Texas' lack of self income tax has definitely long been a large draw for residents. Being one of only 7 states without any a personal income tax, it truly outshines states like Vermont, which holds a staggering income tax burden. Plus, with 52 Fortune 500 companies in the state, and 12.9 million people making up its labor force, Texas is sustaining-- and growing-- its own reputation for being one of the most critical business hubs in the nation.
Forbes Recognizes Texas Among Low-Tax States
There really are dozens of things that benefit Texas' flourishing economic state. The two of the most notable ones according to Forbes online? The state's tax framework and the various tax benefits that Texas offers to businesses. As a matter of fact, the Lone Star State has among the most affordable tax burdens in the U.S. Here's a more detailed look at the regulations that make Texas such a business-friendly place.
As a result of the Texas Tax Reform Commission, Texas changed its franchise business tax obligation in 2008 with a design that more precisely reflected the structure of small companies and helps the state continue to be a tough player in the U.S. economy.
The amended margins tax took over an outdated franchise tax that was really developed at a period when the state's overall economy was directed by products rather than services. With the latest law, the primary franchise business tax rate went down from 4.5 % to around .5 and 1 %. In addition, an exemption is granted to small companies with a profit below $1 million-- a resolution that benefits 40,000 small companies in Texas.
The largest effort of this type in the U.S., The Texas Enterprise Fund was designed to draw in out-of-state companies by incentivizing job creation and capital investment. Comprising over $410 million, the fund provides awards ranging anywhere from $194,000 to $50 million to qualified companies. The Texas Enterprise Fund has brought in such businesses as Bank of America, Fidelity Global Brokerage, Lockheed Martin and Frito-Lay. It has also triggered a tremendous tech influx in Austin where corporations like Apple, Facebook, Sematech, and Samsung have recently set up shop.
Texas and Business Owners: A Perfect Partnership
"Texas offers a range of tax incentives to its own businesses" Joe Garza - Attorney at Garza & Harris - remarks. "They are offered for everything from manufacturing to pollution control to renewable energy - these incentives make Texas a rock-solid partner for business owners operating in-state". For example, privilege from state sales and use tax on natural gas and electricity are offered to manufacturers. Additionally, firms that employ renewable energy programs, such as solar and wind power, are qualified for a wide array of tax exemptions. Permissions such as these can genuinely add up for business owners attempting to sustain and become a company in Texas.http://invest-smart.org/best-investment-2014/