Austin, Texas: The Place To Be For Growing Tech Businesses
If you are considering expanding your business within the United States, you should consider Austin, Texas. Austin is rapidly becoming the new hot spot for both established and startup tech companies.
Why Are Tech Companies Moving To Austin?
Numerous companies announced expansions or relocations to Austin in 2020, with the Austin Chamber of Commerce recording over 100 companies that had expanded to or opened a new facility in Austin in last year alone. Why Austin? We have gathered some of the main reasons why Austin is an attractive option for growing tech businesses.
1. Attracting and Hiring Top Talent in Austin
If your business is involved in any realm of the tech industry, then Austin is a city you should consider having a presence in. Austin continues its reign as ‘The Best Tech City’ in CompTIA’s 2020, “Tech Town Index” findings, which highlighted 68,323 IT jobs posted in Austin between August 2019 and July 2020, indicating a substantial increase in over one year.
In addition, Austin topped the Wall Street Journal’s ‘Hottest U.S. Job Market’ list for the second consecutive year, promoting the city’s ability to attract and retain top talent emerging from local universities. As a result, Austin benefits from talent that can contribute to the diversity of a blended workforce within a thriving tech business.
2. Austin Has a Business-Friendly Atmosphere
Access to financing options is important for any growing business. Austin’s attractive business incentives offer a range of financial options to make relocation, expansion and growth of a business successful.
What Business Incentives Are Available in Austin?
‘The Business Expansion Incentive Program’ in Austin is a pay-for-performance program that pays out annually to qualified businesses. The Economic Development Department is identifying and qualifying high-impact projects for:
Local Austin businesses
Employers hiring targeted populations
Businesses relocating to Austin
1. Local Austin businesses
Austin offers incentive benefits for business’ growing locally within the city. Benefits include:
Up to 3% Wages Reimbursement per job / per year (max $1,800).
Up to 50% Property Tax Reimbursement.
Eligibility:
Must be registered and operational within the city of Austin for at least 12 months.
The company should create at least 5 jobs over 5 years paying at least city of Austin living wage.
2. Targeted hiring incentives
This incentive is available to employers hiring workers with barriers to employment/ in targeted populations. Benefits include:
Up to $3,000 Per Target Job / per year.
Up to 50% Property Tax Reimbursement.
Eligibility:
The creation of 1 job for targeted populations, or those with barriers to employment.
Pay must be at least the city of Austin living wage.
3. Austin relocation incentives
If you are considering relocating your tech business, Austin offers relocation incentives that will help accelerate your growth. Benefits include:
Up to 3% Wages Reimbursement per job/per year (max $1,800).
Up to 50% Property Tax Reimbursement.
Eligibility:
Your business must currently not have a “significant presence” in the city of Austin (5 or less Austin employees).
The creation of at least 75 jobs over 10 years paying at least the city of Austin living wage.
3. Austin Offers a Great Quality of Life
The last few years have taught us that we have great flexibility when it comes to where we want to live and work. In Austin, the cost of living is considerably lower in comparison to other cities within the United States. Austin is known for a thriving music scene, nightlife, culture and a scenic outdoor landscape. The characteristics of Austin contribute to a higher quality of life, which attracts workers that are interested in remote working. It’s no secret why Austin was crowned the ‘Best State Capitals to Live In’ in 2020.
4. Location, Location, Location
The city is located right in the middle of the “Texas Triangle,” an economic powerhouse of the state of Texas and the Southern United States. This prime location provides Austin businesses with ease of access to all of what the state has to offer, and connections to other major business-minded cities, making it a great city to be based in.
Could Austin be The Next Step in Your U.S. Business Expansion Journey?
As an employer of record, we are here to simplify your business needs. We’re registered in all 50 U.S. states and all 13 provinces and territories in Canada. We take on the responsibility of your workforce so that you can continue to run your business smoothly. If you would like to discuss your business needs, then connect with us today!
Disclaimer: All information written here is for general informational purposes only and is not intended to be a substitute for professional and/or legal services.