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The Texas Capital Fund CDBG Program A Texas-size "gap filler" designed to encourage private development activities in cities not receiving Community Development Block Grant funds directly from the federal government. A city can apply for a grant from $50,000 to $500,000, and awards are made on a statewide competitive basis. The grant is then loaned to the project principals, and ranges from 25 percent to 40 percent of the total project cost. The State Sales and Use Tax Exemption on Manufacturing Equipment This allows exemptions from state and local sales and use tax on machinery, equipment, replacement parts and accessories that have a useful life of more than six months and that are used or consumed in the manufacturing process, processing, fabricating or repairing of tangible personal property for ultimate sale. Note: The exemption must be claimed from the suppliers at the time of purchase. For information, the state's Tax Policy office can be reached at 512-463-4600. Natural Gas and Electricity Sales Tax Exemption Utility companies in Texas are required to charge sales tax on the purchase of natural gas and electricity when sold for commercial purposes. However, natural gas and electricity are exempt from sales taxes when sold to commercial businesses that are "predominantly" manufacturing. For more information, contact the Texas Comptroller of Public Accounts at 1-800-252-5555. The State of Texas Small Business Industrial Revenue Bond Program This program is designed to provide tax-exempt financing to finance land and depreciable property for eligible industrial or manufacturing projects. The Texas Leverage Fund This is an "economic development bank" offering an added source of financing to communities that have adopted the economic development sales tax. With this fund, the Texas Department of Commerce may loan funds directly to a local Industrial Development Corporation to finance eligible projects. This allows cities to leverage their economic development sales tax and to pursue additional projects. The Smart Jobs Fund This business incentive program provides grants to employers for customized training in occupations that are manufacturing, emerging and in demand. The program is employer-driven, meaning employers determine what training is needed for their work force, as long as they meet state requirements. Sixty percent of Smart Jobs Fund money must go to existing Texas business, but up to 40 percent may go to businesses new to the state. |
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