Texas Enterprise Zone Program Opens New Allocation Cycle—Limited Awards Available

Texas has reset its Enterprise Zone allocation for the 2026–2027 biennium, making 105 designations available. Following the December 2025 application round, there are 81 remaining statewide through June 2027. With only up to 12 awards granted per quarterly round, companies evaluating capital investment or workforce retention projects should begin assessing eligibility and coordinating with local communities now.

Program Benefit Structure

The Texas Enterprise Zone Program provides state sales and use tax refunds to companies that commit to qualifying capital investment and job creation or retention in designated economically distressed areas.

• Refunds range from $2,500 to $7,500 per qualifying job

• Total refund caps range from $625,000 to $3.75 million per project

• Refund amounts are based on qualified state sales and use tax paid

• Designations remain active for five years

Projects must meet statutory thresholds for capital investment and employment impact and include hiring commitments for economically disadvantaged individuals, veterans, or enterprise zone residents. Nominations are submitted by local communities.

Award Availability

For each two-year state biennium, there are

• Up to 12 awards per quarterly application round

• 9 discretionary awards allocated by the Governor’s Office

Because allocations are limited and awarded quarterly, early planning is essential.

Recent Program Activity

In the most recent application round, approved projects represented

• $2.49 billion in capital investment commitments

• 12,865 retained jobs

• 942 new jobs

These figures reflect both the scale of projects being approved and the competitive nature of the program.

Upcoming Application Deadlines

• June 1, 2026

• September 2, 2026

Many local communities require 60–90 days of coordination before placing a nomination on a council agenda. Companies should initiate discussions well in advance of submission deadlines.

Ryan’s Experience

During the FY 2024–2025 biennium, Ryan represented 57 of the 95 approved Enterprise Zone projects statewide, approximately 60% of all awards. Ryan currently advises on more than half of all active Enterprise Zone projects in Texas, providing strategic planning, application development, and post-award compliance support. The next highest service provider is 7%.

Next Steps

Companies evaluating Texas expansion, modernization, automation, or retention projects should assess Enterprise Zone qualification early in the planning cycle. Ryan’s Credits and Incentives team can

• Evaluate eligibility and refund potential

• Coordinate with local nominating communities

• Develop competitive applications

• Support compliance throughout the five-year designation period

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals.