Grants / Rebates

The 78th Texas Legislature established the Texas Enterprise Fund to provide financial resources to help strengthen the state's economy. The Governor, Lieutenant Governor, and the Speaker of the House must unanimously agree to support the use of the Texas Enterprise Fund for each specific project.  Projects that are considered for the Enterprise Fund support must demonstrate a project's worthiness, maximize the benefit to the State of Texas and realize a significant rate of return of the public dollars being used for economic development in Texas. Capital investment, job creation, wages generated, financial strength of the applicant, applicant's business history, analysis of the relevant business sector, and federal and local government and private sector financial support of a project will all be significant factors in approving the use of the Enterprise Fund.

The $200 million Texas Emerging Technology Program is designed to help Texas create jobs and grow the economy over the long-term by expediting the development and commercialization of new technologies and attracting and creating jobs in technology fields that will form the backbone of our economy. The program will work through partnerships between the state, institutions of higher education and private industry to focus greater attention on the research, development and commercialization of emerging technology. The Emerging Technology Program is dedicated to three areas:

1. Regional Center of Innovation and Commercialization (RCICs). These centers will become concentrated with applied R&D activities, be incubators (including specialized workforce training) for startup firms and encourage expansion of existing companies resulting from commercializing their developments.
2. Matching grant funds. Applied technology research and development projects that accelerate commercialization into production and have a demonstrated ability to receive or have received federal grants or non-state grants may apply for matching dollars from the Emerging Technology Fund. Grants such as Small Business Innovation Research grants, Small business technology Transfer grants, etc.
3. Attracting research talent. The state will help Texas public universities attract highly renowned research teams from universities and institutions in other states.

The Texas Capital Fund Infrastructure Program is an economic development tool designed to provide financial resources to non-entitlement communities. Funds from this program can be utilized for public infrastructure (water, sewer, roads, etc.) needed to assist a business, which commits to create and/or retain permanent jobs, primarily for low and moderate-income persons.  The minimum award is $50,000 and the maximum is $750,000. The award may not exceed fifty percent (50%) of the total project cost.

The Rural Municipal Finance Program was created by the Texas Agricultural Finance Authority (TAFA) to stimulate economic activity in rural Texas. TAFA was created in 1987 as a Public Authority within the Texas Department of Agriculture

This loan program is designed for eligible applicants located within rural areas of the state that provide significant benefits for the rural area, and provide evidence of ability to repay the commitments.  Applicants can include: city and county governments; economic development corporations; hospital districts; rail districts; utility districts; special districts; agricultural districts; and private water and wastewater corporations.

An applicant must certify to TAFA that:

1. The project is located in a non-metropolitan statistical area (county); or
2. If in a metropolitan statistical area, the project is in an unincorporated area; or
3. Located in a city with a population of under 20,000, that is not adjoining a city or group of cities  with an aggregate population of 50,000 or greater.

Loan amounts range from $50,000 to an amount approved by TAFA’s board of directors, but target projects for less than $1,000,000. Loans may be used for real estate purchase, building construction, site improvements, equipment, water and wastewater systems, municipal infrastructure projects and any other use that can be identified to improve or assist in the economic development of the rural area.

Municipal Utility Districts (MUDs) can be created by provisions of the Constitution, the Water Code, or Legislative Act. MUDs may help finance the cost of water, wastewater, drainage and detention required for development, usually (but not necessarily) in unincorporated areas. MUDs have the power to levy an ad valorem tax to repay developers for the provisions of needed services plus the operation and maintenance of district facilities. MUDs generally reimburse developers from between 70% to 100% for water, sewer, drainage and detention costs, as well as associated financing costs. Some MUDs have road construction powers as well. MUDs have also recently been given broader powers to provide such additional services as garbage collection, security, and parks construction.

Chapter 387, Texas Local Government Code, authorizes counties to create County Assistance Districts (CAD) and to adopt a local sales tax up to a maximum rate of .5%.  A CAD may use the sales tax revenues to perform the following functions of the district:  promotion of economic development and tourism; the provision of services that benefit the public health or welfare; the construction, maintenance, or improvement of roads or highways; the maintenance or improvement of libraries, museums, parks, or other recreational facilities; and the provision of law enforcement and detention services.   Counties are eligible to create CAD’s, by election, if the total combined rate of all local sales taxes within the proposed CAD does not exceed 2 percent.  A CAD may impose a sales tax to fund the operations of the CAD if the tax is approved by a majority of the votes received at the creation election.   Counties must define the boundaries of the CAD and call for the election to be held within those boundaries.  The commissioner’s court of the county that creates the CAD is the governing body of the CAD and may contract with a public or private person to perform any act the district is authorized to perform.  

In 2007, the 81^st Texas Legislature enacted House Bill 1634 establishing the Moving Image Industry Incentive Program.  Under the legislation, grants to promote industry growth in Texas can be made to applicant production companies.

The incentive is available in the form of a production grant equal to 5% of in-state spending, including wages paid to Texas residents.  Grants are available upon project completion to features, television programs, television commercials and video games.  Both live action and animated projects are eligible.  The maximum grant amounts available after September 1, 2007 are:

·         $2 million for features;

·         $2.5 million for television programs (for episodic series, $2.5 million per season);

·         $200,000 for a commercial, series of commercials or music videos; and

·         $250,000 for video games.

Commercial and Industrial Standard Offer Program (C&I SOP)

The C&I Standard Offer Program may pay Project Sponsors incentives based on the savings in peak demand and in energy that their projects achieve. Demand savings incentives are paid for the maximum one-hour average demand reduction that occurs when the newly installed system is operating at peak conditions during the summer period.  The amount of the rebate is as follows:  $175 per kW reduction and $0.060 per kWh saved.  

 Load Management Program

CenterPoint Energy may pay a participating Customer (or the Project Sponsor, if different) up to $40 per kW of verified curtailed load each year of participation. For example, a Project Sponsor which contracts for 1,000 kW and consistently curtails 1,000 kW or more when asked would earn up to $40,000 each year.  The program was developed to pay incentives to participating Project Sponsors (customers and/or energy service companies) for curtailment of electric consumption on short notice during peak demand periods. Incentives are based on verified demand savings that occur at CenterPoint Energy distribution or eligible institutional customer's site as a result of an interruption. 

TXU Energy Efficiency Rebate Program

TXU Energy is offering monetary incentives to its business customers for installation of proven energy efficient technologies during the term of the contract.  Qualified business must sign a minimum 12-month contract with TXU Energy and complete the energy efficiency upgrades within the timeframe set in the contract.  After the upgrades are complete the customer sends in the enrollment form with appropriate documentation of the retrofit to TXU Energy.  Subsequently, the check is mailed to the customer.  Such technologies include but are not limited to fluorescent and LED lighting retrofits (including streetlights), LED exit signs, building automation systems and HVAC upgrades.  Each retrofit category has a specific dollar value, which is applied to the maximum total rebate offer.  The total eligible rebate amount is dependent upon the contracted MWh and the offer is subject to availability.

The RBEG program provides grants for rural projects that finance and facilitate development of small and emerging rural businesses help fund distance learning networks, and help fund employment related adult education programs. To assist with business development, RBEGs may fund a broad array of activities.  Rural public entities (towns, communities, State agencies, and authorities), Indian tribes and rural private non-profit corporations are eligible to apply for funding.  Rural is defined as any area other than a city or town that has a population of greater than 50,000 and the urbanized area contiguous and adjacent to such a city or town according to the latest decennial census. At least 51 percent of the outstanding interest in any project must have membership or be owned by U.S. citizens or resident aliens.  The RBEG program is a broad based program that reaches to the core of rural development in a number of ways. Examples of eligible fund use include: Acquisition or development of land, easements, or rights of way; construction, conversion, renovation, of buildings, plants, machinery, equipment, access streets and roads, parking areas, utilities; pollution control and abatement; capitalization of revolving loan funds including funds that will make loans for start ups and working capital; training and technical assistance; distance adult learning for job training and advancement; rural transportation improvement; and project planning. Any project funded under the RBEG program should benefit small and emerging private businesses in rural areas. Small and emerging private businesses are those that will employ 50 or fewer new employees and have less than $1 million in projected gross revenues.

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