TAXES AND INCENTIVES
0
individual income tax rate
0
Corporate income tax rate
#8
Best in the nation for unemployment insurance
(Tax Foundation)
0
individual income tax rate
0
Corporate income tax rate
#8
Best in the nation for unemployment insurance
(Tax Foundation)(Tax Foundation)
For locating companies, it’s important to talk about incentives. In fact, taxes and incentives are key factors in the consistent ratings of Texas as the nation’s stop state for business. CEO’s polled by Chief Executive magazine have ranked Texas as the nation’s “Best State for Doing Business” every year since 2001. And staying #1 means continually evolving to meet the needs of businesses and residents.
Baytown is also responsive to the changing needs of business. Through provisions such as Chapters 380 and 312 in the pro-business Texas tax code, the City is empowered to offer business and industry a variety of tax abatements and incentives, which we are also continually evaluating to develop the best impact. And the Baytown Economic Development Foundation is ready to assist your enterprise in navigating the incentives process with ease, helping to craft an incentives package that facilitates ROI and profitability.
Incentives are crucial, so it’s important that you talk to us at the EDF. Let’s discuss incentives for qualified projects; currently, these incentives include:
Local Incentives:
Real and Personal Property Tax Abatement - Chambers County and Harris County offer property tax abatements on new value added. State statute allows for 10-year abatements at the discretion of units of local government.
City of Baytown Tax Abatement - For projects locating within the city limits, the City of Baytown offers tax abatement allowed for under Chapters 212 and 312.
City of Baytown Chapter 312
Baytown Revitalization Incentive Zone (RIZ) - Providing a waiver of certain permit/impact fees and tax refunds to property owners who build on or rehabilitate property within the RIZ. Building improvement grants are also available for qualified projects.
City of Baytown Ch. 212
City of Baytown Industrial District Agreements - Providing on-going tax abatement for companies inside the designated District.
State Incentives:
One of the nation’s largest “deal-closing” funds, the TEF is offered when a single Texas location competes against a location in another state. In that case, the qualified project of the relocating company may be granted awards ranging from $1,000 to $10,000 per job created (minimum of 75 jobs), with an average of $5,00 per qualifying new job.
The Fund makes training grants available for custom training through Lee College in amounts averaging approximately $1,800 per qualified trainee.
The Texas Enterprise Zone Program is a state sales and use tax refund program designed to encourage private investment and job creation in economically distressed areas of the state.
The JETI Act is a new competitive economic incentive program used to attract large, capital-intensive economic development projects, bringing new capital investment and creating new, high-paying jobs in Texas communities.
The TSIF may be used to match funding to state entities, such as institutions of higher education, for semiconductor research, design and manufacturing projects; and for grants to business entities with an established presence within the state of Texas to encourage economic development related to semiconductor manufacturing and design.
Federal Incentives:
FTZ 84, managed by the Port of Houston, can save time and money with advantages in duty deferral, processing ease, streamlined logistics and more.
The program offers a federal tax credit of up to 39% of the original investment amount claimed over seven years, for equity investments in qualified community development.
Investors can acquire legal permanent residence or “green card” through the EB-5 visa if they create a qualified new commercial enterprise or invest in a qualified business.