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New Texas Data Center Incentives Effective This Month

 

DALLAS (CBRE) – A new data center tax incentive program that went into effect Sept. 1 will enhance Texas’s already favorable economic climate for corporations looking to move to or increase their business within the state, says CBRE Global Research and Consulting in a report released today.

The program provides 100 percent exemption of sales taxes on business personal property essential to data center operations. This includes items such as computers, electrical equipment, cooling systems, power infrastructure and software. The exemption may be available for ten to 15 years and can be accessed by owners and tenants in single- or multitenant data center properties.

To qualify for the sales tax exemption, the data center operation must:

  • consist of at least 100,000 sf of gross building area in an entire or portion of a facility,
  • involve at least $200 million of total capital investment,
  • create at least 20 new direct jobs, and
  • pay wages equivalent to at least 120 percent of the county average.

About 17 states have passed similar incentives programs to attract data centers, said John Lenio, economist and managing director of CBRE’s Economic Incentives Group.

In fact, according to the report, the economic impact of a data center in Texas can range from nearly $500 million for a small facility to $1.7 billion for a large facility over ten years.

Business Facilities Names Texas Best Business Climate

  AUSTIN – Business Facilities magazine has again ranked Texas as the country’s Best Business Climate, adding to a long list of national accolades for the economic principles that have helped the Lone Star State lead the nation in job creation.  

 

  “Employers across the country know the Texas model works. Our low taxes, smart regulations, skilled workforce and fair courts have created an economy that offers businesses the best chance at success,” Gov. Perry said. “These principles have helped us create one-third of the net new jobs in the nation over the past 10 years, providing more opportunity for hardworking families. Texas is a national example for job creation; that’s why I’ll be in Missouri this week, and have traveled to other states like California, Illinois and New York to share our state’s economic success story.”  

 

  In addition to topping the list for the best business climate, the report gave Texas the highest marks for infrastructure, natural gas production, free trade zone activity and wind power capacity. Texas placed in the top 10 for data centers, aerospace/defense industry, biotechnology employment, nuclear power generation, credit quality and renewable energy capacity. Business Facilities also named Texas the 2013 State of the Year in January.  

 

  “Texas has executed a diverse and aggressive economic development strategy which has seen it become a global leader in semiconductors and a rising star in other high-tech growth sectors including bioscience, supported by a world-class university system,” Business Facilities said.  

 

  To read the full report, please visit:www.businessfacilities.com/cover-story-2013-business-facilities-rankings-report-state-rankings/  

Texas Keeps Cranking Out Jobs

 

COLLEGE STATION (Real Estate Center) – Texas once again created more jobs than the nation, gaining 302,300 nonagricultural jobs from July 2012 to July 2013, an annual growth rate of 2.8 percent. By comparison, the nation’s job growth rate was 1.7 percent.

According to the Real Estate Center’s latest Monthly Review of the Texas Economy, the state’s nongovernment sector added 289,200 jobs, an annual growth rate of 3.2 percent compared with 2.1 percent for the nation’s private sector.

Texas’ seasonally adjusted unemployment rate fell to 6.5 percent in July 2013 from 6.9 percent in July 2012. The nation’s rate decreased from 8.2 to 7.4 percent.

All Texas industries except the transportation, warehousing and utilities industry had more jobs. The state’s construction industry ranked first in job creation, followed by mining and logging, leisure and hospitality services, and professional and business services.

All Texas metro areas except Wichita Falls had more jobs. Midland ranked first in job creation, followed by Odessa, Fort Worth-Arlington, Corpus Christi, Dallas-Plano-Irving, Houston-Sugar Land-Baytown and Austin-Round Rock-San Marcos.

The state’s actual unemployment rate in July 2013 was 6.7 percent. Midland had the lowest unemployment rate followed by Odessa, Amarillo, Abilene and Austin-Round Rock-San Marcos.