We can work with each city in Galveston County to define the most appropriate incentive package. Incentives may include:
- Direct Incentives
- Property Tax Abatement
- Chapter 380 Agreements
- Tax Exempt Revenue Bonds
- Tax Increment Reinvestment Zones
- Sales Tax Rebates
- Freeport Tax Exemption
- 4A & 4B Corporation Assistance
- Industrial Revenue Bonds
Cash Grant Combined With a Financing Program
- New Market Tax Credits (call us to determine if the location you are considering will qualify for this incentive as only some parts of Galveston County qualify)
- Financing Component:
- Projects which will have a significant economic impact and invest more than $5 million should consider this option.
- Financing provides for interest only payments for 7 years.
- At the end of Year 7, the principal on the note is due and is typically refinanced into a traditional loan with approximately 20% of the debt being forgiven if the project has hit its goals.
- Financing Component:
- Cash Grant Component
- At the end of Year 7, if you have hit your goals, approximately 20% of the debt associated with the project is forgiven.
Cash Grants
- State of Texas Enterprise Fund
- “Deal Closing Fund”
- The better the project, the more likely you are to qualify for this cash.
Workforce Training
- Texas Skills Development Fund
- Up to $1,500/employee for customized training through a local college.
- On-The-Job Training Cash
- Businesses may be reimbursed for up to half of a new employee’s wages while the employee learns the job, on the job, for up to 6 months.
- OJT Participant Criteria
- New employees covered by an OJT agreement must be unemployed or underemployed.
- Training Rules
- Reimbursement depends on the wages paid to new employees and the length of training.
- The length of training is negotiated based on the skills necessary to perform the job(s) and the new employees’ existing skills.
- Limited to no more than 50% of the total workforce or new hires.
- The maximum length of training is limited to no more than six months or 1040 hours.
- Businesses that relocate and lay off workers at another location may not receive an OJT for 120 days after relocating.
Tax Incentives
- Sales and Use Tax Refunds
- Texas Enterprise Zone Program
- Up to 5 years of refunds
Financing Programs
- USDA Rural Development (call us to determine if the location you are considering will qualify for this incentive as only some parts of Galveston County qualify)
- Business and Industry Loan Guarantee
- Loan guarantee up to $25 million to lenders for loans pertaining to business real estate, buildings, equipment, supplies, working capital, and debt refinancing.
- Lenders and borrower negotiate terms: Up to 30 years for real estate, 15 years for machinery and equipment, and 7 years for working capital.
- Loan guarantee for up to 80% of the loan should get your company a better interest rate from the lender.
- Guarantee is up to 80% for loans of $5 million or less
- Guarantee is up to 70% for loans between $5 and $10 million
- Guarantee is up to 60% for loans between $10 million and $25 million
- Business and Industry Loan Guarantee
- Rural Business Development Loan and Grant program which is run through the local utility organization
- The utility borrows the money for 10 years at 0% interest to create a revolving loan fund which they can lend to your project.
- Money can be used for: Business expansion needs, fixed assets, real estate, buildings, equipment, or working capital.
- Up to $1.3 million may be requested ($300,000 grant and $1 million loan)