Freeport Businesses May Qualify for Grants, Tax Relief and Loans

Freeport has a Foreign Trade Zone (FTZ) - a  land area within the U.S. that is legally considered outside of national customs territory. These zones are governed by a federal program that streamlines, reduces and sometimes eliminates import tariffs for U.S. importers and exporters. The program was enacted in 1934 to "expedite and encourage foreign commerce." 

Manufacturing sales tax exemption will apply to the purchase of new machinery or equipment used or consumed in or during the actual manufacturing, processing, or fabrication of tangible personal property for ultimate sale.

The City of Freeport is committed to the promotion of high quality development. On a case-by-case basis, the city will give consideration to providing tax abatement on the increment in value added to a particular property by a specific development proposal which meets the economic goals and objectives of the city.

Tax abatement may be offered on improvements to real property owned by the applicant and/or on new personal property brought to the site by the applicant. Tax abatement will not be ordinarily considered for projects which would be developed without such incentives unless it can be demonstrated that higher development standards or other development and community goals will be achieved through the use of the abatement.

Brazoria County will work with your businesses for a property tax abatement.
 

Sales tax exemption on utilities will apply if more than 50% of utilities are certified for use in manufacturing, processing, or fabricating of products.

Local Government Code authorizes municipalities and counties to promote state or local economic development and to stimulate, encourage and develop business location and commercial activity in the county. Specifically, it provides for offering loans and grants of city/county funds or services at little or no cost to promote state and local economic development and to stimulate business and commercial activity.

Municipality Agreements

Chapter 380 of the Local Government Code authorizes municipalities to offer loans and grants of city funds or services at little or no cost to promote state and local economic development and to stimulate business and commercial activity.
Cities must review their city charters or local policies that may restrict a city's ability to provide a loan or grant. If eligible, cities must establish a program to implement the incentives.

County Agreements

Chapter 381 allows counties to negotiate directly with developers and businesses to provide incentives encouraging developers to build in their jurisdictions. A county may administer and develop a program to make loans and grants of public money to promote state or local economic development and to stimulate, encourage and develop business location and commercial activity in the county.
Counties may also develop and administer programs for entering into tax abatement agreements (Chapter 312).

Click here for more information from the Comptroller of Texas Office.

The FEDC has the ability to issue grants and loans to qualified businesses on a case-by-case basis.

Business Improvement Grants

The purpose of this program is to promote the development and expansion of new and existing business enterprises within the City Limits of Freeport, Texas and enhance the economic welfare of the citizens of the City by securing and retaining business enterprises and maintaining a higher level of employment, economic activity, and stability. 

All grants are dollar-for-dollar matching grants; Facade, Sign, Property and Landscaping Grants are up to $10,000 and Mega Grant is the only competitive grant up to $30,000.

1. Facade Improvements
2. Sign Improvements
3. Property Improvements
4. Landscaping Improvements
5. Mega Grant - This can be a combination of Grant Type A, C, or D or can stand alone as either. This grant will be reserved for those businesses that are within our Downtown.

Business Improvement Grant Guidelines & Application

Replacing the Chapter 313: Texas Economic Development Act

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.

What types of projects are eligible?

All manufacturing projects and dispatchable electric generation facilities are eligible. Some water-related projects are eligible as are research and development facilities. All eligible activities have a North American Industry Classification System (NAICS) code assigned.

Download a copy of the JETI Timeline here

For frequently asked questions: Click Here

For a link to the Application Forms: Click Here

Employers who commit to creating or retaining permanent jobs, make capital investments ranging from $5 million to $250 million, fill at least 25% of their new jobs with individuals who are either economically disadvantaged or residents of an enterprise zone can receive state sales and use tax refunds on items purchased for their project site. A local public action nominating a company for an EZ project before a state application can be submitted.

The Texas Enterprise Zone Program (EZP) is a state sales and use tax refund program designed to encourage private investment and job creation in economically distressed areas of the state.

Who Can Apply?

Texas communities must nominate companies in their jurisdiction to receive an Enterprise Zone designation and thus be eligible to receive state sales and use tax refunds on qualified expenditures by submitting an application on the company’s behalf. Companies must contribute information to the application packet where required. Companies must meet minimum capital investment thresholds and create and/or retain jobs that employ a certain percentage of economically disadvantaged individuals, enterprise zone residents, or veterans.

For more information on this Program, visit the Governor of Texas website here: Click Here

The Texas Economic Development Corporation has provided a summary of incentives and programs available in the state. You can find more incentives through the Governor's office on funding and development here: Office of the Governor

For more information, download the Texas Business Incentives and Programs Overview (PDF).

The Freeport Economic Development Corporation (FEDC) continues to utilize its half-cent sales tax funds to assist companies with infrastructure and site development costs. The FEDC maintains flexibility in using its funds and can provide various forms of assistance, including grants, job training assistance, loans, and relocation subsidies. The determination of incentive packages is based on criteria such as the amount of new taxes generated by the project, average wage and gross annual payroll, capital investment, number of jobs created, and sales tax revenue generated. Each application is reviewed on a case-by-case basis.

Criteria

FEDC's incentive package is determined by the following criteria:

• Amount of new taxes generated by the project
• Average wage and the gross annual payroll generated
• Capital investment
• Number of jobs created
• Sales tax revenue generated

Once these factors have been finalized, FEDC can then structure an incentive package accordingly. Other areas of assistance can be considered as deemed essential by the company and subject to approval by the Board of Directors.

The Skills Development Fund remains active, offering grants to train employees through the state's community and technical colleges. This fund assists projects by financing the design and implementation of customized training for new and incumbent employees. The funds are allocated to the community colleges and are not direct cash grants to companies.

The Texas Capital Fund continues to support rural business development, retention, and expansion by providing funds for public infrastructure, real estate development, or the elimination of deteriorated conditions. Awards range from $50,000 to $1,500,000. 

The Texas Enterprise Fund remains active as a cash grant program awarded by the Governor, with approval from the Lieutenant Governor and Speaker of the House, to companies relocating or expanding in the state. TEF serves as a performance-based financial incentive for projects that offer significant projected job creation and capital investment, where a single Texas site is competing with another viable out-of-state option.

CenterPoint Energy continues to offer various energy efficiency programs and incentives for both residential and commercial customers. They emphasize the importance of involving them early in the project planning stages to maximize potential benefits. For the most current details on their offerings, please visit their official website.

Texas maintains several tax exemptions and deductions for renewable energy equipment and systems, including solar, wind, ethanol, and biodiesel. Detailed information is available through the State Energy Conservation Office.

Detailed information on a variety of renewable energy exemptions and deductions is available at the State Energy Conservation Office.

The franchise tax exemption for manufacturers, sellers, or installers of solar energy devices remains in effect. Additionally, Texas property tax code continues to permit a 100% exemption on the appraised value of solar, wind, or biomass energy devices installed or constructed for on-site energy production and use. To claim this exemption, refer to Texas property tax Form 50-123 - Exemption Application for Solar or Wind-Powered Energy Devices.

Texas property tax code permits a 100% exemption on the appraised value of solar, wind or biomass energy devices installed or constructed for the production and use of energy on-site. To claim this exemption, see Texas property tax Form 50-123 - Exemption Application for Solar or Wind-Powered Energy Devices (PDF)  - April 17, 2017.

The LoanSTAR program continues to offer loans for energy retrofits in public buildings, targeting state agencies, school districts, higher education institutions, local governments, and hospitals. For the most recent information, please visit the LoanSTAR website.

For more information, visit the LoanSTAR website.

The property tax exemption for pollution control equipment, established by a Texas constitutional amendment in 1993, remains in place. This exemption ensures that investments made to comply with environmental mandates do not result in increased property taxes for facilities.

The City of Freeport and the Freeport Economic Development Corporation commission professional studies to support informed, strategic decision-making. These studies provide data-driven analysis, market insight, and design guidance that help the City evaluate opportunities, prioritize investments, and reduce risk in public initiatives.

By engaging qualified firms and academic institutions, the City gains objective expertise in areas such as market feasibility, urban design, infrastructure planning, tourism potential, and economic competitiveness. These reports serve as tools to assess what is viable, what is sustainable, and what will generate long-term value for the community.

Strategic studies guide development decisions by identifying market demand, recommending best practices, outlining implementation strategies, and establishing design or policy frameworks. They help align public and private investment, support grant applications, and ensure that projects advance community goals rather than short-term trends.

Not every recommendation within a study is implemented immediately, and some may evolve over time. However, each report contributes to a broader understanding of Freeport’s assets, challenges, and opportunities. Maintaining public access to these studies ensures transparency, preserves institutional knowledge, and provides a reference point for future leaders, developers, and community partners.

Together, these documents represent a proactive approach to planning. They reflect Freeport’s commitment to thoughtful growth, fiscal responsibility, and long-term economic resilience.

Design & Planning

Studies in this category establish design standards, development frameworks, and placemaking strategies that guide the physical character and long-term functionality of Freeport’s built environment.