Form Ap-234 - Texas Registration For Qualified Research And Development Sales Tax Exemption
Download a blank fillable Form Ap-234 - Texas Registration For Qualified Research And Development Sales Tax Exemption in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete Form Ap-234 - Texas Registration For Qualified Research And Development Sales Tax Exemption with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
2
3Texas Registration for Qualified Research
and Development Sales Tax Exemption
G L E N N H E G A R
T E X A S C O M P T R O L L E R O F P U B L I C A C C O U N T S
This form is used to register with the Comptroller as a person engaged in qualified research in Texas and to obtain a registration number
that can be used to claim an exemption from Texas sales and use tax when purchasing qualifying tangible personal property to be used
in qualified research.
General Information
What Types of Items Qualify for the Qualified Research Exemption?
The purchase, lease, rental, storage or use of depreciable tangible personal property directly used in qualified research is exempt. To
claim the exemption, the purchaser must include the Qualified Research Registration Number issued by the Comptroller on the Qualified
Research Sales and Use Tax Exemption Certificate (Form 01-931).
Depreciable tangible personal property is tangible personal property that:
• has a useful life of more than one year; and
• is subject to depreciation under either Generally Accepted Accounting Principles (GAAP) or Section 167 or 168 of the Internal Rev-
enue Code. For federal income tax purposes, a depreciation deduction, generally, is a reasonable allowance for the exhaustion, wear
and tear and, in some cases, the obsolescence of certain business-related or income-producing property. For the purpose of the
sales tax exemption, the depreciable item must be directly used in qualified research.
Examples of items that qualify for exemption include tools and machinery. Non-qualifying items include electricity and natural gas.
Qualified Research
“Qualified research” means research for which expenditures may be treated as expenses under Section 174, Internal Revenue Code.
The research must be undertaken to discover information that is technological in nature, and that will be applied in developing a new or
improved business component of the person undertaking the research. Substantially all of the activities of the research must be elements
of a process of experimentation relating to a new or improved function, performance, reliability or quality.
Non-Qualified Research
Qualified research does not include:
• research related to style, taste, cosmetic or seasonal design factors;
• research conducted after the beginning of commercial production of the business component;
• research adapting an existing product or process to a particular customer’s need;
• duplication of an existing product or process;
• surveys or studies;
• research relating to certain internal-use computer software;
• research conducted outside the United States, Puerto Rico or a U.S. possession;
• research in the social sciences, arts or humanities; or
• research funded by another person or governmental entity.
Annual Information Report Required
Persons claiming the sales tax exemption must submit an annual report that provides all information requested by the Comptroller’s office
as required by law, including the amount of qualified research performed in Texas, the number of employees engaged in research and
development in Texas and other data regarding sales tax and research expenditures. Reports are due March 31 each year and will cover
research activities conducted in the prior calendar year.
Failure to file the annual information report may result in revocation of the Qualified Research Registration Number.
Franchise Tax Research and Development Activities Credit
The law also provides for a research and development activities credit against the franchise tax. A person claiming the sales tax exemption
cannot claim the franchise tax credit for the same period.
Additional Information
Mail the completed application to
Comptroller of Public Accounts
111 E. 17th St.
Austin, TX 78774-0100
For more information, visit our Research and Development website at comptroller.texas.gov/taxes/qualified-research/. You can also
contact us online at comptroller.texas.gov/taxes/ or by phone at 1-800-252-5555.
Federal Privacy Act: Disclosure of your Social Security number is required and authorized under law, for the purpose of tax administration
and identification of any individual affected by applicable law. 42 U.S.C. §405(c)(2)(C)(i); Tex. Govt. Code §§403.011 and 403.078. Release
of information on this form in response to a public information request will be governed by the Public Information Act, Chapter 552, Govern-
ment Code, and applicable federal law.
You have certain rights under Chapters 552 and 559, Government Code, to review, request and correct information we have on file about
you. Contact us at the address or numbers listed on this form.
AP-234-1 (Rev.3-17/4)
ADVERTISEMENT
0 votes
Related Articles
Related forms
Form Ri-1120rd - Elective Deduction For New Research And Development Facilities To Be Filed By Corporations Only-attach To Form Ri-1120
Legal
Form Ri-1120rd - Elective Deduction For New Research And Development Facilities To Refilled By Corporations Only
Financial
Form Dtf-83 - 2007 - Application For Qualified Empire Zone Enterprise Sales Tax Certification
Financial
Form 54-064 - Combined Request For Pollution Control And Recycling Property Tax Exemption And Certification Of Pollution Control And Recycling Property
Financial
Related Categories
Parent category: Financial