Unlocking New Incentive Program In Texas

As of January 1, 2024, a new tax incentive program has officially become available in the State of Texas AND the official applications have been released. The Texas Jobs, Energy, Technology, and Innovation Program, also known as JETI, allows for tax abatements and other incentives for large-scale business developments, expansions, and relocations.

Eligibility

To be eligible for the new incentive, projects must fall within certain NAICS codes, with a focus on manufacturing. 

Eligible NAICS codes are:

• Manufacturing - NAICS 31-33;

• Facility related to the provision of Utility Services – NAICS 2211;

• Facility related to the development of natural resources:

  • Agriculture, Forestry, Fishing & Hunting – NAICS 11;

  • Mining, Quarrying, and Oil & Gas Extraction – NAICS 21;

• Facility engaged in Research & Development, - NAICS 5417, or manufacture of high-tech equipment or technology;

• Related to Critical Infrastructure:

  • Water intake structure, water treatment facility, wastewater treatment facility, or pump station – NAICS 2213;

  • Liquid natural gas terminal or storage facility – NAICS 424710;

  • Pipelines and pipeline appurtenances or facilities – NAICS 486;

  • Utility-scare water or wastewater storage, treatment, or transmission facilities – NAICS 2213

Eligible investments include construction of new buildings, expansion of an existing building, and tangible personal property, excluding inventory, which is either owned or leased by the program applicant.  The minimum capital investment and job creation requirements per eligible project are determined by the population of the County in which the project will be located.  

Program Application Process

Companies interested in pursuing JETI incentives can apply after January 18th, 2024, and must complete the application review period and be approved, which takes approximately 120 to 180 days, before making the applicable capital investment.

JETI Application Process Timeline - Source: Texas Comptroller of Public Accounts

Project Requirements

Job creation requirements are subject to wages that exceed 110% of the statewide average annual wage for all jobs in the applicable industry sector. Businesses are required to offer and contribute to a group health benefit plan for each full-time employee.

Projects that meet the requirements and are approved will receive a property tax abatement on the school district maintenance and operations (M&O) tax for 10 years. Under the standard terms the abatement is 50% of the M&O taxes, but expands to 75%, if the project is in a qualified opportunity zone.  The estimated average savings depending on project size and tax rates ranges from $900,000 to $9,000,000 over 10 years.

The minimum investment and job creation requirements are listed below.

JETI Project Requirements by Texas County

Contact the Hickey Texas Incentives Team to learn more and to begin exploring how we can support your business secure the JETI Program!