If you own a small business in Texas, you are likely familiar with the Chapter 313 incentive. This is a program that is designed to bring and keep new businesses in the area. But what is it, and how can it help your business?
There are many uses for this incentive. But the primary purpose is to recruit businesses and jobs.
This article will explain what a Chapter 313 incentive is, how it works, and the greatest examples. Keep reading to learn more!
What is Chapter 313 Incentive?
It is a tax incentive program in Texas that offers financial incentives and abatements to certain businesses. Companies that may qualify for the incentives will receive a school district property tax exemption. This allows them to keep a portion of their business-generated tax dollars, usually for 10 years.
The goal of the program is to spur economic development and job creation. These incentives can make significant upgrades to their operations or facilities.
Who Qualifies for the Incentives?
Companies must meet certain criteria to qualify for the incentives. The businesses must be located in certain economically depressed counties/cities. Also, they must invest at least $300,000 in capital infrastructure within the county.
They must keep a certain number of jobs and pay high wages. Qualified businesses must complete an application with proper documentation. Then present it to the Texas Comptroller of Public Accounts to apply for the incentives.
How to Apply for Incentives?
To apply for Chapter 313 Incentives, a company must first meet the requirements to receive the incentive. They must submit a written application to the Texas Comptroller’s office and the local Texas Appraisal District.
They must receive a finding of special benefits from a local school district or public school. The Texas Comptroller’s office will then review the application. They will decide whether or not the company is eligible for Chapter 313 Incentives.
Chapter 313 Incentive Projects
Examples of these projects can include projects related to renewable energy production or research such as the following:
- infrastructure improvements
- spaceport facilities
- industrial projects
- processing projects
These projects are utilized to attract businesses and investments, create jobs, and spur economic growth.
Benefits of Chapter 313 Incentives
This incentive is beneficial for businesses because it allows them to become more competitive. It creates jobs and contributes to the local economy. Additionally, it can improve the quality of life in the area and contribute positively to the community.
Also, it allows businesses to take advantage of lower operating costs. It provides a more rewarding work environment and employee package. It provides tremendous tax benefits to businesses and has already been successfully used by many industries.
Making Smart Choices With Chapter 313 Incentives
Chapter 313 incentives are a great way for businesses to create jobs and receive tax abatement. Businesses under the incentive can benefit by receiving financing and monetary aid. If you are looking to expand your business, it may be worth considering this incentive.
To learn more, visit the Texas Comptroller of Public Accounts website and explore the resources Chapter 313 has to offer.