Business Incentives in Matagorda County
The Matagorda County Economic Development Corporation (MCEDC) offers assistance in identifying and obtaining incentives for businesses that choose to locate or expand within the county. If you have any questions about any of the incentives below or other options that may be available, please contact the MCEDC office at 979.245.8913.
Industrial Revenue Bond Program
The Industrial Revenue Bond Program gives Matagorda County the ability to issue tax-exempt IRBs (also known as "private activity bonds") to businesses considering a move to Texas, or indigenous businesses looking to expand.
Tax-exempt IRBs include small issue bonds and exempt facility bonds. Small issue bonds and certain exempt facility bonds require an allocation under the state's private activity bond volume cap administered by the Texas Bond Review Board. Small issue bonds are limited to manufacturing facilities. The bond amount cannot exceed $10 million and the total capital expenditure limitation for the project is $20 million. Eligible project costs include the acquisition by a business of an existing facility, acquisition of land, construction of new facilities, machinery tools, equipment, limited costs of issuing the bonds, such as legal fees and administrative costs. Only office space that is directly related to the day-to-day operations of a project may be financed.
Texas Enterprise Fund
The Texas Enterprise Fund (TEF) is the largest "deal-closing" fund of its kind in the nation. The fund is a cash grant used as a financial incentive for projects that offer significant projected job creation and capital investment and where a single Texas site is competing with another viable out-of-state option.
Texas Capital Fund
Matagorda County is entitled to financial resources that provide infrastructure and real estate development (acquisitions, construction, and/or rehabilitation) to assist a business in creating permanent jobs.
Sales and Use Tax Exemptions
Texas businesses are exempt from paying sales and use tax on many business necessities including:
- Leased or purchased machinery
- Parts and accessories that have a useful life of more than six months and are used or consumed in the manufacturing processing
- Fabrication or repair of tangible personal property for ultimate sale
- Labor for constructing new facilities
- Electricity and natural gas used in manufacturing, processing, or fabricating tangible personal property
- At least 50% of the electricity or natural gas consumed by the business that directly causes a physical change to the product
Texas Enterprise Zone Project
Based on the level of investment and number of jobs created, Enterprise Projects are locally designated and are eligible for a refund of state sales and use taxes on machinery and equipment. Projects that qualify in size and investment can receive a refund of state sales and use taxes up to $7,500 per job created and up to a maximum of 500 jobs.
Chapter 380/381 Discretionary Incentives
According to Texas' Local Government Code Chapters 380 (for cities) and 381 (for counties), counties and cities can make loans and grants available, per their local policies, to companies considering locating or expanding to help stimulate economic development. View the Guidelines for Chapter 381 here.
Employee Training Funds
The Texas Workforce Commission has a Skills Development Fund to assist companies with customized job training for their workforce. Training grants of up to $1,500 per trainee can be obtained to help community colleges and technical schools provide customized job training.
The Self-Sufficiency Fund
The Self-Sufficiency Fund assists businesses by financing the development and implementation of customized job training projects for new and current employees. The grants provide businesses customized training solutions that support workforce hiring efforts and skills training for current workers. Grant costs may include curriculum development, instructor fees, training materials, and certain work-related expenses for the trainees. Grants are typically for 12 months and limited to a maximum of $500,000.
MCEDC, through Workforce Solutions, can assist with advertising, recruiting, and screening potential employees, as well as providing qualified employee applications to the extent that the company wishes to utilize the assistance.
MCEDC can assist with identifying and resolving bottlenecks that can affect job creation or have a high economic impact.
The following Federal programs are also available:
- 7(a) Guaranteed Loans
- HUBZone Empowerment Contracting Program
- Office of Business Initiatives
- One-Stop Capital Shops Program
- Office of Entrepreneurial Development
- U.S. Small business Administration
- Section 8(a) Program
- Small Business Investment Companies Program
- Office and Small Disadvantaged Business Utilization's Short-Term Lending Program and Bond Assistance Program