Texas Business Incentives

 

Texas Enterprise Fund
Projects that are considered for TEF support must demonstrate a project’s worthiness, maximize the benefit to the state and realize a significant rate of return of the public dollars being used for economic development in Texas.

Skills Development Fund
An innovative program created to assist Texas public community and technical colleges finance customized job training for their local businesses.

Self-Sufficiency Fund
A job-training program that is specifically designed for individuals that receive Temporary Assistance for Needy Families (TANF).

Texas Enterprise Zone Program
Under the statewide cap of 105 projects per biennium a community with less than 250,000 in population may have up to six enterprise projects. A community with 250,000 in population or greater may have up to nine enterprise projects.

Governor’s University Research Initiative
Enacted in 2015 by the 84th Legislature with a goal to bring the best and brightest distinguished researchers in the world to Texas.

Texas Capital Fund Infrastructure / Real Estate Programs
Economic development tools designed to provide financial resources to non-entitlement communities.

State Sales and Use Tax Exemptions
Manufacturing Machinery & Equipment
Natural Gas & Electricity
Data Center Exemption

Franchise Tax Deduction for Business Relocation
Effective Jan 1, 2014 House Bill 500 provides authorization for a company to deduct moving expenses from their apportioned
margin while calculating their franchise liability.

Chapter 380 /381 Economic Development Agreements
Authorizes municipalities to offer a range of incentives designed to
promote state or local economic development.

Texas Leverage Fund
Provides a source of financing to communities that have adopted an economic development sales tax. Communities may leverage future sales tax revenues to expand economic development through business expansions, business recruitment and exporting.

Event Trust Funds
Applies local and state gains from sales and use, auto rental, hotel and alcoholic beverage taxes generated over a specified period of time.

Bonds: Sales Tax, Exempt-Facility and Tax-Exempt Industrial Revenue
Sales Tax Bonds
Exempt-Facility Bonds
Tax-Exempt Industrial Revenue Bonds

 

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Defense Economic Adjustment Assistance Grant Program (DEAAG)
A job creation grant program designed to assist adversely impacted defense communities that are responding to or recovering from a U.S. Department of Defense Base Realignment
and Closure (BRAC) action, or reductions or termination of defense contracts.

Texas Military Value Revolving Loan Fund
The Revolving Loan Fund provides a low cost source of revenue to eligible communities who meet the application criteria.

Texas Product Development & Small Business Incubator Fund (PDSBI)
A revolving loan program financed through original bond issuances. The primary objective of the program is to aid in the development, production and commercialization of new or improved products and to foster and stimulate small business in the state.

Research & Development Tax Credit
Provides companies a choice between a franchise tax credit and a sales tax exemption for materials, software, and equipment used for R&D purposes.

Texas Economic Development Act
It requires companies to invest a specified amount of money to qualify for a ten year limitation on the appraised value of a property for the maintenance and operations portion of the school district property tax.

Ad Valorem/Property Tax Exemption
Freeport Exemption
Goods-in-Transit Incentive
Pollution Control Equipment Incentive

Renewable Energy Incentives
Tax Code Section 171.056 extends a franchise tax exemption to manufacturers, sellers, or installers of solar energy devices. The state also permits a corporate deduction from the state’s franchise tax for renewable energy sources.

Permit Assistance 
TCEQ and the Office of the Governor Economic Development & Tourism division have established a relationship to assist companies, which may experience unwarranted delays in their environmental permitting process for projects that could affect job creation or have a high economic impact.

Moving Image Industry Incentive Program
The program is designed to provide grants to qualified applicant production companies to promote film, television, video game, animation and commercial industry and workforce growth in Texas.

Cancer Prevention and Research General Obligation Bonds
On November 6, 2007, Texas voters approved Proposition 15 – HJR 90, the constitutional amendment which allows the State of Texas to establish the Cancer Prevention and Research Institute of Texas (the Institute) and allows the Institute to issue $3 billion in general obligation bonds over ten years to fund grants for cancer research and prevention.

Economic Development and Diversification In-State Tuition for Employees
May be offered to qualified businesses that are in the decision-making process to relocate or expand their operations into Texas. The incentive is targeted to assist high impact projects that are linked to the strategic economic clusters identified in the state.