Texas Recent News – Swanson Reed | Specialist R&D Tax Advisors

Texas Overhauls R&D Franchise Tax Credit and Advances Small‑Business Reforms

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June 2025 brought major legislative changes for Texas businesses, with new laws that both supercharge research and development (R&D) incentives and ease burdens for small businesses. These reforms underscore Texas’s commitment to remaining a business-friendly state while fostering innovation and entrepreneurship.

Enhanced Franchise Tax Credit for R&D

Governor Greg Abbott signed Senate Bill 2206 into law on June 17, 2025. The bill significantly strengthens the R&D franchise tax credit, increasing the rate from 5% to 8.722% for qualifying research expenses. The changes will take effect for franchise tax reports due on or after January 1, 2026.

This legislation also aligns Texas’s credit with federal R&D definitions, allowing businesses to reference IRS Form 6765 and supporting methodologies. Importantly, the credit is now permanent, removing its previous expiration date in 2026.

While the credit becomes more generous, it comes with a trade-off. The bill repeals the sales and use tax exemption for certain R&D-related property, effective January 1, 2026. Businesses will need to evaluate which benefit provides greater value under their specific circumstances.

Streamlining for Small Businesses

Also on June 17, Governor Abbott signed several bills designed to reduce barriers for small business owners. These include House Bills 346, 2464, and 5195, which together modernize filing systems, remove unnecessary regulation, and improve state digital services.

HB 346 enables expedited business filings and makes permanent the exemption from franchise taxes and fees for veteran-owned businesses.
HB 2464 limits the ability of cities to impose new regulations on certain home-based businesses.
HB 5195 directs state agencies to modernize their online platforms for improved access to business services.

Governor Abbott emphasized that small businesses account for nearly half of the state’s workforce and play a critical role in Texas’s economic success. These changes aim to remove obstacles that prevent entrepreneurs from growing and thriving.

Fort Worth Named Aviation and Defense Capital

In a symbolic move reinforcing the state’s support for regional innovation, Senate Concurrent Resolution 142 officially designates Fort Worth as the “aviation and defense capital of Texas.” This strengthens the city’s position as a national center for advanced manufacturing and aerospace development.

Next Steps for Business Leaders

With these new laws taking effect in 2026, companies should begin preparing now:

Review your R&D expenditures and consider transitioning to the enhanced franchise tax credit.
Confirm that your R&D documentation aligns with federal standards to ensure eligibility and audit readiness.
Take advantage of new filing options and tax relief programs-especially for veteran-owned and home-based businesses.
Watch for updates from state agencies as they modernize their online services under HB 5195.

These legislative changes send a clear signal: Texas intends to remain a top destination for innovation and small business success.

Axiom Space Partners with Prada on High End Spacesuit

Houston-based Axiom Space has partnered with Prada to bring fashion and function to new heights – astronomical heights. The startup has unveiled their brand new spacesuit at the International Astronautical Congress in Milan.

Any feasible spacesuit must be designed with all the threats of space in mind: the vacuum of space, the temperature of space, debris in space and more. While maintaining durability, the suite must also enable dexterity which means flexibility at the knees and elbows and maneuverability of the fingers.

While the partnership lends some flash and credence to the brand, the fashion mogul’s role in the suit design remains a mystery, likely due to its proprietary nature. That being said, Prada Group’s Chief Marketing Officer Lorenzo Bertelli did say the company brought expertise on “high-performance materials, features, and sewing techniques.”

Axiom’s AxEMU suit has already been through successful pressurized simulations with Artemis III partners. While the suit is a great achievement on its own, Axiom has bigger plans. The company has long planned to launch a commercial space station module to the International Space Station, and has ambitious plans to fly its own station as an ISS replacement in the 2030s.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Empowering Caregivers: Cariloop’s Commitment to Growth and Impact

Cariloop, Inc., a Texas-based caregiver support platform, has raised $20 million during their Series C funding round. Led by ABS Capital and supported by existing investors such as KCRise Fund, the funding is expected to fuel Cariloop’s growth and expand its support solutions, while deepening its ties to communities like Kansas City.

Since its inception, Cariloop has been dedicated to helping families manage their loved ones’ care needs by providing an employer-sponsored, digitally-powered caregiver support platform. With a focus on reducing stress and burnout for caregivers, Cariloop’s comprehensive solution has resonated with corporate investors and companies in Kansas City, driving increased productivity and reduced absenteeism for employers.

Recognizing the significance of local support, Cariloop has made deliberate efforts to partner with Kansas City-based employers and expand its on-the-ground efforts to reach more companies and caregivers in the community. By fostering these partnerships and creating new employment opportunities, Cariloop aims to have a positive economic development impact in Kansas City.

The Series C investment will enable Cariloop to further expand its market reach with employers and caregivers, while also making key investments in its digital and concierge-level offerings. With nearly 75 percent of employees balancing work with caregiving responsibilities, there is a significant opportunity for Cariloop to provide critical support to one of the largest employee population groups.

Cariloop’s revenue growth of nearly 300 percent over the last three years is a testament to the effectiveness of its solutions, landing the company on prestigious lists such as the Inc. 5000 and Deloitte Technology Fast 500. By working with employers of all sizes and industries, Cariloop aims to relieve the stress and anxiety felt by all caregivers, regardless of their career path or geographical location.

As Cariloop continues to grow, it remains committed to fulfilling KCRise Fund’s early and continued expectations, while keeping its focus on attracting top talent from the Kansas City talent pool. By serving more companies and caregivers in the community, Cariloop is making a meaningful impact on the lives of caregivers and their families, one partnership at a time.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Sage Geosystems Secures $17 Million to Build Commercial Geopressured Geothermal System

Sage Geosystems, a Houston-based company at the forefront of geothermal innovation, recently secured a significant $17 million Series A funding round. This investment serves as a major boost for their ambitious project: constructing the world’s first commercial geopressured geothermal (GGS) facility in Texas.

Geothermal energy, which utilizes the Earth’s internal heat to generate electricity, holds immense potential as a clean and sustainable energy source. However, traditional geothermal systems rely on accessing hot rock formations deep underground, which can be geographically limited and require complex drilling techniques.

Sage Geosystems takes a novel approach by tapping into geopressured reservoirs. These naturally occurring underground formations contain hot brine under immense pressure. This unique combination of heat and pressure allows Sage Geosystems to generate electricity without the need for deep drilling, making their technology more scalable and adaptable compared to traditional methods.

The $17 million funding will be directed towards the construction of a three-megawatt (MW) GGS facility in Texas. This pilot project represents a significant step forward in proving the commercial viability of geopressured geothermal technology.

The potential benefits of Sage Geosystems’ innovation are multifaceted:

Clean and Sustainable Energy: GGS technology offers a reliable and baseload renewable energy source, contributing to the reduction of greenhouse gas emissions and dependence on fossil fuels.
Scalability and Adaptability: Unlike traditional geothermal methods, GGS systems can potentially be deployed in various locations with geopressured resources, making them a more widely applicable solution.
Economic Benefits: The development of this technology has the potential to create new jobs and stimulate economic growth in the regions where it is implemented.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

XCharge’s Texas Expansion: Igniting EV Charging Solutions with a Cutting-Edge Factory

The future of electric vehicles (EVs) is rapidly evolving, and the charging infrastructure is a make or break part of its growth. XCharge North America is taking a significant step towards shaping this future by establishing a production facility in the USA. Located in Kyle, Texas, this factory will pave the way for advanced DC fast charger manufacturing, contributing to the growth of EV adoption in the country.

Spanning an initial area of around 325 square meters, the new facility will expand to an impressive 1,858 square meters in the years to come. Situated in an industrial park, this facility will become a hub of innovation for the EV charging industry. This strategic location between Austin and San Antonio places it in a prime spot to cater to the EV charging needs of the region.

XCharge’s offerings include the powerful C6 DC charging station with up to 150 kW of power, as well as the Net Zero series. The Net Zero series, equipped with batteries from BYD for buffer storage, provides up to 210 kW of power for simultaneous charging of two electric vehicles. Moreover, this series features a Battery2Grid function, allowing surplus energy to be sold back to the grid during peak hours.

While the specific charging ports to be offered in the Texas-made charging posts are not disclosed in the announcement, XCharge NA’s focus is clear: to provide cost-efficient innovative EV solutions tailored to alleviate grid constraints and enhance EV accessibility. This dedication to innovative solutions that suit the local grid infrastructure sets XCharge in the rapidly evolving EV landscape.

Aatish Patel, President and Co-Founder of XCharge NA, emphasized the company’s commitment to partnership with the local community, including institutions like Texas State University. This collaborative approach aligns with XCharge NA’s vision of increasing job opportunities and driving economic growth through its operations.

By establishing this production facility in Texas, XCharge North America is not only contributing to the growth of EV charging infrastructure but also demonstrating the company’s dedication to enhancing EV accessibility, viability, and sustainability as a viable alternative transportation option. As EV adoption continues to rise, XCharge NA’s innovative solutions will play a pivotal role in shaping the future of transportation and energy.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

KULR Technology Group Brings R&D to Texas

KULR Technology Group Inc., a disruptive thermal management technology company, has opened a new R&D center in Webster, Texas.

The company is focused on developing technologies to fulfill the unmet needs in the thermal management systems market. Their integrated design incorporates thermal interface materials, lightweight heat exchangers, and protection against lithium-ion battery thermal runaway propagation.

The new facility will help the company accommodate their increasing battery development engagements in 2023 and beyond. In fact, the company’s CTO Dr. Will Walker believes the new center will usher in the next phase of KULR’s expansion and growth.

The company said its sales, marketing, project management, quality control, and customer care divisions would continue to be headquartered in San Diego, California, however, the Webster facility’s design could accommodate future expansion as KULR continues to invest in people and assets in Texas.

The company expects the Webster facility to be fully operational by April 2023.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Plus Therapeutics Awarded $17.6 Million from State of Texas

Plus Therapeutics, Inc. has recently announced it has been awarded a $17.6 million Product Development Research grant by the Cancer Prevention and Research Institute of Texas (CPRIT). This grant will help fund the continued development of their lead investigational targeted radiotherapeutic, Rhenium-186 NanoLiposome (186RNL), for the treatment of patients with leptomeningeal metastases (LM).

This clinical-stage pharmaceutical company has focused their expertise on developing innovative, targeted radiotherapeutics for rare and difficult-to-treat cancers. LM is one of the most devastating and aggressive late-stage cancer complications. It’s this complication that characterizes the primary cancer spreading to the central nervous system. With promising results from Plus Therapeutics, the FDA has granted Fast Track designation to 186RNL for the treatment of LM.

“The Plus team is honored to receive this significant and esteemed award from CPRIT,” said Marc H. Hedrick M.D., President and Chief Executive Officer of Plus Therapeutics. “We expect that the non-dilutive funding from CPRIT will come on-line next month once the award agreement is finalized and this will significantly offset our longer-term, three-year capital requirements for the advancement of our LM program.”

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Cleerly Brought $192M in Series C Funding

Cleerly, Inc., a New York-based startup, has announced a successful Series C funding which brought in $192 million, effectively quadrupling their previous funding.

The company is developing artificial intelligence capable of predicting heart attacks. The investment came after the company proved their noninvasive solution is on par with the current gold standard of coronary angiography in spotting signs of heart disease. The funding will help Cleerly in their efforts to bring the technology global.

Cleerly intends to direct the money towards building out their team, expanding the commercial reach of their software, and supporting more than a dozen ongoing clinical trials to further back up the technology’s claims.

The Series C funding round was led by T. Rowe Price Associates, T. Rowe Price Investment Management and Fidelity Management and Research Company. This large infusion follows shortly after a Series B funding round announced in June, which brought in $43 million.

The software analyzes noninvasive CT angiography scans of the heart to both characterize and measure the amount of plaque built up in the arteries. By evaluating the likelihood that those build-ups could completely cut off the supply of oxygen to a patient’s heart, the software is able to identify early signs of heart disease and calculate the risk that a patient will experience a heart attack.

The system is powered by a database of millions of previously assessed CT images, as well as data collected in clinical trials spanning thousands of patients. Cleerly is aiming to further expand that repository with its ongoing studies, which plan to enroll more than 100,000 patients from across the globe within the next decade.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

BEMY Cosmetics Selected for MassChallenge’s 2022 Cohort

BEMY Cosmetics is one of 7 Houston startups chosen for MassChallenge’s 2022 United States cohort of early-stage startups. MassChallenge is the global network for innovators who are working to solve massive challenges.

As a selected startup, BEMY will be eligible for equity-free cash prizes of as much as $1 million. The company will also have access to MassChallenge’s new residency program, allowing the founder teams to travel between the various MassChallenge hubs.

BEMY set out to revolutionize the cosmetic industry through the advancement of rejuvenating adult human cells for mass market-oriented and personalized products. The idea came about when the founders decided to combine proven RNA technology with personalized skin cream. Between expertise and a novel idea, BEMY quickly became the first and only company in the world to use RNA reprogramming technologies for rejuvenating adult human skin cells.

This has been no easy task, requiring years of experimentation and engineering to develop this solution. From prototypes to patents, the startup has overcome extensive uncertainties. Their technology reprograms adult human skin cells, returning them to a near embryonic elasticity, ensuring the results have all the benefits and none of the ethical risk of embryonic stem cell technologies. The process requires the collection of your own skin cells, from a small and gentle scrape along your skin, before developing a personalized extract capable of rejuvenating your skin.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

FluxWorks Wins Texas A&M New Venture Competition

Rhode Island Patent of the Month - December 2021

FluxWorks, LLC, a Texas-based startup, has recently won the Texas A&M New Venture Competition, taking home the top prize at the state wide event. The company had to impress a panel of judges with a 20 minute pitch and Q&A session.

In addition to the $35,000 prize, the company made connections with 5 sponsors who they will continue to work with in the future. These sponsors include Aggieland Business Park, Brazos Valley Economic Development Corporation, Stibbs & Co., Knobbe Martens, and Versa Business Partners.

The startup was founded in 2021 with the intention of developing and commercializing magnetic gear technologies. These technologies are developed at the Advanced Electric Machines and Power Electronics Lab (EMPE) at Texas A&M University. These efforts culminated more than ten years of efforts of four generations of PhD students and millions of dollars of R&D yielding over 10 prototypes.

Machines with integrated magnetic gears are lighter, smaller, and less costly than any equivalent low rpm direct drive motor.

Bryton Praslicka, president and CEO of FluxWorks LLC, said they are pursuing the free drone market due to sector growth. With its magnetic gear technology, Praslicka said the company plans to reduce drone noise by 83% and reduce CO2 emissions by having more electric delivery drones up and running.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.