Chapter 380 Economic Development Agreements

Summary

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.

Municipality Agreements

Chapter 380 of the Local Government Code authorizes municipalities to offer incentives designed to promote economic development such as commercial and retail projects. Specifically, it provides for offering loans and grants of city funds or services at little or no cost to promote state and local economic development and to stimulate business and commercial activity.

Pre-Requisites for application:

  • Company must establish place of business within the City

  • Minimum annual sales tax revenue: $100k

  • Maximum amount of City sales tax revenue paid: 70%

  • Duration: Initial term not to exceed 10 years