Incentives

In addition to the natural beauty of the area and access to one of the nation’s largest workforce pools, Kerrville has an array of competitive incentive programs. The KEDC works to ensure the client or prospect has the best possible incentive package, which can be paired up with local, state and other programs as a whole. The KEDC team is your point of contact for financial assistance and/or incentive proposals.

Our programs are designed for local companies and enterprises, especially when they’re in the process of ramping up efforts, outgrowing their existing facilities or needing to add workforce.

The primary incentives in our toolbox, in addition to state programs, include:

Primary Job Creation Incentive Funds:
The purpose of the Primary Job Creation Incentive Fund is to provide funding, either grants and/or loans, in accordance with Type B requirements of the Texas Development Corporation Act for the expansion or retention of companies, in turn, the creation of primary jobs.

Public Private Partnerships (P3s):
P3s are welcome and encouraged to leverage public funds with private funds to promote economic development and share the risks associated with building or expanding sustainable and reliable infrastructure to build capacity to serve the development of desired projects, promote investment in human capital, and achieve increase in quality of life. Typically public and private partners work collaboratively to leverage funding, talents, technologies, expertise, etc. to meet the needs of development on both sides. For instance, in many cases the public entity will retain ownership of the underlying property, while the private partner will handle some combination of the construction, maintenance, funding and operation of the infrastructure or facility.

Tax Abatement/Rebate Programs (Chapter 380/381 Agreements):
Both the City of Kerrville and Kerr County offer economic development incentives in accordance with Chapter 380/381 of the Texas Local Government Code. Grants and loans can be provided to eligible prospects by the City Council and Commissioners Court, respectively, to promote development and diversification of the economy of the state, elimination of unemployment or underemployment in the state, and development and expansion of commerce in the state. To review The City of Kerrville 380 Economic Development Program, adopted on June 12, 2014, click here. To review the Kerr County Chapter 381 Economic Development Program, adopted July 18, 2014, click here. The KEDC staff can assist in navigating through the application process for one or both of these incentives.

Tax Increment Financing (TIF)/Tax Increment Reinvestment Zones (TIRZ):
“Tax Increment Financing” (TIF), is a tool that local governments can use to publicly finance needed structural improvements and enhance infrastructure within a deveined area known as a Tax Increment Reinvestment Zone (TIRZ). The partnering taxing jurisdictions will consider reinvestment zone designation provided the proposed area meets the criteria of Chapter 311 of the Texas Tax Code.
The City of Kerrville has one established TIRZ district within its city limits that covers its downtown area known as “Reinvestment Zone Number One, City of Kerrville” established on September 25, 2018 per Ordinance No. 2018-19.

Qualified Opportunity Zone Investment:
The Opportunity Zone Program was created to revitalize economically distressed communities using private investments rather than taxpayer dollars. To stimulate private participation in the Opportunity Zone program, taxpayers who invest in Qualified Opportunity Zones are eligible to benefit from capital gains tax incentives available exclusively through the program. Opportunity Zones are census tracts generally composed of economically distressed communities that qualify for the Opportunity Zone program, according to criteria outlined in 2017’s Tax Cuts and Jobs Act.

There are two Qualified Opportunity Zones located within Kerr County, one within the City of Kerrville at the southwest quadrant of IH 10 and State Hwy 27 (aka Sidney Baker St) and another located in the southeast corner of Kerr County, which includes the unincorporated area known as Center Point.

Freeport Exemption: (Note: Talk to City, County, KISD about creating Triple Freeport)
a business personal property tax exemption on inventory that is at your manufacturing facility in Texas for a short period of time, less than 175 days, and which will be transported outside the state line. The exemption applies to inventory including finished goods, supplies, raw materials and work in process, which are for assembling/manufacturing.

For more information on incentives and how prospective companies qualify, call or email us at theresam@kerredc.com or (484) 531-7854.