Incentives

These agreements cap the appraised value of real property and thus help reduce the cost of property taxes. The portion of the tax that is capped is the M&O (maintenance and operations).

Chapter 380 of the Texas Local Government Code allows Harlingen to offer a range of incentives for economic development, including the ability to rebate some of the city's portion of the 1.0% sales and use tax collected from business entities located in the jurisdiction.

The City of Harlingen and the State of Texas both offer great incentives for expanding and relocating business.

HEDC may be willing to develop new programs for qualified businesses subject to meeting statutory requirements.

HEDC can assist in the cost of applying for state funding programs such as the Enterprise Fund, Enterprise Zone Project, or Chapter 313 impact studies for qualified projects.

Section 11.251 of the Tax Code provides for a freeport exemption applying to goods, wares, ores and merchandise other than oil, gas and petroleum products (defined as liquid and gaseous materials immediately derived from refining petroleum or natural gas) and to aircraft or repair parts used by a certificated air carrier.

In trying times such as the COVID-19 pandemic, the Harlingen EDC has taken the necessary steps to ensure the continued success of our local businesses. Since the program’s launch in May of 2020, it has aided more than 50 local businesses in retaining more than 400 full-time equivalent jobs. Industries that have received HELP include local restaurants, salons, and spa and massage establishments. 

An Industrial District Agreement contractually protects companies located in the designated district from annexation and City requirements such as permitting and platting in exchange for a Payment in Lieu of Taxes.

Available for specific off-site improvements for qualified projects.

Available to projects that create over 50 full-time jobs.

For qualified projects, HEDC may subsidize a portion or all of the cost of the land for a greenfield development. These types of grants are usually for large industrial projects with big job creation numbers.

HEDC may participate in job training programs by providing matching grants for Texas Workforce Commission programs.

The City of Harlingen can assist developers wishing to create a public improvement district for qualified development projects.

The City has historically utilized Tax Increment Reinvestment Zones (TIRZ) as a powerful vehicle to develop and redevelop qualified projects based on City goals and objectives.

Qualifying businesses considering locate in Harlingen have the opportunity to apply for a property tax abatement on new value created as a result of a large industrial project. 

Economic Development & Diversification In-State Tuition for Employees is a program that allows employees—and those employees’ family members—of a qualified business considering a relocation or expansion of its operations in the State of Texas to pay in-state tuition rates at public institutions of higher education in the state without first establishing residency.

Established by the 74th Legislature in 1995, The Skills Development Fund was designed to better utilize the public community and technical college system in Texas as well as other training organizations and have them partner with businesses throughout the state (with priority on small businesses) to train workers to meet the labor needs of employers and the regional labor market.

The Texas Enterprise Fund (TEF) awards “deal-closing” grants to companies considering a new project for which one Texas site is competing with other out-of-state sites. The fund serves as a financial incentive for those companies whose projects would contribute significant capital investment and new employment opportunities to the state’s economy.

The Texas Enterprise Zone Program (EZP) is a state sales and use tax refund program designed to encourage private investment and job creation in economically distressed areas of the state.

Texas businesses are exempt from paying state and local sales and use tax on leased or purchased machinery, equipment, replacement parts, and accessories that are used or consumed in the manufacturing, fabrication, or repairing of tangible personal property for ultimate sale. Certain restrictions apply and the exemption is not for all equipment. In some instances, labor or services that are typically taxable may be eligible for the exemption.

The Self-Sufficiency Fund is a job-training program that is specifically designed for individuals that receive Temporary Assistance for Needy Families (TANF). The program links the business community with local educational institutions and is administered by the Texas Workforce Commission. The goal of the Fund is to assist TANF recipients become independent of government financial assistance.

The US Department of Commerce’s Economic Development Administration has programs available to HEDC that could help offset costs associated with new projects creating manufacturing jobs and increasing private investment. HEDC has been willing to help companies through these programs.

An Opportunity Zone is an economically-distressed community where private investments, under certain conditions, may be eligible for capital gain tax incentives. Harlingen has several census tracts designated as opportunity zones.