The Texas Enterprise Fund (TEF) provides the state’s leaders with a cash grant to be used as a financial incentive tool for projects that offer significant projected job creation and capital investment. The fund can be used for a variety of economic development projects including infrastructure and community development, job training programs, and business incentives. The TEF is used primarily to attract new business to the state or to assist with the substantial expansion of an existing business as part of competitive recruitment.
The TEF has put Texas among the top states for business climate and on to the short lists of both companies and site consultants. The program has allowed the state’s leadership to support economic development projects in a fast paced and changing economy.Since the inception of the fund, the state has been able to respond quickly and aggressively to opportunities that have brought thousands of jobs and billions in capital investment to Texas.The Governor’s Office will work closely with local leaders to tailor incentive packages that best meet the needs of local communities and businesses.
Award dollar amounts are determined using a standardized analytical model applied uniformly to each TEF applicant. This model assures that the State of Texas will see a full return on its investment within the period of a project contract, due to the resulting increase in estimated future sales tax revenues. Variations in award amounts are influenced by the number of jobs to be created, the expected timeframe for hiring, and the average wages to be paid. In the past, awards have ranged from $194,000 to $50 million.
Projects that are considered for a TEF award must demonstrate a significant rate of return on the public dollars being invested in the project. Additionally, every TEF project must meet several primary measures in order to be considered. These include competition with another state or country for the project, significant projected job creation, above-average projected wages, substantial capital investment by the company, and community involvement in the form of local economic incentive offers.
How to Apply
Each applicant undergoes a through 11-step due diligence process. Corporate activity, financial standing, tax status, legal issues, credit ratings, and estimated economic impacts, as well as the business climates of competition locations are assessed for each project and taken into consideration for all award decisions.
If you have a project that can benefit from the Texas Enterprise Fund, an application must be submitted to the Office of the Governor, Economic Development & Tourism division that provides information on how funds are to be utilized and how the proposed project meets the criteria of the program.
The application is available here: Texas Enterprise Fund Application
The Texas Enterprise Fund is administered through the Economic Development and Tourism division of the Office of the Governor. For more information, contact Justin Reynolds at (512) 936-0278.
Office of the Governor, Economic Development – Texas Enterprise Fund Webpage
Texas Enterprise Fund 2013 Legislative Report
Texas Enterprise Fund Award Listing – All Projects to Date (June 30, 2014), Office of the Governor