Taxes & Incentives

Competitive Tax Environment & Business Incentives

Texas offers one of the nation’s most competitive business environments, combining a favorable tax structure with a pro-business climate that supports long-term investment. Companies locating in Abilene, Texas benefit from the advantages of operating in Texas while maintaining lower operating costs than many larger metropolitan markets.

The Development Corporation of Abilene (DCOA) works with companies to identify available incentive opportunities and develop performance-based agreements that support qualifying projects. While the DCOA administers its own incentive agreements, additional programs may also be available through the City of Abilene, Taylor County and the State of Texas. Together, these resources help companies build competitive projects that create jobs and strengthen the regional economy.

To learn more about available tax and incentive opportunities, contact the DCOA.

Contact the DCOA

Taxes

Abilene Tax Environment

Texas offers one of the nation’s most competitive tax environments, helping businesses reduce operating costs while supporting long-term investment. The information in the tabs above provides an overview of the primary taxes and tax-related programs companies should consider when evaluating a location in Abilene, Texas.

Because every project is unique, the DCOA can help connect companies with the appropriate local and state resources to better understand how these taxes may apply to their operations.

Franchise Tax

Texas does not impose a corporate income tax. Instead, most businesses are subject to the Texas franchise tax, which is based on a company’s taxable margin rather than net income. The franchise tax is administered by the Texas Comptroller of Public Accounts and applies to most taxable entities doing business in Texas.

Property Tax

Property taxes in Texas are administered locally and are based on the appraised value of real and business property. Rates vary depending on the taxing jurisdictions in which a property is located, including cities, counties, school districts and other special-purpose districts.

For projects considering a location in Abilene, Texas, the DCOA can help connect companies with local partners to better understand applicable property tax rates and available property tax programs.

Sales & Use Tax

Texas imposes a statewide sales and use tax on the sale, lease and rental of many goods and taxable services. Local jurisdictions may also levy additional sales and use taxes, resulting in a combined rate that varies by location.

Businesses should consult the Texas Comptroller to determine how sales and use tax requirements apply to their specific operations.

Freeport Exemption

Texas’ Freeport Tax Exemption allows qualifying businesses to receive a property tax exemption on certain inventory that is detained in Texas for a limited time before being transported out of state. For manufacturers, distributors and logistics companies, the exemption can provide meaningful tax savings on eligible inventory.

Eligibility requirements and local participation vary, and the DCOA can help companies connect with the appropriate local resources to determine applicability.

Tax Resources

Tax obligations vary based on a company’s operations, industry and project scope. Businesses should consult with qualified tax professionals and the appropriate taxing authorities regarding their specific circumstances.

Because every project is unique, understanding the applicable tax structure often requires coordination among multiple agencies and local partners. The following resources provide additional information on Texas and local tax policies.

Local, State & Federal Incentives

Development Corporation of Abilene Incentives

LOCAL — Chapter 380 & 381 Economic Development Agreements

Texas Enterprise Fund

Texas Enterprise Zone

Skills Development Fund

In-State Tuition Rates for Employees

New Markets Tax Credit

Skills Bridge Fund