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Incentives Available to Local Businesses
County Tax Incentive Program
Waller County offers tax abatement for qualifying businesses. If you plan on applying for tax incentives, YOU MUST APPLY BEFORE YOU BEGIN CONSTRUCTION. Each application for incentives is considered on a case-by-case basis. While not all companies applying for incentives will be successful, the county government and the WCEDP will make every attempt to make expanding or relocating as inexpensive as possible.
The first step is to complete an economic impact analysis. Once that is completed and the findings are favorable, then you will be encouraged to fill out the abatement application. Use the links below to download information on applying for tax abatements. Right-click on the link and save the document. You will need Adobe Acrobat to view the files. Download the economic impact data form. Download the abatement policies here.
In addition, the State of Texas has given counties the flexibility to create specific development agreements often referred to as Chapter 381 agreements. These agreements are negotiated based on the total impact a project has on the community, the overall strength of the project and where the project is located. Call our office for details.
Chapter 381 Development Agreements
In addition to the wide variety of designated programs, the State of Texas allows counties to create their own development agreements. Usually referred to as a Chapter 381, this tool allows counties to negotiate directly with developers and businesses when necessary. These agreements can take a wide variety of forms and are negotiated based on the specific requirements and project specifications.
Freeport Tax Exemptions
The Freeport Tax Exemption is an inventory tax incentive applied to products shipped into and out of the State of Texas within a six-month period. The State of Texas allows counties and cities to raise tax revenue through property tax. This is a challenge to manufacturers that have large inventory costs and companies specializing in distribution of products. For the state to stay competitive in these industries, the Legislature has created an exemption to tax on inventory, allowing taxing jurisdictions to institute the Freeport Tax Exemption.
Freeport exemptions are available from all of the cities in Waller County except Katy. It is also available from Waller ISD and Hempstead ISD. If your business can benefit from this program, call our office to help you find a location that offers freeport exemptions.
City Economic Development Programs
In Waller County the cities of Brookshire, Hempstead, Prairie View and Waller offer incentives through the 4A or 4B programs. Many Texas cities impose a special sales tax for economic development purposes called 4A or 4B that are 1/8, 1/4, 3/8, or 1/2 % to finance a wide range of economic development activities. However, the total local sales tax may not exceed 2%. A city may not impose an economic development sales tax if they are included in a metropolitan transit authority's sales taxing district. This economic development tool is incredibly powerful and Waller County is fortunate to have almost every city in the county raising those funds.
State Incentive Programs
Enterprise Zone
Waller County meets the requirements to be considered an Enterprise Zone. This designation allows us to apply for state assistance for projects creating new jobs.
Participation
Local communities must nominate a company as an Enterprise Project to be eligible to participate in the Enterprise Zone Program. Legislation limits allocations to the state and local communities per biennium. The state accepts applications quarterly with deadlines on the first working day of March, June, September and December.
Benefits to Participation
Designated projects are eligible to apply for state sales and use tax refunds on qualified expenditures. The level and amount of refund is related to the capital investment and jobs created at the qualified business site.
| Level of Capital Investment | Maximum number of jobs allocated | Maximum potential refund | Maximum refund per job allocated |
|---|---|---|---|
| $40,000 to $399,999 | 10 | $25,000 | $2,500 |
| $400,000 to $999,999 | 25 | $62,500 | $2,500 |
| $1,000,000 to $4,999,999 | 125 | $312,500 | $2,500 |
| $5,000,000 to $149,999,999 | 500 | $1,250,000 | $2,500 |
| Double Jumbo Project $150,000,000 to $249,999,999 |
500 | $2,500,000 | $5,000 |
| Triple Jumbo Project $250,000,000 or more |
500 | $3,750,000 | $7,500 |
In addition, local communities must offer incentives to participants under the enterprise zone program, such as tax abatement, tax increment financing and one-stop permitting.
Participation Requirements
- Communities may nominate projects, for a designation period of not less than one year up to five years, non-inclusive of a 90-day window prior to the application deadline. Employment and capital investment commitments must be incurred and met within this timeframe.
- Projects may be physically located in or outside of an Enterprise Zone.
- If located within a zone, the company commits that at least 25% of their new employees will meet economically disadvantaged or enterprise zone residence requirements.
- If located outside of a zone, the company commits that at least 35% of their new employees will meet economically disadvantaged or enterprise zone residency requirements.
- Under limited statutory provisions, an enterprise project designation may be granted for job retention.
You can see the details here
Texas Capital Fund
The Texas Capital Fund (TCF) program is administered by the Texas Department of Agriculture through an interagency agreement with the Office of Rural Community Affairs (ORCA). The TCF program encourages business development, retention, or expansion by providing funds to eligible applicants. Funds will be awarded for the express purpose of assisting in the creation of new permanent jobs or retention of existing permanent jobs, primarily for low and moderate income (LMI) persons. In order to comply with the national goal of expanding economic opportunities for LMI persons, a minimum of 51 percent or more of all the jobs created or retained by the business must benefit persons who qualify as LMI.
These funds are a part of the U. S. Department of Housing and Urban Development's (HUD) Community Development Block Grant (CDBG) program and is known as the Texas Community Development Program (TCDP) in our state. The program is only available to non-entitlement city or county governments. Non-entitlement cities/counties do not receive direct funding from HUD and typically include cities with a population of less than 50,000 and counties of less than 200,000. There are over 1,200 eligible cities and counties in the state. Awarded cities and counties receive funds to make public infrastructure and/or real estate improvements to support a specific business that is expanding or beginning operations in the applicant's jurisdiction and are contingent upon the business making a capital investment and creating/retaining jobs for Texans.