The booming economy in Texas is known for making and exporting plenty of products. Texas is a leading producer of oil, wind power, and wine, among other things. The Lone Star State is also a major center for manufacturing, mining, and technology. In the 4th quarter of 2022, the real Gross Domestic Product of Texas—the main measure of a region’s economy—was $2.5 trillion in goods and services per year. At the end of 2022, Texas accounted for 9.5% of the economy in the United States.
All of this production, growth, and success is due in part to the extremely business friendly environment of Texas. The state has relatively low taxes, a well-educated, skilled workforce, as well as favorable business regulations. For businesses looking to relocate or expand in Texas, there are many business incentives available. From tax breaks to grants to loans, there are different kinds of incentives that can help your business. Read on to learn more about how to find the right Texas business incentives for your company.
Learn about what’s available. There are different requirements for all of the business incentives in Texas. It’s a good idea to get familiar with and explore how some of these business benefits operate. Some of the more popular incentives for businesses in Texas include:
Texas Enterprise Fund (TEF): So many businesses have benefited from the TEF, a fund that awards deal-closing grants to companies in Texas. Through TEF, companies with projects that promise to contribute capital and offer new job opportunities for the Lone Star State can earn performance-based financial incentives. The job creation numbers for TEF must be higher than 75 full-time positions in urban areas or 25 full-time jobs in rural areas. As a part of the TEF requirements, the project must also be supported by the local city, county, or school district. In addition, average wages for new jobs must meet or exceed the average county wage.
Skills Development Fund: This fund focuses on the idea of upskilling—teaching employees additional skills and expanding their capabilities. The Skills Development Fund provides tailored training opportunities for Texas businesses and their employees so that they may sharpen skills and increase wages. The Texas Workforce Commission provides funding for this job-training program. The results of the Skills Development Fund: providing highly skilled employees for local businesses and trade unions.
The Texas Enterprise Zone (TEZ) Program: This state-funded program provides tax breaks, infrastructure funding, and other benefits to businesses that set up and create new jobs in designated enterprise zones. Enterprise zones are areas that the state notes as having high unemployment rates or other economic challenges.
Product Development and Small Business Incubator Fund (PDSBI): This fund focuses on helping companies grow. Loans for small business incubators and product development companies can help to finance the development and production of new or improved products. Loans can also finance the stimulation of new or existing small businesses in Texas. Any businesses that apply for this fund must have three years of operating history. Nanotechnology, biomedicine, biotech, renewables, agricultural, and aerospace companies are encouraged to apply for PDSBI.
Texas Small Business Credit Initiative: This initiative provides resources that can help small businesses to succeed and grow. In recent years, it has helped businesses that have been negatively impacted by the recent pandemic. This incentive is run by the US Department of Treasury.
Capital Access Program: Texas has teamed up with some lenders in order to increase access to financing for small businesses, medium-sized businesses, and some non-profits. Loans may be used for the purchase, construction, or lease of things like buildings or equipment as well as for working capital.
These are just a few examples of the many business incentives available in Texas. If you’re considering relocating or expanding your business to Texas, be sure to research your options. Better yet, reach out to experts that can help you determine how to maximize your business benefits in the Lone Star State.
The Texas Economic Development connection has made finding the right business incentives for your company easy. Traditionally, business owners would have to call economic development offices all over the state to figure out their best options for establishing a business in Texas. There would be hundreds of websites and cities to research. The Texas Economic Development Connection has created a better process for business owners; they can work with business owners to gather data, present comprehensive information, and help narrow choices regarding relocation to Texas. They can help you find the best location and the most beneficial incentives for your company. All of this comes at no cost to business owners.
Are you ready to move your business to a state that is set up to help you to grow and succeed? Consider the strong talent pool, the burgeoning business environment, and all the great incentives that are available in Texas. Get in touch with the Texas Economic Development Connection.
