Programs - Texas Enterprise Zones
The Texas Enterprise Zone Program (TEZ) 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 in their jurisdiction to receive an Enterprise Zone designation and thus be eligible to receive state sales and use tax refunds on qualified expenditures by submitting an application on the company’s behalf. Companies must contribute information to the application packet where required.Companies must meet minimum capital investment thresholds and create and/or retain jobs that employ a certain percentage of economically disadvantaged individuals, enterprise zone residents, or veterans.
Sales and use tax refund, with the maximum allowable refund—both total and per-job—determined for each company which has been awarded a designation based on the company’s planned capital investment and job creation and/or retention at the qualified business site (see table below). Companies approved for Enterprise Zone designations are eligible to apply for refunds of the state sales and use tax they have paid during the designation period on qualified expenditures, up to their maximum allowable refund. The Texas Comptroller’s Office administers all refunds. TEZ designations are effective beginning 90 days prior to the deadline for the applicable application round and extend for a period of not less than 1 year and not more than 5 years from the date on which the designation is made.
1. Employment (new and retained jobs) and capital investment commitments must be met prior to the expiration of the designation period.
4. A company must first pay the applicable state sales and use tax on qualified expenditures in order to receive a refund of those taxes.
5. The percentage of a project’s new employees who must meet economically disadvantaged, enterprise zone residency, or veteran requirement varies depending on whether the qualified business site is located inside or outside of an Enterprise Zone—state-designated area with economically depressed conditions.
- If located within a Zone, 25% of the company’s new employees at the qualified business site must meet economically disadvantaged, enterprise zone residency or veteran requirements.
- If located outside a Zone, 35% of the company’s new employees at the qualified business site must meet economically disadvantaged, enterprise zone residency, or veteran requirements.
6. Only full-time jobs qualify for TEZ award consideration
7. Jobs must be maintained through the end of the designation period, or for at least 3 years after the date on which tax benefits are received, whichever is later.
For more information
Visit the Texas state website: Texas Enterprise Zone Program
For project consideration/nomination
Please contact us
Opportunity Zone Finder Below.