Chapter 381 Agreements

Summary

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.

Chapter 381 of the Local Government Code allows counties to provide incentives encouraging developers to build in their jurisdictions. A county may administer and develop a program to make loans and grants of public money to promote state or local economic development and to stimulate, encourage and develop business location and commercial activity in the county.

The county also may develop and administer a program for entering into a tax abatement agreement. This tool allows counties to negotiate directly with developers and businesses.