Economic Development & Diversification In-State Tuition for Employees

Economic Development & Diversification In-State Tuition for Employees is a program that allows employees—and those employees’ family members—of a qualified business considering a relocation or expansion of its operations in the State of Texas to pay in-state tuition rates at public institutions of higher education in the state without first establishing residency.

Who Can Apply?

A city, county or economic development group covering the Texas region in which the qualified business is considering locating, may apply on behalf of the business, so long as the business is still in the decision-making process to relocate or expand its operations at the applicable site.

Type of Incentive

Qualification for in-state tuition rates at Texas public institutions of higher education for employees of qualified businesses or employees’ family members without first establishing Texas residency. The incentive lasts for a period of 5 years after the qualified business becomes established as part of the state’s Economic Development and Diversification Program (i.e., a qualifying student’s enrollment date may not be more than 5 years after the dates of the qualified business’ establishment in the program).

Eligibility Details

A qualified business:

  1. Must operate in an industry that is expected to provide high economic impact to the Texas region in which it is considering locating; should be a target industry for the state or an ancillary or support industry.
  2. Should promote highly skilled, high wage jobs.
  3. Must plan to create new positions which will be filled by local residents in addition to the transferred employees.
  4. Must be in the decision-making process to relocate or expand their operations in Texas during the application process.

Application

With a rolling application period, cities, counties and economic development groups applying on behalf of a qualified business should remember the business must not have already made a location decision at any point during the application process.

The city, county or economic development group covering the region in which the qualified business would be located must initiate a letter of request addressed to the Executive Director of the Governor’s Office of Economic Development & Tourism. The letter should indicate the following:

  1. How the eligibility criteria are met
  2. Approximate number of employees to be transferred
  3. Approximate wages to be paid
  4. Estimated capital investment in the project

Approved companies are listed on the Approved Companies List.

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