LOCAL

380 Municipal Grant - It is the policy of the City of El Paso to provide incentives to selected private businesses that make or will make a measurable difference in achieving economic growth and development, expanding and diversifying the tax base and creating new quality jobs within the City of El Paso. In 2006, the City of El Paso adopted a grant program that refunds cash to businesses with projects that meet specific criteria related to quality of jobs, targeted location within the community, and business type.  All grants are subject to final approval by City Council.  Please click on the following link to download the policy guidelines for the 380 Municipal Grant.

Tax Abatement - On a case-by-case basis, local taxing jurisdictions offer property tax abatement to projects determined necessary for economic growth within the community. Abatements can be provided up to 100% of the total value of incremental new investment in buildings and capital equipment for a period up to ten years. Qualifying criteria are capital investment, job creation, wages, and/or significant economic impact. The current incentives policy for the Municipal Government of El Paso gives preference to utilizing 380 grants over tax abatement.  

Expedited Permitting - Is available on a case-by-case basis.

Freeport Exemption - All local taxing jurisdictions offer property tax exemptions for inventories that meet the definition of "Freeport".  Any inventory that remains in El Paso but is exported out of Texas within a period of less than 175 days are considered "Freeport", and therefore will not be subject to ad valorem taxation.

Workforce Incentives - Companies can qualify for Customized Training (CT) and/or On-the-Job Training (OJT), through a variety of workforce training programs from the Upper Rio Grande Workforce Board. 

Foreign-Trade Zone (FTZ) - El Paso offers two general purpose FTZ's along with multiple sub-zone locations in various sections of the community. 

An FTZ  is a site within the United States, in or near a U.S. Customs port of entry, where foreign and domestic merchandise is generally considered to be in international commerce. Foreign or domestic merchandise may enter this enclave without a formal Customs entry or the payment of Custom duties or government excise taxes. There are two types of FTZ's. The General-Purpose Zone is operated as a public utility, where multiple uses conduct various activities such as storage, distribution, inspection, destruction, exhibition, and some processing. The Sub Zone is where a company undertakes manufacturing and processing, including oil refinery activities that cannot be accommodated in a General-Purpose Zone. Sub-zones must be located at or near a port of entry. Sub zones require the approval of the Grantee.

STATE

Texas Enterprise Fund (TEF) - The $190 million fund is used as a deal closing fund for companies contemplating jobs and investment in Texas . Companies can potentially receive grants totaling up to $10,000 per job. Qualifying criteria relate to number of new jobs, wages and capital investment.

Texas Emerging Technology Fund (ETF) - This $200 million fund created by the Texas Legislature in 2005 is available to companies who seek to commercialize new technologies. ETF funds can also be used to develop collaborative relationships with higher education institutions in Texas to leverage federal research grants and to achieve research superiority in certain technologies.

Texas Enterprise Zone Program - An Enterprise Zone project may be eligible for refund of state sales and use taxes paid for building, materials, machinery and equipment. The refund is limited to a maximum of $7,500 per employee. All locations within El Paso County qualify for this program, however, the community can nominate a maximum of six projects every two years. Qualifying criteria are amount of capital investment, job creation, and wages.

Sales and Use Tax Exemptions - The State of Texas provides 100% exemption on sales or use tax on equipment and material used in the direct manufacturing process, as well as certain pollution control equipment.   To find additional information on the potentia range of exemptions log on to Texas Administrative Code for State Sales and Use Tax.

Workforce Incentives - Companies can qualify for Customized Training (CT) and/or On-the-Job Training (OJT), through a variety of workforce training programs including the Texas Skills Development Fund.

Industrial Development Bonds - Below market, fixed rate financing for projects that require between $3 million and $10 million.

FEDERAL

There is potential for companies to qualify for one of several federal incentive programs including empowerment zone employment credits, work opportunity tax credits and renewal communities initiative (RCI). Our office can work with the individual project to determine eligibility for these and other federal programs.

Empowerment Zone : These are deductions on federal taxes due that are available to for-profit businesses operating in El Paso's federally designated Empowerment Zone. They come in the form of wage credits of up to $3,000 for each employee that is a resident of the EZ, increased deduction on equipment depreciation and work opportunity tax credits for hiring targeted disadvantaged groups as identified by the Texas Workforce Commission. The following items are types of credits and deductions - EZ Wage Credit, Work Opportunity Tax Credit (WOTC), Welfare-to-Work Federal Tax Credit, Increased Section 179 Deduction - Forms 4562, Environmental Cleanup Cost Deduction (Brownfields), Empowerment Zone Facility Bonds, Qualified Zone Academy Bonds (QZABs), Nonrecognition of Gain on Sale of Empowerment Zone Assets, Partial Exclusion of Gain on Sale of Empowerment Zone Stock, New Markets Tax Credit, Low-Income Housing Tax Credit (LIHTC).