Incentive Development

  1. Incentives from KEDC are created and offered on a case-by-case basis.
  2. Once an initial set of incentives have been determined by staff, these incentives along with the Economic Data Sheet are used to calculate the Economic Impact Analysis of the project. Tha analysis is then submitted to board members of the Killeen Economic Development Corporation for consideration.
  3. The completed Economic Data Sheets is considered as the prospects’ application for incentives.
  4. Potential incentives are listed below:
    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. Generally, if the prospect’s business is in a Targeted Industry Cluster, an amount in the range of $1,500 to $2,500, is offered for each job created. A higher incentive rate is negotiable based on the economic impact analysis.
    3. Tax Abatements: Up to 100 percent of property taxes (excluding school district taxes, per state law) can be abated up to five years. Some exceptons apply to school districts having authority to abating property taxes.
    4. Fast Track Permitting: The City of Killeen offers Fast Track Permitting for companies meeting at least one of the following criteria –
      1. 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
      2. Create a minimum increase in property value of 300% for construction of a new facility; or
      3. 50% for expansion of an existing facility for an investment of at least $250,000 in taxable assets; or
      4. Be a targeted industrial, commercial or service project eligible for incentives; or
      5. Produce $2 million in gross annual payroll.
    5. Reduced or Free Land: KEDC and the Killeen Industrial Foundation own land in the Killeen Business Park. Land can be discounted or given free.
    6. Employment Assistance: The Workforce Solutions of Central Texas offers the following complementary employment assistance –
      1. Advertising of job openings
      2. Application processing and pre-screening to determine qualified applicants
      3. Meeting rooms for interviewing process
      4. 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 = $2.7757. Leasehold Property Tax = ($2.7757 x $10,000 = $2,775 per year).