Local
SALES TAX REFUND
If your company locates in the New Braunfels Enterprise Zone and qualifies as an Enterprise Project, you could qualify for up to $2,500 per job in sales tax refunds for qualified equipment purchases & building construction. Both local and state sales tax would be utilized in the calculations.
FREEPORT EXEMPTION
New Braunfels has “Triple Freeport Exemption” status via the City (New Braunfels), County (Comal) and local school district (NBISD) – which exempts taxation on various types of goods that are detained in Texas for a short period of time (no less than 175 days). The exemption covers good, wares, merchandise, ores and certain aircraft and aircraft parts, but does not include oil, natural gas or petroleum products. More information can be found at the Comal Appraisal District or download the form
50-113 from the Texas State Comptroller’s Office.
FRANCHISE TAX DEDUCTION
As an Enterprise project in New Braunfels, your company could be eligible to deduct from its taxable capital 50% of its capital investment.The deduction may be taken on each franchise tax report based on your fiscal year.
After apportionment, deductions from both capital and earned surplus are allowed for enterprise zone investments.The state tax rate on capital assets is $2.50 per $1,000 of taxable capital and the earned surplus tax rate is 4.5%.Specifically, enterprise zone projects are eligible for a deduction from taxable capital that equals to 50% of the project's capital investment in the enterprise zone.The allowable deduction from taxable earned surplus is 5% of the qualified investment.
SCHOOL PROPERTY TAX REFUNDS
In 2001 during the 77th Legislative session House Bill 1200 sponsored by Congressman Brimer provided relief from school property taxes for large capital investments.The law applies only to a corporation or limited liability company that is subject to payment of state franchise taxes.In addition the company must create at least twenty-five new permanent jobs, pay at least 80% of a group health benefit plan for its employees and pay at least 110% of the county average weekly wage.
INDUSTRIAL DEVELOPMENT BOND FINANCING
Governed by the Texas Development Corporation Act of 1979, political subdivisions are authorized to create non-profit lending corporations to provide tax exempt financing for commercial, industrial and manufacturing projects.
The Comal County Industrial Development Authority acts as issuer for tax-exempt industrial revenue bonds.A number of projects have been approved and bonds sold to finance projects in New Braunfels.
NEW BRAUNFELS UTILITIES IMPACT FEE WAIVER POLICY
In order to promote industrial development and economic growth in New Braunfels and its surrounding area, New Braunfels Utilities has formulated an Impact Fee Waiver Policy.The waiver shall be available to manufacturers and service industries which own qualifying real and personal property and are willing to execute a contract with New Braunfels Utilities for the waiver of impact fees designed to promote long-term significant positive economic impact to the community.
A manufacturer or service industry requesting a waiver must apply for water or sewer service and agree to expend a designated sum of money or provide a certain number of jobs according to the scoring formula in use by the City of New Braunfels and Comal County for property tax abatement.
ECONOMIC DEVELOPMENT CORPORATION FINANCING
The City of New Braunfels has a sales tax for economic development.A corporation has been established by the City Council. They will be able to consider the following for qualified projects:
Business Development: Direct Loans, Guarantees, Interest Subsidies, Grants, Relocation and Moving Expenses, Subsidized Land & Building costs, Equipment purchases, GAP financing.
Facility Development: Building construction, Existing Building expansion and upgrades, Industrial Land Development.
Infrastructure Development: Utility Extensions to Industry, Utility Development to key industrial areas,Infrastructure upgrade, rail spurs for industry.
Workforce Development: Job Training Costs, Equipment for Training Programs, coord. with ISDS, supplement Skills Development Fund grants, Technical/Vocational center.