Tex. Tax Code § 171.9208: CARRYFORWARD.

(a) If a taxable entity is eligible for a credit that exceeds the limitation under Section 171.9207, the entity may carry the unused credit forward for not more than 20 consecutive reports.

(b) Credits, including credit carryforwards, are considered used in the following order:

(1) a credit carryforward of unused credits accrued under Subchapter O before its repeal on January 1, 2008, and claimed as authorized by Section 18(d), Chapter 1 (H.B. 3), Acts of the 79th Legislature, 3rd Called Session, 2006;

(2) a credit carryforward of unused credits accrued under Subchapter M before its repeal on January 1, 2026, and claimed as authorized by Section 4, _.B. _, Regular Session, 2025;

(3) a credit carryforward under this subchapter; and

(4) a current year credit.

Added by Acts 2025, 89th Leg., R.S., Ch. 1183 (S.B. 2206), Sec. 1, eff. January 1, 2026.