Texas Incentives for Companies
Texas incentives for companies are hard to beat. Texas is known for its business-friendly environment, and recent improvements have made it even easier to do business in the Lone Star State. Texas offers several incentives and tax breaks to make the process more affordable if you want to relocate your company. This blog post will discuss the key benefits of doing business in Texas and some of the most notable state incentives for corporate relocation.
Key Benefits of Doing Business in Texas
Did you know that Texas has won Site Selection magazine’s?Governor’s Cup ?for a record-shattering tenth year in a row? The award highlights top-performing states for job creation and capital investment. Texas has a solid business foundation and continues to be a top state for job creation.
Texas also leads the way in the number of Fortune 500 companies headquartered here. A whopping 53 highly profitable businesses have relocated to the Lone Star State. These businesses include Exxon Mobil, AT&T, and the recently relocated Tesla and Hewlett Packard Enterprise. (Holmes, 2022)
While your business may not be more than 10 employees, large corporate relocation means a healthier business climate for everyone. Whether you’re a service business or a technology start-up, there’s room for everyone.
Some key business benefits in Texas are access to a highly diverse and skilled workforce, a business-friendly climate (with no personal or corporate income tax), robust infrastructure, affordable real estate, and easy access to global markets. Texas offers this unmatched combination of unique competitive business advantages, making it a preferred destination for corporations.
Texas State Incentives for Companies Wanting to Relocate
If you’re considering relocating your company to Texas, several state incentives can help offset moving costs. These programs include:
The Texas Enterprise Fund (TEF)
The TEF is a grant program funding businesses relocating or expanding in Texas. It is the largest ‘deal-closing’ fund of its kind in the country. The TEF is a performance-based financial incentive tool for projects offering significant projected capital investment and job creation. According to the?government , since its inception, TEF has awarded approximately $595 million to companies that have committed to an expansion or relocation in Texas.
The Texas Enterprise Zone Program (EZP)
The EZP offers tax breaks and other incentives to businesses in designated enterprise zones. It is an economic development tool for local communities to partner with the state. It aims to promote job creation and private investment to assist economically distressed areas of the state.
The Product Development & Small Business Incubator Fund (PDSBI)
The PDSBI is a revolving loan program financed through original bond issuances. The program aims to foster and stimulate small businesses in Texas. The program’s primary objective is to help develop, produce, and commercialize new or improved products.
Business Relocation Tax Deduction
The Business Relocation Tax Deduction allows a company relocating its headquarters to Texas from out of state to deduct relocation and moving expenses from their margin when calculating franchise tax liability.
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Freeport Exemptions
Freeport Exemptions allow tax exemption for certain goods that enter and leave Texas within 175 days.
Self-Sufficiency Fund
The Self-Sufficiency Fund is a job training program specially designed for individuals that receive Temporary Assistance for Needy Families (TANF). The Self-Sufficiency Fund’s goal is to assist TANF recipients in becoming independent of government financial assistance. The Texas Workforce Commission administers the program and links local educational institutions to the business community.
In addition to the above, local communities offer a variety of solutions and tax incentives for businesses expanding in or relocating to Texas. Some examples are local cash grants, property tax abatements, fee waiver permissions, and local funding for business-related infrastructure and recruitment, equipment, land, and economic development purposes. (Texas Economic Development)
The decision to relocate is essential and should be taken after careful consideration. Sometimes businesses may find relocation challenging and even overwhelming. The uncertainty can daunt you and leave you confused about where to start.
We advise seeking professional help for any business relocation. A local commercial real estate company with an on-ground knowledge of the city and its related laws and amenities can help you find the best commercial property and assist you in shifting your business operations to Texas smoothly.
Oliver Commercial Real Estate Understand Your Business Needs??
Our commercial spaces are in convenient and accessible areas of Houston, from the Houston Ship Channel to The Woodlands. Our team of locally qualified agents and property managers will do a needs analysis with you to deliver the best possible relocation solution.
Some of our services include:
Feel free to contact?Oliver CRE ?at (281) 558-1111 to schedule an appointment.
Works Cited
Holmes, Frank. “Texas Is Now Home to More Fortune 500 Companies than Any Other State, and I’m Not Surprised.”?Forbes, Forbes Magazine, 30 May 2022,
www.forbes.com/sites/greatspeculations/2022/05/26/texas-is-now-home-to-more-fortune-500-companies-than-any-other-state-and-im-not-surprised/?sh=2e70046b27d5.
Texas Economic Development. “Incentive Programs.”?Incentive Programs | Texas Economic Development | Office of the Texas Governor | Greg Abbott,
gov.texas.gov/business/page/incentives.