Tax Abatements

The growth, sustainability and diversity of a regional economy are goals that are critical to the long-term prosperity of a community and its citizens.  These guidelines demonstrate the commitment of the Commissioners Court to attract, retain and expand industry while growing the tax base, increasing employment with meaningful wages and creating new wealth opportunities in the region.

Documents:

Requirements

Minimum Investment
Combines Real & Personal Property Investment$25 Million
OR 
New Full-Time Jobs300
Potential Tax Abatement*40% Real or Personal Property

*The Commissioners Court may consider factors such as industry, geographic location, occupations, wages and blight mitigation when evaluating a potential tax abatement.

Living Wage: in order to be eligible for a tax abatement, 100% of a company’s new and existing employees at the project location must earn no less than the Living Wage throughout the full term of a tax abatement agreement. This wage is based on the poverty level for a family of four, as determined annually by the U.S. Department of Health and Human Services. This wage is indexed annually and subject to change without notice.

70% Wage: in addition to the Living Wage, within 1-year of the project location opening, 70% of all new and existing employees must earn a cash wage at or exceeding the 70% hourly wage requirements. This median wage is compiled by the Bureau of Labor Statistics Occupational Employment Survey and is published annually by the Texas Workforce Commission. This wage reflects the annual median hourly wage for all industries in the San Antonio Metropolitan Statistical Area and is updated annually.  This wage is indexed annually and subject to change without notice.

Wage Requirements
Living Wage70% Wage
$12.07$16.29


Workforce Development Requirement: Companies receiving tax abatements must participate in at least one SA Works Experiential Learning Opportunity, which may include: Job Shadow Day, Summer High School Internships, or an Educator Externship (unless it is mutually agreed that such a program would have a negative impact on the student(s)/ intern(s) or the company.).

Local Hire Requirement: regardless of project size, companies must hire at least 50% of its new employees at the project location from residents of the County of Bexar.

Employee Health Care Benefits: companies must provide each full-time person employed at the project location and his or her dependents with access to affordable health insurance within one year from the date of employment.

Application Fee: companies must submit a non-refundable application fee along with its application as follows:


Application Fee
Companies without Bexar County Operations$1,000**
Companies with existing Bexar County Operations$500**

**If a proposed project’s investment, job creation, wages or construction schedule change significantly following the submittal of a completed application and payment of the fee, or if an agreement has not been finalized within one calendar year following application submission, the County of Bexar may close the pending application.  Any submission of a new or subsequent application following such a closing will require another accompanying application fee.

Agreement Amendment and/or Assignment Fee: companies must submit a $1,000 non-refundable amendment and/or assignment fee along with its request. Such amendments and assignments are at the sole discretion of the County.

Timing: in order to be eligible for consideration, companies must submit an application prior to commencement of the project. No tax abatement for a proposed project will take effect until a tax abatement agreement has been approved and fully executed by Commissioners Court. Additionally, the timing and acquisition of personal property related to this project is crucial and will impact its eligibility for abatement. Personal property acquired before Commissioners Court executes a tax abatement agreement is NOT eligible for an abatement.

Recapture of Abated Taxes: tax abatement agreements provide for recapture of abated property taxes in the event contract terms and requirements are not met. These recapture provisions will survive any subsequent assignment of an agreement.  Multiply the amount of taxes abated by the percentage in the recapture period.


6-Year Term10- Year Term
Termination of AbatementRecaptured TaxesTermination of AbatementRecaptured Taxes
During Abatement Period100%During Abatement Period100%
Year 1 of Recapture Period100%Year 1 of Recapture Period100%
Year 2 of Recapture Period75%Year 2 of Recapture Period80%
Year 3 of Recapture Period50%Year 3 of Recapture Period60%
Year 4 of Recapture Period25%Year 4 of Recapture Period40%

Year 5 of Recapture Period20%
Year 6 of Recapture Period10%


Projects not eligible for a tax abatement: regardless of the investment or jobs created, the following types of projects are not eligible for a tax abatement: 

  • Hotel or motel facilities
  • Multi-family “for sale” housing/mixed use projects
  • Projects over the Edwards Aquifer Recharge Zone
  • Projects that may have a potentially negative impact on military missions
  • Retail stores, retail centers, or businesses that competitively provide goods or services to consumers
  • Data centers
  • Projects that do not meet the Wage Requirements.

Investment Areas

Investment Areas

10-year term: projects located south of U.S. Highway 90, within Loop 410 or south of I-35.  Also eligible for the 10-year term are projects within the South Texas Medical Center area, the boundaries of the San Antonio International Airport or the Texas Research Park.

6-year term: projects located north of U.S. Highway 90, outside of Loop 410 or north of I-35 (to the extent not defined as a 10-year term area).

Areas not eligible for tax abatement: projects located in whole or in part over the Recharge Zone.

Recharge Zone: that area where the stratigraphic units constituting the Edwards Aquifer crop out, including the outcrops of other geologic formations in proximity to the Edwards Aquifer, where caves, sinkholes, faults, fractures, or other permeable features would create a potential for recharge of surface waters into the Edwards Aquifer. The Recharge Zone is identified as that area designated as such on official maps located at the Edwards Aquifer Authority and at Title 30, Texas Administrative Code § 213.22. See map in Appendix A. (From Edwards Aquifer Authority rules, Chapter 713.1(45).)

San Antonio International Airport Area: located in the north central portion of the city and is generally bounded by Wurzbach Parkway to the north, U.S. 281 to the west, Loop 410 to the south and Wetmore Road to the east.

South Texas Medical Center Area: the area bound by Louis Pasteur to the south, Babcock Road to the west, Fredericksburg Road to the east, and Huebner Road to the north.

Texas Research Park: 1,236-acre site located in west Bexar County and connected to U.S. Highway 90 and Potranco Road (State Highway 1957), which supports the development of a world-class center of bioscience research and medical education.


Freeport Tax Exemption

The Freeport Exemption is a personal property tax exemption for goods that aredetained in the State for 175 days or less. Locally, the County of Bexar, the City of SanAntonio, the Judson ISD, and the San Antonio ISD offer the exemption to companiesthat deal with goods-in-transit or inventories used in the manufacturing process.

The key qualification requirements are that the property must be in Texas for thepurpose of assembling, storing, manufacturing, processing, or fabricating and that theproperty must exit Texas within 175 days after the acquisition or import of the property.

Freeport goods consist of personal property that is “acquired in or imported” into Texasto be forwarded to a location outside of Texas. However, there is no requirement thatthe initial acquisition or import is for the purpose of export. If a taxpayer acquires orimports the property under the belief that it will remain in Texas, but subsequently shipsthe property out of the state, then the property could qualify as Freeport. The initialintent is not determinative of qualification. Freeport property includes: goods, wares,merchandise, and certain aircraft and aircraft parts. 

To apply, or for more information, please contact our Economic Development team at (210) 335-0667.