Business in Schertz
APPLICATION FOR INCENTIVES
Taxes and Incentives
The low cost of doing business is another great advantage your operation will enjoy in Schertz.
| Sales Tax | 8.25%: 6.25% (state) 2% (city) |
| Corporate Income Tax | NONE |
| Personal Income Tax | NONE |
| Property Tax (per $100 valuation) | $2.38-2.76 |
| Franchise Taxes | .25 % on net taxable capital or 4.5% on net earned surplus, whichever is greater |
| Unemployment Compensation | 2.7% |
| Wage Limit for Unemployment | $9,000 |
| Schertz Property Taxes for Guadalupe County Resident | |
|---|---|
| Guadalupe County Resident Tax Rate | 0.3895 |
| Schertz ISD | 1.315 |
| City of Schertz | 0.409 |
| Total per $100 valuation | $2.1135 |
Incentives
The City of Schertz recognizes that every business faces different market conditions and constraints. Various local, state and federal programs exist to assist businesses with a variety of needs and purposes, and the city is willing to help a business identify and understand the resources available. As such, Economic Development staff members are prepared to help you realize the opportunities and incentives available to help your business relocate or expand operations. The department is prepared to discuss a number of business incentives including:
380 Agreements
Section 380.001 of the Texas Local Government Code allows municipalities to provide economic development incentives consisting of loans and grants of city funds, use of city personnel, facilities and services with or without charge for economic economic development. In providing an economic development incentive pursuant to Section 380.001, the city contracts with the grant recipient to condition the incentive upon the creation of employment, construction of improvements, countinued operations for a stated period, or other public consideration. Any grant or loan must be approved by the city council.
Triple Freeport Tax Exemptions
The Triple Freeport designation allows schools, cities and counties to exempt business inventory from taxes if goods are shipped out of state within 175 days. Since all three entities vote separately on whether or not to exempt inventory from taxes, receiving an exemption from one entity does not guarantee receiving an exemption from another. In Schertz, all three entities have already enacted the exemption, allowing complete Freeport Tax Exemption on all eligible inventories. If your warehouse is located in Schertz, your company does not have to pay any inventory tax on goods that move in and out of Texas within a 175 day period. The exemption applies to inventory that is forwarded out of Texas within 175 days of the date acquired or brought into the state.
Foreign Trade Zones
Foreign Trade Zones (FTZs) serve to create jobs realized from the cost savings from delayed or forgiven tariffs. FTZs are sites in or near a US Customs port of entry where foreign and domestic merchandise is generally considered to be in international trade. Goods can be brought into a zone without formal customs entry or without incurring customs duties or excise taxes unless and until they are imported into the United States. For those companies with a large volume of exports and imports, significant savings to cash flow can be achieved through our Foreign Trade Zone. The city of Schertz could have the site approved for Foreign Trade Zone activity in as little as 90 days.
Job Training
Workforce development prepares workers for today’s existing jobs and for tomorrow’s emerging industries. The Economic Development department is prepared to connect your company with the institutions that can help your company develop your workforce’s skills and knowledge base. Various universities, community colleges and technical schools serve the region, as well as workforce development agencies. These assets offer numerous resources for regional businesses.
Loan Programs
The availability of financial capital can help a new business start up or an existing business expand and stay competitive. Our economic development department can help identify sources of funding from public and private sector sources at the local, state and federal level.
Infrastructure improvements
The city has the capacity and flexibility to offer qualified companies infrastructure improvements at reduced costs.
Tax Increment Financing (TIF)
Tax increment financing is a tax reinvestment tool that allows local governments to publicly fund needed structural improvements and enhanced infrastructure within a defined area. TIFs work by allowing taxing entities to repay the costs of improvements to a designated area with the future tax revenues generated by increasing property values. TIFs can be created on a case-by-case basis by the Schertz City Council.
State and Federal Resources
The Texas Enterprise Fund was created as a tool to attract business and create jobs in Texas. The prospect must make significant capital investment, provide high-quality jobs, and complete and Enterprise Fund Application. Project criteria are evaluated on a regional basis.
The Texas Emerging Technology Fund helps support projects that create high-tech or emerging jobs that could lead to medical or scientific breakthroughs.
The Texas Leverage Fund can be used for interim, long-term, or gap financing with the maximum loan amount typically four to five times the local development corporation’s annual sales tax revenues.
Please contact us for more information and other sources of funding.