Below is a brief description of the incentives available through the City of League City. Businesses eligible for incentives include manufacturers, distributors, corporate offices or service centers, research and development facilities and regional tourist related facilities. Some larger regional retail business development projects may be eligible for certain types of incentives. An application for incentives is available upon request.

ABATEMENT OF PROPERTY TAXES

The City of League City may grant up to 100% abatement of property taxes on buildings, fixed machinery and business personal property for up to ten years. Minimum qualifications for tax abatement are $1 million in real property improvements and 15 new jobs created. Up to 50% tax abatement may be granted for eligible projects with $500,000 to $1 million in improvements and 7 jobs created.

Galveston County may join The City of League City on projects that meet the county’s eligibility requirements. Certain manufacturing or research and development corporations may qualify for reduction in school district property taxes under the Texas Economic Development Act. This incentive program was created in order to provide companies making a substantial capital investment to receive tax credits from participating local school districts.

FREEPORT PROPERTY TAX EXEMPTION

The Freeport exemption exempts taxes on eligible inventory that is transported out of the state of Texas within 175 days of acquisition. Inventory property may first be assembled, stored, manufactured, processed or fabricated locally.

EMPOWERMENT ZONE

Qualified businesses locating in League City’s Empowerment Zone may be eligible for assistance in extending water and sewer lines, paving public streets or the cost of municipal fees. The zone is located along the East side of State Highway 3, between Walker Street and the city limits.

MUNICIPAL GRANTS

The City of League City may provide loans and grants of city funds as well as city employees and equipment to promote economic development projects within the city. Eligible projects may receive sales tax grants, franchise fee grants or utility line extensions.

SKILLS DEVELOPMENT FUND PROGRAM

The State of Texas provides grants to businesses for training programs carried out through community and technical colleges.

TEXAS ENTERPRISE FUND

The Texas Enterprise Fund can be used for a variety of economic development projects, including infrastructure development, community development, job training programs, and business incentives. These funds are used primarily to attract new business to the State of Texas or to assist with the substantial expansion of an existing business as part of a competitive recruitment situation. For application information, contact the Office of the Governor, Economic Development and Tourism at (512) 936-0101 or go to www.governor.state.tx.us/divisions/ecodev/ed_bank/tefund to download the application.