Texas Enterprise Zone Program

Purpose

The Enterprise Zone Program was established to create jobs and induce capital investment in areas of economic distress by removing unnecessary governmental regulations, offering tax incentives and other economic program benefits to businesses located in these areas.

Texas Dept. of Economic Development's Role

The Texas Department of Economic Development administers the program, including the coordination of local, state and federal efforts, community assistance, evaluation of applications and reporting the program's effectiveness to the state legislature.

Enterprise Zone

An enterprise zone is a geographic area that meets certain criteria and is nominated by a city and/or county and is designated by Texas Department of Economic Development.

• The enterprise zone must have a continuous boundary with the area at least one square mile and generally not greater than 20 square miles, excluding waterways.
• The area must have an unemployment rate of at least 1.5 times the national, state or local average for the preceding 12 months; or the area must have had at least a 9% population loss during the most recent six years or an annualized population loss of at least 1.5 % for the most recent six years.
• The area must meet at least one other distress factor either; low income, poverty, deteriorating structures or tax arrearages.

Enterprise Project

A business may be designated an enterprise project by Texas Department of Economic Development if it is located in a zone whose unemployment rate is at least 1.5 times the state's unemployment rate for the most recent 12 months; or whose population loss is at least 12 percent during the most recent six years, or whose annualized population loss is at least two percent for the most recent six years.

The business must be considered active in the one, and at least 25 % of its employees must be residents of any zone within the city or county's jurisdiction or at least 25 percent of its employees must be economically disadvantaged individuals, as defined by state law.

Enterprise project designations are made on a competitive basis; 60% based on the economic distress of the zone and 40% based on the local effort to develop and revitalize the enterprise zone.

Applications must be submitted by a city and/or county on behalf of a qualified business.

Advantages

Enterprise projects may receive up to $1.25 million in refunds of state sales and use taxes at a rate of $2,000 for each new, permanent job created. The maximum is $250,000 per year for five years based on taxes paid on the purchase of machinery equipment and building materials for use by the business in the zone.

Enterprise projects and businesses not designated as enterprise projects but located in a zone may be eligible for regulatory relief and other incentives not available throughout the community. They may include property tax abatement, refund of local sales and use taxes, removal of regulatory barriers and reduced utility rates.

Qualifying Items

All items must be sold to the enterprise project for use in the enterprise zone however, this does not include motor vehicles or office supplies.

1. Equipment and machinery. (All machinery and equipment used to operate the business).
   • Includes office equipment and machines, computers, equipment used in sales or distribution activities, hand tools, research and development equipment intraplant transportation equipment
   • Includes machinery and equipment used in manufacturing, processing and related activities.
   • Includes machinery and equipment used in repairing, maintaining, remodeling tangible personal or real property.
2. For each month during which this Rider is in effect, determine the Actual Measured demand.
   • Including all structural steel, lumber, bricks, flooring, electrical system, cooling and heating systems, and plumbing.
   • Includes concrete, asphalt, masonry.

Contact:

City Manager
City of Mission
900 Doherty Avenue
Mission, Texas 78573-0968
Telephone: (956) 580-8662
Facsimile: (956) 580-8669