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Everything Texan is big, right? It's a big state, full of big cars, big houses and big hats. OK, maybe that's an outdated picture from the days when "Dallas" was one of the hottest shows on television, but there is some truth behind that stereotype. Take for example Gov. George Bush's latest tax cuts. When the governor of Texas makes a tax cut, he does it in a big way -- US$506 million big to be exact. And this comes from a state that already claims no personal state income tax.

These tax cuts and other recent legislative acts represent the state's commitment to creating the best business climate possible. In fact, Texas ranked No. 2 overall in Site Selection's 1999 State Business Climate Ranking. "Texas has always been very keenly aware of what it takes to attract and retain corporations and to keep the jobs here," says John Gates, a vice president with Staubach Cos., Corporate Services Division. "Maintaining good control and having an understanding of the total tax burden is perhaps the biggest thing."

As a result of Gov. Bush's signing of Senate Bill 441, businesses will receive several different types of tax breaks. First, the bill allows for a sales tax exemption on the first $25 a month in Internet access charges, a franchise tax credit for businesses that subsidize day care for their employees and another franchise tax exemption for small businesses with gross receipts of less than $150,000. "Many of these small businesses don't owe franchise taxes, but they have to spend hundreds of dollars on paperwork to show they don't owe," says Gov. Bush. "Small business is the backbone of our economy. Texas must continue to create an environment in which entrepreneurs can flourish, and the small business tax exemption helps do that."

For the larger firms, other tax cuts take front stage. Primary among those is the $70 million research and development tax credit. The bill also created a $45 million investment credit and a franchise tax exemption for any business that creates at least 10 jobs or makes a capital investment in high-unemployment, low-wage areas.