectiveness and efficiency, and eliminate ambiguities. Taxpayers can buy these items online, in-store, by telephone, or mail. If the total sales price is over the applicable threshold, buyers will be charged sales tax on the total invoice. There is no limit on the quantities of items purchased however, the sales tax holiday is based on the total sales price, including shipping and other charges. Taxpayers cannot purchase medical masks, cleaning supplies, toilet paper, plywood, tents, or gloves tax-free. Additionally, taxpayers can purchase batteries, coolers, carbon monoxide detectors, first aid kits, fuel containers, radios, light sources, and many other supplies so long as those items cost less than $75. These items include portable generators, emergency ladders, and hurricane shutters costing less than $300. Taxpayers can purchase qualifying emergency preparation supplies tax-free during this period. until Apat midnight for emergency preparation supplies. Texas Comptroller of Public Accounts has announced a sales tax holiday from Apat 12:01 a.m.
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