By BF Editors
From the September/October 2022 Issue
With its low tax burden, Texas allows businesses to invest in growing their workforce, improve facilities, and boost their bottom line. Texas extends several broad incentives and financing options for companies considering relocation or expanding to the state. Its reach is far as home to more than 1,600 foreign-owned companies, and enterprises of all sizes find opportunity with 2.7 million small businesses operating in the state.
Texas is one of only six states that doesn’t impose a corporate income tax. Additionally, Texas offers a number of advantages for businesses such as franchise tax exemption to manufacturers, sellers, or installers of solar energy devices and a sales tax exemption for manufacturing machinery and equipment and R&D-related materials, software, and equipment. Property tax abatements, permit fee waivers, local cash grants, and local funding are also available to assist companies looking to relocate or expand in the state.
Meanwhile, the Texas Enterprise Fund is an 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. This fund is the largest “deal-closing” fund in the nation.
With no corporate, state, or personal income taxes, Texas attracts both a healthy workforce and big businesses. Its second largest workforce of 14 million resides in the state with a Skills Development Fund to help develop the necessary skill sets.
Home to 54 Fortune 500 companies, Texas offers a healthy business climate and many economic development opportunities. The state is now home to more Fortune 500 companies than any other state in the nation, thanks to the recent migration of Caterpillar.
In a state has large as the Lone Star State, diversity abounds. Just a few instances: North Texas boasts the second-largest metropolitan area in the United States and is a magnet for corporate headquarters. South Texas borders Mexico and offers businesses access to the four Foreign Trade Zones (FTZs) to facilitate cross-border trade. Central Texas is known for its diverse business sectors and is home to seven top-ranking colleges and universities to contribute to the young, growing talent pipeline.
The Lone Star State is where liberty lives and enterprise thrives. As one of the top 10 economies among the nations of the world, Texas serves as a symbol of economic optimism for the entire country. As the nation’s top exporter for the last two decades, “Made in Texas” has never been a more powerful brand and a beacon for innovation.