Austin Continues To Be a Nurturing Environment for Tech Startups in 2015
Over the past few years, we have seen Austin become one of the top places in the country for digital technology companies and the attraction to the city doesn’t seem to be ending anytime soon.
The 2014 Annual Report states that in 2014, investors funded 115 startups and bought 31 companies in Austin. The local tech companies raised $993 million in investment dollars and exits totaled $437 million.
After experiencing a 41.4% increase in tech-industry employment between 2001 and 2013, Austin was recently named the top city for technology job creation by Forbes. The Austin Technology Council, which integrates tech leaders into daily life in Austin, foresees nearly 12,000 more tech jobs to be added over the next five years.
With major companies like Dell and startup incubators such as Techstars headquartered in Austin, it is no mystery why Austin continues to flourish. According to their website, Techstars is “a global ecosystem that empowers entrepreneurs to bring new technologies to market wherever they choose to build their business.” Techstars provides funding and mentorship to startup companies around the world.
Due to the lively tech community that has settled in Austin and the networking resources available, entrepreneurs are able to easily collaborate and connect with one another as well as potential investors.
Texas also offers $19 billion per year in incentives for things like job creation, relocating business to Texas and R&D performed in Texas. The R&D tax credit for qualified research and development that is conducted within the state, provides up to a 6.125% credit rate. The Texas R&D tax credit adopts the guidelines of the federal R&D tax credit, meaning one can essentially receive two credits for one tax workup. Unlike the federal credit, the Texas credit is valid until 2026.
If your company is conducting R&D within the United States and would like more information on claiming the credit, please contact a Swanson Reed specialist.
