The global competition for advanced manufacturing has never been more intense.
To maintain its status as the leading state for business and exported manufactured goods, Texas must prioritize policies that attract and sustain large-scale manufacturing projects. The Texas Association of Manufacturers (TAM) recently outlined its top 10 policy priorities for the 89th Texas Legislature in 2025.
These policies are essential for bolstering Texas’ economic growth, securing supply chain and national security and advancing leadership in emerging technologies and manufacturing.
Smart policies related to pro-growth tax policy, transportation, infrastructure, electricity, workforce development and water are key to keeping Texas on top.
- Tax structures that promote economic growth. TAM supports a competitive tax climate that encourages investment by both new and existing businesses. Key initiatives include the Jobs, Energy, Technology and Innovation Act, robust R&D tax exemptions and consistent tax exemptions for the maintenance, repair and overhaul of general aviation aircraft.
- Equity in business taxation. Fairness in taxation is critical. TAM advocates for broad-based, low-rate tax policies that treat all taxpayers equally and emphasize the importance of a competitive property tax environment over franchise tax cuts.
- Business and personal property tax reform. TAM supports tax exemptions for equipment used directly in manufacturing or, alternatively, all business inventories. Such reforms would provide significant tax relief and serve as a powerful stimulus for the Texas economy.
- Transportation, critical infrastructure and timely permits. Efficient transportation and infrastructure are vital to business operations. TAM backs policies that improve interstate and intrastate commerce, alleviate supply chain disruptions and streamline the permitting process for infrastructure projects, including pipelines, highways and rail corridors.
- Maintain a reliable, cost-effective and competitive wholesale electricity market. Texas’ electricity market must remain reliable and affordable. TAM supports market-based pricing, robust demand response opportunities and transparency in energy procurement while opposing "out-of-market" actions that distort pricing.
- Ensure monopoly utility rates are transparent and fair to customers. Transparency in utility rates is crucial. TAM opposes "rate riders" that allow monopoly utilities to increase rates with limited review. Protecting the ratemaking process ensures businesses are not overcharged for electricity.
- Career and workforce readiness. TAM emphasizes the importance of career and technical education programs, robust funding and early career advising to prepare the workforce for future opportunities. Key initiatives include the Skills Development Fund, Jobs and Education for Texans Program and apprenticeship programs.
- Support common sense regulations and sufficient funding for TCEQ operations. TAM supports consistent, market-driven regulations from the Texas Commission on Environmental Quality (TCEQ) and adequate funding for its operations. This includes efficient permit processing, increased inspections and enhanced training opportunities for staff.
- School and workplace health. Healthy schools and workplaces are essential for productivity. TAM supports policies that prevent infectious diseases and remove barriers to vaccinations for employees and communities.
- Funding for water infrastructure projects. Water infrastructure is vital for Texas’ growth. TAM advocates for dedicated funding for the Texas Water Fund, market-based solutions for regional water infrastructure and sustainability initiatives to reduce the burden on water resources.
Texas’ manufacturing sector is a cornerstone of the state’s economy. By adopting these top 10 policy priorities, the 89th Legislature can ensure that Texas remains the premier destination for advanced manufacturing and economic growth. These policies are critical for sustaining Texas’ leadership in a competitive global market. Let’s keep Texas on top.
For more information, visit manufacturetexas.org.
