Austin Politics
On My Block · Austin Politics

Economic developmentNov. 19 meeting

YETI asks Austin to nominate it for a state sales tax refund. Every such nomination in our records since 2025 has passed without a no vote

The cooler maker plans $5.1 million in upgrades at its Southwest Parkway headquarters and 10 new jobs. The city adds no money of its own, but the state can't act without the council's nomination.

By Austin Politics staffUpdated

On Nov. 19 the Austin City Council is scheduled to vote on nominating YETI Holdings for the state's Texas Enterprise Zone program. The Austin outdoor-products company wants to apply for a refund of state sales and use taxes on a renovation of its headquarters at 7601 Southwest Parkway.

The item is on the consent agenda, Item 7, so it could pass without discussion unless a member pulls it.

What YETI says it will do

According to the staff recommendation:

  • YETI plans about $5.1 million in capital investment over five years. That includes refitting office space, relocating and reconfiguring departments across its campus, a new board room and executive suite, and "a branded YETI museum and experiential space."
  • YETI employs more than 400 people at its Austin locations and commits to creating 10 new full-time jobs at headquarters.
  • The designation "would not include any additional incentive from the City."
  • YETI plans to apply in the state's Dec. 1, 2026 application round.

How the program works

The Texas Enterprise Zone program, in Chapter 2303 of the Texas Government Code, refunds state sales and use taxes to companies that invest and create or keep jobs. The state makes the designation, but a company can apply only if its local government nominates it. Austin opted into the program by ordinance in August 2024 and updated its list of local incentives in November 2024, the resolution says.

The draft resolution says YETI's site is not in a designated enterprise zone. To qualify, at least 35% of YETI's new permanent jobs must go to enterprise zone residents, economically disadvantaged people or veterans. The resolution also finds that the designation "will contribute significantly" to the city's development plans for the area. A designation would last five years.

What our records add

Our records show the council has nominated five companies for the program since early 2025 and amended one nomination. None drew a no vote:

Most of those sites are in East, Southeast and North Austin. YETI's is in Southwest Austin. The amount of any refund depends on the state's decision and on how much YETI invests and hires.

How this compares with other incentives

Austin's own incentive programs, such as Chapter 380 agreements, use city money and come with performance terms negotiated by the city. This nomination commits no city money. The city's role is the nomination, and the state's program sets the job and reporting requirements. On Nov. 5, the council approved a commercial rent buy-down program for local businesses, amended so its eligibility rules follow the city's existing place-based incentive programs.

What's next

If the council approves the nomination Nov. 19, YETI can apply in the state's Dec. 1 round. The Governor's Office of Economic Development and Tourism decides on the designation.