The State of Texas offers a variety of incentive programs designed to make capital more available for businesses looking to expand or locate in the state, as well as for companies already doing business in Texas. Committed to retaining its business-friendly reputation, Texas stands ready to help businesses expand and become globally competitive. FINANCING PROGRAMS Texas Enterprise Fund: The Texas Enterprise Fund (TEF) is the largest “deal-closing” fund of its kind in the nation. The fund is used as a final 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. Since 2004, companies making job-creating investments in Austin have garnered nearly $130 million from the TEF. Texas Capital Fund Infrastructure Program: Provides financial resources to non-entitlement communities for public infrastructure projects needed to assist businesses. Texas Capital Fund Real Estate Development Program: Provides funding opportunities for real estate development (acquisitions, construction, and/or renovation) to assist a business which commits to create and/or retain permanent jobs, primarily for low- and moderate-income persons. Economic Development Sales Tax Corporations: Provides cities the option to impose a local sales and use tax to finance economic development efforts that will attract and retain primary employers. Within the Austin area, at least eight major communities have a form of this discretionary financing tool. Chapter 380/381 Financing: Local government grants to promote economic development and to stimulate business and commercial activity. Tax Increment Financing: Local government can use this tool to publicly finance needed structural improvements and enhanced infrastructure to promote the viability of existing businesses or attract new commercial enterprises to an area. Cancer Prevention & Research General Obligation Bonds: The Cancer Prevention and Research Institute of Texas (CPRIT) general obligation bonds fund grants for cancer research and prevention. CPRIT may invest the grants strategically in companies engaged in the development of new products for the diagnosis, treatment, or prevention of cancer. Moving Image Industry Incentive Program: Cash production grants between 5.0 percent and 22.5 percent of qualified in-state spending for film, television, commercial, and video game projects TAX INCENTIVES The state and local communities offer a variety of tax incentives and innovative solutions for businesses expanding in or relocating to Texas. Programs include Enterprise Zone sales tax refunds, manufacturing sales tax exemptions, property tax value limitation, and freeport exemptions. In addition, the Austin Foreign Trade Zone (FTZ) affords both federal import duty and personal property tax liability benefits. Texas Enterprise Zone Program: State sales and use tax refunds for businesses in economically distressed areas of the state. Manufacturing Exemptions: State sales and use tax exemptions for manufacturers on tangible property, natural gas, and electricity. Value Limitation & Tax Credits (Texas Economic Development Act): An eight-year limitation on the taxable property value for school district maintenance and operations tax purposes and a tax credit. Freeport Exemptions: Property tax exemption for certain goods that enter and leave Texas within 175 days. Pollution Control Equipment Incentive: Property tax exemption for equipment that is for pollution control purposes. Renewable Energy Incentives: Franchise and property tax exemptions and deductions for solar, wind, ethanol, and biodiesel energy. Chapter 380/381 Financing: Local government grants to promote economic development can be provided in the form of sales or property tax rebates. Moving Image Industry Incentive Program: Sales tax exemptions and refunds for qualified expenditures of film, television, commercial and video game projects. Foreign Trade Zone: Austin’s existing FTZ has transitioned to the U.S. FTZ Board’s Alternative Site Framework rules which provide pre-designation of the entire five-county metropolitan area as a FTZ. Pre-designation affords an expedited low-cost approval process when any eligible business wishes to activate as a zone user. WORKFORCE DEVELOPMENT Workforce training programs are provided through the Texas Workforce Commission. Skills Development Fund: Provides grants to community and technical colleges to provide customized job training programs for businesses who want to train new workers or upgrade the skills of their existing workforce. Self-Sufficiency Fund: Financing to provide training for employment opportunities primarily for individuals dependent on public assistance. Two regional workforce boards, Workforce Solutions Capital Area and Workforce Solutions Rural Capital, also provide employers an array of low- or no-cost recruitment and training services, as well as funding for training programs.
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