Temple provides a comprehensive selection of cost-saving solutions for businesses locating within the city. From startups to long-established companies, new and expanding businesses in Temple benefit from low real estate, land and utility costs. Additionally, Temple’s cost of living is 20.1% below the national average, according to Sperling’s Best Places index.
Local and state incentives coalesce in Temple to reduce business expansion taxes and create competitive advantages that help businesses remain profitable. Here are some of the reasons why doing business costs less in Central Texas’ next frontier.
Texas offers one of the largest deal-closing funds in the nation, the Texas Enterprise Fund (TEF). To qualify for the grant, a company must have competing out-of-state bids for a new project, and the project should yield significant capital, jobs and wages. Financial incentives distributed are performance-based, meaning contribute companies must provide significant capital investment and new employment opportunities in the state.
Previous recipients of TEF awards in Temple include Baylor Scott & White Health (BSWH), which received a $7.5 million award in 2007, creating 1,485 jobs. BSWH has since gone on to open a $20 million facility in 2016 and now employs over 7,000 employees in Temple. Meanwhile, East Penn Manufacturing Company received a more than $1 million TEF award in 2018 to grow its finishing distribution center operations.
Temple Tax Incentives and Exemptions
Texas is one of six states that do not impose a corporate income tax. This makes it easier for companies to offer competitive wages that attract key talent. Additionally, several local and state tax refunds and exemptions exist, including the City of Temple’s property tax abatement on real property and fixed improvements. Temple EDC is authorized by the state government code to invest corporate funds in an effort to create jobs and promote economic activity.
State and local sales and use tax exemptions are also available for companies that lease or purchase certain equipment deemed useful for more than six months, as well as labor used to construct new facilities.
Texas Enterprise Zone Program
Similar to TEF, the Texas Enterprise Zone Program invests in businesses that create and retain jobs and offer wages that exceed the county average, with the added stipulation that a business must exist within economically distressed areas of the state. Qualifying businesses are nominated by the community and receive a refund of state sales and use tax on qualified expenditures.
The Skills Development Fund is a state-funded program offering customized training opportunities for Texas businesses. Temple offers a strong repertoire of community and technical colleges that work with companies, consortiums and trade unions to fill a business’ talent needs. Companies that qualify for the funding program can significantly decrease their required budget for internal training hours, which can prove integral during the expansion process.
Temple businesses benefit from a lower cost of doing business due to a supportive business environment that considers the company’s complete contribution to the city and creates a mutually beneficial relationship within the community. Read more about the Temple tax incentives and how companies find success in the region, and then get in touch with our team to tap into business support services in Central Texas.