Incentives

Chapter 380 Economic Development Agreements

Summary

Chapter 380 is a reference to chapter 380 of the Texas Local Government Code. This chapter of the Texas Local Government Code authorizes Texas municipalities, both home-rule and general law municipalities to provide assistance for economic development. Texas cities may provide monies, loans, city personnel, and city services for promotion and encouragement of economic development. Section 380 provides a mechanism for the city to refund or rebate their 1% portion of the sales and use tax under circumstances that are beneficial for the city and the business or industry.

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

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