Texas Reigns as the Best State for Business
From a skilled, growing workforce to low taxes and competitive incentives, everything is bigger and better in Texas.
From a civilian workforce of more than 14 million, to unrivaled investment in accessible infrastructure, to one of the nation’s largest deal-closing funds — Texas is proud to offer the most advantageous business climate for expanding and relocating companies. It’s why Toyota and Charles Schwab have moved their corporate headquarters from California to Texas; Apple has broken ground on a new Austin campus that will initially house 5,000 employees with the ability to grow to 15,000; Tesla relocated their headquarters to Texas and SpaceX has continued to invest throughout the state in office, development and space launch facilities.
Texas offers businesses the freedom to be successful and for their employees to be successful. Texas has no personal or corporate state income tax and a reasonable regulatory climate. Chief Executive Magazine has ranked Texas “the #1 state for business” for 18 consecutive years. Amazon, Tesla, HP, and Oracle have all moved to or expanded their operations in Texas. When combined with steady employment and income growth, forecasters rank Texas first in the nation for five-year growth projections.
Other reasons businesses choose Texas:
- Texas has a diverse economy: Though Texas does have a strong oil and gas sector, the state’s economy is also strong in other sectors such as aerospace, automotive and IT technology, advanced manufacturing, and life sciences. Businesses here can build on the success of others. The growing, thriving marketplace has plenty of room for healthy competition and advantageous networking.
- If Texas was a country, it would be one of the world’s Top 10 largest economy: Not only do diverse industries comprise our economy, but our state, if it were a country, is also one of the Top 10 largest economy in the world — surpassing Brazil, Russia, and South Korea with a GDP of $1.9 trillion. “Made in Texas” is a powerful label that translates to quality all around the world.
- Texas has access to top labor talent: Texas boasts a vast, talented — and younger —labor pool than other states competing with Texas for new business projects. The Texas workforce’s younger average age means Texas businesses have the talent pipeline to be successful now and in the future.
- Texas has a highly competitive tax climate and incentives: The cost of doing business in Texas is below the national average. With a comparatively low cost of living and tax rate, Texas is an ideal state for startups. State incentive programs are built on dedicated corporate tax credits, job-creation incentives, rebates, and reductions – particularly in the manufacturing, agriculture, and healthcare industries.
- Texas invests in infrastructure: Site Selection Magazine recently ranked Texas at the top of the list for “Best Corporate Infrastructure.” Its substantial size and central location make the state a major hub for national and international air, ground, and ocean shipping. Texas is the No. 1 exporting state in the United States and the No. 1 state for foreign direct investment, in part due to its location and infrastructure.
Why Is Texas Good for Business?
Texas offers a range of incentives for businesses:
- The Texas Enterprise Fund (TEF) is one of the largest “deal-closing” fund of its kind, used for competitive capital investment and job creation.
- The Governor’s University Research Initiative offers grants to the best and brightest researchers arriving at Texas institutions.
- The Product Development and Small Business Incubator Fund finances new or improved products from small business entrepreneurs.
- The Texas Skills Development Fund helps businesses customize training programs through local colleges and technical institutes to subsidize costs associated with upskilling and reskilling.
These are just a few of the many generous incentives the state offers to reward local companies. Texas offers a wide variety of nonprofit and government-backed programs that provide funding to large and small businesses.
Why Are Companies Moving to Texas from Silicon Valley?
For years, Silicon Valley in California has attracted businesses with its pleasant climate, educational opportunities, and booming tech industry. However, numerous Texas cities have emerged as ideal solutions to California’s high taxes, costly real estate, and restrictive regulatory environment.
- Hewlett Packard moved its headquarters from San Jose to Houston
- Oracle relocated its headquarters from Redwood City to Austin
- Amazon chose Houston as one of its coveted “tech hubs”
- Elon Musk moved from California to be closer to his Austin Tesla southwest Gigafactory and relocated Tesla headquarters to Texas
Why Is Texas Is the Best State for Small Business Owners?
Small businesses in Texas regularly see significant growth year-over-year. Entrepreneurs who have moved here frequently comment on the positive differences they see, not only with their bottom line, but also in their quality of life. In Texas, they enjoy low taxes, quality education, beautiful spring and fall weather, and a vibrant culture. When employers are “off-the-clock,” they enjoy a range of cultural offerings, from state parks, lakes, rivers, rodeos and working ranches, to live music, wineries, museums, and art galleries.
The Texas Economic Development Corporation (TxEDC) is an independently funded and operated 501(c)(3) nonprofit organization responsible for marketing and promoting Texas as a premier business location. Along with the Governor’s Office of Economic Development and Tourism (EDT), these two highly focused organizations make up the cornerstone of Governor Greg Abbott’s economic development agenda to build a stronger Texas.
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