Business Incentives

The Seminole Economic Development Corporation and the State of Texas have a variety of financial incentives, training programs, and services available for businesses locating to Seminole. Most of these programs are designed to encourage primary employers (corporate offices, research and development facilities, light manufacturers, distributors, service centers, or regional tourist related facilities) to locate or expand to the city, county, or state.
 
Business development incentives, financial programs and business services include:
 
Seminole Economic Development Corporation Incentives

Chapter 380 Municipal Grant Program
Municipal grant incentives may be considered at some level for new facilities, expansion or modernization of existing facilities that add new taxable values to the ad valorem tax rolls, and to businesses renovating or occupying existing facilities within the city of Seminole.  Grants may be used by the qualifying company for relocation assistance, land and/or building acquisition costs, building improvements or renovation, utility line extension and connections, payment of water and sewer impact fees, extension of public roads, and drainage improvements.

Tax Abatement Policy
The Seminole Economic Development Corporation and the City of Seminole are committed to the promotion of quality development in all parts of the City. On a case-by-case basis, the City will give consideration to providing tax abatement on the increment in value added to a particular property by a specific development proposal, which meets the economic goals and objectives of the City. The tax abatement shall not apply to any portion of the inventory or land value of the project. Tax abatement may be offered on property brought to the site by the applicant. Tax abatement will not be ordinarily considered for projects which would be developed without such incentives unless it can be demonstrated that higher development standards or other development and community goals will be achieved through the use of the abatement.

Tax Abatement Policy Guidelines

Freeport Tax Exemption
Freeport Tax Exemption allows local governing bodies the option to exempt personal property consisting of goods, wares, merchandise or ores other than oil, natural gas and petroleum. Eligible property must be transported out of the state within 175 days of acquisition, but must first be assembled, stored, manufactured, processed or fabricated locally. The City of Friendswood can participate in this exemption.

Tax Increment Financing
Tax increment financing is a tool that local governments can use to publicly finance needed structural improvements and enhanced infrastructure within a defined area. These improvements usually are undertaken to promote the viability of existing businesses and to attract new commercial enterprises to the area. The statues governing tax increment financing are located in Chapter 311 of the Texas Tax Code.
 
The cost of improvements to the area is repaid by the contribution of future tax revenues by each taxing unit that levies taxes against the property. Specifically, each taxing unit can choose to dedicate all, a portion of, or none of the tax revenue that is attributable to the increase in property values due to the improvements within the reinvestment zone. The additional tax revenue that is received from the affected properties is referred to as the tax increment. Each taxing unit determines what percentage of its tax increment, if any, it will commit to repayment of the cost of financing the public improvements.
 
Tax increment financing may be initiated only by a city. If a property is located outside of the city limits (within the city’s extraterritorial jurisdiction or beyond), it is not eligible for tax increment financing unless annexed into the city. Once a city has begun the process of establishing a tax increment financing reinvestment zone, counties, school districts, and special districts are allowed to consider participating in the tax increment financing agreement

State Incentives

State of Texas Enterprise Fund
The Texas Enterprise Fund can be used for a variety of economic development projects, including infrastructure development, community development, job training programs, and business incentives. These funds are used primarily to attract new business to the State of Texas or to assist with the substantial expansion of an existing business as part of a competitive recruitment situation. For application information, contact the Office of the Governor, Economic Development and Tourism at (512) 936-0101 or go to   http://www.governor.state.tx.us/divisions/ecodev/ed_bank/tefund    to download the application.

Economic Development Bank

The Bank is Texas' newest tool to promote job creation in the Lone Star State. Created by the 78th Legislature in 2003, the Bank provides incentives to businesses wishing to relocate or expand in Texas, as well as assist local communities in accessing capital for economic development.   http://www.governor.state.tx.us/divisions/ecodev/ed_bank/

Texas Capital Fund
The Texas Capital Fund is an economic development tool designed to provide financial resources to communities under 50,000 in population. Funds from this program can be utilized for public infrastructure needed to assist a business which commits to create and/or retain permanent jobs, primarily for low and moderate income persons. This program encourages new business development and expansions. The minimum award is $50,000 and the maximum is $500,000. The award may not exceed fifty percent (50%) of the total project costs. A minimum equity injection of ten percent (10%)of the total project cost by the business is required. There are 3 funding award rounds per program year.
http://www.agr.state.tx.us/agr/program_render/0,1987,1848_6050_0_0,00.html?channelId=6050

Job Training Grants
The Skills Development Fund program provides grants to businesses for training programs carried out through contracts with public community and technical colleges in Texas. Grants are used to cover the costs of program design, instruction, texts and reusable equipment.  http://www.twc.state.tx.us/svcs/funds/sdfintro.html
 
State Franchise Tax Credits for Economic Development Projects
Franchise tax credits for economic development were enacted in 1999 by the 76thLegislature and include a research credit, job creation credit, and investment credit to help large and small-sized businesses. A business locating in Galveston County may qualify for these credits if their firm is primarily engaged in computer services or research,manufacturing, warehousing, or wholesale distribution. For more information, click on  http://www.window.state.tx.us/taxinfo/taxpubs/tx96_1196.pdf

Venture Capital - TEXAS CAPCO ACT

Historically there has been a shortage of capital to grow small and early stage businesses in the State of Texas. In 2005 the State of Texas passed legislation that enabled the use of insurance premium tax credits to target investment to small and early stage businesses in the State of Texas. This legislation, The Texas CAPCO Act, created $200 million of investment capital for businesses located in the State. The program targets investment in early stage companies throughout Texas, with a portion of the investment targeted to low-income areas. Click here to learn more about our Sources of Capital.
http://www.texascapital.org/learnmore_capitalsources.html

Texas Emerging Technology Fund

The Texas Emerging Technology Fund (TETF) was created by legislation in 2005 and had its first award given out by 2006. The $200 million is designed to help create jobs and to develop the economy of Texas over the long-term by expediting the development and commercialization of new technologies and attracting and creating jobs in technology fields. It focuses on three main investment areas:

- increasing research collaboration through new Regional Centers of Innovation and Commercialization
- matching research grants funds
- and attracting more top-notch research talent