Staff Directory

Tax Incentives

Tax Incentive Programs

Property Tax Abatement

Chapter 312 of the Texas Tax Code allows the City to grant a tax abatement on the value added to a particular property on account of a specific development project that meets the eligibility requirements set forth in the City of Fort Worth Tax Abatement Policy.   A tax abatement is the full or partial exemption from ad valorem taxes on eligible real and personal property for a period of up to ten years.  

The City of Fort Worth makes decisions about tax abatements on a case-by-case basis through a process of application and negotiation with a company.  For more information about tax abatements offered by the City of Fort Worth, click here.

Chapter 380 Economic Development Program Grants

Economic Development Program Grants are made in accordance with Texas Local Government Code 380. This chapter of the Texas Local Government Code authorizes Texas municipalities to provide assistance for economic development projects. The purpose of these grants is to reimburse private developers for the range of expenses that may contribute to a financing gap yielding projects financially infeasible. Unlike tax abatements which are limited to 10 years, Chapter 380 grants do not contain a durational limitation and agreements can extend beyond ten years. A city may provide a Chapter 380 grant in the form of a municipal sales or property tax rebate.

 Fort Worth has historically offered Chapter 380 rebate programs ranging in length from 10-20 years.

Enterprise Zone Program

The Enterprise Zone Program is an economic development tool for local communities to partner with the State of Texas to promote job creation and capital investment within the State.  Approved projects are eligible to apply for state sales and use tax refunds on qualified expenditures at the business site.  The level and amount of refund is related to the capital investment amount and number of jobs created.

Level of Capital Investment Max Number of Jobs Allocated Max Potential Refund Max Refund Per Job Allocated

$40,000 to $399,999

10

$25,000

$2,500

$400,000 to $999,999

25

$62,500

$2,500

$1,000,000 to $4,999,999

125

$312,500

$2,500

$5,000,000 to $149,000,000

500

$1,250,000

$2,500

$150,000,000 to $249,999,999

500

$2,500,000

$5,000

$250,000,000 or more

500

$3,750,000

$7,500

Approved projects in Enterprise Zones must commit to create or retain permanent jobs, make capital investment in the zone, fill at least 25 percent of its new jobs with individuals who are economically disadvantaged or residents within the zone, and maintain an agreed upon number of jobs for at least three years.

For more information, contact:  State of Texas Comptroller’s Office.

Renewable Energy Incentives

Texas extends a franchise tax exemption to manufacturers, sellers, or installers of solar energy devices.  The state also permits a corporate deduction from the state’s franchise tax for renewable energy sources.  Business owners may deduct the cost of the system from the company’s taxable capital or deduct 10 percent from the company’s income.  Wind energy can qualify under the term “solar energy” for the exemption and deduction.

For more information, contact:  State Energy Conservation Office.

Manufacturing Exemptions

Leased or purchased machinery, equipment, replacement parts, and accessories that have a useful life of more than six months, and that are used or consumed in the manufacturing, processing, fabricating or repairing of tangible personal property for ultimate sale, are exempt from state and local sales and use tax.

Texas manufacturing companies may be exempt from paying state sales and use tax on electricity and natural gas used in manufacturing, processing, or fabricating tangible personal property.

Freeport Tax Exemption

The City of Fort Worth offers a Freeport Exemption for various types of goods that are detained in Texas for a short period of time (175 days or less).  Freeport property includes goods, wares, merchandise, ores and certain aircraft and aircraft parts.  Freeport property qualifies for an exemption from ad valorem taxation if it is detained in the state for 175 days or less for the purpose of assembly, storage, manufacturing, processing or fabricating.

The Freeport Tax Exemption is especially beneficial to businesses with high-value inventories and multi-state distribution systems. It allows them to store products without paying taxes, decreasing overall business expenses.

 Most locations in Fort Worth allow this exemption at all three taxing levels. This is known as "triple freeport" exemption.

Foreign-Trade Zones

Foreign Trade Zones (FTZs) are secure areas under the supervision of U.S. Customs and Border Protection and are considered outside the customs territory of the United States for the purposes of duty payment. The usual customs entry procedure and payment of duties are not required on the foreign merchandise unless, and until, it enters customs territory for domestic consumption, in which case the importer normally has a choice of paying duties on the original foreign materials or the finished product. There are multiple foreign- trade zones scattered throughout the industrial parks of Fort Worth. 

Customs Port of Entry

At Alliance Industrial Park there are:

  • On-site Customs and Border Protection
  • On-site Centralized Examination Station 

Tax Increment Financing

In the State of Texas, local governments can publicly finance structural improvements and infrastructure enhancements within “reinvestment zones.”  The tax increment is derived from the difference in appraised value between the year in which the reinvestment zone is established (base year) and each year the reinvestment zone is in existence.

At present, Fort Worth’s TIF zones include Downtown, the Texas Motor Speedway, Riverfront, Southside/Medical District, North Tarrant Parkway, Lancaster, the Trinity River Vision, Lone Star, Southwest Parkway, East Berry Renaissance and Woodhaven.