Relating to a franchise tax credit for, and the application of sales and use taxes to, certain research and development expenses.

Creates a new 8.722% tax credit for qualified R&D expenses, with higher rates (10.903% and 5.451%) for expenses incurred through contracts with universities or when prior R&D expenses are zero.

Repeals Section 151.3182 and Subchapter M, which previously provided R&D tax credits, to eliminate overlap with the new program.

Defines 'qualified research expense' based on IRS Form 6765 and establishes rules for how expenses are calculated and verified.

Allows businesses that owe no franchise tax to receive the credit as a refundable amount, and permits combined reporting for corporate groups.

Sets the effective date as January 1, 2026, and allows unused credits to be carried forward for up to 20 consecutive reports.

Requires businesses to file amended reports if IRS audits change their qualified research expense amounts or taxable margins.