Texas Incentives Programs
Disclaimer: The material contained in this Summary of State Incentives is provided for informational purposes only and cannot be construed as a commitment. Assumptions are based on creating jobs and providing a capital investment. Total jobs and capital investment have been included as eligible costs for the various incentive programs available. However, actual jobs and capital investment may vary from the assumptions made due to final determination of program eligibility and site location, among other variables.
Texas Enterprise Fund
The Texas Enterprise Fund was created 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.
Projects that are considered for Enterprise Fund support must demonstrate a project’s worthiness, maximize the benefit to the State of Texas and realize a significant rate of return of the public dollars being used for economic development in Texas. Capital investment, job creation, wages generated, financial strength of the applicant, applicant’s business history, analysis of the relevant business sector, and federal and local government and private sector financial support of a project will all be significant factors in approving the use of the Enterprise Fund.
Event Trust Funds
The Event Trust Funds program applies local and state gains from sales and use, auto rental, hotel and alcoholic beverage taxes generated over a specified period of time. Eligible events are not restricted to sports, but the venue must have been selected through a highly competitive process.
The Event Trust Funds can be used to help pay costs related to preparing for or conducting an event, including equipment, or to pay principal and interest on notes used to build or improve facilities to host the proposed event. One hundred percent of allowable expenses can be funded provided sufficient tax receipts are deposited in the trust fund. The state has three separate event trust fund programs (the Events Trust Fund, Major Events Reimbursement Program and Motor Sports Racing Trust Fund), each designed to support different types of events.
Texas Enterprise Zone Program
Upon a community designating a business as an enterprise project, and upon that project’s designation being approved by the state, the business would be eligible for certain State sales and use tax refunds under the Texas Enterprise Zone Program,
Texas Capital Fund
The Texas Capital Fund Program, an economic development tool designed to provide financial resources to non-entitlement communities, primarily rural communities and counties like Corsicana and Navarro County. It is administered by the Texas Department of Agriculture.
The Texas Capital Fund Infrastructure Program is an economic development tool that provides grants for infrastructure development to create or retain permanent jobs in primarily rural communities and counties. Funds from this program can be utilized for public infrastructure (water, sewer, roads, etc.) needed to assist a business which commits to create and/or retain permanent jobs, primarily for low and moderate-income persons. The minimum award is $50,000 and the maximum is $1.5 million, and the award may not exceed 50 percent of the total project cost.
The Texas Capital Fund Real Estate Development Program provides a zero-interest loan for up to 20 years to fund real estate acquisition or improvements to create or retain permanent jobs in primarily rural communities and counties. Funds can be used by communities and counties for acquisition, new construction or rehabilitation. Awards range from $50,000 to $1.5 million.
The Texas Capital Fund Downtown Revitalization Program awards matching grant funds for public infrastructure to foster and stimulate economic development in rural downtown areas. Awards range from $50,000 to $150,000.
The Texas Capital Fund Main Street Improvements Program awards funds for public infrastructure in the applicant's Main Street area, as well as aiding in eliminating handicap barriers and deteriorated conditions in the downtown area.
State Sales & Use Tax Exemptions
Manufacturing Machinery & Equipment. To qualify for a manufacturing exemption, the taxpayer must manufacture, fabricate or process tangible personal property for sale; repair tangible personal property from their own inventory for sale (rebuilders); or repair tangible personal property from their own inventory for rental.
The manufacturing exemption does not extend to contractors, persons who repair property belonging to others and service providers (such as data processors and nonresidential remodelers) even when they manufacture tangible personal property for use in performing their services. Separately stating manufactured repair parts on a customer's invoice does not make the taxpayer a manufacturer eligible for this exemption. Click on link For more information.
Renewable Energy Incentives
Renewable energy incentives are administered through the State Energy Conservation Office (SECO). 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.
Texas LoanSTAR Revolving Loan Program
The Texas LoanSTAR (Saving Taxes and Resources) Revolving Loan Program finances energy-related, cost-reduction retrofits of facilities supported by the state, public school districts, public colleges and universities and public hospital taxing districts.
The Property Assessed Clean Energy (PACE) program provides low-cost, long-term financing for water and energy efficiency and conservation improvements to commercial and industrial properties.
The Alternative Fuels Program supports public fleets that deploy alternative fuel vehicles (AFVs) and build associated fueling infrastructure. The program thrives on strong local initiatives and a flexible approach to developing alternative fuels markets, providing participants with options to address problems unique to their cities and fostering partnerships to help overcome them.
Clean Energy Incubators
The State Energy Conservation Office supports clean energy company growth and development through the development and sustainability of Clean Energy Incubators at public universities in Texas.While its primary purpose is job creation through helping clean energy companies grow and develop, SECO seeks to create a sustainable Clean Energy Incubation network that works closely with both the public higher education institution and the surrounding community.
Texas Product Development & Small Business Incubator
The Texas Product Development and Small Business Incubator Fund (PDSBI) offers long-term asset-backed loans to near-bankable businesses commercializing new or improved products and small businesses or entities which foster growth of small businesses. The program targets those businesses which may be unable to obtain full financing or financing on workable terms in traditional capital markets.
Texas Leverage Fund
The Texas Leverage Fund is a loan program providing financing for qualified projects in Texas municipalities. The program allows communities to leverage future sales tax revenues to support economic development projects that promote business expansion, recruitment and exporting. The program is geared toward small, rural communities which may be unable to access traditional sources of infrastructure financing like municipal bonds.
Industrial Revenue Bond Program
Industrial Revenue Bonds (IRBs) provide a source of tax-exempt or taxable bond finance for projects involving significant private activity the promote new and existing businesses, encourage employment and expand th tax base of a community. IRBs are issued by Industrial Development Corporations sponsored by a government unit, but their proceeds are passed on to private businesses, which are generally responsible for debt service payment.
Texas Military Value Revolving Loan Fund
The Texas Military Value Revolving Loan Fund is designed to assist defense communities in enhancing the military value of a military facility in their area, provide assistance to defense communities for job creating economic development projects that minimize the negative effects of a defense base realignment or closure decision that occurred in 2005 or later and provide financial assistance to defense communities for an infrastructure project to accommodate new or expanded military missions resulting from a base realignment and closure decision that occurred in 2005 or later.
Texas Certified Capital Company
Texas Certified Capital Companies (CAPCOs) are government sponsored, private venture capital companies formed to stimulate job creation and to increase the availability of growth capital for small and expanding businesses located within the State of Texas. The CAPCO program is not a grant program. A CAPCO can however, provide investment funds as an alternative to traditional bank financing for a business if it qualifies by meeting certain criteria under the statutory guidelines.
Capital Access Program
The Capital Access Program was created to increase the availability of financing for businesses and nonprofit organizations that face barriers in accessing capital or fall outside the guidelines of conventional lending.
Skills Development Fund
The Skills Development Fund is Texas' premier job-training program providing local customized training opportunities for Texas businesses and workers to increase skill levels and wages of the Texas workforce. The Texas Workforce Commission administers funding for the program. Success is achieved through collaboration among businesses, public community ad technical colleges, Workforce Development Boards and economic development partners.
Skills for Small Business
Sills for Small Business finances the design and implementation of customized job training programs for newly hired employees of small businesses, successfully merging small business needs and local customized training opportunities into a winning formula for putting people to work in Texas.
Defense Economic Adjustment Assistance Grant Program
The Defense Economic Adjustment Assistance Grant Program (DEAAG) is an infrastructure grant program administered by the Texas Military Preparedness Commission (TMPC). The program is designed to assist defense communities that are responding to or recovering from a reduction or termination of defense contracts and those that have been positively affected with new or expanded military missions as well as qualified job retention.
Self Sufficiency Fund
The Self Sufficiency Fund provides training grants for industry recognized certificates and credentials that lead to permanent full-time employment.
Spaceport Trust Fund
The Spaceport Trust Fund (STF) provides funds for eligible entities to develop inftrastructure necessary or useful for establishing a spaceport in Texas. The office of the Governor's Economic Development & Tourism Division (EDT) is currently soliciting proposals for projects that provide for the development of spaceports in Texas.
Moving Image Industry Incentive Program
The Texas Moving Image Industry Incentive Program (TMIIIP) is designed to build the economy through the moving image industry and create jobs in Texas. TMIIIP provides qualifying film, television, commercial, visual effects and video game productions the opportunity to receive a cash grant based on a percentage of a project's eligible Texas expenditures.
Value Limitation Tax Credits
Chapter 313 allows a school district to offer a temporary, 10 year limit on the taxable value of a new investment project in manufacturing, and certain environmentally friendly energy projects. The limitation applies only to school district taxes levied for maintenance and operations (M&O); taxes for debt service are not subject to the limitation, nor do business inventories qualify. Before the school district can approve a limitation, the State Comptroller must issue a certificate of approval that finds the project will generate more tax revenue for the state than the amount of the benefit received by the taxpayer.
For more information on the tax exemption, visit the State Energy Conservation Office website, or contact the Comptroller of Public Accounts.