In the past, the Forney City Council and the Kaufman County Commissioners Court have been very amenable in helping businesses with tax relief. With assistance from the Forney Economic Development Corporation office, the City and County will meet with businesses to formulate an agreement tailored to specific needs.
Type B EDC Incentive Funds provides direct cash incentives from the "Type B" 1/2 cent sales tax collected for economic development within the City of Forney. The Forney EDC Board in the past has used these funds for infrastructure development, corporate relocation, employment expansion and similar projects. Funds dispersed must be approved by the Forney EDC Board and Forney City Council.
“380” Agreement provides for a percentage reimbursement of City of Forney sales and/or property taxes. It is applied for and approved by the Forney City Council.
“381” Agreement provides for a percentage reimbursement of Kaufman County sales and/or property taxes. It is applied for and approved by the Kaufman County Commissioners Court.
County Tax Abatement is an additional program offered by Kaufman County, which provides up to ten years of negotiated tax abatement. This program provides a range of incentives dependent upon capital investment and the number of employees to be hired. At minimum, the prospective business shall add at least $1,000,000 to the tax rolls and create at least ten jobs. It is applied for and approved by the Kaufman County Commissioners Court.
Double Freeport Exemption on “In transit” Inventory—Texas communities tax business inventory at the same rate as land, buildings, and equipment. However, the City of Forney and Kaufman County exempt this tax on legally authorized inventory, provided the inventory is shipped out of the State of Texas within 175 days. For a list of authorized inventory and other information please review Texas Tax Code Chapter 11, Section 11.251.
Downtown Facade Grant is a $10,000 or 50% (whichever is lower) matching grant for businesses within the Historic Downtown Overlay of Forney. The program works as a reimbursement. Business owners must fill out an application, comply with all Planning and Zoning requirements, submit improvement plans and receipts to EDC Staff. The application is considered by the EDC Board at their monthly meeting. Please see the link below for guidelines and application.
Downtown Redevelopment Grant is a $25,000 or 50% (whichever is lower) matching grant for business in the generally defined area of the Forney Downtown Overlay. The program works as a reimbursement, and is for the redevelopment of property from one use into another commercial use (i.e., home to office, retail space to restaurant, open land to commercial development, etc.). The grant can be used to update the exterior facade, interior updates, landscaping, etc. It cannot be combined with the facade grant. Business owners must fill out an application, comply with all Planning and Zoning requirements, submit improvement plans and receipts to EDC Staff. The application is considered by the EDC Board at their monthly meeting. Please see the link below for guidelines and application.
The State of Texas offers a number of programs to assist industry, primarily through Texas Economic Development. For additional information please visit here. A few that might be of particular interest include:
Texas Skills Development Fund provides training dollars free to qualified businesses. It is collaboration between the Texas Workforce Commission (TWC), the public community and/or technical college, and employer. Grants for a single business may be limited to $500,000. In Forney, we partner with Trinity Valley Community College (TVCC). TVCC would be utilized to administer the grant, develop the curricula and conduct the training.
Texas Enterprise Fund is the largest “deal closing” fund of its kind in the nation. The fund is a cash grant used as a financial incentive tool for projects that offer significant projected job creation and capital investment and where a single Texas site is competing with another viable out-of-state option. In the past, awards have ranged from $194,000 to $50,000,000.
Texas Enterprise Zone Program is an economic development tool for local communities to partner with the State of Texas to promote job creation and capital investment in areas that may be economically underserved. The level and amount of refund is related to the capital investment and jobs created at the qualified business site. Businesses may apply for a refund of State sales and use taxes on qualified expenditures.
Texas Capital Fund-Infrastructure Grant Program provides grant monies for public infrastructure needed to facilitate the location/expansion of an industry. Grants range from $5,000 to $500,000 not exceeding 50% of the total project cost.
Texas Capital Access Fund Program is designed to increase the availability of financing. Eligible borrowers can be any small business or non-profit corporation with fewer than 500 employees. The proceeds may be used for working capital of the purchase, construction, or lease of capital assets, which include land, buildings, and equipment.
Texas Capital Fund-Real Estate Development Program is another source of funds to help business or industry acquire or improve real estate. The focus of this fund is to provide assistance to enterprises that will provide jobs for primarily low or moderate income employees. The real estate must be owned by the community and leased to the business. Awards range from $50,000 to $1,500,000.
Texas Product/Business Fund provides asset-based financing to existing technology-focused companies that create products or do business in Texas. Financing is done in the form of direct asset based loans with competitive lending rates. Any business, locating or expanding in Texas, is eligible to apply. The Office of the Governor, Texas Economic Development Bank administers the Texas Product/Business Fund at the direction of the Governor’s appointed nine-member board. Preference for funding is given to the state’s defined industry clusters including, but not limited to: Aerospace, Agriculture, Biomedicine, Biotechnology, Nanotechnology, Renewable Energy, and Semiconductor.
Pollution Control Equipment Incentive provides an exemption from property taxation for pollution control. The intent is ensure that compliance with environmental mandates, through capital investments, did not result in an increase in a facility's property taxes. To be eligible, the property must have been purchased, acquired, constructed, or installed after January 1, 1994, to meet or exceed federal, state, or local environmental laws, rules, or regulations. The determination is provided to the local appraisal district which must accept the decision of TCEQ (Texas Commission on Environmental Quality) and grant an exemption for the pollution control property.
Research & Development Tax Incentive provides persons engaged in qualified research with either: a sales and use tax exemption on the purchase, lease, rental, storage or use of depreciable tangible personal property directly used in qualified research, or a franchise tax credit based on qualified research expenses. A person cannot claim both the sales tax exemption and the franchise tax credit for the same period. The election to claim the sales tax exemption or take the franchise tax credit is not permanent and can be changed.