Office of the Governor Rick Perry: Economic Development & Tourism

Tax Incentives

TEXAS 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.

Participation
Local communities must nominate a company as an Enterprise Project to be eligible to participate in the Enterprise Zone Program. Legislation limits allocations 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.

Benefits to Participation
Designated projects are eligible to apply for state sales and use tax refunds on qualified expenditures. The level and amount of refund is related to the capital investment and jobs created at the qualified business site.

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

Enterprise Zone Projects Approved by Region & Map FY08-09 [50.4KB PDF]
Enterprise Zone Projects Approved by Region Detailed List FY08-09
[56 KB MSExcel]

In addition, local communities must offer incentives to participants under the Enterprise Zone Program, such as tax abatement, tax increment financing and one-stop permitting.

Participation Requirements

Communities may nominate projects, 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.
- Projects may be physically located in or outside of an Enterprise Zone.
- If located within a zone, the company commits that at least 25% of their new employees will meet economically disadvantaged or enterprise zone residence requirements.
If located outside of a zone, the company commits that at least 35% of their new employees will meet economically disadvantaged or enterprise zone residency requirements.
Under limited statutory provisions, an enterprise project designation may be granted for job retention.

Program Resources

Benefit Documents:

Please contact the Comptroller of Public Accounts: (512) 305-9902

Contact Information

For additional information on the Texas Enterprise Zone Program, call (512) 936-0100.

DEFENSE ECONOMIC READJUSTMENT ZONE PROGRAM

The Defense Economic Readjustment Zone Program (DERZ) was established as a tool for business recruitment and job creation in adversely impacted defense dependent communities. It is designed to provide assistance to Texas communities, businesses and workers impacted by, or vulnerable to, the closure or realignment of military installations and the reduction of federal defense contracting expenditures.

Benefits to Participation
Designated readjustment projects are eligible to apply for franchise tax credit and state sales and use tax refund on qualified expenditures. The level and amount of the credit/refund is related to the sales and use tax on qualifying expenditures and the number of jobs created/retained at the site.

The number of jobs eligible for a refund will not exceed 500 or a number equal to 110% of the anticipated new permanent/retained jobs.
The maximum refund per allocated job is $2,500.

Local communities may also offer benefits to participants under the defense economic readjustment zone program as well. These may include tax abatement, tax increment financing, one-stop permitting and others.
Participation Requirements

A community must nominate and receive designation as a Defense Economic Readjustment Zone and provide specific information as required by statute.
A company must receive nomination from their local community.
Applications for readjustment zone or project designation may be filed with the department on any day.
DERZ's are designated for a period of seven (7) years with no limitation on the number of zones.
A DERZ may have no more than two defense readjustment projects.
DERZ projects may be designated for up to a five (5) year period, in addition to a 90 day window prior to the designation date. Employment and community commitments must be met within this time-frame.
At least 25% of the qualified business new employees in the DERZ must be residents of the governing jurisdiction; economically disadvantage; or dislocated defense workers.

Fee

A non-refundable fee of $500 for either a defense readjustment zone or defense readjustment project designation application.

Program Resources

General Program:

List of Defense Economic Readjustment Zones
Defense Economic Readjustment Zone Statute - Government Code 2310

Applications and Sample Documents:

Defense Economic Readjustment Zone Application [730KB MSWord]
Defense Economic Readjustment Project Application [888KB MSWord]

Benefit Documents:

Please contact the Comptroller of Public Accounts at (512) 305-9902

Contact Information

For additional information on the Defense Economic Readjustment Zones, please contact us at (512) 936-0100.

Tax Incentives

TEXAS ENTERPRISE ZONE PROGRAM

Program Resources

General Program:

Texas Enterprise Zones:

Applications and Sample Documents:

Benefit Documents:

Contact Information

DEFENSE ECONOMIC READJUSTMENT ZONE PROGRAM

Fee

Program Resources

General Program:

Applications and Sample Documents:

Benefit Documents:

Contact Information