Taxes & Incentives
- Corporate Franchise Tax
- Property Tax
- Sales & Use Tax
- Unemployment Insurance & Workers’ Compensation
- Texas Enterprise Zone Program
- Tax Exemptions & Credits
- Training Programs
- Texas Enterprise Fund
- Chapter 380/381 Financing
- Economic Development Sales Tax Corporations
- Certified Capital Companies
- Cancer Prevention & Research Institute of Texas Grants
- Texas Product Development & Small Business Incubator Fund
- Tax Increment Financing
- Industrial Revenue Bonds
- Texas Moving Image Industry Incentive Program
- Foreign Trade Zone 183 of Central Texas
- Other Assistance
- Local Incentives Summary
Industrial Revenue Bonds
The State of Texas Industrial Revenue Bond Program (IRB) provides tax-exempt or taxable financing for eligible industrial or manufacturing projects as defined in the Development Corporation Act of 1979. The Act allows cities, counties, and conservation and reclamation districts to form non-profit industrial development corporations (IDCs) or authorities on their behalf to provide bond financing for projects within their jurisdictions. The IDC issues bonds to finance the capital costs for an industrial or manufacturing business.
Generally, the bond debt service is paid by the business under the terms of a lease, sale or loan agreement. As such, it does not constitute a debt or obligation of the sponsoring governmental unit, the IDC or the State of Texas. Tax exempt IRBs for manufacturing facilities and are subject to the state’s volume limitation ("volume cap") managed by the Texas Bond Review Board. The bond amount cannot exceed $10 million and the total capital expenditure limitation for the project is $20 million.
Exempt facility bonds can be issued to finance facilities for the furnishing of water, sewage and solid waste disposal facilities, electric energy or gas production facilities, local district heating or cooling facilities and qualified hazardous waste facilities. Other exempt facility bonds can be issued to finance airports, dock and wharf facilities, mass commuting facilities and high-speed inter-rail facilities. These facilities must be government owned, but they can be leased or operated by management contractors. Some facility types may be subject to the state’s volume cap.
Businesses interested in applying for an industrial revenue bond should contact the local industrial development corporation as well as legal counsel specializing in the issuance of municipal bonds who will submit application materials on the business' behalf. Upon adoption of a bond resolution by the IDC or equivalent body authorizing the project and principal bond amounts, an IRB application is made to the Office of the Attorney General and, if applicable, to the Governor’s Office, for approval.