The Comptroller highlights franchise tax issues facing the construction industry in its August 2010 Tax Policy News.  In addition to explaining other franchise tax issues, the Comptroller explains her interpretation that Tax Code § 171.1012(i)’s special provision that allows certain businesses in the construction industry to take the cost of goods sold deduction limits the deduction’s eligibility only those entities who are “physically working on the real property and effecting a change to that property.”  Click here to review the August Tax Policy News. The August Tax Policy News also includes examples of how different franchise tax policies are applied in the construction industry.