TAXES &
INCENTIVES

Derived from the ¼ cent “Type A” sales tax dedicated to the Kaufman Economic Development Corporation. These funds can be used for a variety of needs to serve new and expanding business development, including public infrastructure, workforce training, equipment, discounted land and related uses.

The Kaufman Economic Development Corporation owns several land assets for the purpose of attracting industry that expands the local tax base and creates jobs that meet or exceed the area median wage.  Depending on the competitiveness of a project, capital investment, job creation quality and demonstrated need, the Kaufman Economic Development Corporation could consider providing discounted or free land as an incentive to attract high quality jobs and industry to the community. 

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The City of Kaufman can provide a negotiated tax abatement on the value of real and/or business personal property for up to 10 years. To meet application qualifications, a business must typically invest at least $1 million and create 10 jobs. This incentive is negotiated and approved by the Kaufman City Council.

Kaufman County can provide a negotiated tax abatement on the value of real and/or business personal property for up to 10 years. To meet application qualifications, a business must typically invest at least $3 million and create 5 jobs. This incentive is negotiated and approved by the Kaufman County Commissioners Court.

Allows the City of Kaufman and/or Kaufman County to make grants and loans for projects that promote economic development

The City of Kaufman could contractually source all building material purchases for a project as if they were purchased in the city limits of Kaufman and negotiate a shared portion of the local 2% sales tax rate as a rebate to the business prospect.

The City of Kaufman can provide expedited, one-stop permitting in order to meet the timeline needs related to the development.

Kaufman County provides an inventory tax exemption from their property tax rate for goods “in transit” leaving the State of Texas within 175 days. Other taxing jurisdiction participation could be considered.

Provides low, long term financing to businesses and organizations that enhance their building equipment with energy efficiency, water conservation and/or on-site generation measures

Provides free training dollars to businesses at up to $500,000. The training is done through the community college with customized coursework related to the company’s skilled labor needs.

Provides a rebate from the State sales & use tax for companies that hire employees making at or above the county’s median wage. Depending on the size of the project, a business can receive anywhere from $2,500 to $7,500 per job depending on project size.

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One of the largest “deal closing” funds, the Texas Enterprise Fund provides cash grants to businesses considering Texas as a location against a competing state. Award amounts are calculated based on employee wages, hiring ramp up and the number of jobs created.

This incentive program provides an abatement on school district M&O taxes for companies in the energy, critical infrastructure, technology, research/development and advanced manufacturing sectors seeking to invest at least $50 million and create 35 jobs or more. This incentive is approved through the Comptroller and Governor’s offices at the state level and the Kaufman Independent School District at the local level. This program provides a 50% abatement on the ISD’s M&O taxes or a 75% abatement if the project is located in a federal Opportunity Zone tract.

Provides companies a choice between a franchise tax credit or a sales tax exemption for materials, software and equipment used for research and development purposes.

Provides a rebate of state sales & use tax of up to 31% for qualified film, tv, commercials, video game and animation projects through the Texas Film Commission.

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The City of Kaufman could obtain Foreign Trade Zone Subzone status for a site or business from Dallas-Fort Worth International Airport. This provides relief from Customs Duties, certain excise taxes and exemption from local inventory taxes. The process to obtain this designation from DFW Airport is approximately 60 days following submission of application. More information can be found at sites-tst-vip.dfwairport.com/landhere/ftz/index.php

A portion of Kaufman sits within a federally designated Opportunity Zone, which provides capital gains tax sheltering for qualified investment and job creation.

New Market Tax Credits are a federal income tax incentive for qualifying Census tracts (in which Kaufman qualifies) and provides equity investment with favorable terms and financing options.

Kaufman contains qualified Census tracts to potentially access funds from the federal Economic Development Administration. Grants of this nature are typically used to provide infrastructure development. The Kaufman EDC would be the lead grant applicant for this program.

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