(The Center Square) – Texas ranks first in the country for having the best business climate in the U.S. again. In another ranking published by Site Selection magazine, Texas topped the list of states for the third year in a row.
“The eighth-largest economy in the world has the best business climate in the U.S. Texas has once again emerged as the state most likely to succeed when it comes to attracting capital investment from the private sector,” Site Selection magazine states. “That’s because from the governor’s office in Austin to economic development offices in communities large and small across the Lone Star State, those charged with marketing Texas know they have an easy sell – no corporate tax, sensible business regulations, business-dedicated courts, unbeatable logistics infrastructure and a huge labor force, among other factors. Their challenge is to keep it that way.”
Site Selection surveyed corporate executives, site selection consultants, and real estate professionals who said the most important criteria for the best business climate was the availability, cost and reliability of utilities. Texas, which leads the U.S. in oil and natural gas production, also produces more electricity than any other state, The Center Square reported.
Other key criteria include the “ease of permitting and regulatory procedures, transportation infrastructure, workforce skills and quality of life,” explains Site Selection, the publication of the Industrial Asset Management Council published by Conway Data, Inc.
“Texas once again emerges as the national champion for the top business climate in America,” Gov. Greg Abbott said in a statement. “As the eighth-largest economy in the world, Texas offers the freedom and opportunity for companies of all sizes and all industries to thrive. Coupled with the pro-growth, pro-business laws I signed this year, Texas improved the process of doing business to help them succeed in our great state. We will continue to make strategic investments and partner with job-creating businesses to ensure that Texas remains the top state in the nation to do business.”
Abbott highlights other factors contributing to Texas’ top ranking: “the number of job-creating corporate relocation and expansion projects, a pro-growth mindset and environment where enterprise can flourish, investments in workforce development and infrastructure, access to technology and tech talent, and a predictable regulatory landscape.”
Earlier this year, he signed into law a bill that established the Texas Regulatory Efficiency Office. The law directs TREO to help state agencies identify and repeal unnecessary or ineffective rules, determine regulatory costs placed on the public, issue best-practice guidelines for how agencies adopt new rules and perform required analyses.
He appointed TREO’s first director, Jerome Greener who opened TREO last month. A new TREO website and Regulation Evaluation Portal have also been launched.
TREO will help cut red tape and root out unnecessary regulations, and “make state government more responsive and more efficient to serve the people and job creators of Texas,” Abbott said.
Texas leads the U.S. in job creation and economic growth every month, The Center Square has reported.
In March, Site Selection also awarded Abbott with a Governor’s Cup award, the 13th consecutive win for Texas. Texas also won Site Selection’s 2025 Prosperity Cup award, which ranked Texas as the top state in the U.S. for attracting new business investment.
The recognitions came after more than three million businesses have now opened and registered with the Texas Secretary of State’s Office. That’s more than double the number that registered since. Abbott took office in January 2015.
The total includes businesses incorporated in Texas and out-of-state entities conducting business in Texas. The largest classification is in-state, limited liability companies (LLCs), the SOS says.
“This milestone shows the true strength of the Texas economy,” Abbott said. “With no corporate or personal income tax, a highly skilled and diverse workforce, and the best business climate in the nation, Texas attracts innovators and entrepreneurs from across the country and around the world.”
Texas also has the second greatest number of 2025 Inc. 5000 companies of 518. Three Texas cities are among the top ten cities with the most: Austin (122), Dallas (87) and Houston (60), Site Selection says.
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Abbott signed several business friendly bills into law this year, including codifying business rules and expanding the jurisdiction of the Texas business courts and the type of cases they can hear, The Center Square reported.
He also led the effort to launch the new Texas Stock Exchange in Dallas, to bring billion-dollar semi-conductor investment and manufacturing to Texas and is leading a nuclear energy and AI boom in Texas, The Center Square reported.