Texas Enterprise Fund

The Texas Enterprise Fund (TEF) was established in 2003 to allow the state to respond quickly and aggressively to opportunities to bring jobs and employers to Texas. The funds are used primarily to attract new business to the state or assist with the substantial expansion of an existing business as part of a competitive recruitment situation.

Award dollar amounts are determined using an analytical model applied uniformly to each TEF applicant. This model assures that the State of Texas will see a full return on its investment within the period of a project contract due to the resulting increase in estimated sales tax revenues. Variations in award amounts are influenced by the number of jobs to be created, the expected timeframe for hiring, and the average wages to be paid. In the past, awards have ranged from $194,000 to $50 million.

To be eligible for TEF support, a project must demonstrate a significant return on the state's investment and strong local support. The review process will consider a variety of factors associated with each project, including job creation and wages, capital investment, the financial strength of the applicant, the applicant's business history, analysis of the relevant business sector, and public and private sector financial support. The project must have community involvement from the city, county, and/or school district, primarily in the form of local economic incentive offers. Before funds can be awarded, the Governor, Lieutenant Governor and Speaker must unanimously agree to support the use of the Texas Enterprise Fund for each specific project.

In 2018, additional incentive benefit for new TEF grantees was implemented to encourage the hiring of military veterans. New grantees, in addition to being eligible for funding on a per-job-created basis, will be eligible for an additional $1,000 per job filled by a veteran during the first year of job creation.