POTENTIAL BUSINESS LOCATION ASSISTANCE PROGRAMS
(All potential incentives are subject to both the City of San Angelo Development Corporation Board of Directors and the San Angelo City Council approval. Incentives are not automatic and are based on specific North American Industry Classification System (NAICS) codes and may not be available to all companies.)
Tax Abatements
The City of San Angelo and Tom Green County may provide personal property and real estate tax abatements for periods of up to 5 years. Abatement levels range from 10% to 100% and are determined by the number of new jobs created and/or the amount of new capital investment in the community. All companies receiving the abatements must meet the minimum job creation level of 5 new jobs and no less than $250,000 in new valuation in either real estate and/or personal property. Businesses eligible for the tax abatements include manufacturing, warehousing/distribution centers, and telecommunications services.
Freeport Exemptions
All four taxing districts within San Angelo (City, County the San Angelo Independent School District and Veribest ISD) may provide 100% tax exemptions for inventory and work-in-process that will be shipped outside of the State of Texas and kept on site for less than 175 days. San Angelo is one of the few cities in Texas where all three taxing districts provide this incentive.
Tom Green County/San Angelo Enterprise Zone – The Zone was created by the Texas Department of Economic Development in 2003. Unlike the local tax abatement program, all businesses are eligible for designation as a “project”. However, there are a limited number of projects selected statewide, so job creation and quality are important considerations for each project. Companies that are approved as designated projects within the zone are eligible for sales tax refunds of up to $2,000 per new employee over the 5-year period. The total amount of tax refunds is capped at $1,250,000 per company over the 5 years. The company receiving the benefits of the program must agree to hire 25% of their new employees from within the zone.
Sales Tax for Economic Development
San Angelo voters approved a ½ cent increase in the sales tax for community and economic development projects. The City of San Angelo Development Corporation (COSADC) has established priorities for manufacturing, warehousing/distribution, telecommunications services, data processing and home or regional offices. Loans and grants are available for buildings, land, equipment, training, site infrastructure, moving expenses, lease subsidies, and other expansion costs. Minimum job and investment thresholds are required to qualify. Job retention may also be considered. The project must meet state mandates NAICS codes and “a definition of primary employees.” Payroll guidelines are also considered.
Depending upon the wages and types of jobs created, the San Angelo Development Corporation (COSADC) may provide assistance from $1,000 to $5,000 per new job. High-skill/high-wage jobs may carry a higher incentive level. New and existing companies are eligible.
Industrial District Designation
A company that wishes to locate outside of the city limits of San Angelo and still avail themselves to the city services may apply to the City of San Angelo for designation as an industrial district, with the expectation that they will be annexed at some future date. These agreements typically last for 7 years, but may be extended. During this period of time, they are outside of the city limits, the company does not pay city personal property tax (inventory and equipment), but they do pay a negotiated percentage of real estate tax they would normally pay. Past agreements were 10% in year one, 20% in year two, etc. The costs of services that the company wishes to obtain from the City are negotiated.
Other Assistance
San Angelo’s public and private sectors work together to help create an environment for new job creation, capital investment with a goal of helping industrial companies succeed and thrive. The San Angelo Chamber of Commerce can provide coordination of services such as incentives, training, financing arrangements, find available land and facilities, and refer business owners to helpful services provided by Angelo State University, Concho Valley Workforce Solutions, Howard College West Texas Training Center, Downtown San Angelo, Inc., the Small Business Development Center and the Business Factory startup incubator.