C&I Alert: Texas Enterprise Zone incentives application window now open
Capturing Incentives
Opportunity for businesses to capture significant economic incentives through the Texas Enterprise Zone Program - need to begin to act now to secure maximum value!
Texas Enterprise Zone Program
The Texas Enterprise Zone Program (TEZ) is a state incentive designed to encourage capital expenditures, job retention, and job creation in the State of Texas. Local communities may nominate a company facility to the Governor’s Office for designation as an Enterprise Project, a five-year designation that allows companies to claim state sales and use tax refunds on all taxable purchases used at the designated facility. The next Enterprise Project application cycle is December 1, 2022. Projects must first receive a local nomination from the City/County before applying, so the time to act is now.
How to Qualify
Company may be located anywhere in the state (not required to be located in an enterprise zone)
An “Enterprise Project” must be one site or related sites (i.e. business campus, integrated production/warehouse facilities) located in the same city/county
Must meet capital investment threshold over five-year period (ideal candidate has $5M in total capex over five years)
Must commit to retain and/or create full-time jobs over five-year designation (ideal candidate has 250+ full-time retained and/or new jobs)
Full-time job is any jobs that works 1,820+ hours/year
Application Procedures
Must first receive a nomination from the City Council or County Commissioners’ Court
Applications are due and reviewed by the Governor’s Office quarterly (next application cycle is December 1, 2022)
All applications received each cycle are reviewed and compared competitively, with the highest scoring applications receiving Enterprise Project designation)
Potential Benefits
Designated Enterprise Projects may claim state sales/use tax refunds on all taxable purchases used at designated facility during the five-year designation period.
Benefit levels are determined based on capital investment and job thresholds:
How HICKEY can help?
Hickey and Associates can assist by using location, capex, and headcount estimates to determine the likelihood of approval and estimated benefit levels at no cost.
Once engaged, Hickey and Associates will develop a workplan for seeking necessary approvals, prepare and gather all required applications and supporting documentation, and submit the application to the state, with a minimal time commitment required by company staff.
In competitive application process, maximizing application score is critical.
Hickey and Associates serves as the Project’s designated liaison for all communications with the City/County and Governor’s Office during the review process.
Once approved for Enterprise Project designation, Hickey and Associates can assist with preparing and filing all related compliance documents to ensure that the maximum benefits available are ultimately realized.
With over 100 Enterprise Project designations successfully secured, you will be partnering with a team with unparalled experience in the State of Texas!
To begin the process of capturing the TEZ program, or to learn more details, contact one of our Texas incentives experts today!