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Moving a business to another state is a massive undertaking. Understanding and activating business incentives can make this arduous process a slightly more manageable. Whether you’re a small business planning to transfer your LLC to a surburban city in Texas or a multi-national corporation looking to relocate to the bright lights of a Texas metropolitan city, we explore economic development incentives to consider.
Texas is one of the most aggressive states at recruiting relocating businesses. Moving a business to Texas isn’t easy, but having the state there to support you with everything from business incentives to workforce training programs is certainly a perk.
Texas Economic Development Incentives
Texas offers a range of economic development incentives to attract businesses and support their growth. These incentives include the Texas Skills Development Fund, which provides grants for workforce training programs, the Texas Enterprise Fund, the Texas Enterprise Zone Program, film incentives, and Texas research and development tax credits. These incentives play a crucial role in fostering economic development and creating a favorable business environment in Texas. Let's explore each of these incentives with real-world examples and their benefits:
Texas Skills Development Fund
The Texas Skills Development Fund provides grants for workforce training programs. Businesses in Texas can take advantage of this fund to enhance the skills of their workforce and support their growth. For instance, a tech startup relocating to Austin can use this fund to train its employees in cutting-edge programming languages, enabling them to develop innovative software solutions. Texas Workforce Commission is a great resource if you’re looking for the application and grant information.
Benefit: By investing in workforce training through the Skills Development Fund, companies can equip their employees with the latest skills, enhancing productivity and market competitiveness.
Texas Workforce Training Grants
Texas businesses can apply for grants from the Texas Skills Development Fund to support various workforce training initiatives. These grants aim to improve the skills and capabilities of the workforce, making businesses more competitive and successful. For instance, a manufacturing company in Houston can access these grants to train its staff in advanced manufacturing techniques, resulting in higher product quality and efficiency.
There are tons of resources in Texas to help you succeed from a workforce perspective. 28 Local Workforce Development Boards cover over 170 local Workforce Solutions Offices according to the TWC.
Benefit: The availability of workforce training grants ensures that Texas businesses can remain agile and competitive in an ever-evolving market.
Want to find out if you're eligible for a Texas Business Incentive?
The Texas Enterprise Fund
The Texas Enterprise Fund is an initiative aimed at attracting businesses to relocate to the state by offering financial incentives. It provides grants and other forms of financial support to eligible businesses, encouraging them to bring their operations and investments to Texas. An excellent example is when a renewable energy company decides to establish its headquarters in Dallas. The Enterprise Fund can provide substantial financial incentives, making the decision to move to Texas even more appealing.
Texas is particular transparent about recent awardees of the Enterprise Fund Program. A big consideration when applying is that Texas needs to be competing against another state in order to provide funding.
Benefit: The Texas Enterprise Fund reduces the financial burden of business relocation, incentivizing companies to choose Texas for expansion or relocation, thereby boosting job creation and economic growth.
What is the Texas Enterprise Fund
The Texas Enterprise Fund is a state-funded program designed to facilitate economic growth and job creation in Texas. By offering financial incentives, the fund incentivizes businesses to choose Texas as their preferred location for expansion or relocation. Texas is particularly transparent about the recent awardees of the Enterprise Fund Program, demonstrating the state's commitment to supporting businesses.
Benefit: The Enterprise Fund promotes economic growth and job creation, fostering a robust business environment in Texas.
Relocating your business soon? Get in touch to see if you are eligible for incentives.
Texas Film Incentives
Texas offers various film incentives to attract and support the film industry in the state. These incentives include tax credits, exemptions, and other financial benefits aimed at encouraging film production and attracting film projects to Texas. For instance, when a major Hollywood studio decides to film its next blockbuster in Texas, they can access these incentives, resulting in significant cost savings and a boost to the local film industry.
Benefit: Texas Film Incentives not only attract big-budget productions but also support local filmmakers, creating jobs and economic opportunities within the state.
Texas Production Incentives
Texas provides production incentives to film and media productions in the state. These incentives can include tax credits, cash grants, and rebates, making Texas an attractive destination for film and media companies. When a TV series chooses to shoot in Austin, they can benefit from these incentives, reducing their production costs and stimulating economic activity in the region.
Benefit: The availability of production incentives strengthens Texas's position as a hub for film and media production, contributing to job creation and revenue generation.
Sales Tax Exemptions for Media Productions & Facilities
Texas offers sales tax exemptions for media productions and facilities. This exemption helps reduce the cost of production and operation for film and media companies in Texas, making it a favorable location for such businesses. For example, a film studio setting up shop in San Antonio can enjoy reduced operational costs, leading to increased investment in local infrastructure and talent.
Benefit: Sales tax exemptions make Texas an attractive destination for film and media companies, stimulating local economic growth and job opportunities.
Texas Research and Development Tax Credit
The Texas research and development (R&D) tax credit is an incentive for businesses engaged in qualified research activities in the state. This tax credit encourages businesses to invest in research and development, driving innovation and economic growth in Texas. A pharmaceutical company expanding its research facility in Houston can utilize this tax credit to support their efforts in developing new medicines and therapies.
Benefit: The R&D tax credit promotes innovation and research activities, advancing Texas's position as a hub for technological and scientific advancements.
In conclusion, Texas offers a wealth of economic development incentives, each with its own set of benefits. Depending on the type of business you are, it's key to figure out what criteria are most important to you, and rank business incentives within that. Sometimes, it's best to work with a professional to help you navigate the complex tax and legal implications of these programs. Good luck in your journey, and remember, finding the right place for your business is about more than just cash!
