From high-voltage energy reforms, to securing water supply, to R&D incentives, and film funding, recent legislation from Texas lays the groundwork for Fort Worth’s next decade of economic development and industry leadership.
By Katie McConnell, Associate | July 23, 2025
During the 89th Regular Session of the Texas Legislature, several key measures were passed that will shape economic development in Fort Worth. These include new infrastructure investments, innovation incentives, a strengthened film production program, and a clearer path for large-scale energy users to join the grid. Notably, Fort Worth also received a formal designation as the Aviation and Defense Capital of Texas, elevating its leadership in the industry.
Here’s a closer look at the legislative actions poised to shape Fort Worth’s continued economic growth:
SB 6 – Strengthening the Grid
SB 6 establishes a revised process for integrating large electrical loads—defined as those seeking 75 megawatts or more—into the Texas power grid, requiring applicants to cover the costs of grid interconnection and comply with detailed disclosure and operational requirements. It also sets protocols for managing these loads during grid emergencies and regulates self-generation and net metering arrangements for large industrial and utility customers.
The bill promotes grid reliability and planning transparency, ensuring that high-demand businesses like data centers or manufacturing plants can interconnect more predictably and responsibly, which strengthens investor confidence in Texas’s infrastructure. By clarifying procedures and cost allocations, it encourages private capital investment in energy-intensive industries while safeguarding the resilience of the broader ERCOT grid—key for sustained, long-term economic growth.
HJR 7 / SB 7 – Securing Water Supply
HJR 7 proposes a constitutional amendment to dedicate a portion of state sales and use tax revenue for the Texas Water Fund to the tune of $1 billion annually for 10 years. Relatedly, SB 7 expands the scope of projects that the Water Fund can support to include those that connect new water supplies to the existing water supply, among other adjustments. Texas voters will see this proposed amendment on their November 4, 2025 ballots, along with 16 other proposed amendments.
By securing a forward-looking, long-term funding source for water infrastructure and innovation, HJR 7 and SB 7 proactively ensure reliable water supply for Texas—critical for supporting population growth, economic development, and agriculture. These generational investments secure the lifeblood of civilization for Texans, as well as highlighting Texas’s supportive posture for future economic and business development.
SB 2206 – Investing in R&D and Innovation
SB 2206 strengthens and extends Texas’s research and development (R&D) incentives by increasing R&D franchise tax credits. The law raises the rate from 5% to 8.722% generally for qualified research expenses, and up to 11% for qualified research expenses when conducted in partnership with institutions of higher education.
By increasing and extending R&D credits, SB 2206 incentivizes innovation-based businesses to expand Texas-based research operations, which can attract high-tech industries and skilled workers. Its structure encourages collaboration with universities, further stimulating commercial growth and knowledge-driven job creation by promoting partnerships with Texas hubs of education and expertise.
SB 22 – Expanding Film Incentives
SB 22 establishes a dedicated and continuously-funded film incentive program, the Texas Moving Image Industry Incentive Fund. This incentive fund is designed to attract and support film and media productions through a separate, flexible funding flow independent of the state’s biennial budget process.
By establishing a more agile funding stream for film industry incentives, SB 22 allows Texas to compete more effectively for productions that bring jobs, local spending, and infrastructure investment to Texas. This program gives Texas a consistent and agile tool to attract creative projects, boosting the state’s cultural economy, the associated service industries, and Fort Worth’s reputation as a new film industry hub.
HCR 142 – Championing Aviation & Defense Industry in Fort Worth
HCR 142 designates Fort Worth as the official “Aviation and Defense Capital of Texas” for a ten-year period ending in 2035. This formal recognition by the legislature emphasizes the economic and strategic importance of Fort Worth’s aerospace, aviation, and defense sector on a state, national, and global scale.
The designation affirms Fort Worth’s aviation and defense sector as a national leader—setting the standard in Texas, as Texas’ aerospace and defense sector leads the nation. This recognition enhances Fort Worth’s visibility, positioning the city to attract top-tier aerospace and defense firms while unlocking opportunities for further strategic investment, workforce development, and innovative industry partnerships.
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Katie McConnell is the Associate of the Fort Worth Economic Development Partnership. The Fort Worth EDP works directly with companies, site selection consultants, and corporate real estate professionals who are interested in moving or expanding to Fort Worth, Tarrant County, and the surrounding areas. If you’d like to learn more about Fort Worth, please schedule a meeting with us or check out our Why Fort Worth page.
