Midland and Odessa are the twin cities of the Permian Basin, the most productive oil and gas region in the United States. While energy dominates the economy, both cities have been working to diversify, and businesses across all sectors can access local economic development programs, state incentives, and federal funding programs.
City of Midland Programs
Midland Development Corporation (MDC)
The Midland Development Corporation provides incentive packages for businesses creating jobs and making capital investments in Midland. MDC focuses on business attraction, retention, and diversification beyond the energy sector. Available incentives may include property tax abatements, cash grants tied to job creation, and infrastructure support for qualifying projects.
City of Odessa Programs
Odessa Development Corporation (ODC)
The Odessa Development Corporation offers similar incentive packages for businesses in Odessa. ODC has been active in attracting manufacturing, logistics, and healthcare businesses to diversify the local economy. The corporation can provide cash incentives, property tax abatements, and workforce training coordination.
Regional Resources
Permian Basin Regional Planning Commission
The PBRPC coordinates regional planning and administers federal and state programs for the Permian Basin region. Programs include workforce development, economic development planning, and infrastructure funding across the multi-county region.
UTPB and Midland College
The University of Texas Permian Basin and Midland College provide workforce training resources, SBDC counseling, and research partnership opportunities. Both institutions offer programs aligned with regional industry needs, including petroleum engineering, process technology, and business administration.
Permian Basin Workforce Development Board
The local workforce board administers federal WIOA programs and coordinates with employers on workforce training needs. Services include job posting, candidate screening, and access to on-the-job training reimbursements.
State Programs
- Texas Enterprise Fund: Deal-closing grants for major projects creating jobs and capital investment.
- Skills Development Fund: Workforce training grants through Midland College, Odessa College, and UTPB.
- Severance Tax Incentives: Particularly relevant for Permian Basin energy businesses. Certain enhanced recovery techniques and marginal well operations can receive reduced severance tax rates.
- Manufacturing Sales Tax Exemption: Equipment used in manufacturing and processing is exempt from state sales tax.
- Texas HUB Certification: State procurement preferences for historically underutilized businesses.
- Enterprise Zone Program: Sales tax refunds for job creation in economically distressed areas.
Federal Programs
- SBA Loans: 7(a), 504, and microloan programs through the Lubbock SBA District Office, which serves the Permian Basin region.
- SBIR/STTR: R&D grants particularly relevant for energy technology, enhanced oil recovery, and environmental remediation innovation.
- USDA Programs: Communities surrounding Midland and Odessa that meet rural population thresholds can access USDA rural business programs.
- DOE Programs: Department of Energy grants for fossil energy technology, carbon capture, and clean energy transition.
- Opportunity Zones: Designated census tracts in the area provide capital gains incentives for qualifying investments.
Energy Sector Incentives
Permian Basin energy businesses have access to a specific set of incentives:
- Reduced severance tax rates for qualifying enhanced recovery operations
- Manufacturing sales tax exemptions on processing equipment
- Federal R&D tax credits for technology development
- Clean energy transition incentives for carbon capture, hydrogen, and renewable energy projects
- Property tax abatements for major capital investments
See our complete guide to Texas energy incentives.
Diversification Opportunities
Both Midland and Odessa have been investing in economic diversification. Businesses outside the energy sector — healthcare, manufacturing, logistics, and professional services — may find particularly strong incentive packages as both cities work to broaden their economic base.
Find Programs That May Fit Your Business
Midland-Odessa businesses are often eligible for local, state, and federal programs simultaneously. 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 →