Tax Abatement

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Entrprise Zone
Industrial Foundation
Foreign Trade Zone
Reinvestment Zone

Yes

Yes
Yes
No
Yes

Yes

Yes
No
No
No

Cooperative efforts between the Greater Killeen Chamber of Commerce, the City of Killeen, the Killeen Economic Development Corporation (KEDC) and the Killeen Industrial Foundation (KIF) can provide a number of incentives for a firm wishing to locate here and especially one that wishes to locate in the Killeen Business Park. However, these incentives are worked out in negotiations between the interested business and the economic development agencies with the Killeen Economic Development Corporation as the initial contact.

A company requesting incentives must complete an Economic Impact Data Sheet and submit to the Greater Killeen Chamber of Commerce. All incentives are offered under a performance-based contract, payable after verification of investment and job creation factors.

Click here for a copy of the 

Economic Impact Data Sheet 

1. Build-to-Suit Option: KEDC will consider a build-to-suit in exchange for a five to ten year lease agreement, with a five year option to renew.
2. Job Creation Payments: KEDC offers cash incentives based on new quality, high-paying jobs that are created in Killeen.
3. Tax Abatements: Up to 100 percent of property taxes (excluding school district taxes, per state law) can be abated up to five years.
4. Fast Track Permitting: The City of Killeen offers Fast Track Permitting for companies meeting at least one of the following criteria –

a.       Create a minimum of 50 permanent full-time jobs within the first 12-months after its expansion or relocation to the City of Killeen ; or

b.      Create a minimum increase in property value of 300% for construction of a new facility; or

c.       50% for expansion of an existing facility for an investment of at least $250,000 in taxable assets; or

d.      Be a targeted industrial, commercial or service project eligible for incentives; or

e.       Produce $2 million in gross annual payroll.

Click here for a copy of the Fast Track Permitting Process. Click here for a copy of the Fast Track Permitting Qualifications.

5. Reduced or Free Land: KEDC and the Killeen Industrial Foundation own approximately 300 acres of land in the Killeen Business Park . Land can be discounted or given free.
6. Employment Assistance: The Central Texas Workforce Center offers the following employment assistance –

a.       Advertising of job openings

b.      Application processing and pre-screening to determine qualified applicants

c.       Meeting rooms for interviewing process

d.      More…

7. Property Tax Payments: Property taxes paid (including school district taxes) by KEDC in lieu of Tax Abatement.

8. Leasehold Property Taxes: For a build-to-suit option, property taxes are based on the property tax rate per $100 valuation of the annual lease payments. Example: Annual Lease = $100,000. Property tax rate = $2.3911. Leasehold Property Tax = ($2.3911 x $10,000 = 2,391 per year).

TEXAS STATE INCENTIVES

Below is a brief description of incentives available to companies through the State of Texas Governor ’s Office.  

1. Enterprise Zone: Must hire 25 percent of jobs from those that are economically disadvantaged. If nominated, the company can receive an average of $2,500 per job created for state sales and use tax on qualified expenditures. The project’s apportioned taxable capital may be reduced by 50 percent of the capital investment or the apportioned earned surplus income may be reduced by 5 percent of the capital investment made in the Enterprise Zone (the business must pay the highest liability).
2. Skills Development Fund: KEDC can apply for the Skills Development Fund through the Texas Workforce Commission to obtain funding for customized training with Central Texas College .
3. Texas Industry Development Loan Program (TID): The Killeen Economic Development Corporation can leverage funds through this program for projects above $5 million. Projects can include the cost of purchasing land, buildings, construction, machinery and equipment.
4. Industrial Revenue Bonds: This is a tax-exempt financing program to finance land and depreciable property for eligible industrial or manufacturing projects. Capital Investment bond ranges from $2 - $10 million. The debt service on the bond is payable by the company.
5. Taxable Industrial Revenue Bonds: This is taxed revenue bond typically with higher interest rates than tax-exempt issues, but these issues do not have restrictions on the use of the amount.