New 5-year strategic plan lays out blueprint for sustainable economic success.
When Gov. Greg Abbott delivered his annual State of the State Address to the people of Texas on February 2, he noted the many accolades that the Lone Star State has received during his time in office. “Texas is the most powerful economy in America,” he said. “Ranked as the best state for doing business for 20 years, Texas is No. 1 for most new jobs, No. 1 for economic development and No. 1 as the best state to start a new business.”
What you did not hear the governor say, however, is that it is now time for Texas to pause and wait for the rest of the states to catch up. In fact, Gov. Abbott stated the exact opposite. “Texas is the blueprint for America’s future,” he said. “But we know that more must be done to ensure that prosperity reaches every Texas family and every Texas business. That’s why I created the Small Business Freedom Council to require all state agencies to slash rules, fees and regulations. It’s why we will keep state spending below constitutional limits and why we must cut your taxes.”
Gov. Abbott pledged in his State of the State Address to provide at least $10 billion in new property tax relief to Texans. He also promised to make housing more affordable, improve health care for all Texans and ensure access to plentiful water supplies for every community in Texas.
“Our rapidly growing state also needs an increasing supply of electric power,” Gov. Abbott said as he called for Texas to add even more energy to the grid after he signed into law a bill adding 10 gigawatts of new power supply for Texans.
The Historic Sixth Street Mural is a popular selfie spot in Austin.
Photo courtesy of Visit Austin
“Texas is the blueprint for America’s future. But we know that more must be done to ensure that prosperity reaches every Texas family and every Texas business.”
— Greg Abbott, Texas Governor
But Texas is not stopping there. Rather, the state is pushing forward with a bold new five-year strategic plan titled “Bigger. Better. Texas.”
Adriana Cruz, executive director of the Texas Economic Development & Tourism Office, said the goal of the plan is simple and straightforward: “Economic development is a team sport. That’s exactly why we have developed this statewide economic development strategic plan with the broader economic development ecosystem in mind. I invite you to join us in our mission to further cement Texas’ position as a global economic powerhouse and ensure our state remains the very best place to live, work and visit.”
The plan is the result of a year-long collaboration with state agency partners, business and community leaders, economic development organizations and industry associations. The plan is “our blueprint for continued economic prosperity,” Cruz said.
Under the leadership of Abbott and Cruz, the plan:
- Establishes a unifying vision for the future Texas economy.
- Identifies new target industry sectors and clusters that are expected to drive economic growth and job creation.
- Outlines objectives and initiatives to advance state competitiveness.
- Provides data and recommendations to inform economic development decisions statewide.
Cruz says the plan addresses four core areas: business and industry; innovation and entrepreneurship; workforce; and infrastructure.
The executive summary of the plan reveals the landscape of the Texas economy as it performs today, outlines steps the state needs to take to build on its momentum and competitiveness to keep winning in the future and lays out the case for a holistic approach to economic development.
The targeted industry sectors and clusters include:
- Advanced Manufacturing: aerospace, aircraft, defense, automotive, computers, electronics, semiconductors, production technology and heavy machinery.
- Energy Evolution: electric power generation and transmission; oil and gas extraction; and renewable energy.
- Food and Livestock Products: food processing and livestock processing.
- Hospitality, Tourism and Culture: film, music, culture, hospitality and tourism.
- Information Technology: IT and artificial intelligence.
- Life Sciences and Biotechnology: biotech, pharmaceuticals, medical devices, agricultural science and technology.
- Petroleum Refining and Chemicals: industrial chemical products; petroleum refining; and plastics.
- Professional Services and Corporate Operations: business services; corporate headquarters; and financial services.
- Rare Earth Elements and Mineral Mining: metal mining; non-metal mining.
- Transportation and Logistics: distribution; e-commerce; transportation and aviation services.
The Texas State Capitol in Austin is lit up for the annual Holiday Stroll & Singalong.
Photo courtesy of Visit Austin
Finally, the governor and his leadership team took steps recently to shore up several pivotal state incentive programs to attract jobs and industry. These include the Texas Enterprise Fund (TEF), the Texas Semiconductor Innovation Fund (TSIF) and the Texas Jobs, Energy, Technology and Innovation (JETI) program. Here is an overview of each:
Texas Enterprise Fund
TEF is a deal-closing grant awarded to companies considering a new project for which one Texas site is competing with other out-of-state sites. The grant is a performance-based financial incentive for companies that contribute large amounts of capital investment and create a large number of new jobs. Qualifying firms must create at least 75 full-time jobs in an urban area or 25 full-time jobs in a rural area. Each applicant must undergo a rigorous 11-step due diligence screening process to make sure the company meets all criteria set forth by the state.
Texas Semiconductor Innovation Fund
TSIF is a new incentive program that promotes semiconductor research, design and manufacturing in the state. TSIF was established in June 2023 when Abbott signed into law the Texas CHIPS Act, which established the new incentive as well as the Texas Semiconductor Innovation Consortium (TSIC). The Legislature appropriated $698.3 million to TSIF. TSIF provides grants and matching funds to eligible entities for semiconductor research, manufacturing and design projects.
Texas Jobs, Energy, Technology and Innovation
The JETI Act is a new competitive economic incentive program used to attract large, capital-intensive economic development projects that bring high-wage jobs in advanced industries to Texas communities. The JETI program provides qualifying projects a taxable value limitation on the local school district portion of the property tax, if they meet certain threshold requirements. In large counties of 750,000 or more in population, the qualifying firm must make a minimum investment of $200 million. In counties of 250,000 to 749,99 people, the minimum investment required is $100 million. In counties of 100,000 to 249,999 people, the threshold is $50 million. In counties of 99,999 or fewer people, the threshold is $20 million.
