State Incentives |
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Texas Enterprise Fund |
The Texas Enterprise Fund (TEF) is
the largest "deal-closing" fund of its kind in the nation. The fund is a
cash grant used as a financial incentive tool for projects that offer
significant projected job creation and capital investment, and where a
single Texas site is competing with another viable out-of-state option.
Award dollar amounts are determined using an
analytical model applied uniformly to each TEF applicant. This model
assures that the State of Texas will see a full return on its investment
within the period of a project contract due to the resulting increase
in estimated sales tax revenues. Variations in award amounts are
influenced by the number of jobs to be created, the expected time frame
for hiring, and the average wages paid. |
Texas Emerging Technology Fund
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The Texas Emerging Technology Fund
(TETF) is a cash grant program designed to help Texas create jobs and
grow the economy over the long-term by expediting the development and
commercialization of new technologies, and attracting and creating jobs
in technology fields that form the backbone of our economy. The program
works through partnerships between the State, higher education
institutions, and the private industry to focus greater attention on the
research, development, and commercialization of emerging technology.
Grants are awarded in commercialization, matching awards and research
superiority acquisition. |
Industrial Revenue Bond Program
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The State of Texas Industrial
Revenue Bond Program (IRB) is designed to provide tax-exempt or taxable
financing for eligible industrial or manufacturing projects as defined
in the Development Corporation Act of 1979. The Act allows cities,
counties and conservation and reclamation districts to form non-profit
industrial development corporations (IDCs) or authorities on their
behalf. The purpose is to provide bond financing for projects within
their jurisdiction. |
Texas Capital Fund |
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The Texas Capital Fund
Infrastructure/Real Estate Development Program is an economic
development tool designed to provide financial resources to
non-entitlement communities. Funds from this program can be utilized for
public infrastructure, or real estate development, needed to assist a
business which commits to create and/or retain permanent jobs, primarily
for low and moderate income persons. |
Texas Enterprise Zone Program |
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The Texas Enterprise Zone Program is
an economic development tool for local communities to partner with the
State of Texas to promote job creation and significant private
investment that will assist economically distressed areas of the State.
Approved projects are eligible to apply for state sales and use tax
refunds on qualified expenditures. The level and amount of refund is
related o the capital investment and jobs created at the qualified
business site.
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Manufacturing Exemptions |
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State sales and use tax exemptions
are available to taxpayers who manufacture, fabricate or process
tangible property for sale. The exemption generally applies to tangible
personal property involved in the manufacturing process. Texas
manufacturing companies may also be exempt from paying state sales and
use tax on electricity and natural gas used in the manufacture,
processing and fabrication of tangible personal property.
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Texas Economic Development Act |
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An appraised value limitation may be
extended to a taxpayer who agrees to build or install property and
create jobs in exchange for an eight-year limitation on the taxable
value of the property. The value limitation applies to the local school
district maintenance and operations tax portion of the property tax and a
tax credit.
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Data Center Incentives |
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A data center exemption applies to
state sales and use tax on certain items necessary and essential to the
operation of a qualified data center. The exemption is for state sales
tax only. Local sales taxes are due on purchases of the qualifying
items.
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R&D Tax Credit |
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The Research & Development tax
credit provides companies the option of selecting either a sales tax
exemption on property purchased by persons engaged in qualified research
activities, or the franchise tax credit, but not both.
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Pollution Control Equipment Incentive |
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A Texas constitutional amendment
providing an exemption from property taxation for pollution control was
approved in 1993. The intent was to ensure that compliance with
environmental mandates, through capital investments, did not result in
an increase in a facility's property taxes. The Pollution Control
Equipment Incentive provides a property tax exemption for property used
for pollution control purposes.
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Renewable Energy Incentives |
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Various tax exemptions, franchise
tax exemptions, and franchise tax deductions are available for renewable
energy equipment and systems. Renewable energy encompasses solar, wind,
ethanol and biodiesel energy.
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Skills Development Fund |
The Skills Development Fund is
Texas' premier job training program. The program provides grants to
community and technical colleges to develop customized job training
programs for businesses who want to train new workers or upgrade the
skills of their existing workforce.
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