IMPLEMENTATION LEVEL

Subnational

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Apr 2014 | Removal date: open ended
Still in force

Financial grant

In April, 2014 the state of Texas provided $40 million in incentives to Toyota Motor North America, Inc. for the relocation of its automotive headquarters to Plano, Texas. The project will, according to state officials, result in the direct creation of 3,650 jobs (and 6,438 jobs altogether).This assistance was provided via the Texas Enterprise Fund (TEF), a program approved in 2003 (and reappropriated in 2005, 2007, 2009, and 2011) to help attract new jobs and investment to the state. Touted by Texas state officials as the largest 'deal-closing' fund of its kind in the United States, projects under the TEF are subject both to an objective screening process and a final, political decision (i.e., the governor, the lieutenant governor, and the speaker of the Texas House must unanimously agree in favor of a project in order for an award to be granted). Among the criteria applied in allocating TEF funds are the requirement that the 'applicant's business sector must be an advanced industry that could potentially locate in another state or country.' The rules also require (among other points) that competition with another state for the project must exist, and the business must not have already made a location decision; projected new job creation must be significant; and the new positions must be high-paying jobs.

AFFECTED COUNTRIES

MAP
TABLE
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AFFECTED SECTORS AND PRODUCTS

491 Motor vehicles, trailers & semi-trailers; parts
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars.
870310 Vehicles specially designed for travelling on snow; golf cars and similar vehicles
870321 Of a cylinder capacity not exceeding 1,000 cc
870322 Of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc
870323 Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc
870324 Of a cylinder capacity exceeding 3,000 cc
870331 Of a cylinder capacity not exceeding 1,500 cc
870332 Of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc
870333 Of a cylinder capacity exceeding 2,500 cc
870390 Other

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