The state’s Economic Development Department recently reported that even in the middle of a global pandemic, there are currently 196 large businesses actively looking to relocate to Texas. Adriana Cruz, the Executive Director of the department, cited Texas’ governmental support, talented workforce, global market accessibility, and the overall pro-business environment Texas upholds as reasons for so many corporate relocations. But why Texas? Let’s break these aspects down to really understand what they mean for a relocating business.
Although we could spend an entire series solely talking about the various tax breaks and financial opportunities offered to businesses moving their headquarters to Texas, we would rather highlight a few of the most popular incentives to act as a starting point for your continued research. No matter what industry your company belongs to, you will find Texas’ positive attitude towards business allows for growth that would make corporations on the East and West coasts incredulous. Take the Business Relocation Tax Deduction, for example. This incentive is specifically for companies moving their headquarters to Texas from out-of-state and allows you to subtract relocation and moving expenses from your franchise tax liability. The Texas Enterprise Fund—another popular incentive—awards grants to businesses that agree to move to Texas and has given $595 million to relocating companies so far. Texas is willing to invest in your corporation’s success by providing tax refunds, breaks, and funding that will help both the economy and the surrounding community. Visit the Texas Economic Development webpage for the full spectrum of Texas relocation incentives.
Many people are surprised to find Texas is made up of a diverse and ever-growing population. Domestic and international migration to the Lone Star state is not a new phenomenon. Since 1900, Texas’ population has grown at more than twice the rate of the United States population increase. One major reason for this is that it has always been a center for economic opportunity. Of the top ten fastest-growing cities in the U.S., five of them are located in Texas. Furthermore, Texas has the fifth lowest taxation in the nation, making it a cost-effective place to live and work. People move from all over the world for the job market in Texas, meaning the Texan workforce is diverse and multi-faceted, contributing its talents to the corporations housed here. As a result, Texas is the premier place to locate for a great variety of industries, including energy, cybersecurity, and healthcare, among others.
Along with a highly skilled labor force and supportive governmental regulations, Texas is an international hub, making it easier for corporations here to expand into global markets. With 25 international airports, travelling in Texas means less layovers, more frequent flights, and endless destinations. Texas Central is also making future travel between Dallas and Houston much easier with the proposed construction of a high-speed train between the two cities. Travel between these two major economic hubs in less than 90 minutes will soon open up business opportunities for Texan corporations that were previously unfeasible.
These are just a few of the reasons why so many corporations have gone to Texas. The business opportunities are plenty, and the benefits remain during economic recessions. When it’s time for your corporation to relocate, research your options thoroughly; we’re sure Texas will be at the top of your list.