Incentives
The Denton Economic Development Partnership promotes the growth of Denton's economy by encouraging targeted development and redevelopment that expands and diversifies the tax base, creates quality jobs, enhances the quality of life for residents, protects human health and the environment and secures new customers for municipal utilities.
City of Denton Incentive Policies
To provide a framework for the consideration of the use of public resources to stimulate economic activity, the City has established policies to align the use of incentives with the City’s strategic growth areas and help ensure a positive return on investment for the community. Economic development incentives are negotiated on a case-by-case basis with new and expanding businesses subject to the qualifications, conditions, and requirements of the City of Denton’s Tax Abatement Policy, Chapter 380 Policy, and the Economic Development Strategic Plan, recommendation by the Economic Development Partnership Board and the approval of the Denton City Council.
Denton can create alternative or custom incentives using its authority under Chapter 380 of the Texas Local Government Code to make loans or grants of public money to stimulate business or commercial activity. The City may also take into consideration the expansion/redevelopment of existing businesses that create new or additional higher wage or knowledge-based jobs. The City may also consider other tax incentives and loans as authorized by law.
City of Denton Incentive Application
City of Denton Incentive Due Diligence Form
Denton County Incentives
Once a project is approved for a City of Denton tax abatement, it qualifies to apply for a Denton County tax abatement as well.
Incentive Programs
Denton Municipal Electric Economic Growth Rider & Rebates
The City of Denton owns its own electric company, Denton Municipal Electric. The City can offer qualifying new and expanding commercial customers a five-year sliding scale reduction to their monthly demand billing if they reach 1MW of electric demand.
In addition, the GreenSense Incentive Program rewards customers in good standing who perform qualifying energy-efficiency improvements in their homes or businesses.
Downtown Reinvestment Grant
Denton promotes its unique character and culture through the redevelopment and revitalization of its downtown area. The Downtown Reinvestment Grant is a reimbursement program to assist downtown projects with façade improvements, roof and foundation repair, new signs and awnings, reimbursement of impact fees and utility upgrade costs.
Foreign Trade Zone #39
Denton County is a pre-approved FTZ under the U. S. Foreign Trade Zones Board’s Alternative Site management framework under the Dallas/Fort Worth FTZ #39. Any business located in Denton County is eligible for an expedited FTZ zone status process.
Skills Development Fund
The Skills Development Fund provides site-specific, customized training opportunities for Texas businesses and their employees to increase skill levels and wages of the Texas workforce. Up to $2,000 per employee is available for technical training.
Freeport Tax Exemption
Denton is a triple freeport zone, with Denton County, the City of Denton and the Denton Independent School district participating in inventory tax exemptions for certain products shipped in and out of state in 175 days.
Active & Expired Incentives
The City of Denton has entered into a number of economic development incentive agreements since the City's incentive program was initiated in 1999. These agreements take the form of tax abatement agreements authorized under Chapter 312 of the Texas Tax Code and grants authorized under Chapter 380 of the Local Government Code.
Further information about expired and active incentives can be found on the City’s Economic Development Transparency Stars page here.
The Transparency Stars program recognizes local government entities that provide online access to important financial data. Denton is one of 200 cities to be awarded the Economic Development Star.
If you have any questions about a specific incentive, please email the City of Denton Economic Development Department or call 940-349-7776.
Texas Enterprise Zone
The Texas Enterprise Zone Program is a state sales and use tax refund program designed to encourage private investment and job creation in economically distressed areas of the state. Companies approved for Enterprise Zone designations are eligible to apply for refunds of the state sales and use tax they have paid during the designation period on qualified expenditures, up to their maximum allowable refund.
