BRAGGING RIGHTS: WHAT OTHERS ARE SAYING ABOUT TEXAS
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1 THE TEXAS ADVANTAGE
2 BRAGGING RIGHTS: WHAT OTHERS ARE SAYING ABOUT TEXAS 2015 Gold Shovel: 2015, 2014, 2013, 2012, 2008 Silver Shovel: 2011, 2010, 2009, 2007 CEOs Name Texas Best State for Business for 11th Year in a Row Site Selection Governor s Cup: 2014, 2013, 2012, 2010, 2005, 2004 #1 Best State for Future Job Growth and Economic Climate Top State for Infrastructure, Exports, Natural Gas Production and Renewable Energy America s 2015 Top State for Infrastructure, 2nd Best State for Business Texas was the top state for job growth in 2014 with 457,900 new jobs created. - U.S. Bureau of Labor Statistics, January 2015 Texas placed five cites on Forbes 2015 list of America s Fastest-Growing Cities, the most of any state! (#1) Houston (#8) Fort Worth (#2) Austin (#10) San Antonio (#3) Dallas - Forbes, January 2015 The Cyberstates 2015 report ranks Texas amongst the top states for high tech jobs with over 581,200 employed (No. 1 state for jobs in tech wholesalers and computer repair services). - CompTIA, February 2015 Texas awarded Site Selection s Governor s Cup for being the state with the most new and expanded corporate facilities, with 689 qualifying projects in Site Selection Magazine, March 2015 Texas is home to four of the Top 20 Most Business-Friendly Cities in the nation. (#1) Dallas (#12) Austin (#7) Houston (#15) San Antonio - MarketWatch.com, May 2015 Texas cities dominate NerdWallet s list of Best Cities for Job Seekers in (#2) Fort Worth (#15) Corpus Christi (#6) Austin (#18) Lubbock (#10) Laredo (#20) Irving - NerdWallet, January 2015 /TexasWideOpen /texas-wide-open Updated: June 2015
3 FAST FACTS: WHY LOCATE TO TEXAS? Top Business Destination In 2014, Forbes declared Texas 2015 s Best State for Future Job Growth and Economic Climate. Chief Executive Magazine has named Texas the Best State for Business for eleven years in a row. Texas is home to 54 Fortune 500 companies. The Tax Foundation ranks Texas one of the top 10 states for lowest overall tax burden. Texas corporate franchise tax levies a low flat rate of 0.5 percent or 1.0 percent on taxable margins. Texas has no personal income tax. Texas is a right-to-work state. Economy & Workforce If Texas were a nation, it would rank as the 12th largest economy in the world based on GDP, ahead of Australia, Mexico, Spain, South Korea and many others. Texas has added over 2.15 million net new jobs over the last decade (Oct Oct 2014). With over 13 million workers, Texas has the nation s second largest civilian labor force. International Trade & Investment In 2014, Texas was the top exporting state for the 13th consecutive year with exports valued at over $288 billion. Texas top exports are petroleum products, computer and electronic products, chemicals, nonelectrical machinery, and transportation equipment. Texas top export markets include Mexico, Canada, Brazil, China, and South Korea. Texas is a top-ranked destination for foreign direct investment (FDI). Texas ranks second nationally for the number of jobs at U.S. subsidiaries of global companies and the number of manufacturing industry jobs at U.S. subsidiaries, according to the Organization for International Investment. Texas retains an investment-ready portfolio of cutting edge companies, across a number of industries. Infrastructure Texas central location within North America facilitates domestic and international transportation, as well as easy access to markets. Texas has more miles of public roads (over 313,220) and freight rail (10,425) than any other state. Texas has 11 deep-water ports, with channels at least 30 feet deep along the Gulf Coast. The state s two largest airports, Dallas-Fort Worth International (DFW) and George Bush Intercontinental in Houston (IAH), are major domestic and international hubs. Texas two intermodal facilities, Fort Worth s Alliance Airport and San Antonio s Port San Antonio, integrate high-capacity industrial airports, Class I rail terminals, and direct interstate highway access. /TexasWideOpen /texas-wide-open
4 Energy & Utilities Texas 27 refineries can process more than 5.1 million barrels of crude oil per day and account for 28.8 percent of the country s total refining capacity. The state leads the nation in crude oil and natural gas reserves, and is responsible for 31 percent of the nation s crude oil reserves and 27 percent of the nation s natural gas reserves. Texas accounted for 51 percent of U.S. natural gas production in 2014, making it the nation s top natural gas producer. Texas is the nation s top wind energy producer with over 14,000 MW more than double the installed wind power capacity of any other state. If Texas were a nation, it would sixth for installed wind capacity behind only China, the rest of the U.S., Germany, Spain, and India. Commercial and industrial markets natural gas costs are 20 percent less per kwh on average in Texas and electric energy costs are an average of 12 percent less per kwh than the rest of the U.S. Education and R&D Texas universities and research institutions are national and global leaders in R&D in many industries, including electronics, medical, biotechnology, aerospace, advanced materials, and energy. Texas is nationally ranked for academic R&D expenditures with $4.4 billion expended. Programs such as the Skills Development Fund, which provides funding to community and technical colleges that prepare workers for skill-based technical jobs, have helped Texas build a capable and educated workforce. Over 4.1 million of Texans 25 years or older hold a bachelor s or higher degree. Texas 146 higher education institutions awarded over 271,000 degrees statewide in Incentives Property tax abatements Permitting fee waivers Local cash grants Local funding to business-related infrastructure and recruitment, equipment, land, and economic development purposes. The Texas Enterprise Fund (TEF) is the largest deal-closing fund of its kind in the nation. For select projects, the TEF may provide cash grants for business expansion or relocation to Texas. The Texas Enterprise Zone Program provides state sales and use tax refunds to qualified projects in economically distressed areas of the state. The Texas Skills Development Fund provides financing for customized job training programs for businesses who want to train new employees or upgrade the skills of their existing workforce. Office of the Governor, Economic Development & Tourism Division P.O. Box Austin, Texas Updated: June 2015
5 FORTUNE 500 Companies in Texas The Lone Star State is home to 54 Fortune 500 corporate headquarters. Corpus Christi Office of the Governor Economic Development and Tourism Source: Fortune Magazine Updated: June 2015
6 Great Recession Recovery Job Gains & Losses by State Gains Losses Source: Bureau of Labor Statistics Date: 10/14 The Bureau of Labor Statistics marks December 2007 as the beginning of the Great Recession. This map illustrates which states have gained and lost jobs since the beginning of the recession. As of July 2014, Texas leads all other states with a gain of 1,074,100 jobs.
7 INFRASTRUCTURE Texas offers superior transportation and logistical advantages. The state s central location and state-of-the-art transportation network provide timely access to domestic and global markets via air, land, and sea. Texas is home to American Airlines and Southwest Airlines, two of the largest airlines in the world. Texas has 11 deep water ports including the Port of Houston, one of the nation s top ten ports by freight loaded. In 2012, Texas 49 railroad operators transported million tons of freight. Houston is the top U.S. exporting market. The Houston-Sugar Land-Baytown area exported $114.9 billion in Texas is the only state with its own power grid and is not subject to federal regulation over electrical transmission. Fort Worth s Alliance Airport at the Alliance Global Logistics Hub is the world s first purely industrial airport. Select Companies in Texas /TexasWideOpen /texas-wide-open Updated: June 2015
8 TRADE & FOREIGN DIRECT INVESTMENT Texas is a leading global destination for foreign direct investment (FDI). Due in part to the state s strong economy, competitive business climate and central location within North America, more than 1,400 foreign corporations have ongoing operations in the state. In 2014, Texas was the top exporting state for the 13th consecutive year with exports valued at over $289 billion. Texas top export destinations include Mexico, Canada, Brazil, China, and the Netherlands. Texas top exports are petroleum products, computers and electronics, chemicals, non-electrical machinery, and transportation equipment. If Texas were a nation, it would rank as the 12th largest economy in the world based on GDP, ahead of Australia, Mexico, Spain, South Korea and more. Texas is second for jobs at U.S. subsidiaries of global companies, insourcing 476,400 jobs. Since 2009, over 600 new FDI Projects have been announced in Texas which are expected to generate 59,000 jobs and $43 billion in total capital investment. Selection of Global Companies Doing Business in Texas /TexasWideOpen /texas-wide-open Updated: June 2015
9 Foreign Trade Zones in Texas Texas leads the nation with 32 foreign trade zones (FTZs), more than any other state. FTZs are the domestic equivalents of free-trade zones. FTZs promote the international competitiveness of U.S.-based businesses because FTZ activities primarily involve domestic operations combining foreign and domestic inputs.
10 INCENTIVES & FINANCING Texas takes the initiative to invest in its future by offering competitive incentives to companies who are creating jobs and driving innovation in Texas. The following incentives are the most commonly utilized state offerings, for more details on any of the following programs/funds, vist Texas Enterprise Fund The Texas Enterprise Fund (TEF) is the largest deal-closing fund of its kind in the nation. The fund is used as a final incentive tool for projects that offer significant projected job creation and capital investment and where a single Texas site is competing with another viable out-of-state option. Workforce Development Workforce training programs provided through the Texas Workforce Commission. Skills Development Fund: Financing for customized job training. Self-Sufficiency Fund: Financing to provide training for employment opportunities primarily for individuals dependent on public assistance. Grants From public infrastructure projects in non-entitlement communities to cancer research and laboratory facility construction, several types of grants are available to Texas communities and businesses. Texas Capital Fund Infrastructure Program: Provides financial resources to non-entitlement communities for public infrastructure projects needed to assist businesses. Texas Capital Fund Real Estate Development Program: Loans provide capital to Texas communities at favorable market rates. Cancer Prevention and Research General Obligation Bonds: Funding opportunities for promising cancer research and prevention programs Defense Economic Adjustment Assistance Grant Program: A job creation grant program designed to assist defense communities impacted by Base Realignment and Closure (BRAC) activity, or reduction or termination of defense contracts. Moving Image Industry Incentive Program: Cash production grants between 5 and 22.5 percent of qualified in-state spending for film, television, commercial, and video game projects. /TexasWideOpen /texas-wide-open
11 Tax Incentives Texas and local communities offer a variety of tax incentives and innovative solutions for businesses expanding in or relocating to Texas. Texas Enterprise Zone Program: State sales and use tax refunds to promote job creation and investment that will assist economically distressed areas of the state. Manufacturing Exemptions: State sales and use tax exemptions for tangible property, natural gas, and electricity. Value Limitation and Tax Credits (Texas Economic Development Act): An appraised ten-year limitation to the local school district maintenance and operations tax portion of the property tax. Freeport Exemptions: Tax exemption for certain goods that enter and leave Texas within 175 days. Pollution Control Equipment Incentive: Tax exemption for property that is for pollution control purposes. Renewable Energy Incentives: Tax exemptions and deductions for solar, wind, ethanol, and biodiesel. Defense Economic Readjustment Zone Program: A tax refund program for business recruitment and job creation in adversely impacted defense-dependent communities. Research & Development Tax Credit: Gives companies a choice between a franchise tax credit and a sales tax exemption for materials, software, and equipment used for R&D purposes. Data Center Tax Incentives: Allows qualifying data centers to receive a sales and use tax exemption on tangible personal property. Business Relocation Tax Deduction: Allows a company relocating its headquarters from out of state to Texas to deduct relocation and moving expenses from their margin when calculating franchise tax liability. Financing Texas is committed to providing and facilitating funding for companies and communities with expansion and relocation projects in the state. Asset-based loans for companies, leveraged loans to communities, and tax-exempt bonds are just a few means of obtaining the capital necessary for a successful project. Texas Product/Business Fund: Asset-backed financing for companies in Texas to promote job retention and creation. Texas Leverage Fund: Allows communities to leverage future sales tax revenues to support job retention or creation. Industrial Revenue Bond Program: Provides tax-exempt or taxable financing for eligible industrial or manufacturing projects. Texas Military Value Revolving Loan Fund: Financing for defense communities for job creation and infrastructure projects. CAPCO: Providing alternative sources of venture capital to Texas entrepreneurs.
12 For more information on doing business in Texas, please contact: Office of the Governor Economic Development & Tourism Division P.O. Box Austin, Texas (p) (f) /TexasWideOpen /texas-wide-open
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