State Incentives

Enterprise Programs

Texas Enterprise Fund

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)
Rackspace $22.0 M
JP Morgan Chase (formerly Washington Mutual) $15.0 M
Medtronic $6.0
Petco Animal Supplies $3.1 M
Nationwide Mutual Ins. $2.5 M
Maxim $1.5 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

Emerging Technology Fund

The Emerging Technology Fund (ETF) was created by the Texas Legislature in 2005 at the urging of Gov. Perry to provide Texas with an unparalleled advantage in the research, development, and commercialization of emerging technologies. ETF grants are awarded for research in Texas higher education, development and commercialization of innovative ideas and public-private partnerships that leverage the unique strengths of universities, federal government grant programs and various industries. For more information about ETF, visit www.governor.state.tx.us or click here for detailed information on the latest ETF recipients.

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Texas Emerging Technology Fund Awards

Texas Emerging Technology Fund Awards
Seno Medical, Inc. Seno Medical’s new patented technology will produce real-time color functional images, which will allow medical experts to classify benign and malignant tumors instantaneously.

San Antonio - $2,000,000
UTHSCSA/DARPA The University of Texas Health Science Center at San Antonio (UTHSCSA) working with the Defense Advanced Research Projects Agency (DARPA) is establishing a $13.2 million Comprehensive Facility for Animal Imaging Research (CFAIR) to complement its existing Research Imaging Center (RIC). The Funds will be used for critical imaging needed to develop new drugs and vaccines for our armed services, new protective equipment, and modified equipment for national defense.

San Antonio – $1,400,000
CardioSpectra, Inc. The company will commercialize its Optical Coherence Tomography Diagnostic Catheter. This technology will allow doctors to better predict the likelihood of a patient having a heart attack.

San Antonio – $1,350,000
Xilas Medical, Inc. Funds will commercialize three medical devices that will aid in the early detection of neuropathies, foot stress and inflammation that often lead to diabetic ulcers and amputation.

San Antonio – $1,000,000
Bauhaus, Inc. The Company will continue to develop and distribute its animation software that replaced combined paper and digital methods with a complete digital system for animation and special effects.

San Antonio - $500,000

State Enterprise Zone Program

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.

Defense Economic Readjustment Zone

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.

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State and Local Corporate Income Tax Collections Per Capita - Fiscal Year 2008

StateCollections Per CapitaRank
California $325 7
Indiana $143 24
Nebraska $131 30
North Carolina $132 28
Missouri $131 29
Arizona $122 33
Florida $120 34
Oklahoma $99 40
South Carolina $72 45
Texas 0.00 ---
*Texas levies an annual franchise tax on companies on a business margin rather than net income resulting in a primary tax rate of 1%.
Source: Tax Foundation, 2008

State Business Climate Index, 2011

The 2011 SBTCI represents the tax climate of each state as of July 1, 2010.

StateOverall RankCorporate Tax Index RankIndividual Income Tax Index RankSales Tax Index RankUnemployment Insurance Tax Index RankProperty Index Rank
Florida 5 15 1 30 3 28
Indiana 10 21 11 20 12 4
Texas 13 46 7 37 15 29
Missouri 16 5 25 15 9 11
South Carolina 24 9 27 22 43 23
Nebrska 29 34 31 17 13 24
Oklahoma 30 7 24 42 1 27
Arizona 34 22 23 48 2 6
North Carolina 41 25 36 44 6 33
California 49 33 48 49 14 16
Source: Tax Foundation, 2011

State and Local Tax Burdens, 2009

Compared to other U.S. States

StateState and Local Tax BurdenRank*
California 10.6% 6
Nebraska 9.8% 15
North Carolina 9.8% 16
Indiana 9.5% 25
Florida 9.2% 31
Missouri 9.0% 34
Oklahoma 8.7% 37
Arizona 8.7% 38
South Carolina 8.1% 43
Texas 7.9% 45
*Note: The closer the rank to 50, the more favorable a state’s tax system is for business.
Sources: Bureau of Economic Analysis, Department of Commerce, and Tax Foundation