Texas takes the initiative to invest in its future by offering competitive incentives to companies who are creating jobs and driving innovation in Texas. The incentives in this section are a summary of the most commonly utilized state offerings administered by Economic Development Finance.

Texas Enterprise Fund

The fund is used as a performance-based 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.

Events Trust Funds

The Events 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 selection process.

Governor’s University Research Initiative

The Governor’s University Research Initiative grant program (GURI) has a goal to bring the best and brightest researchers in the world to the State of Texas. This program is a matching grant program to assist eligible institutions of higher education in recruiting distinguished researchers.

Texas Enterprise Zone Program

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.

Texas Small Business Credit Initiative

The Texas Small Business Credit Initiative (TSBCI) seeks to foster small business development and job creation by enhancing access to capital. This program focuses on providing resources for small businesses, with a particular emphasis on helping traditionally underserved businesses and those affected by the COVID-19 pandemic. Small businesses obtain funding through loans from financial institutions, and TSBCI works with financial institutions to support this process. 

With an allocation of $472 million, TSBCI represents a significant investment in Texas’ small business ecosystem. The State of Texas is actively monitoring updates from the U.S. Department of the Treasury to ensure optimal implementation of this initiative. 

Skills Development Fund

The Skills Development Fund is an innovative program created to assist Texas public community and technical colleges finance customized job training for their local businesses. The Fund was established by the Legislature in 1995 and is administered by the Texas Workforce Commission. Grants are provided to help companies and labor unions form partnerships with local community colleges and technical schools to provide custom job training. Average training costs is $2,000 per trainee; however, the benefit may vary depending on the proposal. 

Self-Sufficiency Fund

The Self-Sufficiency Fund is a job-training program that is specifically designed for individuals that receive Temporary Assistance for Needy Families (TANF). The program links the business community with local educational institutions and is administered by the Texas Workforce Commission. The goal of the Fund is to assist TANF recipients become independent of government financial assistance.

The Fund makes grants available to eligible public colleges or to eligible private, nonprofit organizations to provide customized job training and training support services for specific employers. A joint application from the employer and the eligible public college and/or eligible private, nonprofit organization is required to be submitted to the Local Workforce Development Board for review and comment prior to approval. 

Texas Jobs, Energy, Technology & Innovation (JETI)

The JETI Act is a new competitive economic incentive program used to attract large, capital-intensive economic development projects, bringing new capital investment and creating new, high-paying jobs in Texas communities. 

Texas Semiconductor Innovation Fund (TSIF)

The TSIF may be used to match funding to state entities, such as  institutions of higher education, for semiconductor research, design and manufacturing projects; and for grants to business entities with an established presence within the state of Texas to encourage economic development related to semiconductor manufacturing and design.

Texas Micro-Business Disaster Recovery (MBDR) Loan Program 

The Texas MBDR Loan Program provides zero-interest loans to eligible CDFIs for purposes of making interest-bearing loans to qualifying micro-businesses that have difficulty in accessing capital following a declared disaster. All income received on a loan made by a CDFI participating in the program is the property of the financial institution. Income received on a loan includes the payment of interest by a borrower micro-business and the administrative fees assessed by the CDFI.

Overall Benefits

By relocating to Texas, your business will benefit from a competitive advantage in operational savings, access to skilled labor, and seamless logistics that connect you to global markets. Whether you’re aiming to tap into innovation or scale your operations, Texas offers unparalleled resources, a welcoming regulatory environment, and a proven track record of fostering business success.

With the state’s unwavering commitment to economic development, now is the perfect time to take advantage of what Texas has to offer. Make Texas your company’s new home and unlock a world of opportunities!

Reference

https://gov.texas.gov/business/page/incentives