The Economic Development and Diversification In-state Tuition Incentive may be offered by the Economic Development & Tourism division of the Office of the Governor to qualified businesses that are in the decision-making process to relocate or expand their operations into Texas. The incentive allows employees and family members of the qualified businesses to pay the Texas resident tuition rate at a Texas public institution of higher education without first establishing residency if the business became established as part of the state's Economic Development and Diversification Program not earlier than five years before the relevant enrollment date.
How a Business May Qualify for the Incentive
The city or county or economic development group of the Texas region in which the business will locate or expand should initiate a letter of request for consideration to the Executive Director of the Economic Development & Tourism division of the Office of the Governor. The letter should outline how the criteria below are met and indicate the approximate number of employees to be transferred, approximate wages to be paid and the estimated capital investment of the project.
Once a company is approved, the company is listed on this website. To view the current list of approved companies, click on the Company List.
Criteria used in the evaluation of an expansion or relocation project will include, but are not limited to:
- Offer of an in-state tuition certification as an incentive to the business during its decision-making process by the Economic Development & Tourism division of the Office of the Governor.
- Plans for creation of new positions and the hiring of local residents in these positions in addition to the employees who will be transferred.
- A letter of request for consideration to the Executive Director of the Economic Development & Tourism division of the Office of the Governor is to be submitted by the city or county or economic development group.
- The business must be an industry that will have a high economic impact to the Texas region in which it locates and should be a targeted industry of the state or an ancillary or support industry. The business should also promote highly skilled, high-wage jobs.
NOTE: This webpage is intended to provide basic information for the public by highlighting requirements that appear in the Texas Education Code (TEC) and Texas Administrative Code (TAC). When reviewing eligibility requirements this exemption program, you should always refer to the relevant statutes and rules. The information on this webpage is to be used solely as a resource and does not override the statute or rules for this exemption program. It is not intended as, and does not constitute, legal advice.
- A nonresident person (including a Citizen, a Permanent Resident of the U.S., a person who is eligible to be a Permanent Resident of the U.S., and an eligible nonimmigrant) whose family has been transferred to Texas by a company established as part of the state's Economic Development and Diversification Program not earlier than five years before the relevant enrollment date, and a person's spouse and children shall pay resident tuition as soon as they move to Texas, if the person provides the institution with a letter of intent to establish Texas as his or her home.
- A person who moves to Texas to attend an institution before his or her family is transferred is permitted to pay the resident tuition as long as the employee relocates to Texas not more than one semester after the student enrolls.
- After the family has maintained a residence in Texas for 12 months, the person may request a change in classification in order to pay resident tuition.
Limited to public institutions only.
Contact the registrar's office on your campus for information and assistance.
For questions concerning the criteria used for certifying companies for this program, contact Domestic Expansion & Recruitment in the Office of the Governor, Economic Development and Tourism division, at 512-936-0100.
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