Incentives

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) 750-7005, unless otherwise noted.

Tax Abatement

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.

Business Grant

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.

  

Opportunity Zones

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) 757-5635, or kcollins@wacochamber.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, email or MCAD.

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.

Downtown Development Incentives - TIF Facade Grant

For more information on local downtown development incentives contact Economic Development staff at (254) 750-7005, unless otherwise noted.

 

Downtown on Austin

Tax Increment Financing (TIF) Tax Increment Financing Zone

The City of Waco has three tax increment financing zones(PDF, 601KB) 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. If you are interested in pursuing a project that is within the boundaries of a TIF Zone please contact Economic Development staff at 254-750-7005. The TIF Guidelines and the TIF Application deadlines, Board meeting schedule, and City Council consideration process timelines can be found at the links below. Please be aware that the TIF meetings schedule is subject to change if necessary.

Façade Improvement Grant Program

The Downtown Waco Façade Improvement Program makes funds available for projects that improve existing storefronts and buildings in the greater downtown area (see map for area covered by the program.) If the application is approved, the program will pay a portion of the project costs. This amount will vary based on the project, but could be as little as 10% or as much as 50% of the project cost, with a minimum of $500 and a maximum of $45,000.

To be eligible, a project must meet some or all of the following goals:

  • Preserves or restores the outside of an historic building (built before 1964).
  • Creates or improves something that is an asset to the public, such as sidewalks or lighting of pedestrian areas.
  • Elevates the appearance of public spaces and the district by upgrading elements of a building or other improvement that are deteriorated or substandard.s
  • Increases the attractiveness of a building for tenants or customers.
  • Grants are typically made after project completion, but applications must be received prior to any work being performed.

Contact (254) 754-8898.

City Center Waco is charged with helping bring this plan to fruition on behalf of the City of Waco.
Contact Megan Henderson at City Center Waco for more information: (254) 754-8898.