Market Data :
Development Incentives

Greater Greenspoint Tax Increment Reinvestment Zone

Greenspoint is known for its partnerships, and business development is no exception. The Greenspoint District has the expertise and contacts necessary to offer valuable developer incentives.

The District made great strides toward adding value to doing business in Greenspoint when it worked to create Greenspoint's Tax Increment Reinvestment Zone (TIRZ). The Zone is a powerful vehicle developers are now using to maximize their investment in this area.

The Greater Greenspoint Tax Increment Reinvestment Zone facilitates development and redevelopment projects, and their project plan expects to invest $250 million over a 30-year period, which will increase the overall value of Greenspoint commercial property. The Zone provides incentives for developers to build or redevelop in Greenspoint and reimburses them for the public amenities they include in their projects. Streets, parks, public plazas, lighting, landscaping and streetscaping are all crowning touches to a development that may be reimbursable. For more detailed information on TIRZs and how they work, click here.

Freeport Exemption

Another developer incentive is the Freeport Amendment to the Texas Constitution. This tool allows local taxing authorities the option to exempt from ad valorem property taxes certain tangible personal property transported out of the state of Texas within 175 days. In order to qualify, these personal property items must be detained in Texas for assembling, storing, manufacturing, fabrication, or for processing purposes. The items must leave the state of Texas within 175 days from the date that they were acquired or brought into Texas.

The law provides that counties, cities, towns, school districts and junior college districts may opt to continue to tax these items. Aldine and Spring independent school districts currently offer the exemption. The city of Houston offers the exemption, but Harris County does not.

You can find additional information on Freeport and other exemptions from the Harris County Appraisal District.

Malcolm Baldridge Foreign Trade Zones

A foreign trade zone is an area located in or adjacent to a U.S. Customs port of entry. Merchandise placed in the zone is considered to still be in international commerce and outside U.S. Customs territory. No customs entry is necessary to admit such merchandise, and it is exempt from customs duties, excise taxes and most import restrictions until it is moved from the zone into U.S. commerce. All foreign goods brought into the zone are also exempt from local property taxes. Likewise, domestic goods housed in a zone and destined for export are also exempt from local property taxes. However, the land that comprises the zone and buildings and fixed assets within the zone are still taxable. Houston's foreign trade zone consists of 13 general-purpose sites and 11 sub-zone sites in Harris County.

For more information on Foreign Trade Zones, visit the Port of Houston Authority web site.

Tax Abatements

The Houston area offers a variety of incentives to support economic development. Companies with new, expanding, and relocating operations may be eligible for property tax abatements. In order to be eligible, 25 jobs must be retained or created, the investment must be $1 million or higher and the project must be competitively sited. For additional information, visit the Harris County Appraisal District web site.