"Today, we placed the franchise tag on Jadeveon Clowney, but our goal is to continue to work with his representation on a long-term contract," general manager Brian Gaine said in a statement. "This gives us both an opportunity to continue to do so."
The move was expected with both sides unable to agree on a multi-year deal.
Sides have until July 15 to hammer out a long-term solution.
The non-exclusive tag allows Clowney to negotiate with another team potentially, but Houston would get back two first-round picks in compensation. It's not expected a team would fork over two first-rounders for Clowney.
When the Texans officially announced the tag application, they defined Clowney as a "DE/OLB." It's unclear at the moment which position the team will officially pay him as. The defensive end tag sits at $17.128 million for one year. The linebacker tender is worth $15.443 million.
After injuries curtailed Clowney's production to open his career, the former No. 1 overall pick has compiled 18.5 sacks over the past two seasons. With his injury history, the Texans could use the tag season for the pass-rusher to prove he can stay healthy once again.