Enterprise Zone Program
Program Objective
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 allocated |
|---|---|---|---|
| $40,000 to $399,999 | 10 | $25,000 | $2,500 |
| $400,000 to $999,999 | 25 | $62,500 | $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 |
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 of not less than one year 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.
Enterprise Project Designation Dates 2008/2009 Biennium
| Quarterly Deadline | 90 Day | Expiration Date |
|---|---|---|
| 09/04/07 | 04/23/07 | 09/04/12 |
| 12/03/07 | 07/23/07 | 12/03/12 |
| 03/03/08 | 10/17/07 | 03/03/13 |
| 06/02/08 | 01/23/08 | 06/02/13 |
| 09/02/08 | 04/22/08 | 09/02/13 |
| 12/01/08 | 07/18/08 | 12/01/13 |
| 03/03/09 | 10/14/08 | 03/03/14 |
| 06/01/09 | 01/20/09 | 06/01/14 |
Enterprise Project Designation Dates 2010/2011 Biennium
| Quarterly Deadline | 90-Day Window | Expiration Date |
|---|---|---|
| 09/01/09 | 04/23/09 | 09/01/14 |
| 12/01/09 | 07/20/09 | 12/01/14 |
| 03/01/10 | 10/13/09 | 03/01/15 |
| 06/01/10 | 01/20/10 | 06/01/15 |
| 09/01/10 | 04/26/10 | 09/02/15 |
| 12/01/10 | 07/20/10 | 12/01/15 |
| 03/01/11 | 10/15/10 | 03/01/16 |
| 06/01/11 | 01/20/11 | 06/01/16 |
The state is allowed to designated 105 projects during a biennium.
Program Resources
General Program:
Enterprise Zone Program Statutes, Chapter 2303, Texas Government Code
Enterprise Zone Program Rules, 10 TAC 176
Frequently Asked Questions [127KB MSWord]
Program Overview [85KB MSWord]
HUD Section 8 Income Limits by Texas Counties
Chapter 311: Texas Tax Increment Financing Act
Chapter 312: Property Redevelopment and Tax Abatement Act
Chapter 313: Texas Economic Development Act
Texas Enterprise Zones:
What is my Block Group?
Texas Block Group Enterprise Zones [967KB MSExcel]
2007 Distressed Counties [19KB PDF]
2006 Distressed Counties [66KB PDF]
2005 Distressed Counties [14KB PDF]
Enterprise Zones Approved Prior to September 1, 2003 [71KB PDF]
Applications and Sample Documents:
Enterprise Project Application [1MB MSWord]
This version of the application must be used beginning with the December 3, 2007 enterprise project deadline.
Additional Participating Entities Form [109KB MSWord]
Participating Consultant Form [208KB MSWord]
Sample Nominating Ordinance or Order [49KB MSWord]
Sample Nominating Resolution [37KB MSWord]
Sample Corporate Resolution [29KB MSWord]
Request for Verification of Deposit Form [33KB MSWord]
Enterprise Project Assignment Application Form [587KB MSWord]
Enterprise Project Name Change Application Form [586KB MSWord]
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.
Sign-up to get Texas Enterprise Zone Program by e-mail