Tex. Codes » Tax Code · TITLE 2. STATE TAXATION · SUBTITLE F. FRANCHISE TAX; CREDITS · CHAPTER 171. FRANCHISE TAX
Texas Codes

Tex. Tax Code § 171.109 (2026)

Deduction Of Relocation Costs By Certain Taxable Entities From Margin Apportioned To This State

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Sec. 171.109. DEDUCTION OF RELOCATION COSTS BY CERTAIN TAXABLE ENTITIES FROM MARGIN APPORTIONED TO THIS STATE. (a) In this section, "relocation costs" means the costs incurred by a taxable entity to relocate the taxable entity's main office or other principal place of business from one location to another. The term includes:

(1) costs of relocating computers and peripherals, other business supplies, furniture, and inventory; and

(2) any other costs related to the relocation that are allowable deductions for federal income tax purposes.

(b) Subject to Subsection (c), a taxable entity may deduct from its apportioned margin relocation costs incurred in relocating the taxable entity's main office or other principal place of business to this state from another state if the taxable entity:

(1) did not do business in this state before relocating the taxable entity's main office or other principal place of business to this state; and

(2) is not a member of an affiliated group engaged in a unitary business, another member of which is doing business in this state on the date the taxable entity relocates the taxable entity's main office or other principal place of business to this state.

(c) A taxable entity must take the deduction authorized by Subsection (b) on the report based on the taxable entity's initial period described by Section 171.151(1).

(d) On the comptroller's request, a taxable entity that takes a deduction authorized by this section shall file with the comptroller proof of the deducted relocation costs.

Added by Acts 2013, 83rd Leg., R.S., Ch. 1232 (H.B. 500), Sec. 13(a), eff. September 1, 2013.

Notes of Decisions
Cited in 26 cases, 1992–2014 · leading case: Sharp v. Caterpillar, Inc., 932 S.W.2d 230 (Tex. App.—Austin 1996).
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Sharp v. Caterpillar, Inc., 932 S.W.2d 230 (Tex. App.—Austin 1996). · cites it 6× “See Tex. Tax Code Ann. § 171.109 (a)(1) (West 1992).”
El Paso Nat. Gas Co. v. Strayhorn, 208 S.W.3d 676 (Tex. App.—Texarkana 2006). · cites it 6× “See Tex. Tax Code Ann. § 171.109 (g). 3 Likewise, in February 1991, the Comptroller changed its policy in order to permit use of either method.”
Cent. Power & Light Co. v. Sharp, 919 S.W.2d 485 (Tex. App.—Austin 1996). · cites it 4× “547 (West 1995); Tex. Tax Code Ann. § 171.109 (West 1992 & Supp.”
Gen. Dynamics Corp. v. Sharp, 919 S.W.2d 861 (Tex. App.—Austin 1996). · cites it 2× “Tex.Tax Code Ann. § 171.109(a)(1) (West 1992).”
Rylander v. 3 Beall Bros. 3, 2 S.W.3d 562 (Tex. App.—Austin 1999). · cites it 2× “See Tex. Tax Code Ann. § 171.109 (a)(1) (West 1992).”
Rylander v. B & a Mktg. Co. ex rel. Atl. Richfield Co., 997 S.W.2d 326 (Tex. App.—Austin 1999). · cites it 2× “See Tex. Tax Code Ann. § 171.101 (a)(1) (West 1992).”
Williams v. Adams, 74 S.W.3d 437 (Tex. App.—Corpus Christi 2002). “” Tex. Tax. Code Ann. § 171.109 (a)(3) (Vernon 1992).”
Wilburn v. State, 824 S.W.2d 755 (Tex. App.—Austin 1992). “Tex.Tax Code Ann. § 171.109(a)(3) (Supp.1992).”
Ray v. Texas State Bd. of Pub. Acct., 4 S.W.3d 429 (Tex. App.—Austin 1999). “at 492; see also Tex. Tax Code Ann. § 171.109 (b) (West 1992); 34 Tex.”
Trammell v. Galaxy Ranch Sch., L.P., 246 S.W.3d 815 (Tex. App.—Dallas 2008). “” Tex. Tax Code Ann. § 171.109 (a)(3) (Vernon Supp.”
El Paso Nat. Gas Co. v. Carole Keeton Strayhorn, No. 06-05-00059-CV (Tex. App.—Texarkana Oct. 18, 2006). · cites it 5× “See Tex. Tax Code Ann. § 171.109 (g). (3) Likewise, in February 1991, the Comptroller changed its policy in order to permit use of either method.”
John Sharp v. Caterpillar, Inc., No. 03-95-00272-CV (Tex. App.—Austin Sept. 18, 1996). · cites it 6× “Laws 1734 , 1734-35 ( Tex. Tax Code Ann. § 171.109 (a), since amended).”
Show all 26 citing cases →
Tex. Tax Code § 171.109(a): 1 case
Sharp v. Caterpillar, Inc., 932 S.W.2d 230 (Tex. App.—Austin 1996). “See Tex. Tax Code Ann. § 171.109 (a)(1) (West 1992).”
Tex. Tax Code § 171.109(a)(1): 2 cases
Sharp v. Caterpillar, Inc., 932 S.W.2d 230 (Tex. App.—Austin 1996). “See Tex. Tax Code Ann. § 171.109 (a)(1) (West 1992).”
Gen. Dynamics Corp. v. Sharp, 919 S.W.2d 861 (Tex. App.—Austin 1996). “Tex.Tax Code Ann. § 171.109(a)(1) (West 1992).”
Tex. Tax Code § 171.109(a)(2): 1 case
Gen. Dynamics Corp. v. Sharp, 919 S.W.2d 861 (Tex. App.—Austin 1996). “Tex.Tax Code Ann. § 171.109(a)(1) (West 1992).”
Tex. Tax Code § 171.109(a)(3): 1 case
Wilburn v. State, 824 S.W.2d 755 (Tex. App.—Austin 1992). “Tex.Tax Code Ann. § 171.109(a)(3) (Supp.1992).”
Tex. Tax Code § 171.109(b): 1 case
Cent. Power & Light Co. v. Sharp, 919 S.W.2d 485 (Tex. App.—Austin 1996). “547 (West 1995); Tex. Tax Code Ann. § 171.109 (West 1992 & Supp.”
Tex. Tax Code § 171.109(i): 1 case
Sharp v. Caterpillar, Inc., 932 S.W.2d 230 (Tex. App.—Austin 1996). “See Tex. Tax Code Ann. § 171.109 (a)(1) (West 1992).”
Tex. Tax Code § 171.109(j): 1 case
Sharp v. Caterpillar, Inc., 932 S.W.2d 230 (Tex. App.—Austin 1996). “See Tex. Tax Code Ann. § 171.109 (a)(1) (West 1992).”
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