Texas corporations — whether C-corps or S-corps — have access to the full range of government grants, tax credits, loan programs, and incentives available in the state. Corporate entity status is generally the most straightforward structure for accessing government programs because it provides clear documentation of ownership, governance, and financial history.
This guide ranks the best programs for Texas corporations based on funding amounts, accessibility, and breadth of eligible activities.
1. Texas Enterprise Fund (TEF)
TEF is the state's flagship deal-closing fund for major business expansion and relocation projects. Awards can range from hundreds of thousands to tens of millions of dollars. The program targets corporations making significant capital investments and creating substantial numbers of jobs in Texas. TEF is reserved for projects where Texas competes against other states.
2. SBIR/STTR Research Grants
Corporations conducting technology research and development can access SBIR grants from eleven federal agencies. Phase I awards range from $50,000 to $275,000, and Phase II awards from $500,000 to $1.5 million. Texas corporations consistently rank among the top recipients nationally, particularly in defense, energy, and biomedical research.
3. R&D Tax Credit
The federal Research and Development tax credit provides a dollar-for-dollar reduction in tax liability for qualifying research expenditures. C-corps can claim the credit directly against corporate income tax. The credit covers wages, supplies, and contract research expenses for activities that meet the four-part test. R&D tax credit guide.
4. Skills Development Fund
Any Texas corporation with employees can partner with a community or technical college to apply for customized workforce training grants. Awards typically range from $50,000 to over $2 million. The program is one of the most broadly accessible state incentives and serves corporations across every industry.
5. Chapter 380/381 Local Incentives
Texas cities and counties use Chapter 380 and 381 agreements to attract and retain corporate investment. Incentive packages can include property tax abatements up to 10 years, sales tax rebates, infrastructure improvements, and performance-based grants tied to job creation and capital investment milestones.
6. SBA 504 Loan Program
Corporations purchasing commercial real estate or major equipment can access SBA 504 loans with below-market fixed interest rates, 10% down payments, and terms up to 25 years. The program is administered through Certified Development Companies and provides some of the most favorable commercial financing terms available.
7. Work Opportunity Tax Credit
Corporations hiring from WOTC target populations can claim credits of $2,400 to $9,600 per qualifying hire. For corporations with significant hiring volume, WOTC credits can represent substantial annual tax savings. The credit is available year-round with no cap.
8. CPRIT Grants
Corporations engaged in cancer research, prevention, or product development can apply for grants from the Cancer Prevention and Research Institute of Texas. CPRIT is unique nationally and funds both academic and commercial projects. Awards can reach several million dollars per project.
9. Texas Enterprise Zone Program
Corporations making capital investments in economically distressed areas can qualify for Enterprise Zone state sales tax refunds. Refund amounts are tied to job creation levels and can offset significant costs on equipment, building materials, and other qualifying purchases.
10. Property Tax Abatements
Texas municipalities can offer property tax abatements under Chapter 312 for up to 10 years to corporations making qualifying capital investments. Abatements apply to the increased value of improvements, providing significant cost reduction for facility construction and expansion projects. Property tax abatement guide.
C-Corp vs. S-Corp Considerations
- C-Corps: Can directly claim corporate tax credits including R&D and retain the benefits at the entity level. Eligible for the widest range of programs.
- S-Corps: Tax credits pass through to shareholders. Some certification programs require careful documentation of ownership percentages among shareholders.
Find Programs That May Fit Your Corporation
Texas corporations have access to the broadest set of government incentive programs. The right combination depends on your industry, location, growth plans, and ownership demographics.
Not sure which programs may fit your business? Our free screening report checks your business against 150+ verified programs — grants, tax credits, loans, and incentives — and shows you which ones may match. Start your free screening →