The Texas technology corridor, spanning Austin's Silicon Hills and Dallas's Telecom Corridor through emerging tech hubs in San Antonio and Houston, represents one of the largest technology ecosystems in the United States. Technology businesses in Texas may be eligible for federal R&D grants, state commercialization programs, workforce training incentives, and local economic development packages designed to attract and retain tech companies.
This guide covers the most relevant grants, loans, tax credits, and incentive programs for Texas technology businesses.
Federal R&D Programs
SBIR/STTR Grants
Texas technology companies are among the strongest competitors for SBIR and STTR grants nationally. These programs provide non-dilutive funding for technology commercialization through agencies including:
- NSF: Software, AI/ML, cybersecurity, and deep technology. Phase I up to $275,000.
- DOD: Defense technology, cybersecurity, communications, and autonomy. Phase I up to $275,000.
- NIH: Health technology, medical devices, and biotech. Phase I up to $275,000.
- DOE: Energy technology, grid modernization, and clean tech. Phase I up to $275,000.
R&D Tax Credit
The federal R&D Tax Credit provides dollar-for-dollar tax reductions for qualifying research and development activities. Software development, hardware engineering, algorithm development, and technical testing commonly qualify. Startups with less than $5 million in revenue may apply credits against payroll taxes.
State Programs
CPRIT
The Cancer Prevention and Research Institute of Texas provides grants for cancer-related technology development. Biotech, medtech, and health technology companies may qualify for product development and commercialization awards.
Texas Enterprise Fund
The TEF has supported major technology company relocations and expansions including headquarters moves to Texas. Deal-closing grants are tied to job creation and capital investment.
Skills Development Fund
The TWC partners with community colleges to provide customized training grants. Technology companies can access training for software development, cybersecurity, data analytics, and technical support.
Austin Technology Programs
- Capital Factory: Austin's largest accelerator with SBIR coaching and government connections.
- ATI (Austin Technology Incubator): UT Austin incubator for clean energy and technology companies.
- Austin Economic Development: Incentive programs for technology companies meeting job creation targets.
Dallas Technology Programs
- Dallas Innovation Alliance: Smart city and technology commercialization resources.
- Tech Titans: Regional technology industry association with workforce and procurement programs.
- Dallas/Richardson Telecom Corridor: Infrastructure and incentives for technology companies.
Venture and Growth Capital
- SBIC Program: SBA-licensed venture funds providing equity and debt to small businesses.
- SBIR/STTR as bridge funding: Non-dilutive grants can complement or replace early-stage venture capital.
- Texas Emerging Technology Fund successor programs: State programs supporting technology commercialization.
Steps for Texas Technology Business Owners
- Evaluate SBIR/STTR: Most technology companies underutilize federal R&D grant programs.
- Calculate R&D Tax Credit: Software and hardware development often qualifies for substantial credits.
- Contact the local SBDC: Free consulting for technology commercialization and program identification.
- Explore local EDC programs: Austin, Dallas, San Antonio, and Houston all offer tech-specific incentives.
- Review CPRIT: Health technology companies should explore cancer research commercialization grants.
Find Programs That May Fit Your Business
Texas technology businesses may access R&D grants, tax credits, commercialization programs, and local incentives. Our screening report matches your business against all applicable programs. Start your free screening →