According to the International Economic Development Council, “Incentives are tools used to influence business decisions about where new investment will take place . . . incentives can be either financial or non-financial, such as a tax exemptions and credits or workforce training and public infrastructure improvements.” For businesses, incentives are important because they reduce costs associated with expansion, relocation, and startup or operational costs. The value of an incentive is unique to each project and based on the overall value to the community. The dollar amount of incentives offered is determined by the taxing entity providing the incentive. The City of Gonzales, Gonzales County and Gonzales Independent School District are examples of taxing entities that could consider an incentive. Lastly, because incentives are tools that influence business decisions, a company must secure incentives prior to making the commitment to locate in Gonzales.Incentives & Programs Overview
Business Incentive Grant Program - please click on the following to view and print the Grant Application and the Guidelines:
The Gonzales Economic Development Corporation and the City of Gonzales offer several local programs to aide in community and economic development.
The University of Houston-Victoria Small Business Development Center is part of a nationwide management assistance program serving the small business community. It is a cooperative effort of the U.S. Small Business Administration, private sector, educational community, and federal, state and local governments.
The UHV SBDC provides no-cost, confidential counseling, training and technical assistance to existing and start-up businesses in an 11-county area, Aransas, Bee, Calhoun, DeWitt, Goliad, Gonzales, Karnes, Lavaca, Jackson, Refugio, and Victoria.
The UHV SBDC offers a large range of counseling assistance in areas such as:
- Business and marketing planning
- Financial analysis
- Inventory control
- Business research
- Loan proposals
In addition to one-on-one counseling, the UHV SBDC offers training and workshop programs for you and your business, in areas such as:
- Human Resources
- Customer Service
- Financial Management
To make an appointment with the UHV-SBDC’s Gonazles County business advisor, please contact the center at 361-485-4485.
GEDC Performance Agreements – Most incentives within the City of Gonzales come from the GEDC. All GEDC incentives must be tied back to what the Texas Local Government Code Chapters 501 Subchapter C and 505 Subchapter D authorizes as a qualified project. The SEDC has specifically targeted projects that create/retain Primary Jobs and infrastructure improvements. SEDC incentives can take the form of a cash grant, annual reimbursement, or a loan.
All GEDC incentives must be formalized though a performance agreement and approved by the SEDC Board of Directors and City Council. Under a performance agreement, companies must commit to additional payroll or jobs and a capital investment. Additionally, performance agreements include ‘clawback’ provisions which outline the terms of repayment if a company does not meet its performance requirements. Although the specific amount of an incentive varies by project.
Chapter 380 Agreements – In addition to incentives from the GEDC, the City of Gonzales offers incentives to All City incentives must be formalized though an Economic Development Incentive Agreement and approved by the City Council.
The City of Gonzales is located within Gonzales County. County incentive programs fall under two major program types: Chapter 381 incentives and Chapter 312 Tax Abatement.
(1) Chapter 381 Agreements – Authorized under Texas Local Government Code Chapter 381, this incentive allows counties to make loans or grants of public money to promote economic development and stimulate, encourage, and develop business locations and commercial activity within the county. Counties may require that a company create a specified number of jobs, pay a specified wage, or meet a minimum capital investment threshold. All Chapter 381 Agreements must be formalized through an agreement and authorized by the county’s Commissioners Court.
(2) Chapter 312 Tax Abatement – Authorized under Texas Tax Code Chapter 312, this incentive allows local governments to exempt all or part of a the increased tax value of real property and/or tangible personal property for a period not to exceed 10 years. Each taxing district has distinct guidelines and criteria for creating a reinvestment zone and authoring a Chapter 312 Tax Abatement. All Chapter 312 Tax Abatements must be formalized through a Tax Abatement Agreement and approved by the local taxing district.
School District Programs
Schools in Texas typically do not participate with incentives; however, Chapter 313 of the Texas Tax Code is a rare exception. Only projects with at least $100 million in qualifying investment may apply for a Chapter 313 incentive.