Incentive Programs
Local Incentives
Leander is committed to working closely with businesses to provide tailored incentive packages to qualifying businesses. We understand the importance of creating an ecosystem that fosters success. By choosing Leander, businesses can leverage our business-friendly policies, access a skilled workforce, and become part of a vibrant community. We are dedicated to assisting companies in realizing their full potential by facilitating growth, supporting investment in state-of-the-art facilities, and creating an environment that enhances their bottom line.
Explore the many advantages Leander offers on our incentives page and discover how our city can help propel your business to new heights. For more information about the unique opportunities and resources available in Leander, please contact us. Together, let's unlock the potential for growth and success through our attractive incentive programs.
Chapter 380 Economic Development Agreements
Chapter 380 of the Local Government Code enables Texas municipalities to promote economic development by granting incentives to eligible companies. These incentives can include tax rebates, infrastructure improvements, and other forms of support. The determination of specific incentives is assessed on a case-by-case basis, considering the individual needs and circumstances of each qualifying company.
Triple Freeport Property Tax Exemption
This exemption specifically targets certain inventory types that are temporarily stored within the state before being shipped to another location. The exemption covers three categories of eligible inventory: goods, wares, and merchandise, all of which must remain in Texas for no more than 175 days. These items can be stored in warehouses, distribution centers, or other facilities for activities such as processing, assembly, manufacturing, or repair.
Chapter 312 Property Tax Abatement
A tax abatement is a valuable local agreement between a taxpayer and a taxing unit. It allows for the exemption or reduction of property taxation on the increased value of real property and/or tangible personal property for a specified period, typically up to 10 years. Tax abatements serve as a powerful economic development tool, utilized by cities, counties, and special districts to attract new industries and foster the growth and preservation of existing businesses.
Foreign Trade Zone (FTZ)
Foreign Trade Zones (FTZ) are areas physically located in the U.S. but considered outside of U.S. Customs territory. A business using FTZs can reduce customs duties and fees and achieve logistics benefits for the import and export of goods. Round Rock has been preapproved by the federal government and is included in Foreign Trade Zone of Central Texas (No. 183). No application is required.
Destination Restaurant Incentive Program
The Destination Restaurant Incentive Program in Leander aims to attract new and unique restaurants that have the potential to draw customers from outside the city limits. It also provides an opportunity for existing local restaurants to expand their operations. To be eligible for the program, restaurants must meet certain criteria:
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Attractiveness to customers: The restaurant should have the capability to attract customers from outside the city limits. This means it should have qualities or offerings that make it appealing to visitors from neighboring areas.
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Location restrictions: The restaurant should not have an existing location within a 5-mile radius of Leander. This ensures that the program brings in new dining options rather than duplicating existing establishments.
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Fit within the existing restaurant economy: The restaurant should complement the existing restaurant scene in Leander and provide new and different dining and entertainment experiences. This requirement encourages diversity and variety in culinary offerings.
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Size preference: Priority will be given to restaurants that are at least 4,000 square feet in size. This ensures that the selected restaurants have adequate space to accommodate customers and offer a substantial dining experience.
For local restaurants that are already established and looking to expand, they should meet the above eligibility criteria and plan to add a minimum of 50% more space or indoor seating. This expansion requirement ensures that the existing local restaurants seeking assistance are committed to significant growth and can accommodate the increased demand.
State of Texas Incentives
With a comprehensive array of advantageous tax incentives, financial programs and an extensive network of resources, Texas provides the ideal foundation to propel your business to new heights. Embrace the dynamic and thriving market that Texas offers, and unlock the potential for unparalleled achievements.
The Texas Enterprise Fund
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 factors in approval.
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.
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.
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.