A variety of city and state level incentives are available for business looking to locate or expand their operations in the Rio Grande Valley. Our incentive programs are designed to make Edinburg one of the most attractive locations to do business in Texas.

Local Incentives

Infrastructure Support

The EEDC may wave certain developmental fees related to new and/or expanding businesses. Financial assistance is also available to support infrastructure improvements and development, as needed to accommodate certain projects. Additionally, lease-build programs enable new tenants to lease attractive facilities at lower than market cost dependent on the extent of the economic impact the company will have on the community.


Job Creation

The EEDC may offer job creation incentives on a reimbursement basis. This reimbursement is made subject to verification of employees according to an approved schedule of payments and would assist the company with incentives for creating/retaining employees. This job creation incentive is in place as an alternative for the tax abatement incentive which the City historically does not participate in.


North Industrial Park

The EEDC developed a 160 acre tract industrial park and is prepared to incentivize qualified projects depending on the economic impact, number of jobs created, and capital investment.


State Incentives

Freeport Tax Exemption
The Freeport exemption exempts certain types of tangible personal property from taxation provided the property is: acquired in or imported into Texas to be forwarded out of state; detained in Texas for assembling, storing manufacturing, processing, or fabricating purposes by the person who acquired or imported it; and transported out of state within 175 days after the date the person acquired or imported it into Texas. This exemption is available in the following taxing entities: City of Edinburg, County of Hidalgo and Edinburg Consolidated Independent School District.  Freeport Tax Exemption Application form.


Texas Enterprise Zone Program

The EEDC would apply for Enterprise project designation of this project. Such status would allow the business to qualify for state sales and use tax refunds and franchise tax reductions. These benefits are based on job creation,and in some cases job retention and capital investment for a period of five years.


Available State Funding

The Texas Enterprise Fund is a grant program administered by the Governor’s office of Economic Development and Tourism. The fund can be used for a variety of economic development projects, including infrastructure development, community development, job training programs and business incentives.

The Texas Leverage Fund is an "economic development bank" that offers financing to communities that have passed the economic development sales tax. The fund may be used to provide financing to local businesses for industry expansion or recruitment, industrial parks establishment, or certain community project financing.

The EEDC will survey the various sources of training program funds as well as provide your company with assistance in fund application and administration. In conjunction with Workforce Solutions, the local workforce development agency, the EEDC will seek funds to be used for customized training programs for your employees and coordinate a job fair to assist your company in recruiting efforts, customized training, screening potential employees and performing skills tests.


County Tax Reimbursement Grant

The County of Hidalgo also offers qualifying companies a property tax reimbursement. If the company meets employment numbers each year, then the company is awarded a tax reimbursement.


Tax Increment Financing

This 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 cost of improvements to the area is repaid by the contribution of future 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. Once a City has initiated tax increment financing, counties, school districts, and special districts are allowed to consider participating in the tax increment financing agreement. The Tax Increment Financing allows for the financing of much of the infrastructure in the area including acquiring or renovating deteriorated, blighted or underdeveloped areas: acquiring or construction of public works, including utilities, streets, water and sewer facilities, pedestrian malls, parks, flood and drainage facilities, educational facilities, or parking facilities. Upon creation of the Tax Increment Financing, a base value is established within the reinvestment zone. Any incremental increase in value, the captured value, may be taxed to repay certain debt or obligations within the zone. The captured value only applies to real property. The Tax Increment Finance may not tax personal property.

 

Local & State Incentives pdf

Project Information Form doc