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Incentives

Local Incentives

Direct Incentives

The Development Corporation of Richmond (DCR) is a type 4B economic development sales tax corporation. The DCR is able to provide cash grants on a case by case basis to eligible companies. Eligibility is determined by several factors including the level of capital investment, number of jobs created, the average wage of the jobs created, and other pertinent factors. 

 

Municipal Grants and/or Loans (380 Agreement)

The City Commission of Richmond may provide loans and grants of city funds as well as city employees and equipment to promote economic development projects within the city. Eligible projects involving significant investment may contract with the City to receive sales tax grants, franchise fee grants, water or sewer line extensions, building permit fee waivers and grants for capital recovery fees.

Tax Abatements

A project may be eligible for tax abatement if it is a business or manufacturing facility, research facility, distribution center, regional service facility, basic industry, or other facility “deemed essential to the City’s growth.” A project may be eligible for abatement of taxes up to 100 percent and for as long as 10 years, depending upon the amount of expenditure and/or the number of employees. Reinvestment in an existing project or expansion of existing facilities may also be eligible for tax abatement.

Freeport Property Tax Exemption

The Freeport Exemption exempts personal property consisting of inventory goods or ores, other than oil, natural gas and petroleum. Eligible property must be transported out of the state within 175 days of acquisition but may first be assembled, stored, manufactured, processed or fabricated locally.

Public Improvement Districts

A Public Improvement District (“PID”) enables a commercial area to make improvements benefiting the area and spread the cost equally among all properties. The City can levy and collect special assessments on property owners within the PID. These assessments may be used to pay the debt service on bonds or they may be used to pay for services directly if no bonds are issued. PID funds may be used to purchase real property in connection with improvements. Improvements include a wide variety of enhancements such as water and wastewater, streets, drainage, parking, landscaping, etc.

Tax Increment Reinvestment Zone

Developers of business property within a defined area (i.e. business parks, service centers) may receive municipal financing assistance through the use of tax increment financing. The City Commission may create a Tax Increment Reinvestment Zone (TIRZ) where construction of public improvements using tax increment funds is likely to result in significant commercial investment. The cost of improvements within the zone is repaid by the contribution of future tax revenues by each taxing unit that levies taxes on the affected properties. Once the city initiates tax increment financing, counties and school districts may also participate in the tax increment financing program. 

State of Texas Incentives
The Texas Enterprise Fund

The fund was established to provide financial resources to help strengthen the state's economy. The Governor, Lieutenant Governor, and the Speaker of the House must unanimously agree to support the use of the Texas Enterprise Fund for each specific project. Projects that are considered must demonstrate a project's worthiness, maximize the benefit to the State of Texas and realize a significant rate of return of the public dollars being used for the project. Significant job creation and capital investment, above average wages generated, financial strength of the applicant, applicant's business history, analysis of the relevant business sector, and financial support from the local community and private sector will all be significant factors in approving the use of the Enterprise Fund.

 Visit http://governor.state.tx.us/ecodev/financial_resources/texas_enterprise_fund/ for more information

The Texas Emerging Technology Fund (ETF)

This fund was created to provide Texas with an unparalleled advantage in the research, development and commercialization of emerging technologies. The program works through partnerships between the state, institutions of higher education and private industry and is dedicated to three areas: Regional Centers of Innovation and Commercialization; matching grant funds for R&D projects that accelerate commercialization and that have demonstrated an ability to receive or have received federal grants or non-state grants; and assisting Texas public universities in attracting highly renowned research teams from universities and institutions in other states.

Visit http://governor.state.tx.us/ecodev/etf/ for more information.

Skills Development Fund

Created to train employees through customized job training programs provided by the state's community colleges. This fund is administered by the Texas Workforce Commission, is application driven and competitively based. The grants are provided to community colleges and technical schools as part of a partnership with companies and labor unions to provide training not currently available in the region. Average training grants per trainee are $1,000.

Visit http://www.twc.state.tx.us/svcs/funds/sdfintro.html for more information

Texas Enterprise Zone Program

Allows local communities to partner with the State of Texas to promote job creation and capital investment in economically distressed areas. Companies may qualify for refunds of state sales tax paid on eligible items used at the qualified business site. The total amount of any refund is predicated on the investment amount and number of jobs created/retained at the qualified business site. In order to qualify, companies must commit that at least 25% of their new employees will meet economically disadvantaged or enterprise zone residence requirements - if the company is locating or expanding into one of the state's Enterprise Zones. If the company is not locating into one of the Enterprise Zones, then they must commit that at least 35% of their new employees will meet economically disadvantaged or enterprise zone residence requirements.

Visit http://www.window.state.tx.us/taxinfo/enterprise_zone/ez_program.html for more information

Manufacturing Sales Tax Exemption

Machinery and equipment that is used in the manufacturing, processing, fabricating or repairing of tangible personal property for ultimate sale, are exempt from state and local sales tax.  The exemption also applies to tangible personal property that makes a chemical or physical change in the product being manufactured and is necessary and essential in the manufacturing process. Some items, such as hand tools, are excluded from the exemption. A hammer, for example, is taxable even if it is used in fabricating a product for sale.

Visit http://www.window.state.tx.us/taxinfo/taxpubs/tx94_124.html for more information

Texas Product Development Fund

The Fund provides financing to aid in the development, production and commercialization of new or improved products within the state. Products appropriate for the fund are inventions, devices, techniques or processes that have advanced beyond the theoretical stage and are ready for immediate commercial application. Preference for funding will be given to the state's defined industry clusters within emerging technology fields, including: semiconductors; nanotechnology; biotechnology and biomedicine; renewable energy; agriculture and aerospace.

Visit http://www.texascapital.org/productdevelopmentfund.pdf for more information

Texas Small Business Fund

Provides financing to foster and stimulate the development of small and medium sized businesses in Texas. Special funding preferences will be given to emerging technologies including: semiconductors, nanotechnology, biotechnology and biomedicine, renewable energy and aerospace. Additional preference will apply to applicants that have acquired other sources of financing, have formed companies in Texas and are receiving assistance from designated state small business development centers or through the Small Business Innovation Research program (SBIR).

Visit http://www.texascapital.org/smallbusinessfund.pdf for more information

Pollution Control Property Tax Abatements

Available to companies with facilities, devices and equipment used to control air, water or land pollution. Companies wishing to apply for tax relief for their efforts in controlling pollution can apply for a tax credit from the Texas Commission on Environmental Quality (TCEQ).

Visit http://www.tceq.texas.gov/airquality/taxrelief for more information

Texas Economic Development Act

The Texas Economic Development Act is a mechanism for school districts to offer temporary property tax limits to companies undertaking a large-scale capital investment project in the community. Under current law, only the following project categories are eligible: manufacturing; research and development; clean coal projects; advanced clean energy projects; renewable energy electric generation; and nuclear electric power generation.

Visit http://www.texaswideopenforbusiness.com/incentives-financing/tax/ted.php for more information
 

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