Denton Economic Development
414 Parkway
P.O. Box 1719
Denton, TX 76202-1719
940.382.7151
940.243.9695 metro
940.382.0040 fax

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Incentives

Local Incentives

Tax Abatement

The City of Denton adopted a tax abatement policy that is available to new and expanding businesses, corporate office headquarters and distribution centers. History and philosophy of the firm, project specifications, and the potential impact on the community are factors that are considered during the application approval process. Projects must meet the Qualifying Criteria. Each project is negotiated on a case-by-case basis and must be approved by the City Council.

Qualifying Criteria:

New and expanding businesses
Corporate office headquarters and distribution centers
Minimum capital investment required is $5 million
History and philosophy of the firm, project specifications, and the potential impact on the community are factors that are considered during the application approval process

Abatement guidelines:

Abatements begins at 25% and can range up to 50% based on additional factors
Each project is negotiated on a case-by-case basis and must be approved by the City Council.
The total tax abatement may not exceed 50% annually for ten years.
No applicant may receive credit for more than five of the additional factors.

Standard length of abatement according to the assessed real property value of improvements and personal property:

Value of Structure & Personal Property (in millions)	Standard Years of Abatement
$100	10
$80	9
$65	8
$50	7
$35	6
$20	5
$15	4
$10	3
$5	2

Additional Factors (5% each):

The project will occupy a building that has been vacant for at least two years;
The project will create high-skilled, high-paying jobs as documented by the applicant (A breakdown of number of jobs per job classification and entry level wage per classification will be used to determine eligibility);
The project will involve a significant relationship with one of the two universities in Denton;
At least 25% of the new jobs created by the project will be filled by Denton residents;
The project will provide knowledge-based jobs (at least 25 percent of jobs require college bachelors degree at entry level);
The project will donate significant public art to the community (To qualify, donation must be approved by Greater Denton Arts Council and City Council);
The project will donate significant materials/equipment to the public schools (to qualify, donation must be approved by DISD and City Council);
The project will create improvements to the Denton Central Business District;
The project will result in the formation of a business park;
The project is an international or national headquarters facility;
The project is a medical manufacturing or research facility.

Denton Tax Abatement Application Form

Denton Municipal Electric Industrial Development Rider

Denton's electric utility service provider is Denton Municipal Electric (DME). New and existing industrial and commercial service customers may receive a reduction from DME in their demand billing.

Qualifying Criteria:

New and existing industrial and commercial service customers
Customers whose electric service represents demand not previously served by the City at any location in the City's service area in the last 12 months
Metered demand is in excess of 225 KVA or 200 KW per month

The monthly demand billing will be adjusted in accordance with the following table:

Reduction to Billing or System Demand
Time Period	Reduction to Demand
Year 1	50%
Year 2	40%
Year 3	30%
Year 4	20%
Year 5	10%

Triple Freeport Tax Exemption

The City of Denton, Denton County and Denton Independent School District passed the Freeport Amendment, which exempts certain business personal property from ad valorem taxes. Goods, wares, merchandise, other tangible personal property, ores (other than oil, natural gas and other petroleum products) are exempt from ad valorem taxation if the property is (1) used for assembling, storing, manufacturing, processing, or fabricating and (2) is shipped outside the state no longer than 175 days after it is acquired.

Freeport Tax Exemption Form

Infrastructure Assistance

The City of Denton promotes economic growth through a program of infrastructure financing. This program is available to industrial, distribution, and corporate headquarter prospects which have committed to building facilities in Denton. Commercial and retail prospects, which sell a majority of their goods or services to individuals or businesses outside of Denton, may also qualify. An economic analysis is performed on each project to determine project costs and benefits over a five-year period. The results of the analysis are an important factor in the project approval process.

Infrastructure Assistance Application Form

Industrial Revenue Bonds

The City of Denton has established a nonprofit industrial development corporation authorized to issue tax-exempt or taxable revenue bonds under Texas' Development Corporation Act of 1979. Eligible projects must promote the development or expansion of manufacturing facilities in Denton. Bond proceeds may be used for land, depreciable property, inventory, raw materials, finance charges, and research and development costs.

Grants and Loans (Chapter 380)

Chapter 380 of the Local Government Code provides very significant legislative authority for Texas municipalities in the area of economic development. When a city wants to provide a grant or a loan of city funds or services in order to promote economic development, it generally cites its powers under Chapter 380. Cities have utilized the provisions under this law to provide a myriad of incentives that have drawn businesses and industries to locales throughout Texas. This statute basically allows the provision of loans and grants of city funds, as well as the use of city staff, city facilities, or city services at minimal or no charge.

State Incentives

The Texas Office of the Governor, Economic Development & Tourism assists relocating businesses by linking them with other programs that are offered through agencies statewide. Listed below are some additional economic development programs:

Texas Enterprise Fund

The Texas Enterprise Fund can be used for a variety of economic development projects, including infrastructure development, community development, job training programs, and business incentives. These funds are used primarily to attract new business to the State of Texas or to assist with the substantial expansion of an existing business as part of a competitive recruitment situation.

Texas Enterprise Fund Application Form

Skills Development Fund

The Skills Development Fund is an innovative program created to assist Texas public community and technical colleges in financing customized job training for their local businesses. Average training costs are $1,000 per trainee; however, the benefit may vary depending on the proposal. North Central Texas College has worked in conjunction with state officials on the skills development fund program and would be willing to submit an application on the project's behalf.

In-State Tuition for Employees

The Economic Development and Diversification In-State Tuition incentive may be offered to qualified businesses that are in the decision-making process to relocate or expand their operations into Texas. The incentive allows employees and family members of the qualified businesses to pay in-state tuition fees if the individual files with a Texas institution of higher education. Without this incentive designation, a student must reside in Texas for a 12-month period to be entitled to pay the tuition fees of a Texas resident.

Pollution Control Property Tax Exemption

A Texas constitutional amendment providing an exemption from property taxation for pollution control devices, equipment or land for air, water, or land pollution control was approved in 1993. This program provides an exemption of real and personal property tax for the life of the eligible equipment.

The individual or company seeking the exemption must submit a use and determination permit to the Texas Commission on Environmental Quality (TCEQ). That positive use determination is then provided to the local appraisal district, which must accept the TCEQ's decision and grant the property an exemption from property taxes.

Pollution Control Property Tax Exemption Application Form

Texas Manufacturing Assistance Center

The Texas Manufacturing Assistance Center (TMAC) is part of a national network of Manufacturing Extension Partnerships supported by the National Institute of Standards and Technology. TMAC helps identify problems in manufacturing processes, recommends solutions, and helps execute projects. TMAC field engineers operate out of offices located nearby to provide hands-on assistance to firms seeking to upgrade their operations to become more competitive.

TMAC services include assessment and benchmarking of existing operations; technical awareness projects (seminars, workshops, etc.); technical assistance projects including specific technology, engineering or management solutions (e.g., TQM, ISO 9000, Process Improvement, Inventory Control and Management, Plant/Equipment upgrades, CAD/CAE/CAM); and Deployment Group Management to assist sets of companies with common problems implement common solutions.

Download the Incentive Brochure