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State Incentives

State Incentives

Generally the EDC cannot pledge a state incentive. Our policy is to make the prospective primary employer aware of those incentives which the company may qualify for and to partner with the company in seeking those incentives. When necessary, the EDC can employ professional program specialist to prepare applications.

These state incentives will in almost all cases require a specific pledge or employer commitment. These will generally be made in terms of employment, salaries or payroll total and investment in plant and equipment. In almost all cases the company must provide financial and ownership data.

The EDC Staff can assist the company in the identification of those programs which the project will qualify for. The EDC will also aggressively lobby for approval.


Texas Enterprise Project Designation

The project designation is made by the company to the city which in turn may approve the designation prior to state designation. There are a maximum number of projects which can be designated by a community within a biennium.

With this designation, the company must hire persons in a LMI bracket and may then recoup specific sales taxes paid on the construction of their facility, purchase of equipment and utilities.

Texas Enterprise Fund

This fund is commonly known as the Governor’s Enterprise Fund. Applications for this fund are considered when the company is making major expansions within the state of Texas and paying above the counties pay scale for the various job skills required.

This is a Deal Closing Fund and is used only when the project is being considered in other states. It is never used as an incentive between Texas communities. The company must be considering a minimum of one out of state community and only one Texas community.

The amount of the incentive award is based on the effort generated by the community and the net economic impact of the location/expansion to the State of Texas. Approval of the fund is made by the Governor, the Lieutenant Governor and the Speaker of the Texas House of Representatives.

Texas Workforce Skills Development Fund

The State Legislature makes funds available to industry and funnels the training dollars though the local community colleges who contract with the industry to provide the training. In most cases the project must include the components of new investment in facility and/or equipment.

Capital Fund Grants and Loans

Capital Fund Grants are made to the Community for the benefit of a locating/expanding business. Grants are for projects which will remain under the ownership of the community but are designed for the benefit of the industry. They are a three party agreement with the parties being the City, Industry and the State. Examples of these projects may be extension of a public road or public utility, construction of a rail spur to serve an industry when the spur is located on public property and will remain on the public property.

Capital Fund Loans are made directly to the company and are repaid to the Texas Department of Agriculture. These funds may be used for private construction or the purchase of major equipment.

In the case of the Loan or the Grant, the company must pledge a specific number of jobs at specific salary levels. The pledge is followed up and the Project remains open until verification of employment is complete over a period of years.

Project construction cannot begin until the application is approved and legal documents are signed. No monies can be spent prior to approval.