Acting Comptroller Kelly Hancock announced an update to the agency’s interpretation of Texas franchise tax depreciation rules. This update allows Texas businesses to take advantage of bonus depreciation authorized by the federal One Big Beautiful Bill Act of 2025.
Up until recently, the 2007 internal revenue code (IRC) was used for franchise tax depreciation. However, through a recent legal review, it was determined that Texas law is not tied to the 2007 IRC and can reflect the IRC in effect for each tax year for depreciation calculations.
The full press release from the Comptroller can be found here. Additional guidance on Texas franchise tax requirements can be found on the Comptroller’s website.
