The San Antonio City Council has established a set of guidelines and policies aimed at supporting local economic development. These include the Chapter 312 Tax Abatement Guidelines and Chapter 380 Guidelines, both of which are designed to encourage business investment and expansion. Interested parties may contact the Economic Development Department for details on the Joint Incentive Application process.
Effective September 1, 2019, the Property Redevelopment and Tax Abatement Act (Tax Code Chapter 312) mandates that public notices for new tax abatement agreements must be posted at least 30 days before any public hearing. Information on previously approved agreements is available for review, and currently, there are no pending incentive applications.
The City of San Antonio, in collaboration with Bexar County and two local school districts, offers personal property tax exemptions for companies involved in logistics and manufacturing. These exemptions are aligned with the Texas Constitutional Amendment from 1989, which introduced a tax exemption for goods classified as “Freeport Property.” This classification includes items held in Texas for 175 days or less, such as merchandise and certain aircraft parts, but excludes petroleum-based products.
The Joint Economic Tax Incentive (JETI) program, established through House Bill 5, supports job creation and investment by allowing tax appraised value limitations for school districts over a 10-year period, provided statutory requirements are met.
The Skills Development Fund offers customized training programs funded by the state to enhance workforce capabilities. Administered by the Texas Workforce Commission, the initiative fosters collaboration between businesses, educational institutions, and workforce boards to strengthen the labor market.
Enterprise Zone Projects (EZP) provide tax and regulatory benefits to businesses operating in economically disadvantaged areas. San Antonio’s designated zones include Port San Antonio, Brooks City-Base, and the Fredericksburg Road Business Corridor. Final approval for these designations requires both City Council nomination and state endorsement.
The Texas Enterprise Fund (TEF) provides financial incentives to companies considering relocation or expansion in Texas, particularly when competing with out-of-state alternatives. These grants are performance-based and aim to boost capital investment and job creation.
San Antonio also promotes international trade through its Foreign Trade Zone (FTZ 80) designation, offering businesses opportunities to enhance import and export activities.
Additionally, the Opportunity Zones initiative, introduced under the Tax Cuts & Jobs Act of 2017, encourages long-term investment in designated census tracts by offering tax deferrals and reductions on capital gains. Investments must be channeled through Qualified Opportunity Funds certified by the IRS, which can support real estate and business ventures.
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Incentives
The guidelines and policy adopted by the San Antonio City Council are available below:
Chapter 312 Tax Abatement Guidelines(PDF, 2MB)
Chapter 380 Guidelines(PDF, 2MB)
Please email the Economic Development Department for information on the Joint Incentive Application.
As of September 1, 2019, Tax Code Chapter 312, known as the Property Redevelopment and Tax Abatement Act, requires that a public notice be posted at least 30 days prior to the public hearing to approve any new tax abatement agreement.
To learn more about previously approved projects, please see our Active EDD Incentive Agreements.
There are no pending incentive projects at this time.
The City of San Antonio, Bexar County and two local City independent school districts (Judson ISO and San Antonio ISO) allow personal property tax exemptions for companies that deal with goods-in-transit or inventories used in the manufacturing process.
A Constitutional Amendment adopted in 1989 by the State of Texas authorized a type of property tax exemption for items classified as “Freeport Property: ‘ Freeport Property includes various types of goods that are detained in Texas for a short period of time (175 days or less). The exemption provides a business incentive that can be used to promote the growth and expansion of businesses, particularly those engaged in logistics and distribution.
Freeport property, by definition, includes goods, wares, merchandise and certain aircraft and aircraft parts.
Freeport property does not include oil, natural gas and other petroleum products.
For more information, please visit the Texas Comptroller ‘s website.
JETI was created with the passage of House Bill 5 (88th Legislature, Regular Session) and aims to help Texas stay competitive by attracting new jobs and investment to the state.
The JETI program enables a company, school district and Governor’s office to enter into an agreement for a 10-year school district maintenance and operations (M&O) tax appraised value limitation pursuant to statutorily mandated job creation and investment minimums.
To learn more about the JETI program, please visit the State of Texas Comptroller’s webpage.
A private business, business consortium or trade union in need of workforce training and funding assistance can rely on an experienced network of partners for guidance along the Skills Development Fund path.
The Skills Development Fund is a customized job-training program that provides training dollars for Texas businesses and workers through state-funded skills grants. Its goal is to ensure that the workforce stays up-to-date and competitive and that new workers are trained with the skills that the industry requires.
Administered by the Texas Workforce Commission (TWC), success is achieved through collaboration among:
businesses
public community and technical colleges
local workforce development boards
economic development partners
Together, under the Skills Development Fund program, businesses gain a more highly trained workforce, workers upgrade their skills and the Texas economy is strengthened.
For more information, please visit the Texas Workforce Commission website.
An Enterprise Zone Project (EZP) is an economic development tool that allows the community to partner with the State to offer a package of local and state tax and regulatory benefits to assist businesses seeking to locate, expand or retain jobs in economically distressed areas.
The Economic Development Department considers nominations for the program via the Joint-Incentive Application. To speak to staff about this process, please contact us.
Within the City of San Antonio, all census tract block groups in which at least 20% of the residents have an income at or below 100% of the federal poverty level now qualify as State Enterprise Zone Project areas. In addition, the area encompassing the City’s Federal Empowerment Zone (EZ) qualifies as a State Enterprise Project Zone.
This area includes three EZP developable sites:
Port San Antonio
Brooks City-Base
Fredericksburg Road Business Corridor
City Council must nominate companies for Enterprise Zone Project designation, and the State of Texas must approve each designation. A company located within a State Enterprise Project Zone is eligible to apply for designation.
For additional information, please visit the State of Texas Office of the Governor ‘s webpage.
The Texas Enterprise Fund (TEF) awards “deal-closing” grants to companies considering a new project for which one Texas site is competing with other out-of-state sites. The fund serves as a performance-based financial incentive for those companies whose projects would contribute significant capital investment and new employment opportunities to the state’s economy.
To learn more about the TEF, please visit the Texas Economic Development & Tourism Office ‘s webpage.
As a city committed to maximizing its presence in the global economy, San Antonio is an ideal location for businesses interested in increasing their import and export power. With its engagement in international programs and its optimal geographic location, the City provides a wide array of business opportunities, enhanced by its FTZ designation.
Visit our webpage to find more information on FTZ 80.
The Opportunity Zones investment tool is a federal tax incentive established by the Tax Cuts & Jobs Act of 2017 to foster economic inclusive growth by encouraging long-term investment of unrealized capital gains in designated opportunity zones (census tracts) in exchange for deferment and reduction of capital gains taxes. All investments seeking to benefit from the tax advantages of opportunity zones must be made through creation of a Qualified Opportunity Fund (certified by the IRS).
Qualified Opportunity Funds can invest in a multitude of eligible real estate and operating business projects. Please refer to the resources below for more information.
IRS Frequently Asked Questions
U.S. Department of the Treasury: Regulations released April 17, 2019
Economic Innovation Group
Housing and Urban Development Map