State Incentive

TX State - Texas Enterprise Zone Program

Summary

The Texas Enterprise Zone Program (EZP) is a state sales and use tax refund program designed to encourage private investment and job creation in economically distressed areas of the state.

Who Can Apply?

  • Texas communities must nominate companies for Enterprise Zone designation.

  • Companies must meet capital investment thresholds and create or retain jobs for economically disadvantaged individuals, zone residents, or veterans.

Incentives

  • Refunds on state sales and use tax for qualified expenditures, based on investment and job creation.

  • Refunds are administered by the Texas Comptroller and are available for up to 5 years.

Capital Investment Levels and Maximum Refunds:

  • Half Enterprise Project: $40,000 - $5M investment, up to $625,000 refund.

  • Enterprise Project: $5M - $150M investment, up to $1.25M refund.

  • Double Jumbo Project: $150M - $250M investment, up to $2.5M refund.

  • Triple Jumbo Project: $250M+ investment, up to $3.75M refund.

Eligibility Details

  • Jobs must meet local wage standards and be full-time.

  • A percentage of new employees must be economically disadvantaged, zone residents, or veterans.

  • Designation limits: larger communities (9 per biennium), smaller (6 per biennium), statewide (105 per biennium).

Application

  • Applications are accepted quarterly with specific deadlines.

  • Late applications are not accepted.

Key Deadlines (FY 24-25)

  • Quarterly deadlines: March 1, June 3, September 1, December 1.

  • Designation lasts up to 5 years; job commitments must be met within this period.

This simplified guide covers the essentials of the EZP, helping companies understand how they can benefit from the program.