DEPARTMENT: Economic Development
DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Adoption of the City of San Antonio Tax Abatement Guidelines (Tax Abatement Guidelines) effective from January 1, 2015 through December 31, 2016, and amendment of the City of San Antonio Economic Development Incentive Fund Guidelines (EDIF Guidelines).
SUMMARY:
Staff is requesting City Council action on the following items: (A) an Ordinance adopting the Tax Abatement Guidelines; and (B) an Ordinance approving the amendment of the EDIF Guidelines.
BACKGROUND INFORMATION:
Since 1989, Chapter 312 of the Texas Tax Code has given municipalities the authority to offer tax abatements. City Council approved the current Tax Abatement Guidelines on December 13, 2012, which are effective from January 1, 2013 through December 31, 2014. State law requires the adoption of new Tax Abatement Guidelines every two years.
The EDIF was established by City Council in 2004 to be used to attract new companies and help local companies expand. City Council adopted the current EDIF Guidelines on June 21, 2012.
Using the tax abatement program, the City can offer a company up to a 100% tax abatement on real and personal property improvements for up to 10 years based on a company reaching contractual milestones such as job creation and retention, high wages, and capital investment at a project site.
The proposed Tax Abatement Guidelines sets forth the eligibility criteria for projects seeking a tax abatement to include investment, jobs, and wages, targeted industries and targeted locations. City Council adopted targeted investment areas (ICRIP), which created targeted areas for economic development financial incentives, including tax abatements. The proposed Tax Abatement Guidelines retain the focus on investment and job retention/creation in the ICRIP, as well as on targeted industries.
Projects located in the ICRIP or in a targete...
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