Economic development incentives are offered by federal, state and local governments, as well as regional economic development organizations. Below is a list of state incentives available in the greater Waco area.
Texas Enterprise Fund
This multi-million dollar, “deal-closing” fund allows the state to provide grants to new and expanding economic development projects.
Texas Enterprise Zone Program and Projects
Sales tax reimbursement program that enables businesses within economically distressed and designated areas to receive state and local tax incentives.
State Sales & 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.
- Agricultural Exemption. Texas businesses are exempt from paying state sales and use tax 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.
Texas Capital Fund Infrastructure Program
Administered by the Texas Department of Agriculture, this program is designed to provide financial resources to non-entitlement communities (unincorporated areas of McLennan County are considered non-entitled) for public infrastructure.
Texas Capital Fund Real Estate Development Program
Designed to provide financial resources and encourage business development and expansions in non-entitlement communities (unincorporated areas of McLennan County are considered non-entitled) for real estate development.
Texas Workforce Commission
- Skills Development Fund. Assists businesses and trade unions by financing the design and implementation of customized job training projects.
- Self-Sufficiency Fund. Assists businesses by designing, financing and implementing customized job training programs in partnership with public community and technical colleges, a higher education extension service and community-based organizations for the creation of new jobs and/or the retraining of existing workforce.
Texas Industry Development Revolving Loan Program
Provides capital to Texas communities and eligible 501(c) 3 corporations at favorable market rates.
Economic Development and Diversification In-state Tuition Incentive
The Economic Development and Diversification In-state Tuition Incentive allows employees and family members of qualified businesses to pay the Texas resident tuition rate at a Texas public institution of higher education without first establishing residency if the business became established as part of the state’s Economic Development and Diversification Program. Eligibility requires that the employees be nonresidents of the state of Texas, who have been transferred to Texas by a company established as part of the state’s Economic Development and Diversification Program.
For more information, please visit CollegeForAllTexans.com.
Fuel Ethanol and Biodiesel Production Incentive Program
Must register plant with TDA. The applicant must prove to the satisfaction of the department that the plant is capable of producing fuel ethanol or biodiesel, and that the producer has made a substantial, permanent investment in the state.
Renewable Energy Incentives – Tax Exemption & Deduction
Exemption from franchise tax for businesses engaged solely in the business of manufacturing, selling or installing, solar and wind energy devices.
For further information, contact the Economic Development division.
(254) 757-5635 • 101 South Third Street, Waco, TX 76703 • Kris Collins