Texas Enterprise Fund

Texas Enterprise Fund

Funds Texas-based companies that commit to local growth and jobs through regional economic development partnerships.

Eligibility · United States · US-TX

The Texas Enterprise Fund (TEF) is the state's primary deal-closing incentive for large capital investment projects. Administered by the Office of the Governor, the program provides performance-based cash grants to companies that are actively evaluating Texas against at least one competing out-of-state location — the final site decision must not yet be made. Award amounts are not published in advance; each grant is calculated using a uniform analytical model that weighs the economic value of the project, incorporating average wages of new employees, hiring timeline, total headcount, and total capital investment into Texas.

Eligibility is limited to for-profit companies that are well-established and financially sound. Urban projects must create a minimum of 75 net new full-time jobs; rural projects require at least 25. The average wage across all new positions must equal or exceed the county average wage for the full grant term. Local co-investment is mandatory — the city, county, or school district where the project is located must contribute an incentive alongside the state award. Applications are accepted on a rolling basis year-round and proceed through an 11-step due diligence review. No funds are disbursed until the grantee signs a formal contract and meets all job creation and wage targets.

Final approval requires unanimous sign-off from three of Texas's most senior officials: the Governor, the Lieutenant Governor, and the Speaker of the House. This tri-party requirement means TEF awards carry strong political weight and are typically reserved for projects with statewide economic significance. Applicants in advanced manufacturing, semiconductor fabrication, energy infrastructure, and technology hardware with large workforce expansion plans are the typical beneficiaries. Companies should engage the Governor's Office early in the site-selection process, before any location commitment is made.