Tex.
Ins. Code Section 228.201
Definition of Qualified Business
(a)
In this chapter, “qualified business” means a business that complies with this section at the time of a certified capital company’s first investment in the business.(b)
A qualified business must:(1)
be headquartered in this state and intend to remain in this state after receipt of the certified capital company’s investment; and(2)
have the business’s principal business operations located in this state and intend to maintain business operations in this state after receipt of the certified capital company’s investment.(c)
A qualified business must agree to use the qualified investment primarily to:(1)
support business operations in this state, other than advertising, promotion, and sales operations which may be conducted outside of this state; or(2)
in the case of a start-up company, establish and support business operations in this state, other than advertising, promotion, and sales operations which may be conducted outside of this state.(d)
A qualified business may not have more than 100 employees and must:(1)
employ at least 80 percent of the business’s employees in this state; or(2)
pay 80 percent of the business’s payroll to employees in this state.(e)
A qualified business must be primarily engaged in:(1)
manufacturing, processing, or assembling products;(2)
conducting research and development; or(3)
providing services.(f)
A qualified business may not be primarily engaged in:(1)
retail sales;(2)
real estate development;(3)
the business of insurance, banking, or lending; or(4)
the provision of professional services provided by accountants, attorneys, or physicians.
Source:
Section 228.201 — Definition of Qualified Business, https://statutes.capitol.texas.gov/Docs/IN/htm/IN.228.htm#228.201 (accessed Jun. 5, 2024).
