The Development Corporation offers business planning expertise to the business community of Bastrop. The preparation of a business plan is one of the most critical steps to opening a business or expanding an existing business and it is one of the steps most often neglected. This service is available at no charge.

A business plan is critical to making good business decisions and obtaining the best possible financing. The plan will include long range cost and revenue projections, identification of a market and a marketing plan as well as a review of management talents and personnel requirements.

The Development Corporation maintains a current file of industrial property and buildings available in Bastrop. Client’s needs can be reviewed and matched to available properties. In addition, zoning and regulatory requirements for the business can be evaluated and matched to those properties. The Development Corporation can serve as an advocate when a zoning or permitting change is required.

In some cases the Development Corporation can assist a manufacturer in the delivery of adequate infrastructure or site preparation. This assistance is based on projected employment and salary levels of the company as well as the company’s projected increases to property tax values.

The Development Corporation was formed by a vote of the public under the State’s economic development legislation and is incorporated as a non-profit corporation under Article 7A of that legislation. As such, the Corporation has developed an assistance program to encourage primary industry location and expansion in Bastrop.

The program includes authority to make loans to companies expanding or locating in Bastrop. Loans generally are at published NY Prime rates or below and are based on the company’s commitment to create new employment opportunities for Bastrop citizens and expand the tax base of the community.

Based on the company’s commitment, this assistance can come in the form of:

• Direct loans to the company for the purchase of land or building.
• Participation with a financial institution for the purchase of land or building.
• Assisting with a workforce training program developed by a company.
• Assistance is available to manufacturing and distribution firms desiring to locate in Bastrop and to existing firms wishing to expand their current operations.
• Commitments for assistance can be made in a timely fashion - generally, within sixty days from receipt of the application and details of the company’s business planning. All assistance is secured by commitments from the company and sufficient collateral to protect the taxpayer’s investment. Assistance must be approved by a vote of the Development Corporation’s Board and approved by the Bastrop City Council.

The Development Corporation operates on funding secured by a 1/2 cent sales tax levy. Qualifications for assistance are predicated on the Corporation's fund availability from year to year.

The City of Bastrop can provide tax abatements on value added to the real property or new business personal property to encourage your business investment and/or expansion in the city, subject to city council approval.

The Bastrop Economic Development Corporation can prepare a tax abatement proposal for you maximizing all potential tax incentive benefits. The level and term of tax abatement/tax phase-in varies depending on the area of the city and the type of business service you provide.

WHAT ARE TAX ABATEMENTS?

The Texas legislature has provided local governments with tax abatements as a tool for promoting economic growth. The concept of tax abatement is simple: To entice businesses to build new facilities or improve existing ones by offering property tax exemption for those improvements.

A tax abatement program begins when a city or county designates a particular area as a Reinvestment Zone / or Enterprise Zone in areas where private investment will promote economic development and the public good. A property owner within one of the zones who makes specified improvements receives and exemption for all or part of the value of the improvements.

The city must initiate an abatement program, but the process also requires the cooperation of the appraisal district and other taxing units in order to receive tax abatements from the city or county.

WHAT DOES A TAX ABATEMENT DO?

The primary purpose of a tax abatement, or tax phase-in, is to attract private investment and to create jobs. However, in an effort to protect their investment and to help ensure a fair return, taxing entities generally establish economic threshold criteria.

• Tax abatement is a business favorite because property tax savings help offset certain business expansion or relocation cost.
• Tax abatements lower the tax burden in companies and could create jobs without burdening local infrastructure.
• Wise use of tax abatements keep growing companies in place and attract new one's.
• Tax abatements often bring rich economic dividends.
• Tax abatements should create new wealth in the economy which supports workers, schools and companies alike and then phase-back onto the tax rolls.

INCENTIVES

Qualified Business - This business commits to hire and maintain at least 25% of new employees from the Enterprise Zone residents or economically disadvantaged persons.

Enterprise Project - The enterprise project is a qualified business that has been granted a five year state designation after having been nominated by the governing body having jurisdiction over the Enterprise Zone.

The qualified business is entitled to a one-time sales tax refund of up to $5,000 of taxes paid for machinery and equipment for use in the Enterprise Zone. To qualify, the business must create 10 jobs and retain those jobs for three years. The refund is based on $500 for each new job retained. They are also entitled to a one-time franchise refund of up to $5,000 based on $500 for each new job created and retained for a three year period.

The enterprise project is entitled to up to $1.25 million in sales tax or use tax refund paid for building materials, machinery and equipment for use in the enterprise zone at a rate of no more than $250,000 per year for five years. The refund is based on $2,000 per new permanent job created. Franchise tax reductions are also provided to state designated enterprise project. The actual refund will be calculated by the State Comptroller's Office based on whether a 50% reduction of increase or apportioned taxable capital or 5% apportioned earned surplus income as calculated on the franchise tax report.

• Property Tax Abatement
• Tax Increment Financing
• Hotel Occupancy Tax
• Ad Valorem Tax
• Franchise Fees
• Sales Tax
• Capital Improvement Grants
• Revolving Loan Fund

We offer assistance to businesses that would like to expand their existing operations or want to relocate or expand their out-of-state or out-of-country operations into the City of Bastrop.