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Texas Enterprise Zone Program

The Texas Enterprise Zone (EZ) Program must be evaluated by all companies in Texas with significant operations. Companies with 100 or more employees making large capital investments and even smaller investments may take advantage of this program. PKF Texas' credits and incentives practice has experience advising Houston's largest privately held and public companies in this important incentive.

Overview

The program provides for a refund of the state portions of Texas sales and use tax for investment made at a designated enterprise project site. The size of the refund is dependent upon the amount of investment made over up to a 5-year period and the number of new or retained jobs at the site. For conservative projects with capital investment of $1 million to $5 million a company may qualify for a refund of state sales tax of $2,500 for up to 125 employees. That's $312,500. For larger projects with investment greater than $5 million a company may qualify for a refund of state sales tax of $2,500 for up to 500 employees. That's a potential savings of $1.25 million. Very large projects greater than $150 million and $250 million may qualify for refunds of $5,000 and $7,500 per employee (respectively) for up to 500 employees.

PKF Texas' Business Incentives Advisory practice has a deep background in Texas sales and use tax as well as the EZ program itself. Both are essential to success in the EZ application process.

Local Nomination and Designation by the Governor's Office

The EZ program is a discretionary incentive requiring local and state government approval. At the local level, a city or county must formally recommend to the Governor's office a company as an enterprise project. This is done through the passage of a city council resolution or county commissioners court ordinance. Once this is complete, the company completes the Governor's office's application for "Enterprise Project" designation. This application contains information about the company, its planned investment as well as the area in which the company is located. The application contains scoring criteria that help the Governor's office compare various applications. Applications with more competitive scores are the most likely to receive designation by the Governor's office as an enterprise project.

PKF Texas' Business Incentives Advisory practice has experience working with city, county and Governor's office representatives on these applications. PKF Texas guides its clients through the local nomination process and completes the application to the Governor's office.

Increase Your Chance for Success

The most frequently asked question most companies have is whether their application will be successful. PKF Texas works to manage its clients' expectations in this regard and to provide strong guidance on the likelihood of success of the application. Usually the EZ application process begins with a complimentary discussion with a member of PKF Texas' Business Incentives Advisory practice.

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