While Houston dominates Texas's upstream energy sector, Dallas has established itself as a major center for energy corporate headquarters, renewable energy companies, energy technology firms, and energy services businesses. Energy businesses in Dallas can access federal research grants, state incentive programs, tax credits, and financing that support energy technology development, energy efficiency investments, and business growth.
This guide covers the most relevant programs for energy businesses in the Dallas metro area.
DOE SBIR/STTR Grants
Dallas energy technology companies can apply for Department of Energy SBIR and STTR grants for research in renewable energy, energy storage, grid technology, energy efficiency, nuclear energy, and fossil energy technologies. DOE SBIR Phase I awards provide up to $275,000, and Phase II awards up to $1.5 million. DOE SBIR guide.
Federal Energy Tax Credits
Energy businesses can access multiple federal tax credits including the Investment Tax Credit for solar and other renewable installations, the Production Tax Credit for renewable energy generation, and the Section 179D deduction for energy-efficient commercial buildings.
TCEQ Emissions Reduction Grants
Energy companies operating diesel-powered equipment in the DFW nonattainment area can apply for TERP grants to replace or repower older equipment with cleaner alternatives. The program covers trucks, generators, compressors, and other diesel-powered equipment used in energy operations.
R&D Tax Credit
Energy technology companies conducting qualifying research can claim the federal R&D tax credit. Energy technology development, drilling technology innovation, renewable energy system design, and energy software development frequently qualify for the credit.
Texas Oil and Gas Incentives
Energy companies involved in oil and gas production can access Texas-specific tax incentives including reduced severance tax rates for certain production types, enhanced oil recovery incentives, and high-cost gas well tax reductions. Oil and gas incentives guide.
City of Dallas Programs
Dallas economic development programs may provide Chapter 380 incentives for energy companies making capital investments and creating jobs. The city has also implemented green building and sustainability incentives that benefit energy efficiency businesses.
Skills Development Fund
Energy employers in Dallas can partner with Dallas College to access Skills Development Fund grants for technical workforce training in energy technology, renewable energy installation, energy auditing, and other specialties.
SBA Financing
Energy businesses can access SBA 7(a) loans for working capital and equipment and SBA 504 loans for facility and major equipment purchases. Dallas has numerous SBA-approved lenders experienced with energy sector financing.
Find Programs That May Fit Your Energy Business
Dallas energy businesses can combine federal research grants, energy tax credits, emissions reduction grants, and SBA financing to support technology development and business growth.
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