Texas Taxes & Incentives

A low tax burden and robust incentives let companies grow their workforce and boost their bottom line.

Texas promotes a healthy business climate and economic development opportunities with a low tax burden and comprehensive incentive and financing options for companies locating and expanding in the Lone Star State. Without corporate or personal income taxes, entrepreneurs are given freedom to flourish and companies in Texas are able to invest in growing their workforce, improving facilities, and boosting their bottom line. Here are some of the reasons why Texas is the best location for companies:

Texas Tax Incentives

With a predictable regulatory climate, young, diverse and skilled workforce, and world-class infrastructure, it’s no surprise that CEOs have rated Texas the “Best State for Business” for 20 years in a row.

Businesses can take advantage of many Texas tax incentives, including no corporate or personal income tax. Additionally, Texas offers tax incentives for franchise business relocation, renewable energy incentives, research and development tax credits, and other state sales and use tax exemptions.

The Texas Enterprise Zone Program (EZP) is a state sales and use tax refund program designed to encourage private investment and job creation in economically distressed areas of the state.

State Economic Development Incentives

Compared to other states, Texas economic development incentives are robust and wide-ranging. The Lone Star State is continually targeting diversified industry development to maintain a thriving mix of business enterprises.

The Texas Enterprise Fund (TEF), for instance, is one of the largest “deal-closing” funds of its kind in the country and is a performance-based incentive for companies whose projects contribute significant capital investment and jobs to the state’s economy. Companies considering Texas and another out-of-state site for their facility opening or expansion can be offered competitive, performance-based grants that enable them to make capital and workforce investments to get their projects off the ground.

Additional incentives are available for major event funding, university research initiatives, job creation, new product development, skills training, and education for relocating employees and their families.

Financing Incentives

Companies relocating or expanding in Texas may be eligible for asset-based loans, leveraged loans, or tax-exempt bonds. A few of the most popular options include:

• The State of Texas Industrial Revenue Bond Program
• Texas Military Value Revolving Loan Fund

Grants

Many types of grants are available to Texas communities, certain Texas higher education institutions and businesses, notably:

• Cancer Prevention & Research General Obligation Bonds Program
• Defense Economic Readjustment Zone Program (DEAAG)
• Governor’s University Research Initiative (GURI)
• Skills Development Fund
• Self-Sufficiency Fund
• Texas Enterprise Fund (TEF)
• Texas Moving Image Industry Incentive Program

Learn More About Texas Economic Development Incentives

The Texas Economic Development Corporation works with the Governor’s Office of Texas Economic Development & Tourism to ensure that your business can take advantage of all the state resources and support at your disposal. Contact us for information on relocating your business to Texas, including economic development incentives and much more.