Welfare to work
Substantial tax credits and benefits are available  to companies that hire persons off the welfare rolls.

Texas Enterprise Zone Program
Businesses located in an enterprise zone may be eligible for local and/or state benefits. An enterprise project is a business that is nominated by a municipality or county and approved by the The Office of the Governor Economic Development and Tourism Office's Economic Development Bank (Bank) for state and local benefits. The business must commit to create or retain new permanent jobs, make capital investment at the qualified business site, hire at least 25% of its new jobs with individuals who are either economically disadvantaged or enterprise zone residents (ED/EZR) if the qualified business site is located in an enterprise zone, or hire at least 35% of its new jobs with individuals who are ED/EZR if the qualified business site is located outside of an enterprise zone, and maintain a level of employment from the date refund is made by the Comptroller of Public Accounts for at least three years.

What state incentives are available to enterprise projects?
Enterprise projects are eligible for a refund of state sales and use taxes paid on machinery and equipment, building materials, labor for the rehabilitation of existing buildings, and electricity and natural gas purchased for use at the qualified business site. The refund is up to $2,500 for each permanent job the project creates or retains during the designation period. The number of jobs for which a refund may be received is based upon commitments made in the project application. Each project is limited to a maximum refund of $1.25 million or $250,000 per year over five years for a regular project designation. The maximum benefit for a double jumbo enterprise project is $2.5 million or $500,000 per year over five years, and the maximum benefit for a triple jumbo enterprise project is $3.75 million or $750,000 per year over five years. A double jumbo enterprise project counts as two project designations against both the nominating jurisdiction and the 85 designations allowed per biennium for the state, and a triple jumbo enterprise project counts as three project designations against the nominating jurisdiction and the state.

Enterprise projects are eligible for a franchise tax reduction on its annual report filing for each year of their designation. State franchise tax liability is based upon the project's taxable capital or earned surplus income. The reduction is based on the amount of capital investment made at the qualified business site. The project's apportioned taxable capital may be reduced by 50 percent of the capital investment made at the qualified business site, or the apportioned earned surplus income may be reduced by 5 percent of the capital investment made at the qualified business site.

A project designated on or after September 1, 2001 is entitled to establish certain franchise tax economic development credits. Eligible corporations may claim the job creation and capital investment credits on franchise tax reports originally due on or after September 1, 2001 and before January 1, 2005. For more information about the jobs creation credit and capital investment credit, see Chapter 171, Subchapter P and Q of the Texas Tax Code.

Can a business that is not located in an enterprise zone be nominated for program benefits?
Yes. Qualified businesses located outside of an enterprise zone area would be required to hire at least 35% enterprise zone residents or economically disadvantaged persons.

The Economic Development Administration
The Economic Development Administration (EDA) provides grants for infrastructure development, local capacity building, and business development to help communities alleviate conditions of substantial and persistent unemployment and underemployment in economically distressed areas and regions. EDA provides grants up to $1.5 million for Public Works and Development Facilities to support industrial, commercial, and technology-based employment in eligible areas experiencing significant economic distress. These projects will diversify the local economy and improve conditions for sustained economic growth. Examples include grants to improve or develop transportation facilities, water and sewer systems for industrial use, industrial parks and buildings, business incubators and technology training centers, telecommunications facilities and research parks.

Partnership of Southeast Texas works as part of the Southeast Texas Economic Development District to education business and communities on the use of these funds nad provide technical assistance in applying for these grants.

Strategic Investment Zones/Francise Tax Credits

The 76^th Texas Legislature passed SB441; establishing franchise tax credits for job creation and capital investments. The franchise tax is imposed on each corporation chartered in Texas or has a Certificate of Authority to do business in Texas. Non-Texas corporations doing business in Texas without a Certificate of Authority are also liable for Texas franchise tax. Corporations who operate in strategic investment areas may qualify for special benefits. The Texas Comptroller designated Galveston, Hardin, Jasper, Jefferson, Liberty, Newton, Orange, and Tyler counties as a Strategic Investment areas on September 28. Three specific credits are available (cannot exceed 100% of franchise tax liability and new credits are not allowed after December 31, 2009):

• Research and Development -- 4% of qualified expenses on a report before Janaury 1, 2002. Changes to 5% for reports after January 2, 2002. The credit applies to excess of qualified research expenses in Texas over a base year, plus basic research payments in Texas. May not be combined with the Job Creation credit and may not exceed 25% of franchise tax due for reports before Jan. 1, 2002 and not be more than 50% of tax due for reports after January 1. 2002 Can be carried forward 20 years.
• Job Creation -- 25% of wages paid for new qualifying jobs created in strategic investments areas credit must be claimed in equal installments over 5 years. Qualifying jobs are in central administraive offices, distribution, data processing, manufacturing, research and development or warehousing. (Cannot exceeed 50% of franchise tax due before credits -- must be at least 10 new full-time jobs created; must pay 110 % of the county average weekly wage and include health insurance. Cannot be combined with R&D credit.)
• Capital Investment-- 7.5% of qualified investment made in a Strategic Investment Area. Credit must be claimed in equal installments over 5 years. Applies to investments in depreciable tanglible personal property in central administration offices, distribution, data processing, manufacturing, research and development or warehousing. A minimum investment of $500,000 is required; jobs at the location of the investment must pay 110 percent of the county average weekly wage and include health insurance.

More information is at

http://www.window.state.tx.us/taxinfo/taxpubs/tx96_686.html

Average Weekly Wages by County for SIA program

Texas Capital Access Fund
The Texas Capital Access Fund was established to increase the availability of financing for businesses and nonprofit organizations that face barriers in accessing capital . Through the use of the Capital Access Fund, businesses that might otherwise fall outside the guidelines of conventional lending may still have the opportunity to receive financing.

Texas Manufacturing Assistance Center
The Texas Manufacturing Assistance Center (TMAC) works for all Texans by enabling small  manufacturers to better compete in the international marketplace. 

SBA Loans
A low down-payment with long-term favorable interest rate financing is available through the U.S. Small Business Administration's loan program. The Southeast Texas Economic Development Foundation, along with private lenders, makes direct loans to businesses for the purchase of land, buildings, machinery and equipment. (409) 838-6581

Houston SBA office

Texas General Land Office HUB program
A HUB is a profit making corporation, sole proprietorship, partnership or joint venture in which at least 51 percent of the shares of stock or other equitable securities are owned by one or more persons who have been historically underutilized (socially disadvantaged) because of their identification as members of the following groups:

    1.African-Americans; 
    2.Hispanic Americans; 
    3.Women; 
    4.Asian Pacific Americans; 
    5.and Native Americans. 

Texas Linked Deposit Program
The State of Texas Historically Underutilized Business and Small Business Linked Deposit Program ("Linked Deposit Program") was established to encourage lending to historically underutilized businesses and/or small businesses located in distressed communities by providing lenders and borrowers a lower cost of capital.

Cities in Southeast Texas with 1/2 cent sales tax for economic development:

Tax Abatment Policies

City		1997	1998	1999	4A-4B
Dayton		$ 146,801	$ 181,790	$ 228,612	4B
Groves		543,308	567,463	567,291	4B
Jasper		621,203	638,603	726,214	4A
Kirbyville		-	-	84,018	4B
Kountze		49,211	57,164	56,979	4A
Liberty		508,313	561,164	548,969	4B
Lumberton		135,559	245,336	264,087	4B
Mont Belvieu
Nederland		830,581	925,798	1,006,245	4B
Newton		70,024	49,433	51,992	4A/4B
Port Arthur		1,823,281	1,833,343	1,946,572	4A
Port Neches
Silsbee		368,181	394,570	328,447	4A
Sour Lake		$ 51,086	$ 54,811	$ 54,711	4A

Chambers County

Jefferson County

Orange County

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