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Kyle, Texas | Economic Development

Economic Development & Incentives

The City of Kyle is pleased to consider potential incentives based upon factors such as capital investment, creation of tax revenue, job creation numbers and average wage.


First Year on Us: Under the First Year on Us commercial development plan, owner occupied business may apply for a one-time tax rebate up to $10,000 for improvements on real and personal property that increases the value of said property. Meaning, the City of Kyle will rebate one dollar for every new tax dollar generated as a direct result of investment and improvements to commercial property.  Non-owner occupied businesses and developers may apply for the same credit up to $5,000. Click here for detailed information and application. 

Chapter 380: Local Government Code authorizes municipalities to offer incentives designed to promote economic development such as commercial and retail projects.  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.

Facilitation the Development Process City of Kyle Economic Development Department is part of the City of Kyle Community Development Team, working hand in hand with the Planning, Engineering and Building Departments to offer a “one-stop-shop” experience in order to warrant a seamless development process.

Foreign Trade Zone: (FTZ): Described as an area within the United States which is designated by the federal government as outside of U.S. Customs territory. FTZs encourage investment in the U.S. and the creation of American jobs by allowing U.S. businesses to operate with equivalent customs treatment to business conducted off-shore. Business using FTZs can reduce customs duties and fees, and achieve logistics benefits for the import and export of goods. FTZs can be an effective part of a community economic development program.

Freeport Tax Exemption: Tax Code Section 11.251 was adopted as the enabling law. Freeport property includes various types of property that are detained in Texas for a short period of time (175 days or less) to be transported out of Texas. The goods must be in Texas for certain purposes, such as assembly, storage, manufacturing, processing or fabrication.  This exemption was proposed to enhance economic development.

Infrastructure Projects: This program promotes economic development in rural areas by providing financial incentives to assist businesses wishing to locate or expand in their communities. Funds may be used for construction and/or improvements of public infrastructure (water, sewer, roads, etc.).

Public Improvement District: PIDs offer cities and counties a means for improving their infrastructure to promote economic growth in an area. The Public Improvement District Assessment Act allows cities and counties to levy and collect special assessments on properties that are within the city or its extraterritorial jurisdiction. Additional financing options are available to certain large counties.

Tax Abatements:  A tax abatement is a local agreement between a taxpayer and a taxing unit that exempts all or part of the increase in  the value of the real property and/or tangible personal property from taxation for a period not to exceed 10 years. Tax abatements are an economic development tool available to cities, counties and special districts to attract new industries and to encourage the retention and development of existing businesses through property tax exemptions or reductions.

Tax Increment Reinvestment Zone:  A tool that local governments can use to publicly finance needed improvements to infrastructure and buildings within a designated area known as a reinvestment zone. The cost of improvements to the reinvestment zone is repaid by the future tax revenues of each taxing unit that levies taxes against the property. Each taxing unit can choose to dedicate all, a portion of, or none of the tax revenue gained as a result of improvements within the reinvestment zone.


Economic Development and Diversification In-State Tuition:  May be offered to qualified businesses that are in the decision-making process to relocate or expand their operations into Texas. The incentive allows employees and family members of the qualified businesses to pay in-state tuition fees if the individual files with a Texas institution of higher education. Without this incentive designation, a student must reside in Texas for a 12-month period to be entitled to pay the tuition fees of a Texas resident.

Enterprise Zone Program: The 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 economically distressed areas of the state.

Reinvestment Zone: Local governments often use tax abatement to attract new industry and commercial enterprises, and to encourage the retention and development of existing businesses.

Skills Development Fund: Established by the 74th Legislature in 1995, The Skills Development Fund was designed to better utilize the public community and technical college system in Texas as well as other training organizations and have them partner with businesses throughout the state (with priority on small businesses) to train workers to meet the labor needs of employers and the regional labor market.

State Infrastructure Bank Financing: SIBs were authorized in 1995 as a part of the National Highway Designation Act (NHS) to help accelerate needed mobility improvements through a variety of financial assistance options made to local entities through state transportation departments.  The overall goal of the SIB program is to provide innovative financing methods to communities to assist them in meeting their infrastructure needs.

Texas Capital Infrastructure Program & Real Estate Program: 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.

Texas Enterprise Fund:  A tool to help attract new jobs and investment to the state. As the largest "deal-closing" fund of its kind in the nation, the TEF continues to attract businesses to Texas. The fund is used only as a final incentive tool where a single Texas site is competing with another viable out-of-state option. Additionally, the TEF will only be considered to help close a deal that already has significant local support behind it from a prospective Texas community.  Projects that are considered for the TEF must demonstrate a significant rate of return on the public dollars being invested in the project. Additionally there are several primary measures that every TEF project must meet in order to be considered for an award.

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