Companies planning a new project including a facility opening or expansion, with significant projected job creation and capital investment, where a single site in Texas is actively competing with at least one viable out-of-state option.
“Deal-closing” cash grants are calculated according to a uniform analytical model for each applicant. Award amounts are calculated on the average wage of new employees, taking into account the expected hiring timeline and number of jobs created, with per-employee award amounts subject to adjustment based on the company’s total proposed capital investment.
If and when approved for a TEF grant and upon acceptance of such grant, all TEF awardees must sign a grant contract with the state which legally obligates the company to fulfill, among other things, projected job creation and average wage commitments. No TEF funds are disbursed until after grantees sign a grant contact and meet their respective job and wage targets for each individual period (typically annually). Grantees are required to maintain these job and wage figures throughout the term of the contract. In the event a grantee fails to do so or fails to meet other terms of the grant contract, certain contract provisions allow the Governor’s Office to demand repayment of previously disbursed grant funds in the form of clawbacks. Each TEF grantee will also participate in a press release with the Governor’s Office announcing the project and the TEF award amount.
With a rolling application period, eligible companies must submit a complete application packet to be considered for a TEF grant.
TEF applicants undergo a thorough 11-step due diligence screening process. Areas of focus include project competitiveness, corporate activity, financial standing, tax status, legal issues, credit ratings, estimated economic impact, and the business climates of competing locations. The Governor, Lieutenant Governor, and Speaker of the House review all applications and must unanimously agree to support the use of TEF for each applicant.