Texas Statutes
Subtitle F - Franchise Tax
Chapter 171 - Franchise Tax

Section 171.006. Adjustment of Eligibility for No Tax Due, Discounts, and Compensation Deduction - Sec. 171.006. ADJUSTMENT OF ELIGIBILITY FOR NO TAX DUE, DISCOUNTS,...

Subchapter B. Exemptions

Section 171.051. Application for Exemption; Effective Date - Sec. 171.051. APPLICATION FOR EXEMPTION; EFFECTIVE DATE. (a) Except as...

Section 171.052. Certain Corporations - Sec. 171.052. CERTAIN CORPORATIONS. (a) Except as provided by Subsection...

Section 171.0525. Exemption--Certain Insurance Companies - Sec. 171.0525. EXEMPTION--CERTAIN INSURANCE COMPANIES. A corporation that is a...

Section 171.053. Exemption--Railway Terminal Corporation - Sec. 171.053. EXEMPTION--RAILWAY TERMINAL CORPORATION. A corporation organized as a...

Section 171.055. Exemption--Open-End Investment Company - Sec. 171.055. EXEMPTION--OPEN-END INVESTMENT COMPANY. An open-end investment company, as...

Section 171.056. Exemption--Corporation With Business Interest in Solar Energy Devices - Sec. 171.056. EXEMPTION--CORPORATION WITH BUSINESS INTEREST IN SOLAR ENERGY DEVICES....

Section 171.057. Exemption--Nonprofit Corporation Organized to Promote County, City, or Another Area - Sec. 171.057. EXEMPTION--NONPROFIT CORPORATION ORGANIZED TO PROMOTE COUNTY, CITY, OR...

Section 171.058. Exemption--Nonprofit Corporation Organized for Religious Purposes - Sec. 171.058. EXEMPTION--NONPROFIT CORPORATION ORGANIZED FOR RELIGIOUS PURPOSES. A nonprofit...

Section 171.059. Exemption--Nonprofit Corporation Organized to Provide Burial Places - Sec. 171.059. EXEMPTION--NONPROFIT CORPORATION ORGANIZED TO PROVIDE BURIAL PLACES. A...

Section 171.060. Exemption--Nonprofit Corporation Organized for Agricultural Purposes - Sec. 171.060. EXEMPTION--NONPROFIT CORPORATION ORGANIZED FOR AGRICULTURAL PURPOSES. A nonprofit...

Section 171.061. Exemption--Nonprofit Corporation Organized for Educational Purposes - Sec. 171.061. EXEMPTION--NONPROFIT CORPORATION ORGANIZED FOR EDUCATIONAL PURPOSES. A nonprofit...

Section 171.062. Exemption--Nonprofit Corporation Organized for Public Charity - Sec. 171.062. EXEMPTION--NONPROFIT CORPORATION ORGANIZED FOR PUBLIC CHARITY. A nonprofit...

Section 171.063. Exemption-Nonprofit Corporation Exempt From Federal Income Tax - Sec. 171.063. EXEMPTION-NONPROFIT CORPORATION EXEMPT FROM FEDERAL INCOME TAX. (a)...

Section 171.064. Exemption--Nonprofit Corporation Organized for Conservation Purposes - Sec. 171.064. EXEMPTION--NONPROFIT CORPORATION ORGANIZED FOR CONSERVATION PURPOSES. A nonprofit...

Section 171.065. Exemption--Nonprofit Corporation Organized to Provide Water Supply or Sewer Services - Sec. 171.065. EXEMPTION--NONPROFIT CORPORATION ORGANIZED TO PROVIDE WATER SUPPLY OR...

Section 171.066. Exemption--Nonprofit Corporation Involved With City Natural Gas Facility - Sec. 171.066. EXEMPTION--NONPROFIT CORPORATION INVOLVED WITH CITY NATURAL GAS FACILITY....

Section 171.067. Exemption--Nonprofit Corporation Organized to Provide Convalescent Homes for Elderly - Sec. 171.067. EXEMPTION--NONPROFIT CORPORATION ORGANIZED TO PROVIDE CONVALESCENT HOMES FOR...

Section 171.068. Exemption--Nonprofit Corporation Organized to Provide Cooperative Housing - Sec. 171.068. EXEMPTION--NONPROFIT CORPORATION ORGANIZED TO PROVIDE COOPERATIVE HOUSING. A...

Section 171.069. Exemption--Marketing Associations - Sec. 171.069. EXEMPTION--MARKETING ASSOCIATIONS. A marketing association incorporated under Chapter...

Section 171.070. Exemption--Lodges - Sec. 171.070. EXEMPTION--LODGES. A lodge incorporated under Article 1399 et...

Section 171.071. Exemption--Farmers' Cooperative Society - Sec. 171.071. EXEMPTION--FARMERS' COOPERATIVE SOCIETY. A cooperative that is either...

Section 171.072. Exemption--Housing Finance Corporation - Sec. 171.072. EXEMPTION--HOUSING FINANCE CORPORATION. A housing finance corporation incorporated...

Section 171.073. Exemption--Hospital Laundry Cooperative Association - Sec. 171.073. EXEMPTION--HOSPITAL LAUNDRY COOPERATIVE ASSOCIATION. A hospital laundry cooperative...

Section 171.074. Exemption--Development Corporation - Sec. 171.074. EXEMPTION--DEVELOPMENT CORPORATION. A nonprofit corporation organized under the...

Section 171.075. Exemption--Cooperative Association - Sec. 171.075. EXEMPTION--COOPERATIVE ASSOCIATION. A cooperative association incorporated under Subchapter...

Section 171.076. Exemption--Cooperative Credit Association - Sec. 171.076. EXEMPTION--COOPERATIVE CREDIT ASSOCIATION. A cooperative credit association incorporated...

Section 171.077. Exemption--Credit Union - Sec. 171.077. EXEMPTION--CREDIT UNION. A credit union incorporated under Subtitle...

Section 171.079. Exemption--Electric Cooperative Corporation - Sec. 171.079. EXEMPTION--ELECTRIC COOPERATIVE CORPORATION. An electric cooperative corporation incorporated...

Section 171.080. Exemption--Telephone Cooperative Corporations - Sec. 171.080. EXEMPTION--TELEPHONE COOPERATIVE CORPORATIONS. A telephone cooperative corporation incorporated...

Section 171.081. Exemption--Corporation Exempt by Another Law - Sec. 171.081. EXEMPTION--CORPORATION EXEMPT BY ANOTHER LAW. Another statute that...

Section 171.082. Exemption--Certain Homeowners' Associations - Sec. 171.082. EXEMPTION--CERTAIN HOMEOWNERS' ASSOCIATIONS. (a) A nonprofit corporation is...

Section 171.083. Exemption--Emergency Medical Service Corporation - Sec. 171.083. EXEMPTION--EMERGENCY MEDICAL SERVICE CORPORATION. A nonprofit corporation that...

Section 171.084. Exemption--Certain Trade Show Participants - Sec. 171.084. EXEMPTION--CERTAIN TRADE SHOW PARTICIPANTS. (a) A corporation is...

Section 171.085. Exemption; Recycling Operation - Sec. 171.085. EXEMPTION; RECYCLING OPERATION. A corporation engaged solely in...

Section 171.086. Exemption: Political Subdivision Corporation - Sec. 171.086. EXEMPTION: POLITICAL SUBDIVISION CORPORATION. A political subdivision corporation...

Section 171.087. Exemption--Nonprofit Corporation Organized for Student Loan Funds or Student Scholarship Purposes - Sec. 171.087. EXEMPTION--NONPROFIT CORPORATION ORGANIZED FOR STUDENT LOAN FUNDS OR...

Section 171.088. Exemption--Noncorporate Entity Eligible for Certain Exemptions - Sec. 171.088. EXEMPTION--NONCORPORATE ENTITY ELIGIBLE FOR CERTAIN EXEMPTIONS. An entity...

Subchapter C. Determination of Taxable Margin; Allocation and Apportionment

Section 171.101. Determination of Taxable Margin - Sec. 171.101. DETERMINATION OF TAXABLE MARGIN. (a) The taxable margin...

Section 171.1011. Determination of Total Revenue From Entire Business - Sec. 171.1011. DETERMINATION OF TOTAL REVENUE FROM ENTIRE BUSINESS. (a)...

Section 171.1012. Determination of Cost of Goods Sold - Sec. 171.1012. DETERMINATION OF COST OF GOODS SOLD. (a) In...

Section 171.1013. Determination of Compensation - Sec. 171.1013. DETERMINATION OF COMPENSATION. (a) Except as otherwise provided...

Section 171.10131. Provisions Related to Certain Money Received for Covid-19 Relief - Sec. 171.10131. PROVISIONS RELATED TO CERTAIN MONEY RECEIVED FOR COVID-19...

Section 171.1014. Combined Reporting; Affiliated Group Engaged in Unitary Business - Sec. 171.1014. COMBINED REPORTING; AFFILIATED GROUP ENGAGED IN UNITARY BUSINESS....

Section 171.1015. Reporting for Certain Partnerships in Tiered Partnership Arrangement - Sec. 171.1015. REPORTING FOR CERTAIN PARTNERSHIPS IN TIERED PARTNERSHIP ARRANGEMENT....

Section 171.1016. E-Z Computation and Rate - Sec. 171.1016. E-Z COMPUTATION AND RATE. (a) Notwithstanding any other...

Section 171.103. Determination of Gross Receipts From Business Done in This State for Margin - Sec. 171.103. DETERMINATION OF GROSS RECEIPTS FROM BUSINESS DONE IN...

Section 171.105. Determination of Gross Receipts From Entire Business for Margin - Sec. 171.105. DETERMINATION OF GROSS RECEIPTS FROM ENTIRE BUSINESS FOR...

Section 171.1055. Exclusion of Certain Receipts for Margin Apportionment - Sec. 171.1055. EXCLUSION OF CERTAIN RECEIPTS FOR MARGIN APPORTIONMENT. (a)...

Section 171.106. Apportionment of Margin to This State - Sec. 171.106. APPORTIONMENT OF MARGIN TO THIS STATE. (a) Except...

Section 171.107. Deduction of Cost of Solar Energy Device From Margin Apportioned to This State - Sec. 171.107. DEDUCTION OF COST OF SOLAR ENERGY DEVICE FROM...

Section 171.108. Deduction of Cost of Clean Coal Project From Margin Apportioned to This State - Sec. 171.108. DEDUCTION OF COST OF CLEAN COAL PROJECT FROM...

Section 171.109. Deduction of Relocation Costs by Certain Taxable Entities From Margin Apportioned to This State - Sec. 171.109. DEDUCTION OF RELOCATION COSTS BY CERTAIN TAXABLE ENTITIES...

Section 171.111. Temporary Credit on Taxable Margin - Sec. 171.111. TEMPORARY CREDIT ON TAXABLE MARGIN. (a) On the...

Section 171.1121. Gross Receipts for Margin - Sec. 171.1121. GROSS RECEIPTS FOR MARGIN. (a) For purposes of...

Subchapter D. Payment of Tax

Section 171.151. Privilege Period Covered by Tax - Sec. 171.151. PRIVILEGE PERIOD COVERED BY TAX. The franchise tax...

Section 171.152. Date on Which Payment Is Due - Sec. 171.152. DATE ON WHICH PAYMENT IS DUE. (a) Payment...

Section 171.1532. Business on Which Tax on Net Taxable Margin Is Based - Sec. 171.1532. BUSINESS ON WHICH TAX ON NET TAXABLE MARGIN...

Section 171.154. Payment to Comptroller - Sec. 171.154. PAYMENT TO COMPTROLLER. A taxable entity on which...

Section 171.158. Payment by Foreign Taxable Entity Before Withdrawal From State - Sec. 171.158. PAYMENT BY FOREIGN TAXABLE ENTITY BEFORE WITHDRAWAL FROM...

Subchapter E. Reports and Records

Section 171.201. Initial Report - Sec. 171.201. INITIAL REPORT. (a) Except as provided by Section...

Section 171.202. Annual Report - Sec. 171.202. ANNUAL REPORT. (a) Except as provided by Section...

Section 171.2022. Exemption From Reporting Requirements - Sec. 171.2022. EXEMPTION FROM REPORTING REQUIREMENTS. A taxable entity that...

Section 171.203. Public Information Report - Sec. 171.203. PUBLIC INFORMATION REPORT. (a) A corporation, limited liability...

Section 171.204. Information Report - Sec. 171.204. INFORMATION REPORT. (a) Except as provided by Subsection...

Section 171.205. Additional Information Required by Comptroller - Sec. 171.205. ADDITIONAL INFORMATION REQUIRED BY COMPTROLLER. The comptroller may...

Section 171.206. Confidential Information - Sec. 171.206. CONFIDENTIAL INFORMATION. Except as provided by Section 171.207,...

Section 171.207. Information Not Confidential - Sec. 171.207. INFORMATION NOT CONFIDENTIAL. The following information is not...

Section 171.208. Prohibition of Disclosure of Information - Sec. 171.208. PROHIBITION OF DISCLOSURE OF INFORMATION. A person, including...

Section 171.209. Right of Owner to Examine or Receive Reports - Sec. 171.209. RIGHT OF OWNER TO EXAMINE OR RECEIVE REPORTS....

Section 171.210. Permitted Use of Confidential Information - Sec. 171.210. PERMITTED USE OF CONFIDENTIAL INFORMATION. (a) To enforce...

Section 171.211. Examination of Records - Sec. 171.211. EXAMINATION OF RECORDS. To determine the franchise tax...

Section 171.2125. Calculating Cost of Goods or Compensation in Professional Employer Services Arrangements - Sec. 171.2125. CALCULATING COST OF GOODS OR COMPENSATION IN PROFESSIONAL...

Subchapter F. Forfeiture of Corporate and Business Privileges

Section 171.251. Forfeiture of Corporate Privileges - Sec. 171.251. FORFEITURE OF CORPORATE PRIVILEGES. The comptroller shall forfeit...

Section 171.2515. Forfeiture of Right of Taxable Entity to Transact Business in This State - Sec. 171.2515. FORFEITURE OF RIGHT OF TAXABLE ENTITY TO TRANSACT...

Section 171.252. Effects of Forfeiture - Sec. 171.252. EFFECTS OF FORFEITURE. If the corporate privileges of...

Section 171.253. Suit on Cause of Action Arising Before Forfeiture - Sec. 171.253. SUIT ON CAUSE OF ACTION ARISING BEFORE FORFEITURE....

Section 171.254. Exception to Forfeiture - Sec. 171.254. EXCEPTION TO FORFEITURE. The forfeiture of the corporate...

Section 171.255. Liability of Director and Officers - Sec. 171.255. LIABILITY OF DIRECTOR AND OFFICERS. (a) If the...

Section 171.256. Notice of Forfeiture - Sec. 171.256. NOTICE OF FORFEITURE. (a) If the comptroller proposes...

Section 171.257. Judicial Proceeding Not Required for Forfeiture - Sec. 171.257. JUDICIAL PROCEEDING NOT REQUIRED FOR FORFEITURE. The forfeiture...

Section 171.258. Revival of Corporate Privileges - Sec. 171.258. REVIVAL OF CORPORATE PRIVILEGES. The comptroller shall revive...

Section 171.259. Banking Corporations and Savings and Loan Associations - Sec. 171.259. BANKING CORPORATIONS AND SAVINGS AND LOAN ASSOCIATIONS. (a)...

Section 171.260. Savings and Loan Association - Sec. 171.260. SAVINGS AND LOAN ASSOCIATION. (a) Except as provided...

Subchapter G. Forfeiture of Charter or Certificate of Authority

Section 171.301. Grounds for Forfeiture of Charter or Certificate of Authority - Sec. 171.301. GROUNDS FOR FORFEITURE OF CHARTER OR CERTIFICATE OF...

Section 171.3015. Forfeiture of Certificate or Registration of Taxable Entity - Sec. 171.3015. FORFEITURE OF CERTIFICATE OR REGISTRATION OF TAXABLE ENTITY....

Section 171.302. Certification by Comptroller - Sec. 171.302. CERTIFICATION BY COMPTROLLER. After the 120th day after...

Section 171.303. Suit for Judicial Forfeiture - Sec. 171.303. SUIT FOR JUDICIAL FORFEITURE. On receipt of the...

Section 171.304. Record of Judicial Forfeiture - Sec. 171.304. RECORD OF JUDICIAL FORFEITURE. (a) If a district...

Section 171.305. Revival of Charter or Certificate of Authority After Judicial Forfeiture - Sec. 171.305. REVIVAL OF CHARTER OR CERTIFICATE OF AUTHORITY AFTER...

Section 171.306. Suit to Set Aside Judicial Forfeiture - Sec. 171.306. SUIT TO SET ASIDE JUDICIAL FORFEITURE. If a...

Section 171.307. Record of Suit to Set Aside Judicial Forfeiture - Sec. 171.307. RECORD OF SUIT TO SET ASIDE JUDICIAL FORFEITURE....

Section 171.308. Corporate Privileges After Judicial Forfeiture Is Set Aside - Sec. 171.308. CORPORATE PRIVILEGES AFTER JUDICIAL FORFEITURE IS SET ASIDE....

Section 171.309. Forfeiture by Secretary of State - Sec. 171.309. FORFEITURE BY SECRETARY OF STATE. The secretary of...

Section 171.310. Judicial Proceeding Not Required for Forfeiture by Secretary of State - Sec. 171.310. JUDICIAL PROCEEDING NOT REQUIRED FOR FORFEITURE BY SECRETARY...

Section 171.311. Record of Forfeiture by Secretary of State - Sec. 171.311. RECORD OF FORFEITURE BY SECRETARY OF STATE. The...

Section 171.312. Revival of Charter or Certificate of Authority After Forfeiture by Secretary of State - Sec. 171.312. REVIVAL OF CHARTER OR CERTIFICATE OF AUTHORITY AFTER...

Section 171.3125. Revival of Certificate or Registration of Taxable Entity After Forfeiture by Secretary of State - Sec. 171.3125. REVIVAL OF CERTIFICATE OR REGISTRATION OF TAXABLE ENTITY...

Section 171.313. Proceeding to Set Aside Forfeiture by Secretary of State - Sec. 171.313. PROCEEDING TO SET ASIDE FORFEITURE BY SECRETARY OF...

Section 171.314. Corporate Privileges After Forfeiture by Secretary of State Is Set Aside - Sec. 171.314. CORPORATE PRIVILEGES AFTER FORFEITURE BY SECRETARY OF STATE...

Section 171.315. Use of Corporate Name After Revival of Charter or Certificate of Authority - Sec. 171.315. USE OF CORPORATE NAME AFTER REVIVAL OF CHARTER...

Section 171.316. Banking Corporations - Sec. 171.316. BANKING CORPORATIONS. This subchapter does not apply to...

Section 171.317. Savings and Loan Associations - Sec. 171.317. SAVINGS AND LOAN ASSOCIATIONS. This subchapter does not...

Subchapter H. Enforcement

Section 171.351. Venue of Suit to Enforce Chapter - Sec. 171.351. VENUE OF SUIT TO ENFORCE CHAPTER. Venue of...

Section 171.352. Authority to Restrain or Enjoin - Sec. 171.352. AUTHORITY TO RESTRAIN OR ENJOIN. To enforce this...

Section 171.353. Appointment of Receiver - Sec. 171.353. APPOINTMENT OF RECEIVER. If a court forfeits a...

Section 171.354. Agent for Service of Process - Sec. 171.354. AGENT FOR SERVICE OF PROCESS. Each taxable entity...

Section 171.355. Service of Process on Secretary of State - Sec. 171.355. SERVICE OF PROCESS ON SECRETARY OF STATE. (a)...

Section 171.361. Penalty for Disclosure of Information on Report - Sec. 171.361. PENALTY FOR DISCLOSURE OF INFORMATION ON REPORT. (a)...

Section 171.362. Penalty for Failure to Pay Tax or File Report - Sec. 171.362. PENALTY FOR FAILURE TO PAY TAX OR FILE...

Section 171.363. Wilful and Fraudulent Acts - Sec. 171.363. WILFUL AND FRAUDULENT ACTS. (a) A taxable entity...

Subchapter I. Disposition of Revenue

Section 171.401. Revenue Deposited in General Revenue Fund - Sec. 171.401. REVENUE DEPOSITED IN GENERAL REVENUE FUND. The revenue...

Section 171.4011. Allocation of Certain Revenue to Property Tax Relief Fund - Sec. 171.4011. ALLOCATION OF CERTAIN REVENUE TO PROPERTY TAX RELIEF...

Subchapter J. Refunds

Section 171.501. Refund for Job Creation in Enterprise Zone - Sec. 171.501. REFUND FOR JOB CREATION IN ENTERPRISE ZONE. (a)...

Subchapter L. Tax Credit for Clean Energy Project

Section 171.601. Definition - Sec. 171.601. DEFINITION. In this subchapter, "clean energy project" has...

Section 171.602. Tax Credit for Clean Energy Project - Sec. 171.602. TAX CREDIT FOR CLEAN ENERGY PROJECT. (a) The...

Subchapter M. Tax Credit for Certain Research and Development Activities

Section 171.651. Definitions - Sec. 171.651. DEFINITIONS. In this subchapter: (1) "Internal Revenue Code"...

Section 171.652. Eligibility for Credit - Sec. 171.652. ELIGIBILITY FOR CREDIT. A taxable entity is eligible...

Section 171.653. Ineligibility for Credit for Certain Periods - Sec. 171.653. INELIGIBILITY FOR CREDIT FOR CERTAIN PERIODS. (a) A...

Section 171.654. Amount of Credit - Sec. 171.654. AMOUNT OF CREDIT. (a) Except as provided by...

Section 171.655. Attribution of Expenses Following Transfer of Controlling Interest - Sec. 171.655. ATTRIBUTION OF EXPENSES FOLLOWING TRANSFER OF CONTROLLING INTEREST....

Section 171.656. Combined Reporting - Sec. 171.656. COMBINED REPORTING. (a) A credit under this subchapter...

Section 171.657. Burden of Establishing Credit - Sec. 171.657. BURDEN OF ESTABLISHING CREDIT. The burden of establishing...

Section 171.658. Limitations - Sec. 171.658. LIMITATIONS. The total credit claimed under this subchapter...

Section 171.659. Carryforward - Sec. 171.659. CARRYFORWARD. If a taxable entity is eligible for...

Section 171.660. Assignment Prohibited - Sec. 171.660. ASSIGNMENT PROHIBITED. A taxable entity may not convey,...

Section 171.661. Application for Credit - Sec. 171.661. APPLICATION FOR CREDIT. A taxable entity must apply...

Section 171.662. Rules - Sec. 171.662. RULES. The comptroller shall adopt rules and forms...

Section 171.663. Reporting of Estimates and Collection of Information - Sec. 171.663. REPORTING OF ESTIMATES AND COLLECTION OF INFORMATION. (a)...

Section 171.664. Deposit of Certain Revenue - Sec. 171.664. DEPOSIT OF CERTAIN REVENUE. Notwithstanding any other law,...

Section 171.665. Expiration - Sec. 171.665. EXPIRATION. (a) This subchapter expires December 31, 2026....

Subchapter S. Tax Credit for Certified Rehabilitation of Certified Historic Structures

Section 171.901. Definitions - Sec. 171.901. DEFINITIONS. In this subchapter: (1) "Certified historic structure"...

Section 171.9015. Eligible Costs and Expenses - Sec. 171.9015. ELIGIBLE COSTS AND EXPENSES. (a) Subject to Subsections...

Section 171.902. Eligibility for Credit - Sec. 171.902. ELIGIBILITY FOR CREDIT. An entity is eligible to...

Section 171.903. Qualification - Sec. 171.903. QUALIFICATION. An entity is eligible for a credit...

Section 171.904. Certification of Eligibility - Sec. 171.904. CERTIFICATION OF ELIGIBILITY. (a) Before claiming, selling, or...

Section 171.905. Amount of Credit; Limitations - Sec. 171.905. AMOUNT OF CREDIT; LIMITATIONS. (a) The total amount...

Section 171.906. Carryforward - Sec. 171.906. CARRYFORWARD. (a) If an entity is eligible for...

Section 171.907. Application for Credit - Sec. 171.907. APPLICATION FOR CREDIT. (a) An entity must apply...

Section 171.908. Sale or Assignment of Credit - Sec. 171.908. SALE OR ASSIGNMENT OF CREDIT. (a) An entity...

Section 171.909. Rules - Sec. 171.909. RULES. The commission and the comptroller shall adopt...

Texas Statutes Subtitle F - Franchise Tax Chapter 171 - Franchise Tax

Texas Statutes
Subtitle F - Franchise Tax
Chapter 171 - Franchise Tax