Texas is the nation's largest logistics and supply chain market, with more freight moving through the state than any other. The combination of Gulf Coast ports, border crossings, interstate highways, rail networks, and air cargo facilities makes Texas the center of North American goods movement. Government programs for logistics and supply chain businesses include infrastructure grants, emissions reduction incentives, and workforce development programs.
Transportation Infrastructure Grants
- RAISE grants: Federal grants for transportation infrastructure projects that can improve freight movement and logistics efficiency
- INFRA grants: Federal grants specifically for freight and highway infrastructure
- Port Infrastructure Development Program: Federal grants for port improvements at Texas Gulf Coast ports
- TxDOT freight programs: State funding for freight mobility projects
Emissions Reduction Programs
- TCEQ TERP grants: Grants for replacing or retrofitting older diesel trucks, port equipment, and logistics vehicles with cleaner alternatives. TCEQ grants guide.
- EPA DERA grants: Federal diesel emissions reduction grants for fleet upgrades
- Alternative fuel vehicle credits: Federal and state credits for purchasing natural gas, electric, or hydrogen-powered commercial vehicles
Section 179 and Equipment Deductions
Logistics businesses making capital investments in trucks, trailers, warehouse equipment, and technology systems can benefit from:
- Section 179: First-year deduction for qualifying equipment purchases
- Bonus depreciation: Additional first-year depreciation for qualifying assets
- Sales tax exemptions: Texas manufacturing and processing equipment exemptions may apply to certain logistics operations
Foreign Trade Zones
Texas has numerous Foreign Trade Zones (FTZs) that provide customs duty benefits for logistics and distribution operations:
- Defer, reduce, or eliminate customs duties on imported goods
- No duties on goods re-exported from FTZs
- Inverted tariff benefits — pay the lower duty rate when finished goods have a lower tariff than components
Workforce Programs
- Skills Development Fund: Training grants for CDL programs, warehouse operations, and supply chain management
- WOTC: Tax credits for hiring qualifying individuals into logistics positions
- On-the-Job Training: Wage reimbursement for training new logistics employees
DBE and Small Business Contracting
- TxDOT DBE certification: Access to transportation-related subcontracting opportunities
- Port authority contracting: Texas port authorities contract with logistics service providers
- Federal contracting: DOD and other federal agencies contract for transportation and logistics services
Bottom Line
Texas logistics and supply chain businesses can access emissions reduction grants, equipment deductions, Foreign Trade Zone benefits, workforce training programs, and contracting opportunities. The state's central location and massive freight infrastructure create a favorable environment for logistics businesses that understand available programs.
Our screening report identifies which logistics and transportation programs may apply to your Texas business. Start your free screening →