# Texas Chamber Business News – March 25, 2025 | USLege > Economy Texas has long been known for its booming economy that supports a wide and diverse range of industries. Canonical: https://www.uslege.ai/news/texas-chamber-business-news-extending-rd-tax-incentives --- [News](/news)/[News](/news) Archive # Texas Chamber Business News – March 25, 2025 Extending R&D Tax Incentives Texas Chamber Business News March 25, 2025 This article is preserved from the Texas Chamber Business News archive. [Read the complete original issue](https://uslege.beehiiv.com/p/texas-chamber-business-news-81da). For current coverage, read [The Political Spotlight](/newsletters). ## Economy Texas has long been known for its booming economy that supports a wide and diverse range of industries. As our state solidifies its position as a global hub for innovation, it’s important we take the steps necessary to secure our leadership in the years and decades to come. Investment in Research and Development (R&D) helps [states attract high-impact industries](https://news.mit.edu/2020/state-rd-tax-credits-growth-new-businesses-0612?utm_source=www.txlege.news&utm_medium=newsletter&utm_campaign=texas-chamber-business-news&_bhlid=54b75c1eb813ace97b3b9b3be3be62ee32bcd013) like technology, healthcare, advanced manufacturing, and energy. The state’s current R&D tax incentives are set to expire in 2026. According to a [new study](https://www.texansforinnovation.com/new-economic-study-research-development-tax-credit-will-create-113000-jobs-generate-13-8-billion-in-additional-gross-state-product/?utm_source=www.txlege.news&utm_medium=newsletter&utm_campaign=texas-chamber-business-news&_bhlid=13e840bb0bc91e81500acc62c84e4fc0a68b6bdc) published by [Texans for Innovation](https://www.texansforinnovation.com/?utm_source=www.txlege.news&utm_medium=newsletter&utm_campaign=texas-chamber-business-news&_bhlid=0c4c735cc16ee3567bf8c45e86829cd4540e8074), extending these incentives could create thousands of jobs and generate billions in economic output over the next decade. As the study’s author, Dr. John W. Diamond of Rice University’s Baker Institute, [made clear](https://www.texansforinnovation.com/new-economic-study-research-development-tax-credit-will-create-113000-jobs-generate-13-8-billion-in-additional-gross-state-product/?utm_source=www.txlege.news&utm_medium=newsletter&utm_campaign=texas-chamber-business-news&_bhlid=dda9ca0b9e6fdd33431a513409fbd0bd8b8f5ea7): _“The question is not whether Texas can afford to extend the R&D tax credit, but instead whether Texas can afford not to extend the R&D tax credit.”_ ## Study The study finds that strategic investments in R&D incentives will lead to increased tax revenues and increased economic activity, particularly in high-wage, high-growth industries. The [study finds that within 20 years](https://www.texansforinnovation.com/new-economic-study-research-development-tax-credit-will-create-113000-jobs-generate-13-8-billion-in-additional-gross-state-product/?utm_source=www.txlege.news&utm_medium=newsletter&utm_campaign=texas-chamber-business-news&_bhlid=c770c58ea8cf445d474061518b308c4b789de8d8), Texas could see a net economic benefit of nearly $58.8 billion. A pair of bills currently before the Legislature would extend these expiring credits: [SB 2206](https://app.uslege.ai/bills/968868?utm_source=www.txlege.news&utm_medium=newsletter&utm_campaign=texas-chamber-business-news&_bhlid=5e8713f75dec03767d1eb6e2c595e1867bfd94b5) by Senators Paul Bettencourt and Joan Huffman and [HB 4393](https://app.uslege.ai/bills/970364?utm_source=www.txlege.news&utm_medium=newsletter&utm_campaign=texas-chamber-business-news&_bhlid=3375bd315e751493ec30343e066f8430e21c9e48) by Representative Charlie Geren. These bills would also benefit smaller businesses that already engage in R&D activities but may not yet qualify for Texas franchise tax credits. These businesses could apply for a rebate to reduce their state sales taxes, or carry those credits forward to apply to future franchise tax credits. [Other states are aggressively competing for R&D investments](https://ssti.org/blog/several-states-have-recently-proposed-or-implemented-rd-state-tax-credits?utm_source=www.txlege.news&utm_medium=newsletter&utm_campaign=texas-chamber-business-news&_bhlid=eee80c106304e03b76c6225fc2dcf407f62ed507). Supporters of the bills argue that extending R&D tax incentives is a proactive step to ensure our state remains a top destination for business and innovation, particularly as businesses seek to harness the power of artificial intelligence (AI) to enhance their operational efficiency and spur further economic growth. Both bills are awaiting referrals to committees. We hope you enjoyed today’s read! Stay connected with TXLege News on [X](https://x.com/TXLege_?utm_source=www.txlege.news&utm_medium=newsletter&utm_campaign=texas-chamber-business-news&_bhlid=90077d33280eb4b09ec562ab986afe42c842d8f6) and [LinkedIn](https://www.linkedin.com/company/txlege/?utm_source=www.txlege.news&utm_medium=newsletter&utm_campaign=texas-chamber-business-news&_bhlid=0a5baec763155083ad9f8a2df9d26638e6fe8f1e)! > 🚀✨ Reminder! Today is Space Day at the Texas Capitol! This week, Norman Garza, the inaugural Executive Director of the Texas Space Commission, joins Laura Davis to explore the state's growing role in the space economy 🌎✨ > > 🚀✨ New Bills & Business Podcast Episode Drops… [pic.twitter.com/tb91w8oybm](https://t.co/tb91w8oybm) > > — USLege (@USLege\_ai) [March 25, 2025](https://twitter.com/USLege_ai/status/1904541978148413477?ref_src=twsrc%5Etfw) ## More from _News._ [TXBIZNEWS Walmart Synthetic Dyes Elimination News October 8, 2025](/news/txbiznews-walmart-u-s-moves-to-eliminate-synthetic-dyes-across-all-private/) [TXBIZNEWS Texas Cyber Command Chief Appointed: New Initiatives October 2, 2025](/news/txbiznews-icymi-governor-abbott-appoints-first-texas-cyber-command-chief/) [TXBIZNEWS Rice's Arc: Boosting Houston Innovation Corridor September 30, 2025](/news/txbiznews-rice-universitys-arc-to-boost-houston-innovation-corridor/) While you're here ## The platform behind the _coverage._ USLege is the AI legislative intelligence platform for all 50 states plus federal: bill tracking, live hearing video, full transcripts, and cited AI answers. [Book a demo](/demo)