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Why Austin is the Best Place for Tech Expansion
If you think Silicon Valley is the best place for tech startups and expansions - think again. In reality, Austin, the state capital of Texas, is the place to be if you want your tech business to really take off and thrive. So, if you’re looking to move your business or expand, here are the top reasons why Austin is the best place for tech expansions and greater success.
Austin Has Impressive Incentives for Tech Businesses
There are three noteworthy and eyebrow-raising incentives Austin provides to tech companies that are incredibly appealing. First, pre-existing businesses stand to earn 3% wage reimbursement per job per year and up to 50% property tax reimbursement per year for eligible businesses that have at least five employees.
Secondly, Austin reimburses companies up to $3000 per year and 50% property tax reimbursement to businesses that hire individuals who have a barrier to employment or who live in certain designated areas.
Lastly, and perhaps the most enticing incentive for tech companies wanting to expand, Austin reimburses up to 3% of wages per job and 50% of property taxes to businesses that relocate to Austin. Among other things, businesses that relocate to Austin must create at least 75 jobs over 10 years of doing business in the city.
No State CorporateTax
While we’re on the topic of financial incentives, Austin is attractive for tech expansions because it is one of only six states in the nation that do not levy corporate income taxes. While the state does have a tax on franchises, independently owned and operated businesses can benefit from the absence of state business taxes.
When you crunch the numbers, that’s huge savings when compared to other states such as Iowa, a state that charges a whopping 12% corporate tax, or New Jersey, which skims 10% from its businesses in state corporate taxes.
Austin is a Talent-Magnet
For a dizzying array of reasons, Austin is a global magnet for top-notch talent. No state tax, great weather, amazing entertainment venues, rich cultural history, and diversity - the list of perks that attract skilled professionals and talented workers goes on and on. This makes Austin uniquely positioned for the successful recruitment of highly qualified employees.
Moreover, because expansion is a very doable reality for tech businesses in Austin, organizations can build their workforce and their industry bigger, faster, and quicker. This makes tech companies expanding in Austin a prime pick if they opt to be an employer on record for global employment outsourcing. Whether outsourcing or picking from the scores of talent migrating to Austin - your growing tech business should never lack excellent staffing and skilled professionals.
Ideally Located for Tech Businesses
Austin, Texas, is centrally located, which makes doing business far more convenient and cost-effective. Situated almost in the center between the west and east coasts, as well as its close proximity to Mexico - Texas moves more freight than any other state in the nation. Moreover, the Texas airport system is the second largest in the US, with 380 airports. This makes shipping and receiving significantly more efficient than other locations.
Booming State Economy
With more Fortune 500 companies calling Texas their home than any other state, Texas appreciates a healthy economy. Furthermore, in 2022 the Texas economy was ranked the ninth-largest economy - not just in the US - but among all the nations around the world. As the state capital, Austin enjoys a fluid and flourishing economy - and so do its businesses and employees.
Room to Grow and Opportunities to Innovate
It’s no secret that the Lone Star state is gigantic. That means if you opt to expand your tech company in Austin, you’ll have plenty of physical space to grow your industry and manufacturing facilities. Furthermore, while Texas is a conservative state, it has an evolving reputation for being forward-thinking and pushing the boundaries when it comes to innovation.
With its modern vision and appealing incentives, Austin is clearly a winner when it comes to catering to growing tech business needs. As an added bonus, Austin is an extremely desirable place for business owners and their employees to work, live, and play. In conclusion, Austin, Texas, checks many of the must-have boxes when it comes to tech industries and meeting their ever-expanding needs.