The Texas Innovation Corridor like all communities in the State of Texas, has no personal, corporate, or local state income taxes.
In addition, the State and local communities offer a variety of tax incentives and innovative solutions for businesses expanding or relocating in Texas. State and local incentive calculations in Texas are based on job creation, industry sector, expected capital investment and average wages.
Under Texas Tax Code Chapter 380, municipalities may provide a grant or loan of city funds or services to promote economic development. A city may provide a Chapter 380 grant in the form of a municipal sales or property tax rebate.
Under Texas Tax Code Chapter 381, counties may provide a grant or loan of county funds or services to promote economic development. A county may provide a Chapter 381 grant in the form of a county sales or property tax rebate.
Under Chapter 312 of the Texas Tax Code, a tax abatement agreement can be issued by a city, county or special district.
Expedited permitting is available from city and county jurisdictions in the Texas Innovation Corridor to provide for company needs.
A Public Improvement District (PID) is a special assessment area created at the request of the developer in the district. Property owners pay a supplemental assessment in addition to their taxes, which is used to pay off the public funds provided to the developer for project costs associated with the property development, such as dams, sanitary sewer improvements and water distribution systems.
Local governments and school districts have the option to exempt "goods in transit" or "freeport goods" from ad valorem taxation. Freeport property includes goods, ware, merchandise, ores, and certain aircraft and aircraft parts. The exemption applies to inventory that leaves the state within 175 days. "Triple freeport designation is conferred to jurisdictions for which the city, county, and school district have all approved freeport exemption. All Texas Innovation Corridor jurisdictions are triple freeport exempt.
The City has historically utilized Tax Increment Reinvestment Zones (TIRZ) as a powerful vehicle to develop and redevelop qualified projects based on City goals and objectives.
The Texas Enterprise Fund is an incentive that is used to ensure the growth of businesses in the state by attracting new companies and providing assistance to existing businesses with their substantial expansion efforts. The fund can be used for various economic development projects such as infrastructure and community development, job training programs and business incentives. The Governor, Lieutenant Governor and the Speaker of the House must unanimously support fund awards for each project.
The Texas Enterprise Zone Program is an economic development tool that allows local communities to partner with the State of Texas to promote job creation and capital investment in economically distressed areas of the state. Designated projects are eligible to apply for refunds of state sales and use tax on qualified expenditures. The level and amount of the refund is related to the amount of capital investment and jobs created or retained at the qualified business site.
Texas companies are exempt from paying state and local sales and use tax on electricity and gas used in manufacturing, processing, or fabricating tangible personal property.
Texas grants sales and use tax emptions on machinery and equipment utilized in the manufacturing process. Purchases of machinery and equipment, replacement parts, and accessories that have a useful life of more than six months, and that are use or consumed in the manufacturing, processing, fabricating or repairing of tangible personal property for ultimate sale are exempt from state and local sales and use tax.
Established by the 74th Legislature in 1995, The Skills Development Fund was designed to better utilize the public community and technical college system in Texas as well as other training organizations and have them partner with businesses throughout the state (with priority on small businesses) to train workers to meet the labor needs of employers and the regional labor market.
EB-5 is a federal Immigrant Investor Program that provides developers with an additional financing option and allows foreign investors to obtain citizenship through U.S. Citizen and Immigration Services by investing in new commercial enterprises within a Targeted Employment Area (TEA). The San Marcos TEA covers approximately 80 percent of the two-county region.
The statewide Historically Underutilized Business (HUB) Zone Empowerment Contracting Program facilitates the use of HUBs in federal, state, and local procurement to minority and woman- owned businesses.
A large portion of the Texas Innovation Corridor qualifies for New Market Tax Credits (NMTC). NMTC investments allow businesses to access more favorable lending terms and conditions than the market typically offers. Terms can include lower interest rates, flexible provisions such as subordinated debt, lower origination fees, higher loan-to-values, lower debt coverage ratios and longer maturities.