Incentives

The designation of specified areas as “reinvestment zones” is a local economic development tool used by municipalities and counties throughout the state of Texas. These zones can be created for the purpose of granting local businesses ad valorem property tax abatements on a portion of the value of real and/or tangible personal property located in the zone, for a period of up to 10 years. Abatements are negotiated with the taxing entities on a case-by-case basis. The Research Valley Partnership provides help in drafting the legal documents and making recommendations to the various taxing authorities.

Both the cities of Bryan and College Station own business park property that can be granted free of charge or sold at a reduced price to economic development projects. These incentives are determined on a case-by-case basis dependent upon economic impact.

Brazos County and the cities of Bryan and College Station offer the Freeport exemption for various types of goods that are detained in Texas for a short period of time. Freeport property includes goods, wares, merchandise, ores, and certain aircraft and aircraft parts. Freeport property qualifies for an exemption from ad valorem taxation only if it has been detained in the state for 175 days or less for the purpose of assembly, storage, manufacturing, processing, or fabricating.

The Research Valley Partnership (RVP) provides cash grants to companies creating new jobs and making new investments in the region. The level of financial assistance the RVP provides is determined by a formula based on the number of new jobs created, the cumulative annual payroll created, and the total capital investment in the proposed project. The RVP is able to structure beneficial incentives to qualifying companies on a case-by-case basis. The Research Valley Partnership ensures fast turn-around on incentive decisions and access for priority consideration on available state “deal-closing” funds and workforce development/training grants. We will do everything possible to assist the site selection process, advocate for incentives, facilitate governmental approvals, and develop strategies to attract the desired quality labor.

Manufacturing facilities can take advantage of tax exemptions of up to $10 million by using Industrial Revenue Bonds.

Area municipal utilities may offer financial incentives to qualifying customers.These economic development riders and business incentive plans are designed to encourage industrial and commercial development by providing additional start-up cost savings to large users of natural gas and electricity.

The Skills Development Fund is an innovative program created to assist Texas public community and technical colleges to finance customized job training for their local businesses. The Fund is administered by the Texas Workforce Commission. Grants are provided to help companies and labor unions form partnerships with local community colleges and technical schools to provide custom job training. Reduced cost and customized training programs are available to qualified companies through local partners and the Texas Workforce Commission.

In some cases, tax increment financing may be offered to improve utility and transportation infrastructure to a site.

The Research Valley Partnership is committed to providing your project with a business-friendly, solutions-oriented, customer focused, and expedited planning and permitting process. We recognize your need to move quickly to complete and can effectively cut through “red tape” without cutting corners. Our proven unparalleled turnaround time for development allows you to move faster and increases the ability for the Project to focus on its growth. Your project will benefit from our Express Permits Program to expedite project affairs; Program benefits include:

• A single point of contact;
• A maximum of 20 days to review project;
• Concurrent reviews by all involved government and business service agencies;
• Timeline developed and agreed upon by both government staff and the real estate developer;
• If necessary, permits will be provided on a phased approach;
• Special meetings of local government agencies, Planning and Zoning Commission, or any other applicable board, will be called if necessary.

Chapter 380 Financing

Chapter 380 of the Local Government Code provides legislative authority for Texas municipalities to provide a grant or a loan of city funds or services in order to promote economic development. Others have utilized the provisions under this law to provide a wide array of incentives that have drawn businesses and industries to locales throughout Texas. The statute provides for loans and grants of city funds, as well as city facilities or city services at minimal or no charges.

Texas offers the most aggressive and innovative incentive programs in the country, including the Emerging Technology and Enterprise Funds. For more information about Texas incentives, visit the Governor’s Office website.

Texas Enterprise Fund

The Texas Enterprise Fund was established in 2003 to allow the state to respond quickly and aggressively to opportunities to bring jobs and employers to Texas. The funds are used primarily to attract new businesses to the state or assist with the expansion of an existing business as part of a recruitment situation. Funds are appropriated for economic development projects, including infrastructure development, job training programs, as well as to attract technology and biotechnology businesses; especially ones that support university research.

To be eligible for Texas Enterprise Fund support, a project must demonstrate a significant return in the state’s investment. The review process considers factors associated with each project, including job creation and wages, capital investment, financial strength of the applicant, and public and private sector support. The final approval must be a unanimous agreement between the Governor, Lieutenant Governor, and Speaker to support the use of Texas Enterprise Funds for each specific project.

Emerging Technology Fund

Legislation signed in June of 2005 created the Emerging Technology Fund. The fund provides grants to improve research at Texas universities, help start-up technology firms get moving, and move invention out of the lab and into the hands of consumers faster.

The Emerging Technology Fund includes three major areas of investment:

1. Increasing research and commercialization collaboration between public and private sector entities to develop a new Regional Center of Innovation and Commercialization, where an idea can grow into a new product marketed by a new firm. The Research Valley region’s primary point of access to the Emerging Technology Fund is the Gulf Coast Texas Regional Center of Innovation and Commercialization.
2. Matching research grants provided by both federal and private sponsors to help innovators acquire the capital they need to bring their ideas to life.
3. Attracting more top-notch research teams from other universities around the nation that will help put Texas universities on the cutting-edge of technology research and development.

Emerging technology projects are eligible for funding if they result in the creation of high quality new jobs in Texas, or have the potential to result in a medical or scientific breakthrough that creates a high barrier to entry technology.