Incentives

Temple Economic Development Corporation's incentive packages are determined by type of business, quality of jobs created or retained, wages paid, capital investment and overall community impact. Projects may also be eligible for State of Texas incentives. The Temple Economic Development Corporation’s team is ready to work with you to identify the incentives available for your potential Temple location.

State and Local Incentive:
Texas Enterprise Fund
The Texas Enterprise Fund attracts new businesses and assists growing existing business in the state. The fund is the largest “deal closing” fund of its kind in the nation. Projects that are considered for Enterprise Fund support must maximize the benefit to the State of Texas and realize a significant rate of return of the public dollars being used for economic development in Texas. Capital investment, job creation, wages generated, financial strength of the applicant, applicant’s business history, analysis of the relevant business sector, and federal and local government and private sector financial support of a project will all be significant factors in approving the use of the Enterprise Fund. The award amounts have generally been in the range of $1,000 up to $10,000 per job created.

Cash Grants/Incentives:
The Temple Economic Development Corporation is a state authorized non-profit corporation that has the authority to offer cash grants and/or incentives. The Corporation is governed by a Board of Directors who is responsible for reinvesting the Corporation’s funds to create primary jobs, increase the City’s tax base and other activities allowed by the state law.

Primary jobs are jobs that infuse new dollars into the local economy by creating or selling a product or service that is ultimately exported to regional, statewide, national, or international markets. Eligible companies are required to complete an application to be considered for assistance. The amount of assistance is determined based on the overall economic impact on the City of Temple and may be offered in the form a loan, forgivable loan or reimbursement grant. When approved by the Board of Directors, an agreement will be entered into between Temple Economic Development Corp. and the eligible company outlining the terms and conditions of the assistance.

Texas Enterprise Zone Program
The City of Temple has the ability to nominate projects for the Texas Enterprise Zone Program. The city may nominate up top to six projects to the state per legislative biennium, under the statewide cap of 105 projects per biennium. Upon the city designating a business as an enterprise project, and upon that project’s designation being approved by the state, the business is eligible for a refund of state sales and use taxes paid and used at the qualified business site.

The total amount of any refund is predicated on the total investment and number of jobs created or retained by the project. The refund is allocated on a per job basis, not to exceed 500 total jobs, that ranges from a minimum of $2,500 per job to a maximum of $7,500 per job.

Chapter 380 Funds
The City of Temple under Chapter 380.001 of the Texas Local Government Code has the authority to offer a range of incentives, including loans and grants, to promote economic development. Section 380 provides a mechanism for the city to refund or rebate their 1.00% portion of the sales and use tax.

State Sales and Use Tax Exemptions:
Manufacturing Machinery & Equipment

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 or on the purchase of machinery exclusively used in processing, packing or marketing agricultural products by the original producer at a location operated by the original producer.

Natural Gas & Electricity
Texas companies are exempt from paying state sales and use tax on electricity and natural gas used in manufacturing, processing or fabricating tangible personal property. The company must complete a predominant use study that shows that at least 50% of the electricity or natural gas consumed by the business directly causes a physical change to a product.

Tax Abatement
The City of Temple offers property tax abatement to certain types of businesses based on primary job creation and investment. The city guidelines allow for up to 10 years of abatement on real property and fixed improvements. At a minimum, the project must increase the value of the property by $250,000 and creates or retain a minimum of 25 new jobs. All tax abatement applications are subject to City Council approval and should be submitted prior to the start of construction. The City of Temple is located in Bell County which offers tax abatement to expanding eligible businesses.

Economic Development Refund
The Texas Comptroller of Public Accounts offers a refund of state franchise and sales/use taxes paid by companies that own certain abated property. A company who meets the following three conditions may apply for a refund:

  • Paid property taxes to a school district on property that is located in a reinvestment zone established under Chapter 312
  • Is exempt in whole or in part from property taxes imposed by a city or a county under a tax abatement agreement established under Chapter 312
  • Is not in a tax abatement agreement with a school district

The refund is equal to the amount of property taxes that would have been paid had the company entered into a school district abatement agreement with terms identical to the city or county abatement agreement, not to exceed the net state sales and use taxes and state franchise taxes paid or collected and remitted during that calendar year. The refund amount may also be limited by a statewide appropriation per year for this refund program.

Training and Education:
Skills Development Fund
The Skills Development Fund is an innovative program created to assist Texas public community and technical colleges in financing 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. Average training benefits are $1,000 per trainee. However, the benefit may vary depending on the proposal.

 

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