Tax Abatements • Industrial Revenue Bond Program • Texas Enterprise Fund • Texas Capital Fund • Sales & Use Tax Exemptions • Texas Enterprise Zone Project • Chapter 380/381 Discretionary Incentives • Employee Training Funds • The Self-Sufficiency Fund • Employee Recruitment • Permit Assistance
The Matagorda County Economic Development Corporation offers assistance in identifying and obtaining several incentives for businesses locating or expanding within the County. If you have any questions about any of the incentives below or other options that may be available, please contact the MCEDC Office at 979.245.8913.
Matagorda County has adopted a tax abatement policy and, upon application from the company, may consider a tax abatement agreement as allowed under the laws of Texas. Specific conditions and requirements for tax abatement can be found here. We advise any company considering applying for tax abatement to contact the Matagorda County Economic Development Office as soon as possible to obtain the Tax Abatement Application. Call (979) 245-8913 or email email@example.com.
Industrial Revenue Bond Program
This is a program of the state of Texas where Matagorda County has the ability to issue tax-exempt IRBs (also known as "private activity bonds") to businesses considering a move to Texas or indigenous businesses looking to expand. Tax-exempt IRBs include small issue bonds and exempt facility bonds. Small issue bonds and certain exempt facility bonds require an allocation under the state's private activity bond volume cap administered by the Texas Bond Review Board. Small issue bonds are limited to manufacturing facilities. The bond amount cannot exceed $10 million and the total capital expenditure limitation for the project is $20 milllion. Eligible project costs include the acquisition by a business of an existing facility, acquisition of land, construction of new facilities, machinery tools, equipment, limited costs of issuing the bonds, such as legal fees and administrative costs. Only office space that is directly related to the day-to-day operations of a project may be financed.
Texas Enterprise Fund
The Texas Enterprise Fund (TEF) is the largest "deal-closing" fund of its kind in the nation. The fund is a cash grant used as a financial incentive tool for projects that offer significant projected job creation and capital investment and where a single Texas site is competing with another viable out-of-state option.
Texas Capital Fund
Matagorda County is entitled to financial resources to provide infrastructure and for real estate development (acquisitions, construction and/or rehabilitation) to assist a business to create permanent jobs.
Sales and Use Tax Exemptions
Leased or purchased machinery, equipment, replacement, parts and accessories that have a useful life of more than six months, and that are used or consumed in the manufacturing processing, fabricating or repairing of tangible personal property for ultimate sale are exempt from state and local sales and use tax. Texas businesses are exempt from paying state sales and use tax on labor for constructing new facilities. Companies are exempt from paying state sales and use tax on electricity and natural gas used in manufacturing, processing, or fabricating tangible personal property. At least 50% of the electricity or natural gas consumed by the business directly causes a physical change to the product.
Texas Enterprise Zone Project
Enterprise Projects are locally designated and are eligible for a refund of state sales and use taxes paid for machinery and equipment depending on the amount of investment and number of jobs created. Projects that qualify in size and investment can receive a refund of state sales and use taxes in the amount of $7,500 per job created up to a maximum of 500 jobs.
Chapter 380/381 Discretionary Incentives
According to Texas' Local Government Code Chapters 380 (for cities) and 381 (for counties), counties and cities can make loans and grants available, per their local policies, to companies considering locating or expanding to help stimulate economic development. View the Guidelines for Chapter 381 here.
Employee Training Funds
The Texas Workforce Commission has a Skills Development Fund to assist the company with customized job training for its workforce. Grants are provided to help community colleges and technical schools provide customized job training to companies. Training grants of up to $1,500 per trainee can be obtained.
The Self-Sufficiency Fund
This program assists businesses by financing the development and implementation of customized job training projects for new and current employees. The grants provide businesses customized training solutions that support workforce hiring efforts and skills upgrading for current workers. Grant costs may include curriculum development, instructor fees and training materials, and certain work-related expenses for the trainees. Grants are typically for 12 months and may be limited to a maximum of $500,000.
MCEDC, through Workforce Solutions, will assist in advertising, recruiting and screening and provide qualified employee applications to the extent that the company wishes the assistance.
MCEDC can assist in identifying and resolving bottlenecks affecting job creation or have a high economic impact. The following Federal programs are also available: -7(a) Guaranteed Loans-HUBZone Empowerment Contracting Program-Office of Business Initiatives-One-Stop Capital Shops Program, Office of Entrepreneurial Development, U.S. Small business Administration-Section 8(a) Program-Small Business Investment Companies Program-Office and Small Disadvantaged Business Utilization's Short Term Lending Program and Bond Assistance Program