Texas Business Incentives for Growth in 2025

In 2025, Texas introduced new incentives to help businesses reduce costs and expand. Key highlights include:

• $51 billion for school property tax relief, with $500 million allocated for business tax relief.
• Business Personal Property Exemption (HB 9) raised the tax threshold from $2,500 to $125,000 per location (potentially $250,000 pending voter approval).
• R&D franchise tax credit increased to 8.722% (or 10.903% for research with Texas universities).
• $300 million funding for the Texas Moving Image Industry Incentive Program, supporting film, TV, and digital media projects.
• Local incentives in Rockwall, such as discounted land, workforce training grants, and property tax abatements.

Businesses can also access grants like the Texas Enterprise Fund (TEF) and the Skills Development Fund for job creation and training. These programs aim to lower financial barriers, encourage innovation, and attract investments. Contact the Rockwall Economic Development Corporation (REDC) for tailored support and applications.

Texas gave data centers more than 1 billion in tax breaks in 2025, data shows

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Texas State Business Incentive Programs for 2025

Texas provides a range of programs designed to encourage business growth, hiring, and workforce development. When paired with Rockwall's local initiatives, these state-level offerings create a strong foundation for reducing the financial burden of expansion. Rockwall's tailored local support further enhances these opportunities, making it an attractive destination for businesses looking to grow.

Texas Enterprise Fund (TEF)

The Texas Enterprise Fund (TEF) is a performance-based grant aimed at attracting major job-creation projects to Texas when competing with other states or countries [5,8]. Often referred to as a "deal-closing" fund, it requires companies to demonstrate that they’ve seriously considered alternatives outside of Texas.

To qualify, businesses must meet specific requirements, including creating at least 75 full-time jobs in urban areas or 25 in rural areas. Applicants also need to make a substantial capital investment and secure matching support from the local community. In Rockwall, this support typically comes from the Economic Development Corporation or the Area Chamber [5,8]. Funds are distributed only after companies meet agreed-upon milestones, and contracts include clawback provisions to ensure compliance with job creation goals. Every award is subject to unanimous approval by the Governor, Lieutenant Governor, and Speaker of the House.

For workforce training, businesses can turn to the Skills Development Fund.

Skills Development Fund

Managed by the Texas Workforce Commission, the Skills Development Fund helps businesses develop customized training programs in partnership with local community colleges or technical schools. This grant covers about $2,000 per trainee and focuses on industries like manufacturing, IT, healthcare, and logistics. It supports both upskilling current employees and training new hires, making it a valuable resource for businesses planning to expand. Companies can also seek assistance from the Texas Economic Development Corporation (TxEDC) during the application process.

In addition to workforce training, Texas offers tax incentives to encourage innovation.

Research and Development (R&D) Tax Incentives

In June 2025, Texas passed Senate Bill 2206, creating a permanent framework for R&D tax credits under Subchapter T [10,11]. This new system replaces the previous option where businesses chose between a sales tax exemption and a franchise tax credit. Starting January 1, 2026, the sales tax exemption for R&D equipment will be discontinued [10,11].

Eligible activities include areas like software development, engineering, and applied sciences. Businesses must apply before beginning their research projects to qualify. This updated framework provides more consistent tax benefits for companies investing in technological and innovative advancements.

Rockwall Business Incentives and Support Programs

Rockwall offers a range of locally tailored programs to support business growth, complementing state-level initiatives. The Rockwall Economic Development Corporation (REDC) plays a central role in managing local incentives, focusing on packages tied to investment and job creation. These programs aim to reduce the financial challenges of business expansion and relocation.

Property Tax Abatements and Chapter 380/381 Agreements

The REDC provides financial incentives covering tax liabilities, infrastructure, and utility costs. Businesses receiving these benefits must sign a performance agreement. Through Chapter 380 and 381 agreements, Rockwall can offer property tax reductions, rebates, and grants to encourage business activity.

Rockwall also provides a "Freeport" exemption, which eliminates property taxes on inventory manufactured locally but shipped out of Texas within 175 days. Manufacturing businesses may qualify for sales and use tax exemptions on machinery, equipment, and parts used in production. Additionally, companies can receive state and local sales tax exemptions on electricity and natural gas if at least 50% of the energy is used for manufacturing, as determined by a study.

The REDC offers ready-to-develop land in areas like the Rockwall Technology Park and Justin Road. These properties may be sold at below-market rates as part of incentive packages for qualifying businesses. Ignacio Echavarri from SPR Packaging highlighted the REDC’s dedication:

"The EDC (in Rockwall) has really gone a lot further than what any other EDC would have done. They've really made a commitment to help us grow and made a commitment to be there for us."

Taxing Authority (Rockwall County)	Property Tax Rate (per $100 valuation)
Rockwall County	0.251000
Rockwall ISD	1.066900
Royse City ISD	1.255200
City of Fate (Rockwall County)	0.290869

These tax incentives are part of a broader effort to create a supportive environment for businesses.

Rural Economic Development and Investment Program

The passage of HB 2765 in 2025 expanded the Rural Economic Development and Investment Program, increasing eligibility for counties with larger populations and adding support for utilities and minerals investments. This change has enabled more businesses near Rockwall to qualify for rural-specific benefits, which often have fewer requirements compared to urban programs. For example, the Texas Enterprise Fund (TEF) requires only 25 full-time jobs for rural projects, compared to 75 for urban ones.

The program offers benefits like infrastructure support, utility assistance, and tax relief, all designed to lower operational costs for businesses. TEF also provides discretionary cash grants ranging from $1,000 to $10,000 per job created for qualifying businesses.

Small Business and Veteran Incentives

The REDC supports businesses of all sizes, offering programs to assist with development, modernization, and expansion. Small businesses and light industrial users can access specific REDC-owned properties at Justin Road and Industrial Boulevard. Financial assistance includes funds for infrastructure improvements, land acquisition, utilities, and tax liabilities.

Entrepreneurs can also benefit from workforce development initiatives, including grant funding and subsidized training through partnerships with Paris Junior College and Workforce Solutions for North Central Texas. In July 2024, the REDC successfully attracted Xerxes Corporation to establish a new manufacturing facility in Rockwall, further demonstrating its commitment to economic growth. As of April 2026, Lime Media, founded by CEO Heath Hill and based in Rockwall, operates over 250 mobile assets, including 80+ LED billboard trucks that run more than 400 campaigns annually for Fortune 500 companies.

These programs reflect Rockwall's dedication to fostering a thriving and diverse business community in Rockwall. Businesses interested in exploring these opportunities should contact the REDC at info@rockwalledc.com before submitting a formal application. Note that all applications and agreements must be finalized before the start of any project.

Creative Industry Grants for Rockwall Businesses

Moving Image Industry Incentive Program

Rockwall's creative businesses - spanning film, TV, animation, and XR - have access to funding through the Texas Moving Image Industry Incentive Program (TMIIIP). With $300 million allocated through 2035, this program supports projects that contribute to Rockwall's growth and economic variety.

The program provides cash grants of 5% to 25% of eligible in-state spending, depending on the project type and budget. To qualify, film and TV projects must spend a minimum of $250,000 in Texas, while commercials and video games only need to meet a $100,000 threshold. An additional requirement is that at least 60% of the total production must take place in Texas. For projects starting between September 1, 2025, and September 1, 2027, 35% of the production crew and cast must also be Texas residents.

Rockwall businesses enjoy a unique advantage. Since Rockwall County's population is under 300,000, productions filmed locally can earn a "Rural Filming" bonus grant of 2.5%, provided at least 35% of filming days or man-hours occur within the county. Other incentives can be stacked, such as:

• A 2.5% veteran bonus if 5% of the crew and cast are Texas resident veterans.
• A 1% postproduction bonus if 25% of spending is allocated to postproduction.

These bonuses can bring the total incentive up to 31% of eligible spending.

Application Process
To get started, businesses must submit an Incentive Inquiry Form to the Texas Film Commission to receive the application link. The full application must be completed and submitted by 5:00 PM CT at least five business days before filming begins. Additional steps include:

• Ensuring all Texas-resident crew and cast members complete a Declaration of Texas Residency (DTR) form.
• Submitting final documentation, such as cleared checks, invoices, and a copy of the finished project, within 60 days of completing Texas expenditures.

It’s important to select bonus awards like the Rural or Veteran incentives during the initial application, as these cannot be added later.

How to Apply for Business Incentives in Rockwall

Application Tips for Rockwall Businesses

Before submitting your application, reach out to the Rockwall Economic Development Corporation (REDC) at info@rockwalledc.com. This step allows you to discuss your project and customize an incentive package that aligns with your goals and local priorities. If you'd prefer an in-person visit, their office is located at 2610 Observation Trail, Rockwall, Texas 75032.

To apply, complete the local incentive application form and email it to the REDC. The approval process focuses on your planned capital investment and the number of high-quality jobs your project will create. If your application is approved, Texas law requires you to sign a formal performance agreement with the REDC, which outlines your job creation and investment commitments.

For utility tax exemptions, you'll need to submit a predominant use study showing that at least 50% of your energy consumption supports manufacturing. Additionally, for Freeport exemptions, make sure your inventory leaves Texas within 175 days.

Incentive Name	Key Benefit	Local Contact	Eligibility Thresholds	Application Deadline
Texas Enterprise Fund (TEF)	Cash grants of $1,000–$10,000 per job	Rockwall EDC / Governor's Office	Minimum 75 jobs; out-of-state site must be under consideration	Discretionary / Ongoing
Freeport Exemption	Property tax exemption on inventory	Rockwall EDC	Inventory must leave Texas within 175 days	Annual filing required
Direct Financial Incentives	Funding for infrastructure, land, or permit fees	Rockwall EDC (info@rockwalledc.com)	Based on investment and high-quality job creation	Discretionary / Ongoing
Machinery & Equipment Exemption	Sales tax exemption	Rockwall EDC	Used for manufacturing, processing, or fabricating	Point of purchase / Ongoing
Utility Tax Exemption	Sales tax exemption on gas/electricity	Rockwall EDC	50% "predominant use" in manufacturing process	Requires use study
Discounted Land	Below-market rates for shovel-ready sites	Rockwall EDC	Projects in Rockwall Tech Park or on Justin Road	Subject to availability

A well-prepared application can unlock financial benefits and help drive the growth of your business in Rockwall. Beyond submitting the application, building your reputation within the local community can also enhance your incentive opportunities.

Using RockwallConnect.com to Increase Business Visibility

Strengthening your local presence can significantly improve your incentive application by showcasing community engagement. Listing your business on RockwallConnect.com - a platform designed to connect local businesses with residents - can highlight your commitment to the area and help you stand out.

The platform offers two listing options: free and sponsored. Sponsored listings include premium placement and detailed descriptions, making it easier for customers and job seekers to find your business. This visibility is especially helpful for meeting job creation benchmarks, such as the 75-job minimum required for the Texas Enterprise Fund.

In addition to directory listings, RockwallConnect.com provides access to local events, business spotlights, and community updates. These resources can help you stay informed about developments that might impact your business, whether you're planning an expansion or coordinating with the REDC on infrastructure projects. Leveraging these tools can strengthen your local footprint and support your overall business growth.

Conclusion

Texas is a prime location for businesses, and 2025 presents fresh opportunities for companies in Rockwall looking to expand. With state programs and local incentives from the Rockwall Economic Development Corporation (REDC) - such as discounted land, property tax abatements, and financial assistance - businesses across various industries have access to tools that can drive growth and success. This collaboration between state and local resources positions Rockwall as a leader in fostering business development.

"Texas offers more than just a business-friendly tax climate. Its deep portfolio of incentives rewards job creation, fosters innovation, and reduces the cost of doing business across industries." - Texas Economic Development Corporation

To make the most of these opportunities, early planning and active engagement with the REDC are key. By reaching out to the REDC at info@rockwalledc.com, businesses can ensure their proposals align with local priorities. Performance agreements tie funding to specific job creation and capital investment goals, so professional guidance is crucial for meeting requirements and achieving success.

Strengthening your local presence can also enhance your chances of securing incentives. Utilizing resources like RockwallConnect.com not only boosts community engagement but also highlights your business’s commitment to Rockwall’s growth. Listing your company on RockwallConnect.com connects you with residents, potential employees, and local partners - showcasing your role in the area’s economic development.

Whether you're in manufacturing, technology, or running a small business, combining state and local resources can help craft a solid growth strategy. Explore Rockwall's economic development programs to find incentives tailored to your business goals.

FAQs

Which Texas and Rockwall incentives fit my business best?

The best incentives for your business will vary based on your industry and specific needs. In Texas, businesses can take advantage of state-level perks such as tax exemptions on manufacturing equipment and utilities, as well as grants aimed at high-tech industries. On a more local level, Rockwall offers additional incentives, including tax benefits and workforce development programs to support businesses in the area. To find the right fit for your business, take a close look at your growth plans and connect with local economic development offices for guidance on available programs.

What should I do before starting a project to stay eligible?

Before starting a project, take the time to explore local and state incentives, such as tax exemptions and grants. These programs can provide valuable support, but it’s crucial to ensure your project meets the necessary eligibility criteria. Factors like job creation potential and capital investment often play a key role in qualifying. Additionally, make sure your plans align with the specific requirements of these programs to maintain your eligibility throughout the process.

Can I combine incentives like tax abatements, Freeport, and grants?

Yes, you can stack incentives like tax abatements, Freeport exemptions, and grants. Texas offers a variety of programs designed to complement each other, simplifying the process of supporting your business growth and expansion. These incentives can be customized to fit your unique requirements.