Chapter 380 / 381 Incentive Program

Chapter 380 of the Local Government Code authorizes municipalities to offer incentives designed to promote economic development. Specifically, it provides for offering loans and grants of city funds or services at little or no cost to promote state and local economic development and to stimulate business and commercial activity. Many of the suburban cities in the Metropolitan area offer Chapter 381 Agreements to new / expanding companies. Projects are typically evaluated on a case-by-case basis. The maximum sales tax rebate granted, by law, is 50%. Counties are also allowed under the Local Government Code (Chapter 381) to offer grants / loans to promote economic development.