Texas Comptroller Issues Guidance on Conforming Texas Franchise Tax to IRC

The Texas Comptroller of Public Accounts published a memo providing guidance on the conformity of the Texas franchise tax to the Internal Revenue Code (IRC). The guidance states that beginning with the 2026 franchise tax report, a taxable entity will determine amounts taken from the federal tax return under the federal tax law in effect for that federal tax year, unless the statute or rule references the IRC. This change applies to all components of the franchise tax. Where the statute or rule references the IRC, a taxable entity must compute such amounts under the 2007 IRC. On the 2026 ...