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In our previous discussions, we explored how companies secure designation under the Texas Enterprise Zone (TEZ) Program and how the application phase establishes the foundation for the lifecycle of a project. Once designation is achieved, however, the next critical phase begins — job certification.

While designation creates eligibility, job certification is what makes program benefits available. Just as importantly, it is also the phase that determines whether those benefits will ultimately be sustained under audit.

Under the program, job certification is not simply a reporting step, it is subject to formal review and verification by the Texas Comptroller as part of the refund process.

For many companies, this is where the program shifts from planning to scrutiny.

As state legislatures convene across the country in 2026, a clear pattern is emerging in state and local tax (SALT) policy. Across jurisdictions, three dominant trends have taken shape: (1) efforts to eliminate or reduce individual income taxes; (2) widespread property tax relief initiative; and (3) expansion of sales tax bases to capture modern, service-driven economy. These trends reflect a shift in how states balance revenue stability, competitiveness, and political feasibility.
Several states have introduced significant income tax reduction bills during Q1 of the 2026 legislative cycle, including both immediate and phased in relief.
In Georgia, legislators are considering multiple bills to provide corporate and individual income tax relief, such as these two notable bills:
– HB 1001 would accelerate the reduction to the state’s flat income tax rate from 5.19% to 4.99% beginning in 2026.
– HB 880 would establish a longer-term framework to further reduce the income tax rate to approximately 3.99%, subject to revenue triggers.

Engineering a Strong Texas Enterprise Zone Application

In our Week 1 overview, we introduced the Texas Enterprise Zone (TEZ) Program and explained how companies may recover state sales tax tied to capital investment and job creation in Texas. While the program can generate meaningful financial benefit, approval is not automatic. Enterprise project designations are awarded during competitive quarterly rounds, meaning the strength and structure of the application itself plays a critical role in determining whether a project receives designation.

For many companies, the application phase is where the most important strategic decisions are made. It establishes the economic narrative of the project, determines how the project will be evaluated relative to other submissions in the round, and sets the framework for the job certification and refund processes that follow. When approached thoughtfully, the application becomes the blueprint for the entire lifecycle of the designation.

Understanding the Competitive Evaluation Process

Enterprise project applications are evaluated by the Texas Economic Development Bank within the Governor’s Office during quarterly submission rounds. Because the number of designations available statewide is limited during each state biennium, applications are evaluated comparatively rather than independently.

Each project is scored across three primary categories: