State of Texas Incentives
Texas Enterprise Fund Program
Texas Enterprise Fund was developed to provide financial resources to help strengthen the state’s economy. The Governor, Lieutenant Governor, and the Speaker of the House must unanimously agree to support the use of the Texas Enterprise Fund for each specific project.
Texas Enterprise Zone Program
Texas Enterprise Zone Program is an economic development tool for local communities to partner with the State of Texas to promote job creation and capital investment in economically distressed areas of Texas. The level and amount of refund is related to the capital investment and jobs created at the qualified business site.
Skills Development Fund
Created to assist Texas public community and technical colleges finance customized job training for their local businesses. Grants are provided to help companies and labor unions form partnerships with local community colleges and technical schools to provide custom job training.
Texas Economic Development Act
The Texas Economic Development Act allows for Texas school districts to offer temporary property tax limits to companies undertaking a large-scale capital investment project within the community. The project categories that are available under the current legislation include: manufacturing, research and development, clean coal projects, advanced energy projects, renewable energy electric generation, and nuclear power generation.
Texas Small Business Fund
Provides financing to foster and stimulate the development of small and medium sized businesses in Texas. Special funding preferences will be given to emerging technologies which include: semiconductors, nanotechnology, biotechnology, bio-medicine, renewable energy, and aerospace. Additional preference will apply to applicants that have acquired other sources of financing, or have formed companies within the State of Texas and are currently receiving assistance from the designated small business development centers or through the Small Business Innovation Research Program.
Pollution Control Property Tax Abatements
Available to companies with facilities, devices and equipment used to control air, water, or land pollution. Companies that wish to apply for tax relief for their efforts in controlling pollution may apply for a tax credit through the Texas Commission on Environmental Quality.
State Sales & Use Tax Exemptions
Manufacturing Machinery & Equipment: Texas companies are exempt from paying state sales and use tax on the purchase of machinery exclusively used in processing, packing, or marketing agricultural products by the original producer at a location operated by the original producer.
Natural Gas & Electricity: Texas companies are exempt from paying state and local sales tax and use tax on electricity and natural gas used in manufacturing, processing, or fabricating tangible personal property. The company must conduct a “predominant use study” that shows that at least 50% of the electricity or natural gas consumed by the business directly causes a physical change to a product.
Data Center Exemption: Texas provides a 100% exemption on sales tax for computers, equipment, cooling systems, power infrastructure, electricity and fuel for Data centers meeting the minimum thresholds of $200 million in capital investment, 20 new jobs, and an average salary of at least 120% of the county average salary.