Incentives

Local Incentives

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 Sheets are used to calculate the Economic Impact Analysis of the project. The analysis is then submitted to the Killeen Economic Development Corporation board of directors for consideration.
3. The completed Economic Data Sheets are 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 premier paying jobs that are created in Killeen. Generally, if the prospect’s business is in a Targeted Industry Cluster, an amount of $2,500 or more could be offered for each job created. The amount is based on the Return on Investment back to the City of 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. Some exceptions 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 –
      • Advertising of job openings
      • Application processing and pre-screening to determine qualified applicants
      • Meeting rooms for interviewing process
      • More…
   7. Property Tax Reimbursement: Property taxes can be reimbursed (including school district taxes) by KEDC in lieu of a 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).

 

Texas State Incentives

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

1. Texas Enterprise Fund: The 78th Texas Legislature established the Texas Enterprise Fund (TEF) in 2003 to help attract new jobs and investment to the state. The fund was subsequently re-appropriated by the Legislature in 2005, 2007, 2009, 2011, 2013, and 2015. As the largest "deal closing" fund of its kind in the nation, TEF continues to attract jobs to Texas. The fund is used only as a final incentive tool where a single Texas community is competing with another viable out-of-state option. TEF is an application-driven program, where a prospective company considering relocating to or expanding in Texas submits an application to the Office of the Governor (OOG) for review. The OOG never advocates for one Texas community over another and has no input on which Texas community the company ultimately selects. Projects considered for a TEF award must demonstrate a significant rate of return on the public dollars being invested in the project. Additionally, every TEF project must meet several primary measures to be considered. These include competition with another state or country for the project, significant projected job creation, above-average projected wages, substantial capital investment by the company, and community involvement in the form of local economic incentive offers.

2. 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).

3. 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. 

4. 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.

5. 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 range from $2-$10 million. The debt service on the bond is payable by the company. 

6. Taxable Industrial Revenue Bonds: This is taxed revenue bond, which is typically with higher interest rates than tax-exempt issues, but these issues do not have restrictions on the use of the amount. 

Click here for more detailed information about State incentives.