The question of establishing Texas residency is complicated. Only independent (for federal tax purposes) US citizens or permanent residents (holders of a valid I-551 issued in their name) are eligible to begin the establishment of Texas residency. Establishment of Texas residency requires that said individual live in Texas for 12 consecutive months without being enrolled in an undergraduate or graduate program. Furthermore, many companies have agreements with the state of Texas allowing employees who transfer from an out-of-state location to receive waivers of tuition to in-state rates. The residency classification will not change during the first year for this type of waiver.