Entrepreneurs and businesses looking to expand their operations or open a new business in Texas can benefit from the multitude of incentives available to them. Generally, such initiatives are aimed at helping businesses create jobs in the state, encouraging innovation and investment, and promoting economic development. Over the past two decades, Texas has implemented various tax credits, loan programs, and grant opportunities to incentivize businesses. Wherever you’re at in your business journey, it’s worth researching what kind of economic development tax incentives are available to you. We’ve highlighted some of the major incentives below.
Texas Enterprise Fund (TEF)
The purpose of this fund is to bring new businesses and investments into Texas, as well as encourage existing companies here to expand their operations. The money from the fund is used as an incentive for projects that are expected to create a lot of jobs and investment, as well as have a positive economic impact on the state.
Events Trust Fund (ETF)
The Events Trust Fund program dedicates a percentage of state and local taxes on sales, rentals, hotel rooms, and alcoholic beverages for a set period. The money is used to bring events to Texas, such as conventions and sporting competitions, to generate new revenue for local businesses. The venue is usually selected following a rather competitive selection process, with the region and impact on job growth being among major considerations.
Texas Emissions Reduction Plan (TERP)
This program incentivizes businesses to reduce their emissions through grants, low-interest loans, and tax incentives. The goal of this initiative is to improve air quality in Texas by encouraging companies to use clean energy sources or invest in emission-reducing technologies. Ultimately, this plan helps protect the environment while also allowing businesses to save money on their energy costs.
Skills Development Fund (SDF)
If you’re looking to create more jobs or train your current employees with new skills, the Skills Development Fund can be a great incentive. It helps pay for the costs of job training and employee education, such as tuition fees, instructor salaries, and program materials. The SDF provides funds in the form of grants to businesses on an annual basis. The whole purpose of this program is to improve the workforce and make sure employers have access to a highly skilled pool of workers.
Economic Development and Diversification In-State Tuition for Employees (EDDIT)
The Texas Residency for Tuition Purposes Program allows employees of a qualified organization (and their families) who reside out-of-state but may be considering relocating or expanding the company’s operations within Texas, to pay in-state tuition rates at any public university without having to establish residency first. The obvious upside of this incentive is that it makes relocating or expanding a business much more affordable for employees.
Conclusion
These major incentives demonstrate how committed Texas is to help businesses succeed and create jobs in the state. Whether you’re looking to open a new business or simply expand an existing one, taking advantage of the various incentives available can help your business grow. They can also be a great way for businesses to save money, invest in their operations and employees, and attract new talent.
