At Gov. Rick Perry’s request, the 78th Texas Legislature established the Texas Enterprise Fund (TEF) in 2003 to provide financial resources to help strengthen the state’s economy. The Texas Enterprise Fund, the largest “deal-closing” fund of its kind in the nation, continues to attract businesses and jobs to Texas. The TEF can be used for a variety of economic development projects, including infrastructure development, community development, job training programs and business incentives.
Projects that are considered for TEF support must demonstrate a project’s worthiness, maximize the benefits to the state of Texas and realize a significant rate of return of the public dollars being used for the economic development of Texas. For more information about this enterprise program, visit www.governor.state.tx.us.
|Texas Enterprise Fund Projects
South Texas Region (San Antonio, Texas)
|JP Morgan Chase (formerly Washington Mutual)||$15.0 M|
|Petco Animal Supplies||$3.1 M|
|Nationwide Mutual Ins.||$2.5 M|
|Becton, Dickinson & Co.||$1.5 M|
|Allstate Insurance||$1.1 M|
|Kohl’s Department Stores||$750 K|
|KLN Steel Products||$450 K|
|Source: Office of the Governor of Texas Economic Development and Tourism|
The Texas Enterprise Zone Program is an economic development tool for local communities to partner with the state of Texas to promote job creation and capital investment in economically distressed areas of the state. Local communities must nominate a company as an Enterprise Project to be eligible to participate in the Enterprise Zone Program. Legislation limits allocation to the state and local communities per biennium. The state accepts applications quarterly with deadlines on the first working day of March, June, September and December. Designated projects are eligible for state and use tax refunds on taxes paid for equipment and machinery, materials, taxable services, electricity and other business expenses. For more information about the benefits and criteria necessary to qualify for this incentive, please visit www.governor.state.tx.us.
To view the State Enterprise Zone map, click here.
Tax and regulatory incentives are available to companies that locate within the State-designated Defense Economic Readjustment Zone, which encompasses the business park, the Port of San Antonio as well as portions of Brooks AFB and Military Drive. San Antonio’s Defense Economic Readjustment Zone offers a number of business advantages: access to an outstanding workforce; high-level of infrastructure development; desirable zoning and land use; and availability of both developable land and existing structures. The Defense Economic Readjustment Zone Program is modeled on the Enterprise Zone Program. Companies that apply and are selected by the Texas Department of Economic Development and the San Antonio City Council are eligible for State tax incentives, including franchise tax credit for income derived from services. For more information about the benefits and criteria necessary to qualify for this program, please visit www.governor.state.tx.us.
For more information about state business climate index, state and local tax burdens and state and local corporate income tax collections per capita, click here.