Local and State Incentives

Not only are both Palestine and the state of Texas committed to business development, employee recruitment and retention, its corporate and government leaders know that economic growth begins with affordability. Existing and emerging companies, as well as individual entrepreneurs and mid-sized concerns, can take advantage of a number of tax incentives, covering significant investment areas like natural gas and electricity, machinery and equipment. Enterprise Zones reward innovation. And a number of incentives exist for research and development, as well as continuing education.


Tax Abatement 

Download Tax Abatement Policy Application

Tax abatement on real and personal property improvements may be granted by all taxing entities except the local Independent School Districts.  The company must meet requirements associated with the value of capital improvements and either job creation or payroll increases maintained throughout the term of the agreement.  The City of Palestine will create a reinvestment zone and adopt a tax abatement agreement with companies meeting the following:

Tax Abatement Schedule I: Qualifications and Sliding Scale Rate

Abatement percentages will be awarded depending upon points collected in the following categories for new and expanding-industries:

Points        
Year 35 to 74 75 to 200 201 to 400 401 to 600
1 80% 100% 100% 100%
2 60% 70% 100% 100%
3 40% 50% 70% 70%
4 20% 50% 50% 60%
5   25% 25% 50%
6   0% 0% 25%
7   0% 0% 25%

More than 600 Points Negotiable.


Freeport

Freeport Tax Exemption Freeport property includes goods, wares, merchandise, and other tangible personal property acquired in Texas or brought into Texas and held here 175 days or less before being shipped out of the state. The property must be here for assembling, storing, manufacturing, repair, maintenance, processing, or fabricating purposes.

Freeport Tax Exemption is granted by the City of Palestine, Anderson County, Palestine ISD, and Westwood ISD. 


Sales Tax for Economic Development

Economic Development Sales Tax Incentives The Palestine Economic Development Corporation (PEDC) was created by the voters in 1998 to use the revenue generated by a 1/4 cent sales tax for economic development to encourage the creation and retention of jobs and capital investment in Palestine. The PEDC Board of Directors work with interested parties for the use of these funds as an incentive to locate or expand in Palestine. The amount and type of the incentive depends upon the economic impact of the project and the specific needs of the company. Incentive funds can be applied to costs associated with land or facility acquisition, facility construction, remodeling, infrastructure, training programs, moving expenses, etc. according to the terms of an economic development agreement between PEDC and the company.  The Board of Directors of PEDC have set a minimum capital investment of $500,000 and 5 jobs created as the minimum eligibility requirement for consideration of incentives.

Enterprise Zones

The Texas Enterprise Zone Program (EZP) is an economic development tool for local communities to partner with
the State of Texas to promote job creation and significant private investment that will assist economically distressed
areas of the state. As of July 2015, the Enterprize Zone Program has accounted for 979 projects with 405,473 jobs
(new and retained) and $74.1 billion in capital investment.