On May 13, 2015, the Texas Comptroller of Public Accounts Tax Policy Division announced a change to the deductibility of R&D costs in Cost of Goods Sold (COGS) on the Texas Franchise Tax Report. Under the prior policy, R&D costs were not to be included in COGS for non-producers. The new policy allows R&D costs to be included in COGS for all taxpayers. This policy change is effective retroactively for all open periods within the statute of limitations, as well as prospectively. Texas has a four-year statute of limitations. Taxpayers that are non-producers, and that have incurred R&D costs that were not previously included in the Texas COGS deduction, should consider whether refund opportunities are available.