The community of Seguin and the State of Texas are both business-friendly and are committed to the growth of industry and jobs.  The Seguin Economic Development Corporation works with businesses to find the best incentive plan for both the business and the community.

Local Incentives

Seguin Economic Development Corporation

The Seguin Economic Development Corporation receives a 1/4 cent sales tax to offer businesses incentives in the form of forgiviable loans, land grants and infrastructure improvements.  The incentive is based on job creation, capital investment and payroll.  The SEDC enters into  five year performance agreements with businesses, where 1/5 of the incentive is forgiven every year the company meets its benchmarks. 

Application for Assistance (New Construction)

Application for Assistance (Expansion or Remodel)

City of Seguin

The City of Seguin offers municipal property tax abatements with an investment of at least $500,000.  In addition, the City offers fast track permiting reducing the permitting process down to 30 days.

City of Seguin Tax Abatement Application

The City of Seguin recently created its first Tax Increment Finance (TIF) District for the creation of a 580 lot single family neighborhood.  A TIF allows for a developer to install the infrastructuer to a project, and then receive the increase in property tax revenue as reimbursement.  

Guadalpe County

Guadalupe County also works with prospective industries and existing businesses by offering property tax abatements on investment of over $1 million.

Guadalupe County Tax Abatement Application

Seguin I.S.D. and Navarro I.S.D.

Both Seguin I.S.D. and Navarro I.S.D. approve Triple Freeport, which allows for a tax exemption on qualifying industry that has been in Texas less than 175 days.

Local Incentive Process

Incentive Application Process & Timeline

1.Business completes and delivers Application For Economic Development Assistance and/ or Tax Abatement Application to Director of Economic Development.

2.Staff reviews applications for completeness. If additional documentation or information is required, the owner/developer will be contacted and the required information gathered.

3.Once a complete application is received, an economic development impact analysis (EIA) is performed and an economic development incentive agreement are negotiated. The Economic Development Incentive Agreement is between the owner/developer and the City and EDC and outlines the obligations of the Company and the City.

4.Staff forwards summaries of the EIA and application, incentive agreement and a recommendation for approval or disapproval for review and action by the Economic Development Corporation Board of Directors and/or the Tax Abatement Committee.  

5.The EDC Board of Directors approves or disapproves at the Board’s Regular meetings (1^st Wednesday of the month at 5:30 p.m. in the City Hall Annex Building Conference Room). Tax Abatement Committee meets as needed.

6.If approved, the Agreement moves forward for City Council’s approval. If disapproved by the Board, the application stops.

State Incentives

The State of Texas offers several incentives for businesses looking to expand into Texas.

Skills Development Fund

The Skills Development Fund is an innovative program created to assist Texas public community and technical colleges finance customized job training for their local businesses. The Fund was established by the Legislature in 1995 and is administered by the Texas Workforce Commission. Grants are provided to help companies and labor unions form partnerships with local community colleges and technical schools to provide custom job training. Average training costs are $1,000 per trainee; however, the benefit may vary depending on the proposal.

Self-Sufficiency Fund

The Self-Sufficiency Fund is a job-training program that is specifically designed for individuals that receive Temporary Assistance for Needy Families (TANF). The program links the business community with local educational institutions and is administered by the Texas Workforce Commission. The goal of the Fund is to assist TANF recipients become independent of government financial assistance.

The Fund makes grants available to eligible public colleges or to eligible private, non-profit organizations to provide customized job training and training support services for specific employers. A joint application from the employer and the eligible public college and/or eligible private, non-profit organization is required to be submitted to the Local Workforce Development Board for review and comment prior to approval.

Texas Enterprise Zone Program

A community with less than 250,000 in population may have up to four enterprise projects. A community with 250,000 in population or greater may have up to six enterprise projects.

Upon a community designating a business as an enterprise project, and upon that project’s designation being approved by the state, the business would be eligible for the following incentives:

State Sales and Use Tax refunds

Beginning September 1, 2003 an enterprise project is eligible for a refund for state sales and use taxes paid for building materials, machinery and equipment, electricity and natural gas purchased and consumed in the normal course of business and depending on investment amount and number of jobs created/retained. The refund can be an amount ranging from a minimum of $2,500 per job to a maximum of $7,500 per job as follows:
 

1. If project investment amount is greater than $40,000 and less than $400,000, then refund amount is $2,500 per job up to a maximum of 10 jobs created/retained;
2. If project investment amount is equal to or greater than $400,000 and less than $1,000,000, then refund amount is $2,500 per job up to a maximum of 25 jobs created/retained;
3. If project investment amount is equal to or greater than $1,000,000 and less than $5,000,000, then refund amount is $2,500 per job up to a maximum of 125 jobs created/retained;
4. If project investment amount is equal to or greater than $5,000,000 and less than $150,000,000, then refund amount is $2,500 per job up to a maximum of 500 jobs created/retained;

Further eligible items include tangible personal property purchased and consumed in the normal course of business and taxable services. Receipts for purchases of building materials and machinery and equipment and payroll information are required to be retained as part of the audit process. (Note: All contracts should separate the costs for building materials and/or equipment from the costs of labor and services in order to be eligible.)

The refund for sales and use tax must be for all eligible items for use at the qualified business site.

Texas Capital Fund Infrastructure Program

The Texas Capital Fund Infrastructure Program is an economic development tool designed to provide financial resources to non-entitlement communities. Funds from this program can be utilized for public infrastructure (water, sewer, roads, etc.) needed to assist a business, which commits to create and/or retain permanent jobs, primarily for low and moderate-income persons. The minimum award is $50,000 and the maximum is $750,000. The award may not exceed fifty percent (50%) of the total project cost.

Texas Capital Fund Real Estate Development Program

The Texas Capital Fund Real Estate Development Program is designed to provide financial resources to non-entitlement communities such as Seguin. Funds must be used for real estate development (acquisitions, construction and/or rehabilitation) to assist a business, which commits to create and/or retain permanent jobs, primarily for low and moderate-income persons. This program encourages business development and expansions located in non-entitlement communities. The minimum award is $50,000 and the maximum is $750,000. The award may not exceed fifty percent (50%) of the total project cost. Funds are provided with no interest accruing and with payments based on a 20-year amortization schedule.

Chapter 380

Section 380.001 of the Local Government Code authorizes home-rule municipalities to offer a range of incentives designed to promote state or local economic development. To determine the latitude of whether a particular incentive or combination of incentives constitutes a "program …to promote state or local economic development", Seguin should consult their city attorney.