Why Heart of Texas?

Historically, the Heart of Texas region was heavily dependent on jobs and revenue from coal, oil, and gas. Recently, however, there has been a shift away from fossil fuels, and the closure of Big Brown Coal plant left the region with an economic gap. Because the region has a skilled manufacturing workforce, and is conveniently located in central Texas, with easy access to the fastest growing metropolitan areas in the country— Austin, Dallas, Houston, and San Antonio — there are opportunities to diversify the economy. The region can do so by attracting manufacturing and production facilities and becoming a hub for warehouse, distribution, logistics and supply centers. The abundance of land, and a climate suitable for wind energy has also brought renewable energy in the form of wind and solar farms, creating alternate sources of energy, revenue, and jobs in the region. 

The Heart of Texas is Poised for Growth

The Heart of Texas region is in transition and poised for growth. Not only are new industries flocking to the area, helping the economy to rebound from losses in oil and gas jobs, but investments in infrastructure and retail and entertainment centers are making the largest city, Waco, a destination. With a concerted economic development strategy, it will be possible to maximize opportunities and attract transformational investment to the area. 

Target Industries

Key industries are already growing within the Heart of Texas region. These industries are benefiting from the transportation advantages of being located in the heart of Texas - near major metropolitan areas. With high proximity and lower real estate prices, businesses are realizing that it is easier to grow and expand in our region. Plus, with workers transitioning out of oil and gas there is a steady supply of talent ready to fill positions at manufacturing, distribution, and renewable energy companies. 

Our target industries include:

• Manufacturing and production
• Renewable energy
• Healthcare
• Warehousing and distribution
• Retail and entertainment 
• Value-added agriculture

The Heart of Texas Location Brings Economic Success

The Heart of Texas region sits in the middle of the “Texas Triangle,” formed by Dallas/Fort Worth, Houston and San Antonio. With population projections indicating millions of people coming to the Triangle, the Heart of Texas is ripe for development. From the individual entrepreneur to the Fortune 500 company, the Heart of Texas has the inherent advantages available to promote business success!

Strategic location

The Heart of Texas region is within 150 miles of Dallas/Fort Worth, Houston, Austin and San Antonio. These Texas MSAs include three of the largest in the nation and together comprise more than 20 million people.

Accessible and robust transportation channels

Interstates 35 and 45 connect the region to the 20 million people within 100 miles of its boundaries. Existing rail service travels through or near almost every community in the region, while several airports, serving regional to international markets, are within a short drive.

Ample space for industrial and other development

Land is plentiful, inexpensive, and well-served by highway access. Several economic development organizations can provide a wide variety of resources and a wealth of expertise to help interested parties find the industrial park or commercial space to fit every need. Resources can be found at:

• Texas Economic Development Corporation
• Mexia Economic Development Corporation
• Clifton Economic Development Corporation
• Meridian Economic Development Corporation
• Hillsboro Texas Economic Development Corporation
• Groesbeck Industrial Park
• Fairfield Industrial Park South

Education and workforce training network

Greater Waco boasts two community colleges and one research university supplying a pipeline of skilled, certified, and/or degreed graduates. With the trend toward greater skill requirements for employees, the region has partners in place that could help provide needed skill sets. For higher education and business development purposes, Baylor University has a collaborative partnership, formalized through joint funding with the Texas State Technical College System and the cities of Waco and Bellmead to help create a high technology research, workforce development/training and industry solutions center. A business start-up center within the 300,000 square feet facility will foster high technology spin-off businesses, thereby increasing local and regional wage scales.

Affordable cost of living

It is very affordable to live in the Heart of Texas Region, own a spacious home in a safe neighborhood, live within 30 minutes of employment, commercial, and cultural amenities and enjoy a clean and varied natural environment. The quality and affordability of each of these elements makes the Heart of Texas lifestyle among the best in America, as evidenced by Hewitt being named one of America's ten most livable cities.

Available and growing health care network

In a region already well-served by high-quality medical care, recent expansions and mergers have ensured the rapid growth in available facilities, jobs, and care providers to local citizens.

Good corporate and community relationships

A large number of locally-owned businesses in the Waco MSA, combined with the close ties that bind longtime neighbors in Waco as well as the rural communities, have contributed to a sense of civic involvement and commitment on behalf of the region's business community. Local governments also enjoy and reciprocate positive relationships.

The Heart of Texas Location has the Infrastructure Your Business Needs!

Location is critical to business success, but the means to be connected to suppliers and customers is critical to maximize that location's advantages. Infrastructure in the Heart of Texas region offers the advantages necessary for individuals, families and businesses to find the success they are looking for!

From transportation options covering the entire region, to natural resource availability and world-class communication networks, the Heart of Texas region has infrastructure advantages that sets the stage for your business or industry’s growth and profitability.

Let the Heart of Texas Economic Development District team assist your business in finding the right infrastructure set to fit your needs today!

Accessible and robust transportation channels

The Heart of Texas region is within 150 miles of Dallas/Fort Worth, Houston, Austin and San Antonio. Interstates 35 and 45 connect the region to the 20 million people within 100 miles of its boundaries. Existing rail service travels through or near almost every community in the region.

Air travel, both freight and personal, is available at a number of airports within it close to the Heart of Texas region. The Waco Regional Airport is served by American Airlines. Dallas Love Field, Dallas/Fort Worth International Airport and Austin-Bergstrom International Airport are all within 100 miles, while the San Antonio International Airport, George Bush Intercontinental Airport are slightly further.

Abundant Natural Resources & Utilities

Texas generates more than one-fifth of U.S. domestically-produced energy, leading all states in the nation. The state produces energy from a wide range of resources, many of which can be found in the Heart of Texas region. As a result, the price and availability of these resources and the electricity generated from them, is extremely affordable and well below other areas of the country.

Natural Gas and Coal

Texas is the top U.S. producer of natural gas, with more natural gas market hubs and infrastructure than any other state. Freestone County is the largest producer of natural gas in the Heart of Texas region at 6.041,371 thousands cubic feet (MCF) in October 2020, followed by Limestone County at 2,174,168 MCF. As a result, average Texas prices for city gate natural gas are significantly cheaper than the U.S. average, at $2.99 per MCF versus $4.10 per MCF.

The region has historically had significant production of lignite coal. The Texas Railroad Commission reported the only regional coal mine operational in 2019 to be the Kosse Mine in Limestone County. That year, it produced 9,594,365 short tons, the majority of which was used to generate electricity.

Renewable Energy

The state of Texas is committed to renewable energy development and the Heart of Texas region is deeply committed as well. Renewable energy sources contribute nearly one-fifth of the net electricity generated in Texas. The state was the country's sixth-largest producer of solar power in 2019, with Installed solar capacity in the state doubling between 2017 and 2019, exceeding 3,100 megawatts in 2019. Several projects in area counties either contributed to that increase or will do so in the future, including Eddy II and OCI Solar Power in McLennan County and Hecate Energy in Falls County. In addition, Texas leads the nation in wind-powered generation and produced about 28% of all the U.S. wind-powered electricity in 2019. Local projects include the Engie project in McLennan and Limestone counties.

Electricity

The availability of the aforementioned resources has led Texas to be the top electricity-generating state in the country. As a result, the prices of electricity in the region are extremely favorable, as reported in September 2020 by the U.S. Energy Information Administration (EIA) below.

More energy information can be found through the EIA Texas State Energy Profile.

Water

Water supply varies throughout the region, but overall there is an abundance of this important resource with the Brazos and Bosque rivers and several lakes - Aquilla, Whitney, Waco, Fairfield, Limestone and Richland Chambers - in the region. Mexia, in particular, has an abundance of potable water due to the efforts of the Bistone Municipal Water District. Wells into the Carisa Wilcox aquifer coupled with the Lake Mexia reservoir contribute to a supply that exceeds projected demand.

Connecting the Heart of Texas to the World

According to Broadband Now, Texas is the 8th-most connected state in the country, with an average connectivity speed of 108.8 MBPS. As is typical in other communities, urban areas In the Heart of Texas region have more access to high-speed internet connectivity than rural areas. Broadband is available to 88.1% of McLennan County residents, followed by 74% in Freestone, 71% in Limestone, 37.2% in Hill, 30.3% in Bosque and 29.6% in Falls County. The state of Texas has committed to broadband development through the Texas Broadband Initiative and the implementation of the Connected Nation Texas program to expand access, adoption and use of broadband services.

The Heart of Texas Can Help Companies Find the Tax Advantages They Need!

Residents and business owners in The Heart of Texas region benefit from a number of tax advantages. Programs, tax rates and exemptions exist at federal, state and local levels to help individuals and entrepreneurs make the most of their situations. Per the Tax Foundation, Texas ranked #11 in the country in its 2021 State Business Tax Climate Index and has several general tax advantages, such as:

• No Corporate Income Tax or Individual Income Tax
• #6 rank for State & Local General Sales Tax Collections per Capita - $1,259
• #13 rank for State Sales Tax Rate - 6.25%

In addition, there are many tax programs at the county and state levels designed to help area business development, employee training and workforce development. The staff at the Heart of Texas Economic Development District (HOTEDD) understands all the tax benefits available to businesses of all sizes and is prepared to assist anyone through the process of finding the best options today!

Industrial Revenue Bonds (IRBs) provide a source of tax-exempt or taxable bond finance for projects involving significant private activity that promote new and existing businesses, encourage employment, and expand the tax base of a community.

The Property Tax Abatement program exempts all or part of the increase in the value of a l property from taxation for a period not to exceed 10 years. Tax abatements allow cities, counties and special districts to attract new industries and to encourage the retention and development of existing businesses.

The Relocation Expenses Deduction allows companies to deduct from relocation costs incurred in relocating their main office or other principal place of business to Texas from another state.

The Renewable Energy Device Deduction allows for a 10% deduction of the amortized cost of a solar energy device, including wind energy and clean coal projects.

The Research & Development Tax Credit allows companies engaged in qualified research activities in Texas to choose a sales tax exemption or a franchise tax credit for materials, software and equipment used for R&D purposes.

The Tax Credit for Rehabilitation of Historic Structures allows a tax credit toward a taxpayer’s franchise tax in the amount of 25% of the total eligible costs and expenses incurred in the certified rehabilitation of Recorded Texas Historic Landmarks.

The Texas Economic Development Act encourages Texas investment projects in reinvestment or enterprise zones. Projects must be in manufacturing, R & D, clean coal, clean energy, power generation or a computer center used primarily in connection to other categories.

The Texas Enterprise Zone Program is a state sales and use tax refund program designed to encourage private investment and job creation in economically distressed areas of the state based on the company’s planned capital investment and job creation and/or retention.

The Solar Energy Franchise Tax Exemption exempts Texas corporations engaged solely in the business of manufacturing, selling, or installing solar energy devices from the franchise tax.

Many State Sales & Use Tax Exemptions exist and can be found at the Texas Comptroller website, such as:

• Leased or purchased machinery, equipment, replacement parts and accessories that have a useful life of more than six months, and that are used or consumed in the manufacturing, processing, fabricating or repairing of tangible personal property for ultimate sale.

Electricity and natural gas used in manufacturing, processing, or fabricating tangible personal property.