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 |
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
General Program:
- Enterprise Zone Program Statutes, Chapter 2303, Texas Government Code
- Enterprise Zone Program Rules, 10 TAC 176
- What is my Block Group?
- Census Tract / Block Group Zones
- 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
Applications and Sample Documents:
Application for Program Benefits:
- Guidelines (PDF)
- Application (MSWord)
- Enterprise or Defense Readjustment Project Claim for Refund
- Enterprise or Defense Readjustment Project Claim for Refund for Projects Designated on or After September 1, 2001
- Enterprise or Defense Readjustment Project - Invoices or Contracts Supplement
Benefit Documents:
- Please contact Clarence Goins, Enterprise Program Administrator, at (512) 305-9902.
Contact Information
For additional information on the Texas Enterprise Zone Program, call the Economic Development Bank at (512) 936-0100.