Manufacturing Sales Tax Exemption

State sales and use tax exemptions are available on the purchase of machinery or equipment for businesses engaged in manufacturing, processing, or fabricating of tangible personal property for sale.

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Sales Tax Exemption On Utilities

Companies that use more than 50 percent of their utilities in the manufacturing,processing, or fabricating of products for resale may apply for a sales tax exemptionon their utilities. The sales tax exemption applies to all utilities purchased through asingle point of delivery as long as the utilities are predominantly used to manufacture,process, or fabricate the product. Requires a predominant use study through the utilityprovider.

Pollution Control Property Tax Abatements

Ad Valorem Property Tax Abatements are available to companies with facilities,devices and equipment used to control air, water or land pollution. Companies wishingto apply for tax relief for their efforts in controlling pollution can apply to the TexasCommission on Environmental Quality.

Renewables Franchise Tax Deduction

Companies solely engaged in manufacturing, selling, or installing solar or wind devicesare exempt from the Texas franchise tax. Other businesses that install solar or windenergy systems are eligible for a franchise tax deduction of 10% of the system’s cost.

Renewables Property Tax Exemption

Residential, commercial, and industrial renewable energy devices are exempt fromproperty tax under Texas law. This exemption is applicable to most renewabletechnologies, including solar, wind, and biomass.

Property Assessed Clean Energy (PACE)

PACE is designed to provide low cost, long term financing for water and energyefficiency and conservation improvements to commercial and industrial properties.Under PACE, property owners would evaluate measures that achieve energy savingsimprovements or retrofits and receive financing, repaid as an assessment on thebuilding. The assessment term would be up to 20 years.

Business Relocation

A taxable entity may deduct relocation costs incurred from relocating a main office orother principal place of business to the State of Texas from another state or countryif the taxable entity did not do business in the State of Texas before relocating.

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Industrial Revenue Bond

Provides tax-exempt or taxable financing for eligible industrial or manufacturingprojects. This allows cities, counties, conservation and reclamation districts to formnon-profit industrial development corporations (IDCs) or authorities on their behalf.The purpose is to provide bonds for projects within their jurisdiction.

Texas Manufacturing Assistance Center (TMAC)

Designed to help Texas small manufacturing companies remain competitive in the ever-changing global marketplace. The TMAC Center provides technical assistance at a discounted rate for process improvements, environmental regulations upgrades, changes in the technology and the marketplace.

Texas Enterprise Zone Program

Local communities partner with Texas to promote job creation and capital investmentin economically distressed areas. Approved projects are eligible to apply for statesales and use tax refunds on qualified expenditures.

  • Employers who commit to creating or retaining permanent jobs, make capitalinvestment, and fill at least 25% of its new jobs with individuals who are eithereconomically disadvantaged, veterans, or residents of an enterprise zone canreceive state sales & use tax refunds on items purchased for the designation site.
  • Projects must meet or exceed country weekly wage average to be eligible.The benefits are based on job creation or retention and capital investment.For most projects, the maximum sales tax rebate is $2,500 per qualifying employee,up to 500 employees. Larger projects can qualify for higher rebates up to $7,500 perqualifying employee.

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