State Incentive

Franchise Tax Exemption & Deduction


In Texas a company may deduct moving expenses from their apportioned margin while calculating their franchise liability if the company relocates its principal place of business to Texas from out of state if the business meets the criteria

Companies must relocate their principal place of business from out of State into Texas to obtain the deduction. A taxable entity may deduct relocation costs incurred in relocating the taxable entity’s main office or other principal place of business to this state from another state if the business meets certain criteria. The taxable entity must take the deduction on the entity’s first annual report.

A permanent exemption exists for businesses that gross less than $1 million in revenue while providing a $1 million deduction for businesses once they pass the gross receipts revenue threshold.

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.