More and more technology companies are making the switch to Texas and other states with lower living costs and more advantageous tax laws. The abundance of talented individuals is another major factor that attracts companies to Texas. In recent years, it has also become a hub of innovation. Although there are some skill gaps in talent levels, the cost of talent is lower than in Silicon Valley. Tesla and Hewlett Packard, a software company formerly based in California, have both made the move.
In fact, many well-known companies that were once based in California (such as Firetrail and Oracle) are now relocating to Houston, Texas. Amazon invested billions of dollars in Texas many years ago, recognizing the clear benefits associated with businesses there. Both established companies and startups are drawn to Texas due to its relatively favorable tax conditions. This state does not collect corporate or individual income tax. This is especially attractive for anyone running a business in California, as tax rates have risen there over the years.
Many businesses are leaving California and moving to Texas due to the tax climate. For example, both states experience hot summers and businesses can expect a high electricity bill due to air conditioning. In addition to the savings these companies experience when moving to Texas, they can also take advantage of a large talent pool. With so many jobs moving to Texas, you may be considering relocating your business or investments there as well. From Tesla to Oracle, many companies that had major headquarters in other states are now based in Texas, and many other small and large companies are following suit due to the strong local economy and good working and living conditions.
With the increase in the number of technology companies moving to the state, the domestic migration rate is also increasing. Austin is often mentioned first when discussing this trend, as its growing reputation as Silicon Valley in the south has led many big companies to move to Texas. However, there are numerous advantages to investing and relocating your business to the Lone Star State. Even during the pandemic, around 150 companies have announced their plans to move or expand to Texas. The Governor's Office of Economic Development and Tourism reported a tremendous increase in companies approaching since September 2020, with 237 relocation or expansion projects currently underway.
Now that many different types of companies have moved to Texas, there is much more variety in terms of the industries that are growing there - such as the information technology industry thanks to companies like Dell.