Finance & Capital

Texas Breaks Ties.

The State of Texas and the local communities within the state take measures to fully invest in the success of our economy. In Texas, our communities have the independent ability to issue local incentives. The local incentive process is most often navigated through a team at a municipality or county, chamber of commerce, regional economic development organization, or local utility. What each community offers is unique to that community; however, there are local incentives that are most common, which will be detailed by your local community contacts.

  • Type A and Type B Sales Tax Incentives - Financial incentives sourced by local sales and use tax allotments specifically allocated for economic development.

  • Property Tax Abatements (Texas Tax Code 312) - Abatements on property taxes may be offered at the city, county, and special districts pursuant to tax abatements agreements, with the exception of school districts. (Link highlighted to PDF titled “Abatements” in the folder.)

  • Chapter 380/381 Economic Development Agreements - The Local Government Code authorizes both municipalities and counties to offer incentives that will promote economic development on items such as commercial and retail projects.

  • Freeport Exemptions - Freeport exemptions can be offered by a school district, county, and municipality to exempt tangible personal property from ad valorem taxation.  Freeport property, which is limited to specific qualifying property, is exempt if it is property that is detained in Texas for 175 days or less.

  • Goods-in-Transit Exemptions - Goods-in-Transit exemptions can be offered by a school district, county, and municipality to exempt inventory from ad valorem taxation.

  • Texas Economic Development Act (Chapter 313) - Texas Economic Development Act incentives give school districts the authority to enter into an agreement with a corporation or limited liability company that limits the appraised value of property for the maintenance and operations portion of school district property tax.   

Not sure where to start? Contact Team Texas and we’ll get you where you need to go.

Looking for information on state-level incentives? Visit our marketing partners at Texas Economic Development Corporation here to read about incentives offered through the Governor’s Economic Development Office.