INCENTIVES

Chapter 381 Incentives Program
Chapter 381 of the local Government Code provides legislative authority for Texas counties to provide incentives in the form of grants or loans of county funds or services in order to promote economic development.

Chapter 381 Disclosures
Online Chapter 380 and 381 Local Development Agreement Database maintained by the Texas Comptroller’s Office that contains information regarding all local development agreements in the state.

Freeport Exemption
Property tax exemption for companies that deal with goods-in-transit or inventories used in the manufacturing process. It allows goods that are detained in the state for 175 days or less to be exempt. In El Paso County, all local governments provide this exemption.

Property Assessed Clean Energy (PACE) Program
PACE is an innovative financing program that enables owners to lower their operation costs and use the savings to pay for eligible water conservation, energy efficiency, resiliency, and distributed generation projects. PACE accomplishes this by allowing commercial and industrial properties to obtain low-cost, long-term loans. PACE is a state legislation approved program. PACE flyer (English) - (Español)

State Incentives

Texas Enterprise Fund
The Texas Enterprise Fund was established to primarily attract new business to the state or assist with substantial expansion of an existing business as part of a competitive recruitment situation. The program provides for state Sales and Use Tax refund based on investment amount and number of jobs created / retained.

Skills Development Fund
Provides grants which help companies and labor unions form partnerships with local community colleges and technical schools to provide custom job training.

State Sales & Use Tax Exemptions
Leased or purchased machinery, equipment, replacement parts, and accessories that are used 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. Texas businesses are exempt from paying state sales and use tax on labor for constructing new facilities. Texas businesses are exempt from paying state sales and use tax on the purchase of machinery exclusively used in processing, packing, or marketing agricultural products by the original producer at a location operated by the original producer.