The Texas Enterprise Fund is a business incentive fund that was created by legislation in 2003. The fund, which had an initial $295 million investment, is used for ensuring the growth of business in
Texas
Texas (, ; Spanish: ''Texas'', ''Tejas'') is a state in the South Central region of the United States. At 268,596 square miles (695,662 km2), and with more than 29.1 million residents in 2020, it is the second-largest U.S. state by ...
. One of Texas’ most competitive recruitment tools, these funds are used primarily to attract new business to the state or assist with the substantial expansion of an existing business as part of a competitive recruitment situation. Sources indicate that since 2003 the Fund has yielded up to $6.3 billion in capital investment in Texas by out-of-state companie
In 2004, authorization was given for the fund to grant $20 million to
Countrywide Financial
Countrywide is one of the UK's largest integrated property services group including residential property surveying, a collaboration of estate agents, and corporate services. It employs circa 8,500 personnel nationwide, working across 650+ estat ...
in return for a promise "to create 7,500 new jobs in the state by 2010." The grant (all of which are approved by the Governor, the Lieutenant Governor and Speaker of the House) is one of the largest made from the fund in terms of the size and the number of jobs promised. In the fall of 2007, while slashing jobs and with its stock price plummeting, Countrywide was eventually acquired in a
fire sale
A fire sale is the sale of goods at extremely discounted prices. The term originated in reference to the sale of goods at a heavy discount due to fire damage. It may or may not be defined as a closeout, the final sale of goods to zero inventor ...
by
Bank of America
The Bank of America Corporation (often abbreviated BofA or BoA) is an American multinational investment bank and financial services holding company headquartered at the Bank of America Corporate Center in Charlotte, North Carolina. The bank ...
. But thanks to the "
claw-back" provisions in the program, grantees return all funds to the state for jobs not created.
In 2012, it was announced that
Apple
An apple is an edible fruit produced by an apple tree (''Malus domestica''). Apple trees are cultivated worldwide and are the most widely grown species in the genus '' Malus''. The tree originated in Central Asia, where its wild ancest ...
would be adding a new campus in Austin, creating 3,600 new jobs. The Fund would be investing $21 million over ten year
See also
*
Economy of Texas
The economy of the State of Texas is the second largest by GDP in the United States after that of California. It has a gross state product of $2.0 trillion as of 2021. In 2011, Texas was home to six of the biggest 50 companies, and 51 in tot ...
*
Texas Emerging Technology Fund
The Texas Emerging Technology Fund (often abbreviated as TETF or ETF) is a technology investment fund created by legislation in 2005 at the urging of Governor Rick Perry to provide Texas with an unparalleled advantage in the research, development, ...
*
Texas Tax Code Chapter 313 Texas Tax Code Chapter 313 (aka the ''Texas Economic Development Act'') creates a state tax incentive program for certain large businesses to limit the appraised value of their property for the purposes of local Texas public school district property ...
External links
State of Texas economic development
Enterprise
Enterprise (or the archaic spelling Enterprize) may refer to:
Business and economics
Brands and enterprises
* Enterprise GP Holdings, an energy holding company
* Enterprise plc, a UK civil engineering and maintenance company
* Enterprise ...
Business organizations based in the United States
Enterprise
Enterprise (or the archaic spelling Enterprize) may refer to:
Business and economics
Brands and enterprises
* Enterprise GP Holdings, an energy holding company
* Enterprise plc, a UK civil engineering and maintenance company
* Enterprise ...
Government corporations
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