A Legislative Update From Capitol Hill On The Federal-Level R&D Tax Credit Program

On Friday, November 19th the House of Representatives narrowly passed the Build Back Better Act, H.R. 5376, by a vote of 220 to 213. The bill encompasses a wide range of budget and spending provisions in connection to significant tax law reform as well as funding for mitigating climate change, expanded health care, housing, education, childcare amongst many other provisions. As the Senate now prepares to negotiate a final deal on this legislation several leading Democrats indicated that a bilateral agreement on the reconciliation bill was likely to include a plan to continue for the full expensing treatment for R&D expenditures through December 31st of 2025 and to delay the amortization requirements of such expenditures until January 1st of 2026.

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Texas Property Tax Legislative Update

The Regular Session of the 87th Texas Legislature adopted a number of changes that were favorable to Taxpayers.

According to HB1090, effective 9/1/21, the appraisal districts have less time to pick up erroneously omitted real property. Previously, the districts had five years to discover and correct the roll (which includes the back taxes, penalties, and interest); this period has now been reduced to three years. The personal property time period remains unchanged, at two years.

Also effective 9/1/21, taxpayers will now have two years to correct their personal property rendition filings. These returns are filed in Texas by April 15 (or by May 15 with extension), and given the chaos of the busy season…mistakes are frequent. The courts have historically been mixed regarding the taxpayer’s ability to “correct” those filings – so the legislature has resolved any such confusion.

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