POPULATION: 26,448,198 (2013 estimate)
LABOR FORCE: 13,015,275 (August 2013)
RIGHT TO WORK: Yes
TRADITIONAL INDUSTRIES:Semiconductors, chemicals and related products, computer manufacturing, food processing, oil and gas, transportation equipment
EXPANDING INDUSTRIES: Aerospace, auto manufacturing, biotech and medical sciences, computer systems design, engineering, nanotechnology
COLLEGE GRADUATES: (Age 25 and over) 26.3(2012)
BASIC BUSINESS TAXES:
Margins Tax: Texas does not have a corporate income tax or an individual income tax. In 2008, Texas replaced its franchise tax with a Margins Tax, a tax of 1 percent on gross receipts less compensation or cost of goods sold. (Retailers and wholesalers have a rate of 0.5 percent.) Sole proprietorships and general partnerships are exempt. Businesses with revenue under $1,000,000 are also exempt.
Sales and Use Tax: 6.25 percent on retail sales of tangible personal property and certain labor and services; cities, counties, and transit authorities may add to the sales tax up to a maximum combined state and local rate of 8.25 percent, with certain manufacturing exemptions.
Property (ad valorem) Tax: No state property tax; real and tangible personal property is taxed at varying rates by local government and special taxing districts; local taxing entities have the option to exempt freeport goods.
BUSINESS INCENTIVES:
Grants:
• Texas Enterprise Fund
• Texas Emerging Technology Fund
• Defense Economic Adjustment Assistance Grant
• Moving Image Industry Incentive Program
• Texas Capital Fund Program (infrastructure development)
Sales tax incentives:
• Texas Enterprise Zone Program
• Texas Leverage Fund
• Manufacturing Sales Tax Exemptions on Inputs, Equipment, Natural Gas, and Electricity
• Data Center Sales Tax Exemption
• Research & Development Sales Tax Exemption
• Defense Economic Readjustment Zone Program
Loans:
• Industrial revenue bonds
• Texas Product/Business Fund
• Texas Military Value Revolving Loan Fund
• Texas Capital Fund Program (real estate development)
• Texas Agricultural Finance Programs (TAFA)
Special designations (other):
• Foreign-trade zones
• Maquiladoras
Work force training:
• Skills Development Fund
• Rapid Response Program (reemployment assistance)
• Self-Sufficiency Fund
