Amarillo is the economic hub of the Texas Panhandle, with key industries in agriculture, meatpacking, energy, healthcare, logistics, and defense. With its strategic location on I-40 and I-27, Amarillo serves as a distribution center for a wide region. Businesses in the Amarillo area can access local economic development programs, USDA rural resources, and the full range of state and federal programs.
City of Amarillo Programs
Amarillo Economic Development Corporation (AEDC)
The AEDC is the primary economic development organization for Amarillo. It provides incentive packages for businesses creating jobs and making capital investments in the city. Available incentives may include property tax abatements, cash grants tied to job creation, workforce training assistance, and infrastructure support. The AEDC focuses on attracting manufacturing, logistics, energy, and technology businesses to the Amarillo area.
Amarillo Enterprise Zone
Amarillo has designated Enterprise Zones in economically distressed areas of the city. Businesses that create jobs within these zones can receive state sales and use tax refunds through the Texas Enterprise Zone Program, with refunds up to $2,500 per job created.
Potter and Randall County Resources
Amarillo spans both Potter and Randall counties. County-level economic development efforts complement city programs. The Panhandle Regional Planning Commission (PRPC) coordinates regional planning and administers federal and state programs for the 26-county Texas Panhandle region, including workforce development, economic development planning, and infrastructure funding.
USDA and Rural Programs
Many communities surrounding Amarillo meet USDA rural eligibility thresholds, making federal rural development programs an important resource for the region:
- Rural Business Development Grants: For businesses in communities under 50,000 population. Covers technical assistance, training, equipment, and feasibility studies.
- REAP: Rural Energy for America Program grants for renewable energy and energy efficiency projects.
- B&I Loan Guarantees: USDA-guaranteed loans for businesses in rural communities.
- Texas Capital Fund: State-administered infrastructure grants for rural communities.
See our complete guide to rural business grants in Texas.
State Programs for Amarillo Businesses
- Texas Enterprise Fund: Deal-closing grants for major job creation and capital investment projects.
- Skills Development Fund: Workforce training grants through Amarillo College and other regional institutions.
- Texas HUB Certification: State procurement preferences for historically underutilized businesses.
- Manufacturing Sales Tax Exemption: Relevant for Amarillo's significant food processing and manufacturing sectors.
Federal Programs
- SBA Loans: 7(a), 504, and microloan programs through the Lubbock SBA District Office, which serves the Panhandle region.
- SBIR/STTR: R&D grants for businesses conducting research with commercial potential, relevant for agricultural technology and energy innovation.
- HUBZone: Some areas in the Amarillo region carry HUBZone designations for federal contracting preferences.
- Opportunity Zones: Designated census tracts in the Amarillo area provide capital gains tax incentives for qualifying investments.
Industry Strengths
Agriculture and Food Processing
The Texas Panhandle is one of the nation's top cattle feeding and meatpacking regions. Agricultural businesses and food processors can access USDA programs, agricultural sales tax exemptions, the manufacturing sales tax exemption for processing equipment, and workforce training grants through the Skills Development Fund.
Energy
The Panhandle has significant wind energy resources, and Amarillo is positioned as a hub for wind energy operations and supply chain businesses. Clean energy tax credits, REAP grants, and Department of Energy programs are available to qualifying businesses.
Logistics and Distribution
Amarillo's position at the intersection of I-40 and I-27 makes it a natural distribution hub. Businesses in logistics can benefit from the Freeport Exemption on goods moving through Texas, property tax abatements, and the FTZ program.
Find Programs That May Fit Your Business
Amarillo businesses are often eligible for local, state, federal, and USDA rural programs simultaneously. Our free screening report checks your business against 150+ verified programs and shows you which ones may match. Start your free screening →