Municipal Grants and/or Loans (380 Agreement)
Chapter 380 of the Texas Local Government Code allows the City of Leander to offer a range of incentives for economic development including property tax rebates, sales tax rebates, and fee rebates or waivers for qualifying projects.
Qualifying businesses considering a location in Leander have the opportunity to apply for a property tax abatement on new value created as a result of their project.
Triple Freeport Property Tax Exemption
The Freeport Exemption exempts personal property consisting of inventory goods or ores, other than oil, natural gas and petroleum. Eligible property must be transported out of the state within 175 days of acquisition but may first be assembled, stored, manufactured, processed or fabricated locally. Leander is a Triple Freeport community that has the participation of the City of Leander, Williamson County, and the Leander Independent School District.
Destination Restaurant Incentive Program
The Destination Restaurant Incentive Program is available to qualified restaurants that are new to or expanding in Leander. The purpose of the program is to recruit new and unique restaurants that have the ability to draw in visitors from the surrounding area. The program also provides for an opportunity to assist existing local restaurants to expand their operations.
Eligibility Criteria Includes:
- Have the capability to attract customers from outside the city limits.
- Does not have an existing location within a 5 mile radius.
- Fits well into the existing restaurant economy to provide new and different dining and entertainment experiences.
- Priority will be given to restaurants at least 4,000 sf in size.
Local restaurants that are expanding should meet the criteria above and plan to add a minimum of 50% of space or 50% more indoor seating to qualify. For additional information on this program, please contact us.
Tax Increment Reinvestment Zone
Developers of business property within a defined area (i.e. business parks, service centers) may receive municipal financing assistance through the use of tax increment financing. The City Council may create a Tax Increment Reinvestment Zone (TIRZ) where construction of public improvements using tax increment funds is likely to result in significant commercial investment. The cost of improvements within the zone is repaid by the contribution of future tax revenues by each taxing unit that levies taxes on the affected properties. Once the city initiates tax increment financing, counties and school districts may also participate in the tax increment financing program.
State of Texas Incentives
The Texas Enterprise Fund
The fund was established to provide financial resources to help strengthen the state's economy. The Governor, Lieutenant Governor, and the Speaker of the House must unanimously agree to support the use of the Texas Enterprise Fund for each specific project. Projects that are considered must demonstrate a project's worthiness, maximize the benefit to the State of Texas and realize a significant rate of return of the public dollars being used for the project. Significant job creation and capital investment, above average wages generated, financial strength of the applicant, applicant's business history, analysis of the relevant business sector, and financial support from the local community and private sector will all be significant factors in approving the use of the Enterprise Fund.
Visit https://gov.texas.gov/business/page/texas-enterprise-fund more information.
Skills Development Fund
Created to train employees through customized job training programs provided by the state's community colleges. This fund is administered by the Texas Workforce Commission, is application driven and competitively based. The grants are provided to community colleges and technical schools as part of a partnership with companies and labor unions to provide training not currently available in the region. Average training grants per trainee are $1,000.
Visit https://www.twc.state.tx.us/partners/skills-development-fund for more information.
Manufacturing Sales Tax Exemption
Machinery and equipment that is used in the manufacturing, processing, fabricating or repairing of tangible personal property for ultimate sale, are exempt from state and local sales tax. The exemption also applies to tangible personal property that makes a chemical or physical change in the product being manufactured and is necessary and essential in the manufacturing process. Some items, such as hand tools, are excluded from the exemption. A hammer, for example, is taxable even if it is used in fabricating a product for sale.
Visit https://comptroller.texas.gov/taxes/publications/94-124.php for more information.
Product Development and Small Business Incubator Fund
The Product Development and Small Business Incubator Fund (PDSBI) offers long-term, asset-backed loans to product development companies and small business incubators/accelerators located in Texas. The loans finance the development and production of new or improved products or the stimulations of new or existing small businesses in Texas. The program targets those businesses which may be unable to obtain full financing or financing on workable terms in traditional capital markets. All applicants must have 3 year of operating history to be eligible for a loan.
Visit https://gov.texas.gov/business/page/product-development-and-small-business-incubator-fund for more information.