Our incentives are the reason we are the #1 choice for businesses large and small!
The Victoria County region has established a successful track record of assisting businesses locating to or expanding in the area. There are possible assistance programs available to most businesses, including tax advantages.
The City and County of Victoria have established guidelines for the creation of reinvestment zones and granting tax abatements. Manufacturing, research or regional service facilities, distribution centers and other basic industries are eligible to apply. Economic qualifications include an increase to the appraised value of the property equal to or above $500,000. In addition, the company must add a minimum of ten full-time positions. Abatements are granted for up to eight years.
Triple Freeport Tax Exemption
Freeports are government-designated areas with decreased taxation on property and goods. The City of Victoria, Victoria County, Victoria Independent School District and Bloomington Independent School District all allow Freeport tax exemption on certain types of tangible personal property (i.e., inventory) from ad valorem (property) taxation provided the property is:
- Acquired in or imported into Texas to be forwarded out of the state.
- Detained in Texas for assembling, storing, manufacturing, processing, or fabricating purposes by the entity acquiring or importing it.
- Transported out of state within 175 days after the date acquired or imported into Texas.
Type B Sales Tax Funding
The Development Corporation Act of 1979 gives cities the ability to finance new and expanded business enterprises in their local communities via economic development corporations (EDC) and adopted sales taxes. The Victoria EDC is Type B, indicating it can fund industrial development projects, job training classes, parks, affordable housing and more. Grants from VEDC are available dependent upon the company investment, job creation and payroll.
Skills Development Grant for Job Training
The Skills Development Fund is Texas' premier job training program providing training dollars for Texas businesses and workers. Its grants can cover tuition, curriculum development, instructor fees and training materials. The program is designed to assist businesses throughout the state by providing industry-specific training taught on the main campus and on-site. Administered by the Texas Workforce Commission, success is achieved through collaboration among businesses, public Community and Technical colleges, Local Workforce Development Boards and economic development partners.
Texas is a state that understands the relationship between successful businesses and thriving communities. As a result, businesses have access to various capital project funding, grants and tax incentives that make doing business in the Victoria region a successful endeavor. The Texas Business Incentives & Programs Overview is an excellent collection of these resources.
Specific to the region, the state levies a sales and use tax of 6.25% on sales of tangible personal property and certain services. The City of Victoria and Victoria County add sales tax of 2.0% making the total combined rate of 8.25%. There are exemptions for groceries, medicine, property for resale, manufacturing equipment and many items used exclusively on farms and ranches for food production.
Foreign Trade Zone
Foreign Trade Zones are designated areas with special customs procedures. Business activities occur there with foreign items before formal customs entry, offering operational and financial benefits to reducing operating costs associated with a U.S. location. Specifically, both foreign and domestic cargoes can be moved into the FTZ without formal Customs entry, without payment of duties or excise taxes, and without inclusion in quotas or other import restrictions.
Foreign Trade Zone No. 155 is located in Calhoun and Victoria counties and is managed by Calhoun-Victoria Foreign Trade Zone Inc. Interested parties can create a sub-zone of FTZ 155 for their business and be able to avoid ad valorem taxes on all merchandise in the zone that is of foreign origin or which is destined for export.
The U.S. Federal Tax Cut and Jobs Act resulted in the creation of Opportunity Zones in 2017. Investments made in the development of property in certified zones may be eligible for preferential tax treatment under certain conditions. Seven census tracts are designated as Qualified Opportunity Zones (QOZ) in Victoria County, Texas.
For more information, the U.S. Department of the Treasury Community Development Financial Institution Funds provides an interactive map to use when exploring Opportunity Zones and frequently asked questions can be found from the U.S. Internal Revenue Service.
Opportunity Zones in the Victoria region, TX
VEDC assists businesses interested in enterprise zone benefits and will help your project get designated. The Texas Enterprise Zone Program is a state sales and use tax refund program. Both Victoria County and the City of Victoria each have a Texas Enterprise Zone.
Victoria Texas Enterprise Zones
Businesses wishing to participate in the Enterprise Zone Program must meet certain criteria, then be nominated by the appropriate governing body and designated by the Texas Department of Economic Development as an enterprise project.
The VEDC is designated by the (contracted regional partners) to assist businesses in applying for the Texas Enterprise Program benefits.