Local Incentives

Incentives Process

Waller County considers incentives on a case-by-case basis. The primary incentive we offer is a tax abatement. This is a reduction in the taxable value of real and qualifying personal property. We have no prepackaged incentive programs. Each prospect interested in receiving incentives must complete an economic impact analysis. This analysis is free and will help determine if a company qualifies.

In no particular order, the primary things that we consider for qualifying a project for incentives include:

Will the company help diversify our economy?
Does the company provide market or above market wages?
Is there a negative environmental impact?
What is the risk associated with the company's industry?
Will the company help achieve development goals?

The State of Texas operates under a “but for” standard. In other words, “but-for” the incentives the project won’t happen. This means that if you have started or completed your project, you have not demonstrated the need for an incentive. Please plan your project accordingly.

To be successful, the company must provide an overall positive economic impact. If the analysis shows a good impact and return to the county, then we can start the first round of discussions to see what may be most fitting. If terms are agreeable, the company is encouraged to submit an application for incentives. There is a $1000.00 application fee that must be paid at the time the application is submitted to the county.

Tax Abatement

In general, Waller County prefers to use property tax abatements, for qualifying companies, as the primary incentive to assist existing and new companies. If you qualify and have submitted the application, the final step is to get approval from Waller County Commissioners' Court. They are the final authority for approving incentives. Contact us for a copy of the latest incentive policies.

Chapter 381 Development Agreements

The State of Texas has given counties the flexibility to create specific development agreements often referred to as Chapter 381 agreements. These agreements are usually best suited for very large projects. They 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.

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. Generally these agreements help to get projects started much faster than some of the standard legislated solutions such as a MUD district. Call our office for details if you think your project will benefit from this type of agreement.

Freeport Tax Exemptions

The State of Texas allows local government to raise tax revenue through a property tax. This is a tax on real and business personal property. This includes inventory as of January 1 of a tax year. This is a challenge to companies that have large inventory costs. 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.

For the state and local communities to stay competitive in these qualifying industries, the Texas Legislature has created an exemption to tax on inventory, allowing taxing jurisdictions to institute the Freeport Tax Exemption. This exemption is available from all of the cities in Waller County, except Katy. It is also available from Waller ISD, Royal ISD, and Hempstead ISD. If your business can benefit from this program, call the Waller County Appraisal District (979-921-0060) and complete the required paperwork.

Here is an example of how the Freeport exemption can save money on qualifying inventory:

City Economic Development Contacts

If you are considering a project within the corporate limits of a city within Waller County, please contact them to get information about their respective incentive programs. In order for a county extend an offer for incentives, you must first get support from the city in which you are considering a project.