§ 228.201 — DEFINITION OF QUALIFIED BUSINESS.

Texas § 228.201

• Jurisdiction: Texas
• Code IN: Insurance Code

Text

Sec. 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.

Legislative History

Added by Acts 2007, 80th Leg., R.S., Ch. 730 (H.B. 2636 ), Sec. 1B.001, eff. April 1, 2009.