• Building Construction Fee Waiver
  City of Waco will waive certain construction/occupancy/renovation fees associated with the Brazos River Corridor and the Public Improvement District

• Commercial Building Tax Abatement
  Provides a real and/or personal property tax abatement for building renovations associated with the Brazos River Corridor and the Public Improvement District

• Freeport Tax Exemption from City, County, School Districts
  Property tax exemption for companies located in Bosqueville, LaVega, McGregor and Waco Independent School Districts
  Specifically:
  • Items must be classified as Freeport property
  • Applies to goods that are detained in Texas for 175 days or fewer
  • Applies to goods that are then shipped out of state after their detention
  • Goods can be in Texas for storage, assembly, manufacturing, processing and fabricating

• Historic Preservation Tax Credit
  Municipal tax credit on locally designated or recognized historic property that undergoes rehabilitation

• Industrial Business Grant Program
  City of Waco grant to eligible businesses for new or expanded facilities and personal property.
  • Facilities may be granted an amount of money equal to all or a portion of the increased taxable value.
  • Cannot exceed five years for real or leased property and seven years for personal property.

• Neighborhood Small Business Loan
  Encourages expansion or start up of retail businesses associated with the Brazos River Corridor and the Public Improvement District

• Owner-Occupied Renovations and Development Tax Abatement
  Encourages redevelopment/renovation of substandard structures that create mixed use facilities associated with the Brazos River Corridor and the Public Improvement District

• Tax Abatements from City, County, Community College
  • Granted for value-added investment in new facilities and business expansion
  • Typically a five-year abatement for real property and seven-year abatement for personal property
  • Potential for additional five-year abatements on both real and personal property after initial five-year abatement
  • Percentage of abatement level and years of abatement are contingent upon investment, number of jobs and wage rates

• Tax Exempt Bond Financing
  Program offers businesses the opportunity to apply for facility bonds. Bonds are used to finance property development at lower interest rates than conventional financing

• Tax Increment Financing
  The City of Waco has three tax increment financing zones created with purpose of revitalization and development. The program provides investment in infrastructure improvements.

• Waco-McLennan County Economic Development Corporation
  Provides incentives for land, infrastructure, training, and employees to qualifying projects and/or companies on a case-by-case basis.

• Waco Industrial Foundation
  • Purchases land and develops infrastructure in industrial areas
  • Currently has 2,373 acres of available land
    Texas Central Industrial District - 1,320 acres
  • Waco International Airpark - 1,053 acres
  • Waco Regional Airport has an additional 200 acres of industrial land not affiliated with the foundation.

• Texas Enterprise Fund
  Projects must demonstrate worthiness, maximize the benefit to the State of Texas and realize a significant rate of return of on the investment of public dollars being used. The governor, lieutenant governor and speaker of the House must unanimously agree to support the use of these funds for each specific project.
  Significant factors for project consideration:
  • Capital investment
  • Job creation
  • Wages generated
  • Financial strength of the applicant
    
  • Applicant’s business history
    
  • Analysis of the relevant business sector
    
  • Federal and local government and private sector financial support

• Emerging Technology Program
  Designed to help in the creation of jobs and economic growth through the development and commercialization of new technologies. This $200-million program works through partnerships among the state, institutions of higher education and private industry to focus greater attention on the research, development and commercialization of emerging technologies.

• Texas Enterprise Zone Program and Projects
  Enables businesses within economically distressed and designated areas to receive state and local tax incentives
  • Available for new or expanding businesses
  • Eligibility based on the number of new jobs created and the amount of investment
  • 25% of hired workers must live in Enterprise Zone or be economically disadvantaged
  • Recipients are given an annual sales and use tax rebate ranging from a minimum of $2,500 to $7,500 per job

State Sales & Use Tax Exemptions

• Manufacturing Machinery & Equipment
  • Leased or purchased machinery, equipment, replacement parts, and accessories that have a useful life of more than six months, and 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.
• Natural Gas & Electricity
  • Texas companies are exempt from paying state sales and use tax on electricity and natural gas used in manufacturing, processing, or fabricating tangible personal property.
  • The company must complete a “predominant use study” that shows that at least 50 percent of the electricity or natural gas consumed by the business directly causes a physical change to a product.

• Texas Capital Fund Infrastructure Program
  Administered by the Texas Department of Agriculture, this program is designed to provide financial resources to non-entitlement communities (unincorporated areas of McLennan County are considered non-entitled).
  • Funds from this program can be utilized for public infrastructure (water, sewer, roads, etc.) needed to assist a business, which commits to create and/or retain permanent jobs, primarily for low and moderate-income persons.
  • The minimum award is $50,000 and the maximum is $750,000. The award may not exceed 50 percent of the total project cost.

• Texas Capital Fund Real Estate Development Program
  Designed to provide financial resources and encourage business development and expansions in non-entitlement communities (unincorporated areas of McLennan County are considered non-entitled).
  • Funds must be used for real estate development (acquisitions, construction and/or rehabilitation) to assist a business, which commits to create and/or retain permanent jobs, primarily for low and moderate-income persons.
  • The minimum award is $50,000 and the maximum is $750,000. The award may
    not exceed 50 percent of the total project cost.
  • Funds are provided with no interest accruing and with payments basedon a 20-year amortization schedule.

• Texas Workforce Commission
  • Skills Development Fund
    The Skills Development Fund program assists businesses and trade unions by financing the design and implementation of customized job training projects.
    • This fund successfully merges business needs and local customized training opportunities into a winning formula to increase the skills level and wages of the Texas workforce.
    • Businesses and trade unions must partner with an eligible applicant in order to be considered for Skills Development Fund grants.
    • Eligible applicants are public community or technical colleges, the Texas Engineering Extension Service or a community-based organization, with 501(c)(3) status, working in partnership with one of these institutions.
  • Self-Sufficiency Fund
    The Self-Sufficiency Fund program assists businesses by designing, financing and implementing customized job training programs in partnership with public community and technical colleges, a higher education extension service, & community-based organizations for the creation of new jobs and/or the retraining of existing workforce.
    • The goal of the program is to assist recipients (or those at risk of becoming recipients) of Temporary Assistance for Needy Families (TANF), Food Stamps, and Needy Parents to obtain training, get jobs, and become independent of government financial assistance.
    • Businesses and trade unions must partner with an eligible applicant in order to be considered for Self-Sufficiency Fund grants.
    • Eligible applicants are public community or technical colleges, community-based organizations that have been given 501(c)(3) status by the Internal Revenue Service, or the Texas Engineering Extension Service.

• Texas Industry Development Revolving Loan Program
  Provides capital to Texas communities and eligible 501(c) 3 corporations at favorable market rates.
  • The program supports eligible tax-exempt public purpose projects that stimulate economic development within the community.
  • The loans are available with low cost, variable rate long term financing with the term of the loan not extending beyond the useful life of the assets and up to bond maturity in 2025.

• Fuel Ethanol and Biodiesel Production Incentive Program
  Must register plant with TDA. The applicant must prove to the satisfaction of the department that the plant is capable of producing fuel ethanol or biodiesel, and that the producer has made a substantial, permanent investment in the state.
  • Producers must report production data to TDA.
  • Report forms are available from TDA and must include:
    • Number of gallons produced or imported into Texas and Number of gallons sold or blended.
    • Total value of agriculture products consumed in plant.
      
    • Various other reports are required to ensure compliance with the program.
      
    • Producers who participate in the biofuel incentive must meet all registration requirements, report their monthly production figures and remit 3.2 cents per gallon produced to the TDA. Fees are due quarterly.
    • Eligible producers will receive 20 cents per gallon of ethanol or biodiesel produced. Payments will be made quarterly and are limited to the first 18 million gallons produced per year per plant and for the first 10 years.

Registration forms are available here or by calling (877) 428-7848.

• Renewal Energy Incentives - Tax Exemption & Deduction
  Exemption from franchise tax for entities engaged solely in the business of manufacturing, selling or installing solar and wind energy devices. Businesses may deduct from its apportioned margin 10 percent of the amortized cost of a solar or wind energy device.

• Federal Enterprise Community Bond Issuance
  Opportunity to participate in Bond Issuance Program for businesses that assist in expanding local job base.

• Federal Enterprise Community Revolving Loan Fund
  Heart of Texas Business Resource Center facilitates this program. The program is used as a financial tool to support start up businesses or expansions

• NAFTA Impact Zones
  Percentage of sales tax refunds for up to 10 years for businesses located in the city-designated NAFTA impact zones

• U.S. Foreign Trade Zone # 246
  • Locations: Waco Regional Airport, Waco International Airpark (TSTC Airport) and Texas Central Industrial District
  • Benefit provides tariff exemption on goods that are imported, manufactured and then exported If goods are distributed in the U.S., then duties are required but only when goods leave the FTZ.