Incentives - Industrial Local
The City of Waco provides a vast array of local incentives to attract business and industry and encourage quality development of all kinds -- from downtown revitalization, to residential development, to retail and commercial, to traditional industrial and manufacturing incentives.
For more information on local incentives contact Economic Development staff at (254) 750-5640, unless otherwise noted.
The City of Waco (and occasionally McLennan County and McLennan Community College) offers Tax Abatements for projects that are going to make a significant investment in Real Property or Personal Property. Real property abatements are for a new facility, or an existing facility expansion.
Personal property abatements are for new equipment and machinery that increases production capacity. Priority consideration is given to projects that are located in State of Texas Enterprise Zones and other designated / targeted locations, and which create new jobs and stimulate economic growth and revitalization.
The City of Waco offers grants on eligible properties based on the increased taxable value of the property due to significant capital investment usually in conjunction with job creation.
Priority consideration is given to projects that are located in State of Texas Enterprise Zones and other targeted locations.
Waco-McLennan County Economic
Development Corporation (WMCEDC) Grant
WMCEDC, a partnership between the City of Waco and McLennan County, provides grants for qualified capital investment that creates new full-time jobs with specified wages and health benefits for local residents.
State Enterprise Zone Preference
The City of Waco will provide additional consideration to the normal incentives for businesses located within an Enterprise Zone. Much of Waco, including most of the three industrial parks, is located within an Enterprise Zone.
The City of Waco offers qualified businesses the opportunity to apply for facility bonds, which are used to finance significant property development at interest rates lower than conventional financing.
The following types of bonds are available:
Industrial Revenue Bond Program
Industrial Development Corporation Bonds
Educational Facilities Development Bonds
Health Facilities Development Bonds
The City's Brownfields Redevelopment Program is designed to assist potential developers identify and build on Brownfields sites within the city. Brownfields are abandoned, idle, or under-utilized properties where development is hindered by real or perceived environmental contamination. Restoring Brownfields utilizes former buildings and existing infrastructure, provide new jobs, improve the local tax base, improves the value of adjacent properties, as well as, remove the stigmatism of potential environmental problems on subject properties.
For more information contact Mike Jones at (254) 750-8001 or (254) 749-6360 (M).
Waco Regional Airport Land Sale Policy
Waco Regional Airport is a commercial airport surrounded by industrial park land and adjacent to a Foreign Trade Zone. The City of Waco has developed a policy for the sale or lease of land located adjacent to the airport depending on the level of capital investment and job creation of the proposed project. Only non-obligated land can be sold in accordance with FAA rules and restrictions. For more information contact the Waco Regional Airport Director, Joel Martinez at (254) 750-8656.
Foreign Trade Zone
U. S Foreign Trade Zone No. 246 covers over 400 acres in Waco. It is the only foreign trade zone located between Dallas and Austin to provide businesses with advantages in international trade and distribution, such as tariff exemption on goods that are imported, manufactured, and then exported. For more information contact Sarah Roberts with the Greater Waco Chamber of Commerce at 254-757-5625, or email@example.com.
Freeport Tax Exemption
This tax exemption primarily benefits companies that manufacture and/or distribute goods, wares, merchandise, ores, certain aircraft and aircraft parts that remain in Texas for 175 days or less prior to shipment out of Texas. Goods can be in Texas for storage, assembly, manufacturing, processing, or fabricating. For more information contact Kris Collins with the Greater Waco Chamber of Commerce at 254-757-5635, or email.
Incentives - Industrial State
These State designated projects are eligible to apply for state sales tax and use refunds on qualified expenditures. The level and amount of refund is related to the capital investment and jobs created at the qualified business site. Enterprise Zone Projects typically benefit from locating in these zones, or by hiring at least 35% of their employees from within these zones. For additional information on the Texas Enterprise Zone Program, call (512) 936-0100.
The Texas Enterprise Fund is the largest "deal-closing" fund of its kind in the nation. It continues to attract businesses and jobs to Texas. The TEF can be used for a variety of economic development projects, including infrastructure development, community development, job training programs and business incentives. For more information on the Texas Enterprise Fund, call (512) 936-0101.
The Skills Development Fund Program assists businesses and trade unions by financing the design and implementation of customized job training projects. This fund successfully merges business needs and local customized training opportunities into a winning formula to increase the skills level and wages of the Texas workforce. For more information contact (512) 463-8844, or email.
The Emerging Technology Fund (ETF) was created to provide Texas with an unparalleled advantage in the research, development, and commercialization of emerging technologies. For comprehensive information about the Emerging Technology Fund, click here.
State Loan Programs
The Texas Economic Development Bank provides flexible funding and oversight of finance and tax incentive programs targeting three key audiences: Texas businesses, Texas communities and Texas lending institutions. The Bank's task is to provide globally competitive, cost effective state incentives to expand businesses operating in the state and to businesses relocating to Texas. For information on a Loan Assistance Program, please contact us at (512) 936-0100.
Introduced in 1992, the Texas Leverage Fund (TLF) provides an additional source of financing to communities that have adopted an economic development sales tax. Communities may leverage future sales tax revenues to support job retention or creation.
Product Development Fund
The Texas Product Development Fund provides financing to aid in the development, production and commercialization of new or improved products within the state. Products appropriate for the Fund are inventions, devices, techniques, or processes, that have advanced beyond the theoretical stage and are ready for immediate commercial application.
Small Business Fund
The Texas Small Business Fund provides financing to foster and stimulate the development of small businesses in Texas. Preference for funding will be given to the state’s defined industry clusters within emerging technology fields including semiconductors; nanotechnology; biotechnology and biomedicine; renewable energy; agriculture and aerospace.
Industrial Revenue Bond Program
The State of Texas Industrial Revenue Bond Program (IRB) is designed to provide tax-exempt or taxable financing for eligible industrial or manufacturing projects as defined in the Development Corporation Act of 1979 (Act). The Act allows cities, counties, conservation and reclamation districts to form non-profit industrial development corporations (IDCs) or authorities on their behalf. The purpose is to provide bonds for projects within their jurisdictions.
Industry Development Loan Program
The Texas Industry Development (TID) Loan Program provides capital to Texas communities at favorable market rates. The main objective of TID is to support projects that will stimulate the creation of jobs. TID loans can be used for a variety of purposes including community infrastructure development. TID financing is available for loans above $5 million.
Retail & Commercial Local North American
Free Trade Agreement (NAFTA) Incentive
The North American Free Trade Agreement (NAFTA) Impact Zone Program was created to retain or attract major commercial / retail employers who invest in a significant development project in Waco. A NAFTA Impact Zone is created so that these businesses may receive one of the following benefits: waiving of fees related to the construction of buildings, municipal sales tax refund or the abatement of municipal sales or property taxes.
For more information on local downtown development incentives contact Economic Development staff at (254) 750-5640, unless otherwise noted.
Downtown Overlay District
The purpose of the Downtown district is to create a place where people can live, work, and play within its boundaries; a place that values the architectural history of our community, while encouraging the best of contemporary design; a place that encourages human interaction through the development of a physical environment that is vital, attractive, pedestrian friendly, and secure.
Building Construction Fee Waiver
The City of Waco will give consideration to waiving certain fees associated with the construction and occupancy and/or renovation and re-use of residential and commercial dwellings located within the Brazos River Corridor &/or the downtown Public Improvement District Number One.
Tax Increment Financing Tax Increment Financing Zone
The City of Waco has three tax increment financing zones created for the purpose of facilitating revitalization and development throughout the core of the City and along the Brazos River Corridor. With the approval of the City Council, TIF Board of Directors have invested millions of dollars in infrastructure improvements, acquisition and demolition, landscaping, sidewalk, and streetscape amenities.
Façade Improvement Grant Program
This grant was designed to assist in the revitalization of downtown properties in TIF Zone 1. Individuals that intend to renovate the façade of a deteriorating building in TIF Zone 1 may be eligible to receive a grant for 50% of the cost – up to $15,000 to improve the façade of the building according to specific Facade Design Standards.
A corner building with front and side facades that immediately front on public streets and are highly visible to the public may be eligible for up to $25,000.
Public Improvement District Number One
This district has an assessment of 10 cents per $100 valuation of property that is used only within the boundaries of that district (see map) to provide a variety of services that increase the value and appeal of properties downtown.
Public Improvement District Number One- Advisory Board
The Public Improvement District Number One (PID1) has an Advisory Board, appointed by City Council and consisting primarily of property owners from PID1. The Board has created five committees to allow the maximum input and participation of the board members and PID1 stakeholders. The PID1 Advisory Board meets every other month, complimented by committee meetings of the five basic PID1 Committees:
- Organization Leadership and Planning
- Marketing and Promotion
- Merchant Support and Economic Growth
- Design and Service Delivery
Design and Service Delivery Committee
The Design and Service Delivery Committee advises the PID1 Board on creating a positive physical appearance and atmosphere in the District. They recommend the scope of services for several contracts with private companies, such as security and landscape maintenance. Also, this committee reviews proposed plans concerning downtown image, signage, streetscape and parking in the PID1 area.
Brazos River Corridor Overlay
The special overlay for development in the Brazos River Corridor district is to ensure the Brazos River Corridor becomes a center for quality recreation, convention, tourism, housing and office facilities. The overlay is designed to protect the special environment and character of the corridor; to promote continued private and public investment. Additional development standards and design guidelines for the district are intended to preserve the distinctive character and natural beauty of the Brazos River Corridor and to maintain its charm and atmosphere.
This program offers a municipal tax credit on locally designated or recognized historic property that undergoes renovation/rehabilitation. For more information contact Clint Peters, Director of Planning Services at (254) 750-5653.