Economic Incentives

KEDC utilizes a number of economic incentives.  Funds for direct economic incentives are collected from a dedicated sales tax. The KEDC board of directors oversees the use of these funds and will work with primary employers who are choosing to locate or expand in Kilgore, Texas. 

Incentives are based on project investment, number of jobs and payroll.  Any proposal for incentives from KEDC is contingent upon the company qualifying for assistance under KEDC’s guidelines for credit worthiness. It is understood that the company must provide KEDC and its credit advisers all the necessary information to make this determination.

Please click below to apply for direct incentives.
Application for Incentives
(PDF file) 
 

KEDC provides access to and assists with the following:

  1. Taxation incentives
  2. Financing incentives
  3. Job training incentives
  4. Energy incentives
  5. Access to all incentives available through the State of Texas
 
 

 

Taxation Incentives

To encourage local investment the city of Kilgore and KEDC offer a variety of taxation incentives. Please click on the "taxation incentives" heading to see more information on the following:

  1. Tax abatements
  2. Enterprise Zone
  3. Property Tax Rule 9.105
  4. Foreign-trade Zone/Alternate Site Framework
  5. Freeport tax exemption
  6. Pollution control equipment exemptions
  7. Utility tax exemptions
  8. MM&E tax exemptions
  9. Clean room exemptions

 

Tax abatement on real and personal property improvements may be granted by all taxing entities except Kilgore Independent School District.  The company must meet requirements associated with the value of capital improvements and either job creation or payroll increases maintained throughout the term of the agreement.  The City of Kilgore will create a reinvestment zone and adopt a tax abatement agreement with companies according to the following two schedules.

 

 

Schedule I

 

Tax Abatement Schedule I - Qualifications and Sliding Scale Rate

Capital Improvements

Full-Time Job Creation

Payroll Increase

$500,000

and

25 or More

or

$400,000 Annually

$1,000,000

and

5 or More

or

$80,000 Annually

ABATEMENT AMOUNT

Year

Percentage

1, 2, & 3

100%   

4

75%   

5

50%   

6

25%   

7

0%   

Schedule II

 

Tax Abatement Schedule II - Qualifications and Sliding Scale Rate

Capital Improvements

Full-Time Job Creation

Payroll Increase

$500,000

and

5 - 24

or

$200,000 Annually

ABATEMENT AMOUNT

Year

Percentage

1, 2, & 3

50.0%

4

37.5%

5

25.0%

6

12.5%

7

0%
For extraordinary projects with significant investment and job creation, the taxing entities will consider tax abatements up to 100% for a period of 10 years.


TX Enterprise Zone


Texas Enterprise Zone Program   The Texas Enterprise Zone Program (EZP) is a tax incentive program created to help companies expnd their business in Texas.  It 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.  Over the past six years, The Texas EZP has helped create and retain more than 100,000 jobs and generate $15.8 billion in capital investment. 
 
How does it work?
The EZP is performance based and allows qualified businesses to receive a refund of state sales and use taxes, ranging from $2,5000 - $7,500 per job created and/or obtained during a five year designation period, up to a maximum of $1.2.5 - $3.75 million.  The level and amount of refund is related to the capital investment and jobs at the qualified business site.
 
How does a company qualify?
Communities may nominate a company as an Enterprise Project to be eligible to participate in the EZP, for a designation period up to five years, non-inclusive of a 90-day window prior to the application deadline.  Employment and capital investment commitments must be incurred and met within this timeframe.  Per state biennium, communities with a population of less than 250,000 may nominate up to six projects.

What are the requirements?
Projects may be physically located inside or outside of an enterprise zone.  In a zone, a company commits that 25% of their new employees will meet economically disadvantaged or enterprise zone residency requisites.  Outside a zone, a company commits that 35% of their new employees will meet economically disadvantaged or enterprise zone residency requisites. 
 
Who should I contact?
Companies interested in the EZP should contact Kilgore Economic Development Corporation at 903.983.3522 or



Level of Capital Investment
Maximum number of jobs allocated
Maximum potential refund
Maximum refund per job allocation
$40,000 to $399,999
10
$25,000
$2,500
$400,000 to $999,999
25
$62,000
$2,500
$1,000,000 to $4,999,999
125
$312,500
$2,500
$5,000,000 to $149,999,999
500
$1,250,000
$2,500
Double Jumbo Project $150,000,000 to $249,999,999
500
$2,500,000
$5,000
Triple Jumbo Project $250,000,000 or more
500
$3,750,000
$7,500

 

Property Tax 9.105

Property Tax Rule 9.105  The Texas Comptroller of Public Accounts offers a refund of franchise and sales/use taxes paid by companies owning certain abated property.  A company who meets the following three conditions may apply for a refund:

  • Paid property taxes to a school district on property located in a reinvetment zone. 
  • Is exempt in whole or in part from property tax imposed by a city or county under a tax abatement agreement.
  • Is not in a tax abatement agreement with a school district.

Tx Economic Development Act (HB1200)

Texas Economic Development Act (HB 1200)  This act provides relief from school district property taxes for companies making large capital investments of $20 million to $100 million or greater.  The appraised value of qualifying capital investments is capped based on a sliding scaled tied to the total property wealth of the school district where the investment is located.  The investment amount is determined over a 2-year period.   In general, a school district may abate 100% of the appraised value over the applicable cap of improvements and tangible personal property used in manufacturing for up to 8 years, beginning in the third year of investment.  The company will pay taxes based on the full-appraised value during the first two years but is entitled to a refund of any amounts paid during that period on the value in excess of the applicable cap.  In addition the company must create at least 25 new permanent jobs, pay at least 80% of a group health benefit plan for its employees, and pay at least 100% of the county average weekly wage.

Foreign Trade Sub-Zone

The U.S. Department of Commerce recently approved the modification of Gregg County’s Foreign Trade Zone to provide a new benefit for businesses. The new designation, the Alternate Site Designation, is the first of its kind in the nation and will allow companies located within Gregg County to secure Foreign Trade Zone status for warehousing and distribution operation within approximately 30 days, faster than the usual timeframe. Manufacturing companies benefit from the streamlined procedures as well. 

Any foreign and domestic merchandise, unless prohibited by law, may be brought into a foreign trade zone without being subject to the custom laws of the U.S. governing the entry of goods or the payment of duty. 

Freeport Tax Exemption

Freeport Tax Exemption  is an exemption for property taxes paid on inventories if those inventories qualify as “Freeport Goods.”  Freeport property is defined as goods, wares, merchandise, and other tangible personal property acquired in Texas or brought into Texas and held here 175 days or less before being shipped out of the state.  The property must be in the state for assembling, storing, manufacturing, repair, maintenance, processing, or fabricating purposes.
 
Freeport Tax Exemption is granted by three of the four taxing entities in Kilgore: the City of Kilgore, Kilgore Independent School District and Kilgore College. This represents 86% of the property tax imposed on inventory values in Kilgore.  The other taxing entity, Gregg County, which represents approximately 14% of the local ad valorem taxes, does not grant the Freeport Tax Exemption.

For more information, please visit the following links:  

Texas Constitution Article 8, Section 1-J: http://www.window.state.tx.us/taxinfo/taxforms/50-113.pdf
 
Application for Exemption of Goods Exported from Texas (50-113): http://www.window.state.tx.us/taxinfo/taxforms/50-113.pdf

Pollution Control Equipment Exemptions

Exemption for Pollution Control Equipment   A company that invests in pollution control equipment that will meet or exceed federal, state, or local environmental laws, rules, or regulations may apply for a positive use determination from the Texas Natural Resource Conservation Commission.  This determination will exempt the property from ad valorem taxes.

Utility Tax Exemptions

Natural Gas and Electricity Sales and Use Tax Exemption  Companies are exempt from paying state sales and use tax on electricity and natural gas used in manufacturing, processing, or fabricating tangible personal property.  The company must complete a predominate use study showing that at least 50% of the electricity or natural gas consumed by the business directly causes a physical change to a product.

MM&E Tax Exemptions

Manufacturing Machinery and Equipment Sales and Use Tax Exemption   Leased or purchased machinery, equipment, replacement parts, and accessories that have a useful life of more than six months, and that are used or consumed in the manufacturing, processing, fabricating, or repairing of tangible personal property for ultimate sale, are exempt from state and local sales and use tax.  Texas businesses are exempt from paying state sales and use tax on labor for constructing new facilities.  Machinery exclusively used in processing agricultural products by the original producer is also exempt.

Clean Room Exemptions

Clean Rooms Exemption  Clean rooms used in the production of semiconductor components are exempt as manufacturing equipment.

Financing Incentives

The following information is provided in order to give an accurate account of available Financing Incentives for the City of Kilgore.  Additional more detailed information is available by contacting the Kilgore Economic Development Corporation.

Texas Enterprise Fund

The 78th Legislature created the Texas Enterprise Fund, giving the governor the ability to respond quickly to opportunities to bring companies and jobs to Texas.  The fund is intended to attract high-impact facilities that have the opportunity to provide high returns for taxpayer investment.  The Toyota assembly plant in San Antonio and a state-of-the-art Texas Instruments semiconductor wafer fab project in Richardson are both examples of projects that are eligible to benefit from the Texas Enterprise Fund. 
 
Applications are received throughout the year and TEF awards are made several times annually. For a complete list of awardees, click here.

For more information on the Texas Enterprise Fund, call 512-936-0101 or click here.

Emerging Technology Program

This program is designed to help Texas create jobs and grow the economy over the long-term by expediting the development and commercialization of new technologies and attracting and creating jobs in technology fields.  
 
ETF grants are awarded in the following three areas:
  • Research Superiority Acquisition -- funds for Texas higher education institutions to recruit the best research talent in the world.
  • Commercialization Awards -- funds to help companies take ideas from concept to development to ready for the marketplace.
  • Matching Awards -- funds create public-private partnerships which leverage the unique strengths of universities, federal government grant programs, and industry.

The first step is to contact the Regional Center of Innovation and Commercialization (RCIC) in your area. Click here for more information. There are seven RCICs and one Texas Life Science Center to serve stakeholders throughout the state.

RCICs receive applications for ETF awards each calendar quarter from companies within their regions and help guide companies through the application process. For detailed information about applying for ETF grants, click here.
 

ED Sales Tax Incentives

The Kilgore Economic Development Corporation (KEDC) was created by the voters in 1990 to use the revenue generated by a ½ cent sales tax for economic development to encourage the creation and retention of jobs and capital investment in Kilgore. The KEDC Board of Directors works with interested parties for the use of these funds as an incentive to locate or expand in Kilgore.  The amount and type of the incentive depends upon the economic impact of the project and the specific needs of the company.  Incentive funds can be applied to costs associated with land or facility acquisition, facility construction, remodeling, infrastructure, training programs, etc., according to the terms of an economic development performance agreement between KEDC and the company. 

Texas Capital Fund

Designed to promote growth in non-entitlement areas, the Texas Capital Fund can be used for businesses creating new full-time jobs, a majority of which benefit low to moderate-income persons.  This program requires an application and competitive rating process which sometimes delays the funding process.  If the timing of the project makes it possible, the TCF programs available to Kilgore are:

TCF Infrastructure Grant Program

 Funds may be used for construction and/or improvements of water or wastewater facilities, public road construction, natural gas line services, rail spurs, and electric power services.  Minimum and maximum awards are $50,000 and $750,000 and may not exceed 50% of the total project cost.

TCF Real Estate Development Program

Funds may be used to acquire, construct, or rehabilitate real estate to support a for-profit or a non-profit entity willing to commit to creating or retaining jobs primarily for low or moderate income persons.  Minimum and maximum awards are $50,000 and $750,000 and may not exceed 50% of the total project cost.

Funds may be used for:

*       acquisition of land and/or buildings

*       construction of new buildings and site improvements

*       rehabilitation of buildings and site improvements

Terms 
The minimum award is $50,000 and the maximum is $1,000,000 inclusive of administration costs. Awards of more than $750,000 require a greater level of job creation/retention and matching funds, and are limited to two (2) per year.  The award may not exceed fifty percent (50%) of the total project cost. Required minimum equity injection of the total project cost by the business:

*       ten (10%), if operating for 3+ years

*       thirty-three percent (33%), if operating for less than 3 years

Applicant must not sell/transfer ownership for a minimum of five years.

The business must remit to the applicant a monthly lease payment equal to the award amount divided over a maximum 240 month period.

Applicant may elect to deposit lease payments in a revolving loan fund for use at the local level and receive one award per program year; or return payments to the state for use in a state revolving loan fund, which allows the applicant to be eligible for as many awards per program year as it has eligible projects.

The lease agreement with the business must be for at least three years or until the contract between the applicant and the Texas Department of Agriculture is satisfactorily closed.

Collateral
An applicant may use the real estate as collateral to secure additional funding for the real estate improvements.

 

 

Chapter 380 Incentives

The City may offer a range of incentives designed to promote local economic development.  These incentives are normally negotiated between the company and the City but can include reimbursement of certain expenses. Chapter 380 agreements are often offered in lieu of tax abatement.

Tax Increment Financing

The City can designate a reinvestment zone to provide tax increment financing of project costs for public works or public improvements in the zone. Tax increment bonds or notes may be used to pay project costs. The proceeds from taxes on improvements within the zone are used to pay the debt service on the bonds or notes or for the cost of the project for a designated time as determined by a TIF plan adopted by the taxing entities participating. School districts are prohibited from participating in TIFs. The TIF can be used to finance improvements required by a project in order to locate in the City of Kilgore.

Industrial Revenue Bonds

KEDC may issue tax-exempt bonds to finance land and depreciable property for manufacturing facilities. The maximum bond amount is $10,000,000 for tax-exempt issues, and the maturity of the bonds may extend to the lesser of 40 years or 120 percent of the depreciable life of the assets being financed. Eligible project costs include the acquisition by a business of an existing facility, acquisition of land, construction of new facilities, machinery, tools, equipment, and a limited amount of the bond issuance costs. The bonds are subject to the state’s private activity bond volume cap administered by the Texas Bond Review Board.

NETEDD Revolving Loan Fund

The NETEDD RLF will finance up to 1/3 of total project costs not less than $50,000 or greater than $300,000 depending upon availability of funds. Interest rate is fixed over the life of the loan at prime rate depending on credit worthiness. The term of the loan is determined by the useful life of the assets pledged as collateral, and NETEDD will subordinate to the local lender. Equity injection of 25% is usually required.
 
The Chapman Revolving Loan Fund is a direct loan program for businesses or governmental entities to provide loan funds.  The original funds were from a grant from Housing and Urban Development.  Former U.S. Representative Jim Chapman was the catalyst for obtaining the funds.
 
The Northeast Texas Economic Development District has a revolving loan fund that is managed by ATCOG.  These funds are available for loans in the original sixteen counties of the economic district as direct loans to certain manufacturers and commerical entities.
 
For more information contact Richard M. Powell, Economic Development Manager, at the Ark-Tex Regional Development Company in Texarkana at 903.832.8636 or rpowell@atcog.org.
 
 

 

Chapman Revolving Loan Fund

Chapman Revolving Loan Fund is a loan-guarantee program for projects creating permanent full-time jobs. The program will guarantee not less than $35,000 and not greater than $250,000 or 50% of the total project cost, whichever is less. Generally the interest rate is calculated at CD rate plus 3% amortized for 7 to 15 years depending on the purpose of the loan.

SBA 504 Loan Program

Small Business Administration 504 Loan Program is a direct-lending program providing long-term financing for fixed assets at a fixed rate of interest at or below New York prime rate. Designed to create and retain full-time jobs and to help businesses start-up or expand, the loan usually includes a senior lien from a private-sector lender covering 50% of the project cost and at least 10% equity injection. Generally the business must create or retain one job for every $35,000 provided by the SBA. The maximum loan is $1,000,000 for job creation. Companies located in Kilgore have access to the program through the East Texas Regional Certified Development Company.

SBA 7a Loan Program

Small Business Administration 7(a) Loan Guaranty Program provides guarantees for small businesses unable to secure financing on reasonable terms through normal lending channels. The SBA will guarantee up to 75% of a private-sector loan up to a maximum of $750,000. The rate and term of the loan are set by the private-sector lender.

Economic Development Administration

This program provides grants funded on a competitive basis for public water and wastewater facilities, access roads, rail spurs, or projects consistent with an overall economic development plan that serves industry and commerce.  The application and approval process requires additional time.

TX Capital Access Program

The program is designed to increase the availability of financing for businesses and non-profit organizations that face barriers in accessing capital.  Eligible borrowers can be any small business with less than 500 employees or a non-profit corporation.  The proceeds may be used for working capital or the purchase, construction, or lease of capital assets including land, buildings, and equipment.

Linked Deposit Program

This program encourages lending to qualified businesses which are historically underutilized, child care providers, non-profit corporations and small businesses located in an enterprise zone.  It offers lenders and borrowers a lower cost of capital.  Loan amounts range from $10,000 to $250,000.  Proceeds may be used for working capital, purchase, construction or lease of capital assets, including land, buildings and equipment.

Agricultural Business Programs

The Texas Department of Agriculture offers a variety of financing and guarantee programs to assist eligible businesses or individuals involved in agricultural-related economic development projects. These include:  Texas Agricultural Finance Authority Loan Guaranty Program, Direct Loan Program, Loan Participation Program, Young Farmer Program, Farm & Ranch Finance Program, and Linked Deposit Program.

Industry Development Loan Program

The Texas Industry Development (TID) Loan Program provides capital to Texas communities at favorable market rates. The main objective of TID is to support projects that will stimulate the creation of jobs. TID loans can be used for a variety of purposes including community infrastructure development. TID financing is available for loans above $5,000,000.

TID Program loans are variable rate, low-cost, long-term financing opportunities to cover costs of economic development projects. The term of the loan cannot extend beyond the useful life of the assets, or bond maturity in 2025. Debt service is provided by the issuing authority.
 

The TID program operates within a non-profit corporation under the Development Corporation Act of 1979 (Vernon's Texas Civil Statutes Article 5190.6), Texas Small Business Industrial Development Corporation (TSBIDC). The 67th Legislature in 1981 authorized TSBIDC to issue bonds for economic development projects and is administered by the Office of the Governor.

Product Development Fund

The Texas Product Development Fund provides financing to aid in the development, production and commercialization of new or improved products within the state. Products appropriate for the Fund are inventions, devices, techniques, or processes that have advanced beyond the theoretical stage and are ready for immediate commercial application.

Preference for funding will be given to the state’s defined industry clusters within emerging technology fields including semiconductors; nanotechnology; biotechnology and biomedicine; renewable energy; agriculture and aerospace. Job creation and job retention within Texas will be considered within funding priorities.
 
The Fund is a revolving loan program with capital provided from $25 million in taxable bonds issued in 2005. The Office of the Governor, Texas Economic Development Bank administers the Fund at the direction of the Governor’s appointed nine member board.

Small Business Fund

The Texas Small Business Fund provides financing to foster and stimulate the development of small businesses in Texas. Preference for funding will be given to the state’s defined industry clusters within emerging technology fields including semiconductors; nanotechnology; biotechnology and biomedicine; renewable energy; agriculture and aerospace.

Preference will be given to small businesses that have received financing from the state’s Small Business Development Centers (SBDC) or through the Small Business Innovative Research program (SBIR).
 
The Fund is a revolving loan program with capital provided from $20 million in taxable bonds issued in 2005. The Office of the Governor, Texas Economic Development Bank administers the Fund at the direction of the Governor’s appointed nine member board.

Job Training Incentives

The following information is provided in order to give an accurate account of Job Training Incentives for  the City of Kilgore.  Additional more detailed information is available by contacting the Kilgore Economic Development Corporation.

Skills Development Fund

This State of Texas program assists community and technical colleges in financing customized job training for local businesses.  The fund will provide training for specific skills for workers who will be hired by the business.  A business that forms partnerships with local community colleges and technical schools or the higher education extension agency may apply through that training institution to the Texas Workforce Commission for funding. Incumbent (existing) worker training does qualify for the program; however, the application is a competitive process and generally projects creating new jobs score higher.

Kilgore College Workforce Development

 The Workforce Development Department at Kilgore College works with business and industry to design customized training to match the needs of a specific company.  The college will work with business to access any training funds available for the project (such as Skills Development Fund), write the application for those funds and handle the administrative requirements of the grant. The college can provide pre-employment testing and screening. KC also offers certificate and degree programs in a variety of fields and technical areas.  Every program created by Kilgore College Workforce Development is a unique customized response to each company’s specific needs.  KC Workforce Development’s customer-directed, industry-driven approach provides a business with affordable solutions for skills training.  For more information, contact Martha Woodruff, Director of Workforce Development, at 903-983-8287.

Local Workforce Development

Local boards oversee training funds for specific regions and have some programs available for training certain qualified populations.

Texas State Technical College

Located 35 miles from Kilgore, TSTC works with industry in a number of ways, including the following:

  • Provide customized training programs, incorporating the employers’ goals and objectives
  • Offer technical training through certificate and degree programs
  • Handle administrative aspects of the Skills Development Fund
  • Contact:  903-935-1010, Ext. 2250

Support Services

Available Support Services
 
  • Customized Worker Training
  • Manufacturing Assistance (ISO 9000, Technology Applications)
  • Altternative Fuels Service
  • Recycling Center

Economic Development Sales Tax Incentives

The Kilgore Economic Development Corporation funds can be applied to costs associated with training needs according to the terms of a negotiated economic development agreement between KEDC and the company and according to the requirements in state law in lieu of or in addition to other KEDC grants.

Energy Incentives

Incentives are available for solar PV installations at businesses which receive electric service from South Western Electric Power Company.  Annual funds limits do apply.  Incentives are offered at $2.50 per watt of installed PV capacity or approximately 25 to 30 percent of installed costs. Customers should consult their solar installer for more details.

To participate in the solar PV incentive program, customers must be located in SWEPCO's service area and be served by a SWEPCO electric meter.  Your solar PV installer can help you determine if you are eligible to participate.

For additional details on the program, as well as a list of registered solar installers, please visit: http://www.txreincentives.com/apv/index.php

Loan Incentives

The Texas Economic Development Bank provides flexible funding and oversight of finance and tax incentive programs targeting three key audiences: Texas businesses, Texas communities and Texas lending institutions. The Bank's task is to provide globally competitive, cost effective state incentives to expand businesses operating in the state and to businesses relocating to Texas.

Industrial Revenue Bonds

KEDC may issue tax-exempt bonds to finance land and depreciable property for manufacturing facilities. The maximum bond amount is $10,000,000 for tax-exempt issues, and the maturity of the bonds may extend to the lesser of 40 years or 120 percent of the depreciable life of the assets being financed. Eligible project costs include the acquisition by a business of an existing facility, acquisition of land, construction of new facilities, machinery, tools, equipment, and a limited amount of the bond issuance costs. The bonds are subject to the state’s private activity bond volume cap administered by the Texas Bond Review Board.

NETEDD Revolving Loan Fund

The NETEDD RLF will finance up to 1/3 of total project costs not less than $50,000 or greater than $300,000 depending upon availability of funds. Interest rate is fixed over the life of the loan at prime rate depending on credit worthiness. The term of the loan is determined by the useful life of the assets pledged as collateral, and NETEDD will subordinate to the local lender. Equity injection of 25% is usually required.
 
The Chapman Revolving Loan Fund is a direct loan program for businesses or governmental entities to provide loan funds.  The original funds were from a grant from Housing and Urban Development.  Former U.S. Representative Jim Chapman was the catalyst for obtaining the funds.
 
The Northeast Texas Economic Development District has a revolving loan fund that is managed by ATCOG.  These funds are available for loans in the original sixteen counties of the economic district as direct loans to certain manufacturers and commerical entities.
 
For more information contact Richard M. Powell, Economic Development Manager, at the Ark-Tex Regional Development Company in Texarkana at 903.832.8636 or rpowell@atcog.org.
 
 

 

SBA 504 Loan Program

Small Business Administration 504 Loan Program is a direct-lending program providing long-term financing for fixed assets at a fixed rate of interest at or below New York prime rate. Designed to create and retain full-time jobs and to help businesses start-up or expand, the loan usually includes a senior lien from a private-sector lender covering 50% of the project cost and at least 10% equity injection. Generally the business must create or retain one job for every $35,000 provided by the SBA. The maximum loan is $1,000,000 for job creation. Companies located in Kilgore have access to the program through the East Texas Regional Certified Development Company.

SBA 7a Loan Program

Small Business Administration 7(a) Loan Guaranty Program provides guarantees for small businesses unable to secure financing on reasonable terms through normal lending channels. The SBA will guarantee up to 75% of a private-sector loan up to a maximum of $750,000. The rate and term of the loan are set by the private-sector lender.

TX Capital Access Program

The program is designed to increase the availability of financing for businesses and non-profit organizations that face barriers in accessing capital.  Eligible borrowers can be any small business with less than 500 employees or a non-profit corporation.  The proceeds may be used for working capital or the purchase, construction, or lease of capital assets including land, buildings, and equipment.

Linked Deposit Program

This program encourages lending to qualified businesses which are historically underutilized, child care providers, non-profit corporations and small businesses located in an enterprise zone.  It offers lenders and borrowers a lower cost of capital.  Loan amounts range from $10,000 to $250,000.  Proceeds may be used for working capital, purchase, construction or lease of capital assets, including land, buildings and equipment.

Agricultural Business Programs

The Texas Department of Agriculture offers a variety of financing and guarantee programs to assist eligible businesses or individuals involved in agricultural-related economic development projects. These include:  Texas Agricultural Finance Authority Loan Guaranty Program, Direct Loan Program, Loan Participation Program, Young Farmer Program, Farm & Ranch Finance Program, and Linked Deposit Program.

Industry Development Loan Program

The Texas Industry Development (TID) Loan Program provides capital to Texas communities at favorable market rates. The main objective of TID is to support projects that will stimulate the creation of jobs. TID loans can be used for a variety of purposes including community infrastructure development. TID financing is available for loans above $5,000,000.

TID Program loans are variable rate, low-cost, long-term financing opportunities to cover costs of economic development projects. The term of the loan cannot extend beyond the useful life of the assets, or bond maturity in 2025. Debt service is provided by the issuing authority.
 

The TID program operates within a non-profit corporation under the Development Corporation Act of 1979 (Vernon's Texas Civil Statutes Article 5190.6), Texas Small Business Industrial Development Corporation (TSBIDC). The 67th Legislature in 1981 authorized TSBIDC to issue bonds for economic development projects and is administered by the Office of the Governor.

Leverage Fund

Introduced in 1992, the Texas Leverage Fund (TLF) provides an additional source of financing to communities that have adopted an economic development sales tax. Communities may leverage future sales tax revenues to support job retention or creation.

Terms

Available for interim, long-term or gap financing, TLF loans provide flexible financing terms to match the unique needs of communities, with maturities of up to 15 years available. Generally, EDCs are eligible to borrow four to five times annual sales tax revenues, up to $5 million. TLF loans are low-cost, providing capital to communities at floating Prime Rate, as published in the Wall Street Journal.

Future sales tax revenues serve as collateral for loan repayment with required debt service coverage ratios specified in the Texas Leverage Fund Program Guidelines. Pledged tax collections not needed for actual debt service are available for other projects.
 

Texas Product/Business Fund

Capital loans for product commercialization and businesses
The Texas Product/Business Fund provides asset back financing to companies currently doing business in the state.  Financing is done in the form of direct asset based loans with a variable interest rate tied to London Interbank Offered Rate (LIBOR).  Loans can be amortized up to the life of the asset.  Texas companies or out-of-state/international companies doing business in the state are eligible to apply.  Applicants can submit a free brief pre-assessment in order to check eligibility.

Attributes of the Texas Product Fund:
• Asset Based Loans
• Competitive Loan-To-Value (LTV)
• Positive EBITDA not required
• Secure Loans with Property Plant & Equipment (PP&E)
 

The Office of the Governor, Texas Economic Development Bank administers the Texas Product Fund at the direction of the Governor’s appointed nine member board.  Preference for funding is given to the states’ defined industry clusters including, but not limited to: nanotechnology, biotechnology, biomedicine, renewable-energy, agriculture, and aerospace.  Job creation and retention within Texas will be considered within funding priorities.  For more information e-mail TexasProductFund@governor.state.tx.us
 

 

Summary of Incentives for the State of Texas

 

Summary of State Incentives
& Programs
                                                             
                                         
Summary Includes:
  
§     Texas Enterprise Fund
§     Emerging Technology Program
§     Skills Development Fund
§     Texas Enterprise Zone Program
§     Texas Capital Fund Infrastructure Program
§     Texas Capital Fund Real Estate Development Program
§     Rural Municipal Finance Program
§     State Sales and Use Tax Exemptions
§     Chapter 380
§     Texas Industry Development Program
§     Texas Leverage Fund
§     Bonds
§     Texas Product Development Fund
§     Texas Small Business Fund
§     Section 108
§     Texas Economic Development Act
§     Ad Valorem/Property Tax Exemption
§     Economic Development Refund
§     Renewable Energy Incentives
§     Permit Assistance
§     Moving Image Industry Incentive Program
§     Economic Development and Diversification In-State Tuition for Employees
 
 
 
DISCLAIMER: The material contained in this Summary of State Incentives is provided for informational purposes only and cannot be construed as a commitment. Assumptions are based on creating jobs and providing a capital investment. Total jobs and capital investment have been included as eligible costs for the various incentive programs available. However, actual jobs and capital investment may vary from the assumptions made due to final determination of program eligibility and site location.
 
 
Texas Enterprise Fund
 
The 78th Texas Legislature established the Texas Enterprise Fund to provide financial resources to help strengthen the state’s economy. The Governor, Lieutenant Governor, and the Speaker of the House must unanimously agree to support the use of the Texas Enterprise Fund for each specific project.
 
Projects that are considered for Enterprise Fund support must demonstrate a project’s worthiness, maximize the benefit to the State of Texas and realize a significant rate of return of the public dollars being used for economic development in Texas. Capital investment, job creation, wages generated, financial strength of the applicant, applicant’s business history, analysis of the relevant business sector, and federal and local government and private sector financial support of a project will all be significant factors in approving the use of the Enterprise Fund.
 
Emerging Technology Program
 
The $200 million Texas Emerging Technology Program is designed to help Texas create jobs and grow the economy over the long-term by expediting the development and commercialization of new technologies andattracting and creating jobs in technology fields that will form the backbone of our economy. The program will work through partnerships between the state, institutions of higher education and private industry to focus greater attention on the research, development and commercialization of emerging technology. The Emerging Technology Program is dedicated to three areas: 
 
1.              Regional Centers of Innovation and Commercialization (RCICs). These centers will become concentrated with applied R&D activities, be incubators (including specialized workforce training) for startup firms and encourage expansion of existing companies resulting from commercializing their developments.
2.              Matching grant funds. Applied technology research and development projects that accelerate commercialization into production and have a demonstrated ability to receive or have received federal grants or non-state grants may apply for matching dollars from the Emerging Technology Fund. Grants such as Small Business Innovation Research grants, Small Business Technology Transfer grants, etc
3.              Attracting research talent. The state will help Texas public universities attract highly renowned research teams from universities and institutions in other states.
 
For more information regarding the application process or funding, please contact Alan Kirchhoff with the Office of the Governor at 512/475-2818.
 
Skills Development Fund
 
The Skills Development Fund is an innovative program created to assist Texas public community and technical colleges finance customized job training for their local businesses.  The Fund was established by the Legislature in 1995 and is administered by the Texas Workforce Commission.  Grants are provided to help companies and labor unions form partnerships with local community colleges and technical schools to provide custom job training. Average training costs are $1,000 per trainee; however, the benefit may vary depending on the proposal. 
 
For detailed information regarding the application process and funding, please contact Dale Robertson with the Texas Workforce Commission at 512/463-8844.
 
Texas Enterprise Zone Program
 
Under the statewide cap of 105 projects per biennium a community with less than 250,000 in population may have up to four enterprise projects. A community with 250,000 in population or greater may have up to six enterprise projects.
 
Upon a community designating a business as an enterprise project, and upon that project’s designation being approved by the state, the business would be eligible for the following incentives:
 
State Sales and Use Tax Refunds
 
Beginning September 1, 2007 an enterprise project is eligible for a refund for all state sales and use taxes paid and used at the qualified business site. The total amount of any refund will continue to be predicated on investment amount and number of jobs created/retained. 
 
The refund can be an amount ranging from a minimum of $2,500 per job to a maximum of $7,500 per job as follows:
1.        If project investment amount is greater than $40,000 and less than $400,000, then refund amount is $2,500 per job up to a maximum of 10 jobs created/retained;
 
2.        If project investment amount is equal to or greater than $400,000 and less than $1,000,000, then refund amount is $2,500 per job up to a maximum of 25 jobs created/retained;
 
3.        If project investment amount is equal to or greater than $1,000,000 and less than $5,000,000, then refund amount is $2,500 per job up to a maximum of 125 jobs created/retained;
 
4.        If project investment amount is equal to or greater than $5,000,000 and less than $150,000,000, then refund amount is $2,500 per job up to a maximum of 500 jobs created/retained;
 
5.        If project investment amount is equal to or greater than $150,000,000 and less $250,000,000, then refund amount is $5,000 per job up to a maximum of 500 jobs created/retained;
 
6.        If project investment amount is equal to or greater than $250,000,000, then refund amount is $7,500 per job up to a maximum of 500 jobs created/retained;
 
Receipts for purchases of building materials and machinery and equipment and payroll information are required to be retained as part of the audit process. (Note: All contracts should separate the costs for building materials and/or equipment from the costs of labor and services in order to be eligible.)
 
The refund for sales and use tax must be for all eligible items for use at the qualified business site.
 
Texas Capital Fund Infrastructure Program
 
The Texas Capital Fund Infrastructure Program is an economic development tool designed to provide financial resources to non-entitlement communities. Funds from this program can be utilized for public infrastructure (water, sewer, roads, etc.) needed to assist a business, which commits to create and/or retain permanent jobs, primarily for low and moderate-income persons. The minimum award is $50,000 and the maximum is $750,000. The award may not exceed fifty percent (50%) of the total project cost. 
 
The Texas Department of Agriculture administers the Texas Capital Fund Program. For further details on the program, please contact Karl Young at 512/936-0281.
  
Texas Capital Fund Real Estate Development Program
 
The Texas Capital Fund Real Estate Development Program is designed to provide financial resources to non-entitlement communities. Funds must be used for real estate development (acquisitions, construction and/or rehabilitation) to assist a business, which commits to create and/or retain permanent jobs, primarily for low and moderate-income persons. This program encourages business development and expansions located in  non-entitlement communities. The minimum award is $50,000 and the maximum is $750,000. The award may not exceed fifty percent (50%) of the total project cost. Funds are provided with no interest accruing and with payments based on a 20-year amortization schedule.
 
The Texas Department of Agriculture administers the Texas Capital Fund Program. For further details on the program, please contact Karl Young at 512/936-0281.
 
** Total Texas Capital Fund participation from both Infrastructure program and Real Estate Development program may not exceed $750,000.
  
Rural Municipal Finance Program
 
The Rural Municipal Finance Program was created by the Texas Agricultural Finance Authority (TAFA) to stimulate economic activity in rural Texas. TAFA was created in 1987 as a Public Authority within the Texas Department of Agriculture
 
This loan program is designed for eligible applicants located within rural areas of the state that provide significant benefits for the rural area, and provide evidence of ability to repay the commitments. Applicants can include: city and county governments; economic development corporations; hospital districts; rail districts; utility districts; special districts; agricultural districts; and private water and wastewater corporations.
 
An applicant must certify to TAFA that:
1.        The project is located in a non-metropolitan statistical area (county); or
 
2.        If in a metropolitan statistical area, the project is in an unincorporated area; or
               
3.        Located in a city with a population of under 20,000, that is not adjoining a city or group of cities
                with an aggregate population of 50,000 or greater.
 
Loan amounts range from $50,000 to an amount approved by TAFA’s board of directors, but target projects for less than $1,000,000. Loans may be used for real estate purchase, building construction, site improvements, equipment, water and wastewater systems, municipal infrastructure projects and any other use that can be identified to improve or assist in the economic development of the rural area.
 
The Texas Department of Agriculture administers the Rural Municipal Finance Program. For further details on the program, please contact Karl Young at 512/936-0281.
 
State Sales & Use Tax Exemptions
 
Manufacturing Machinery & Equipment
 
Leased or purchased machinery, equipment, replacement parts, and accessories that have a useful life of more than six months, and that are used or consumed in the manufacturing, processing, fabricating, or repairing of tangible personal property for ultimate sale, are exempt from state and local sales and use tax. Texas businesses are exempt from paying state sales and use tax on labor for constructing new facilities.
 
Texas businesses are exempt from paying state sales and use tax on the purchase of machinery exclusively used in processing, packing, or marketing agricultural products by the original producer at a location operated by the original producer.
 
Natural Gas & Electricity
 
Texas companies are exempt from paying state sales and use tax on electricity and natural gas used in manufacturing, processing, or fabricating tangible personal property. The company must complete a “predominant use study” that shows that at least 50% of the electricity or natural gas consumed by the business directly causes a physical change to a product.
 
Chapter 380
 
Section 380.001 of the Local Government Code authorizes municipalities to offer a range of incentives designed to promote state or local economic development.  Specifically, it allows for the provision of loans and grants of city funds, as well as the use of city staff, city facilities or city services, at minimal or no charge.
 
To establish a loan or grant or to offer discounted or free city services, the city must meet the requirements contained in the Texas Constitution and in applicable Texas statutes.  Additionally, cities must review their city charters and any other local provisions that may limit the city’s ability to provide such a grant or loan.  To determine the latitude of whether a municipality is able to offer a particular incentive of combination of incentives, local communities should consult their city attorney.
 
Texas Industry Development
 
The Office of the Governor Economic Development and Tourism Division hereby gives notice that The Texas Small Business Industrial Corporation is accepting applications for loans to be funded through the Texas Industry Development Revolving Loan program.
 
The Texas Industry Development Revolving Loan Program provides capital to Texas communities and eligible 501(c) 3 corporations at favorable market rates. The program supports eligible tax exempt public purpose projects that stimulate economic development within the community. The loans are available with low cost, variable rate long term financing with the term of the loan not extending beyond the useful life of the assets and up to bond maturity in 2025.
 
Eligible projects must meet the project definition as described in the Development Corporation Act of 1979, the Texas Industry Development Program Guidelines and all appropriate state and federal regulations as applicable to the program. Examples of public projects include:  public facilities; community infrastructure (i.e. water, wastewater, drainage, streets); remediation on public land/facilities, and public transportation
 
Loan terms are available for participants with a credit rating of an A or above with a term not to exceed December 2025.
 
A project must be found to be required or suitable for the promotion of economic development as deemed by the Corporation’s board of directors in the performance of its public purposes, functions and duties.
 
A project will not be eligible for funding under the program for moving existing jobs from one municipality or county in Texas to another municipality or county within the state.
 
Applications will be accepted at any time during a quarterly round. The initial quarterly round will close at 5:00 p.m. March 2, 2009. Application may be found at: http://governor.state.tx.us/files/ecodev/TID_Application_Public_Project.doc
 
For additional information please contact Donna Weinberger-Rourke with The Office of the Governor Economic Development and Tourism Division at 512/936-6443.
 
Texas Leverage Fund
 
The Texas Leverage Fund (TLF) is an "economic development bank" offering an added source of financing to communities that have passed the economic development sales tax. Approximately 500 communities in Texas have adopted the local economic development sales tax. EDT may loan funds directly to a local Industrial Development Corporation (IDC) to finance eligible projects. Sales tax revenues pledged by the IDC need only be sufficient to cover projected annual debt service as specified in the Texas Leverage Fund Program Guidelines. This allows cities to leverage their economic development sales tax and to pursue additional projects.
 
Bonds
 
Sales Tax Bonds
 
Sales Tax Bonds do not fall under the volume cap and are eligible to communities that have passed the economic development sales tax. Ineligible projects include for-profit hospitals, multi-family projects and municipal services.
 
Exempt-Facility Bonds
 
Bonds can be issued to finance certain facilities such as airports, dock and wharf facilities, mass commuting facilities, high-speed inter-rail facilities, or certain qualified hazardous waste facilities (including certain training and storage facilities). There is no limit on the amount of the issue and these issues do not require a reservation under the volume cap. Although the facility must be governmentally owned, it may be leased or subject to management contracts with the business.
 
Other types of exempt bonds include projects for water, sewage and solid waste facilities, facilities for the local furnishing of electricity or gas, local district heating or cooling facilities. These types of exempt-facility issues must reserve a portion of the volume cap. Exempt-facility bonds that are not governmentally owned may reserve up to $25 million in tax-exempt volume cap allocation each year, however, there is no restriction to project size.
 
Tax-Exempt Industrial Revenue Bonds
 
Tax-Exempt Industrial Revenue Bonds are designed to provide tax-exempt financing to finance land and depreciable property for eligible industrial or manufacturing projects. The maximum bond amount is $10 million (which can include certain capital and administrative costs). (On January 1, 2007, the maximum bond amount will increase to $20 million.) These issues must receive a reservation under the State's volume limitation ("volume cap") managed by the Texas Bond Review Board. 
 
The Tax Reform Act of 1986 imposes a volume ceiling on the aggregate principal amount of "private activity bonds" that may be issued with the State during any calendar year. Generally, the reservation of state ceiling issues is allocated by lottery in October each program year. 
 
For more information on the “volume cap” or the lottery dates, contact the Texas Bond Review Board at 512/463-1741.
 
Texas Product Development Fund
 
The Texas Product Development Fund provides financing to aid in the development, production and commercialization of new or improved products within the state. Products appropriate for the fund are inventions, devices, techniques, or processes that have advanced beyond the theoretical stage and are ready for immediate commercial application.
 
Preference for funding will be given to the state’s defined industry clusters within emerging technology fields including semiconductors; nanotechnology; biotechnology and biomedicine; renewable energy; agriculture and aerospace. Job creation and job retention within Texas will be considered within funding priorities.
 
Businesses with unencumbered assets that are available to collateralize loans are suited for further consideration. Use of loan proceeds is flexible including working capital, machinery, equipment, furniture & fixtures and other applications.   The Fund is a revolving loan program with capital provided from $25 million in taxable bonds issued in 2005.  The Office of the Governor, Texas Economic Development Bank administers the Fund at the direction of the Governor’s appointed nine member board.  For further details on the program, please contact Donna Weinberger-Rourke at 512/936-6443.
 
Texas Small Business Fund
 
The Texas Small Business Fund provides financing to foster and stimulate the development of small and medium sized businesses in Texas. Special Funding preferences will be given to emerging technologies including semiconductors, nanotechnology, biotechnology and biomedicine, renewable energy, agriculture and aerospace.
 
Additional preference will apply to applicants that have acquired other sources of financing, have formed companies in Texas and are receiving assistance from designated state small business development centers or through the Small Business Innovative Research program (SBIR).
 
The Fund is designed as a revolving loan program with capital provided from $20 million in taxable bonds issued in 2005. The Office of the Governor, Texas Economic Development Bank administers the Fund at the direction of the Governor’s appointed nine member board. For further details on the program, please contact Donna Weinberger-Rourke at 512/936-6443.
 
Section 108
 
Entitlement communities may access the Section 108 program through HUD. The program allows entitlement communities the ability to borrow funds guaranteed by Section 108 through pledging their current and future CDBG allocations (up to the loan amount) as security for the loan. HUD provides additional security for the loan (as a loan-loss reserve or debt-service) to reduce the exposure of a community’s CDBG funds. Economic Development Initiative (EDI) provides grants to local governments that can be used to enhance both the security of loans guaranteed through Economic Development Loan Fund and the feasibility of the large economic development and revitalization projects they finance. The guaranteed amount may be extended up to five times the community’s most recent CDBG allocation. Eligible activities include property acquisition; rehabilitation of publicly owned property; economic development activities; installation of public facilities; and other site improvements. 
 
Texas Economic Development Act
 
In 2001, the 77th Texas Legislature enacted House Bill 1200 creating Tax Code Chapter 313, Texas Economic Development Act, to encourage large‑scale manufacturing, research and development, renewable energy, nuclear and integrated gasification combined cycle electric generation facilities capital investment projects in the State of Texas. It requires companies to invest a specified amount of money to qualify for a tax credit and an eight‑year limitation on the appraised value of a property for the maintenance and operations portion of the school district property tax. The local school district must elect to participate in order for the Company to recognize this benefit.
 
The qualifying investment amount is determined on a sliding scale that begins at $100 million for large urban areas and $30 million for rural areas. The qualifying investment amount is reduced for areas with a lower tax base.
For detailed information regarding this incentive, please contact Gary Price with the Comptroller of Public Accounts at 512/463-3993.
 
Ad Valorem/ Property Tax Exemption
 
Freeport Exemption
 
A community may choose to offer the Freeport exemption for various types of goods that are detained in Texas for a short period of time. Freeport property includes goods, wares, merchandise, ores, and certain aircraft and aircraft parts. Freeport property qualifies for an exemption from ad valorem taxation only if it has been detained in the state for 175 days or less for the purpose of assembly, storage, manufacturing, processing, or fabricating. For more information, please visit the following links:
 
Texas Constitution Article 8, Section 1-J: http://www.window.state.tx.us/taxinfo/taxforms/50-113.pdf
 
Application for Exemption of Goods Exported from Texas (50-113): http://www.window.state.tx.us/taxinfo/taxforms/50-113.pdf
 
Goods-in-Transit Incentive
 
House Bill 621 of the 80th Texas Legislature amends the Tax Code and the Government Code to add an exemption from ad valorem taxation for goods-in-transit.
 
To qualify for the exemption, personal property used for assembling, storing, manufacturing, processing, or fabricating purposes would have to be acquired in Texas or imported into Texas and stored at a Texas location in which the owner of the goods does not have a direct or indirect ownership interest. The goods-in-transit would have to be transported to another location in Texas or out of state no later than 175 days after the property was acquired in or imported into the state. Oil and gas and their immediate derivatives, aircraft, and dealer's special inventories would not qualify for the exemption.
For more information, please visit the following links:
http://www.capitol.state.tx.us/BillLookup/BillSummary.aspx?LegSess=80R&Bill=HB621
http://www.capitol.state.tx.us/tlodocs/80R/fiscalnotes/html/HB00621F.HTM
 
Pollution Control Equipment Incentive
 
A Texas constitutional amendment providing an exemption from property taxation for pollution control was approved in 1993. The intent was to ensure that compliance with environmental mandates, through capital investments, did not result in an increase in a facility’s property taxes. A facility must first receive a determination from the Texas Commission on Environment Quality (TCEQ) that property is for pollution control purposes. That positive use determination is then provided to the local appraisal district, which must accept the TCEQ’s decision and grant the property an exemption from property taxes.
 
To be eligible for a positive use determination, the property must have been purchased, acquired, constructed, installed, replaced, or reconstructed after January 1, 1994 to meet or exceed federal, state, or local environmental laws, rules, or regulations.
 
For detailed information regarding this incentive, please contact David Greer with the Texas Commission on Environmental Quality at 512/239-5344.
 
Economic Development Refund
 
The Texas Comptroller of Public Accounts offers a refund of State franchise and sales/use taxes paid by companies owning certain abated property. A company who meets the following three conditions may apply for a refund:
1.        Paid property taxes to a school district on property that is located in a reinvestment zone established under Chapter 312.
2.        Is exempt in whole or in part from property tax imposed by a city or county under a tax abatement agreement established under Chapter 312.
3.        Is not in a tax abatement agreement with a school district.
 
The refund is equal to the amount of property taxes that would have been paid had the company entered into a school district abatement agreement with terms identical to the city or county abatement agreement, not to exceed the net state sales and use taxes and state franchise taxes paid or collected and remitted during that calendar year. The refund amount may also be limited by a statewide appropriation per year for this refund program.
 
For more information and assistance on this incentive, contact the Comptroller of Public Accounts at 800/252-9121 or 512/305-9999. 
 
Renewable Energy Incentives
 
Wind and Solar Energy Tax Exemptions and Deductions
 
Tax Code Section 171.056 extends a franchise tax exemption to manufacturers, sellers, or installers of solar energy devices. The state also permits a corporate deduction from the state’s franchise tax for renewable energy sources. Business owners may deduct the cost of the system from the company’s taxable capital or deduct 10% from the company’s income.
Wind energy qualifies under the term “solar energy” for the exemption and deduction under Sections 171.056 and 171.107.
 
For more information on the tax exemption, visit the State Energy Conservation Office’s website athttp://www.seco.cpa.state.tx.us/re_incentives.htmor contact the Comptroller of Public Accounts.
 
Texas property tax code permits a 100% exemption on the appraised value of solar, wind or biomass energy devices installed or constructed for the production and use of energy on-site. 
 
See Texas property tax Form 50-123, “Exemption Application for Solar or Wind-Powered Energy Devices” to claim this exemption.
 
Texas also offers a loan program for eligible efficiency technologies. The “LoanSTAR” program is available to schools, hospitals and local governments. The low interest loans are capped at a $5 million maximum and are required to meet certain technical guidelines including a detailed energy assessment report.
 
Website: http://seco.cpa.state.tx.us/ls.htm
Franchise tax questions
1-800-531-5441, ext. 5-9952 or (512) 305-9952
Property tax questions
1-800-531-5441, ext. 5-9806 or (512) 305-9806
 
Permit Assistance
 
TCEQ and the Office of the Governor Economic Development & Tourism division have established a relationship to assist companies, which may experience unwarranted delays in their environmental permitting process for projects that could affect job creation or have a high economic impact. 
 
Moving Image Industry Incentive Program
 
In 2007, the 81st Texas Legislature enacted House Bill 1634 establishing the Moving Image Industry Incentive Program. Under the legislation, grants to promote industry growth in Texas can be made to applicant production companies.
 
The incentive is available in the form of a production grant equal to 5% of in-state spending, including wages paid to Texas residents. Grants are available upon project completion to features, television programs, television commercials and video games. Both live action and animated projects are eligible. The maximum grant amounts available after September 1, 2007 are:
·         $2 million for features;
·         $2.5 million for television programs (for episodic series, $2.5 million per season);
·         $200,000 for a commercial, series of commercials or music videos; and
·         $250,000 for video games.
 
Available for review at the Texas Film Commissions website are the specific eligibility qualifications for projects including investment thresholds, employment requirements and content. Specific incentive enhancements related to underused areas are provided.
 
Website: http://governor.state.tx.us/film/incentives/miiip/
 
Economic Development & Diversification
 
In-State Tuition for Employees
 
The Economic Development and Diversification In-state Tuition incentive may be offered to qualified businesses that are in the decision-making process to relocate or expand their operations into Texas. The incentive allows employees and family members of the qualified businesses to pay in-state tuition fees if the individual files with a Texas institution of higher education. Without this incentive designation, a student must reside in Texas for a 12-month period to be entitled to pay the tuition fees of a Texas resident.