Chapter 380 Incentive

Chapter 380 of the Local Government Code provides legislative authority for Texas municipalities such as the City of Hutto to provide a economic incentives utilizing city funds or services in order to promote economic development. Hutto has utilized the provisions under this law to provide a myriad of incentive opportunities such as sales tax rebates, infrastructure enhancements, and hotel occupancy tax rebates.

Infrastructure Assistance

The Hutto Economic Development Corporation provides infrastructure grants to qualified businesses on a case by case basis. Preference is given to companies that provide primary employment in the City of Hutto.

Property Tax Abatement

The City of Hutto may offer property (ad valorem) tax abatement to qualified economic development projects.

Industrial Revenue Bond Program

Williamson County participates in the industrial revenue bond program through the San Gabriel Industrial Corporation. Williamson County through the San Gabriel Industrial Corporation may issue bonds, pursuant to the Development Corporation Act of 1979. The Act allows nonprofits such as the San Gabriel Industrial Corporation to issue bonds on behalf of Williamson County for eligible projects. The purpose of bond financing is to promote new and existing businesses, encourage employment, and increase the tax base of Williamson County. For more information visit the State of Texas webpage for incentives.

Freeport Exemption

Hutto is one of the few communities in Central Texas that offer a "Triple Freeport" exemption on qualified inventories. Williamson County, City of Hutto and Hutto ISD Freeport Exemption exempts certain types of tangible personal property that are acquired in or imported into Texas to be forwarded out of state; detained in Texas for assembly, storing, manufacturing, processing, or for fabricating purposes by the business that acquired or imported it; and transported out of state within 175 days after the date the business acquired or imported it into Texas. For more information visit the Texas Comptroller website.

Sales Tax Rebates

The City of Hutto and the Hutto EDC may offer sales tax rebates to qualified projects.

Speculative Buildings

The City of Hutto and the EDC are very interested in attracting developers to construct speculative buildings in the city. Contact the city for more information about incentives.

Texas Enterprise Fund

Texas Enterprise Fund (TEF) was established by 78th Texas Legislature in 2003 to provide financial resources to help strengthen the state's economy. Funds for the TEF were re-appropriated in 2005, 2007 and 2009, making more than $200 million available for the job creation fund in the 2010-2011 biennium.

The Texas Enterprise Fund, the largest deal closing fund of its kind in the nation, continues to attract businesses and jobs to Texas. To date, the state has allocated more than $383 million from the Texas Enterprise Fund, bringing over 56,000 new jobs generating more than $14 billion in capital investment.

Texas Enterprise Zone Program

The Texas Enterprise Zone Program (EZP) is a performance-based incentive that allows qualified businesses to receive a refund of state sales and use taxes, ranging from $2,500 to $7,500 per job created and/or retained during a five year designation period, up to a maximum of $1.25 to $3.75 million. The level and amount of refund is related to the capital investment and jobs at the qualified business site. While the Texas Enterprise Fund (TEF) is an economic development tool used to assist in the State's recruitment endeavors, the EZP can also assist with job retention efforts.

Texas Emerging Technology Fund

Emerging Technology Fund (ETF) was created by the Texas Legislature in 2005 to expedite the development and commercialization of new technologies, and by recruiting the best research talent in the world. The ETF was reauthorized by the 80th Texas Legislature, making more than $185 million available during the 2008-09 biennium. To date, the ETF has awarded over $140 million to Texas companies and universities.

Skills Development Fund

The Skills Development Fund program assists businesses by financing the design and implementation of customized job training projects. This fund successfully merges business needs and local customized training opportunities into a winning formula to increase the skills level and wages of the Texas workforce.

During Fiscal Year 2008 (September 1, 2007 to August 31, 2008), TWC awarded 41 grants totaling $22,772,673 which served 148 businesses, generated 7,984 new jobs and upgraded the skills of 11,705 workers in existing jobs. For Fiscal Year 2009, TWC has $25 million in Skills Development Funds to support high quality, customized job training projects across the state. For more information visit the Texas Workforce Commission website.

Self-Sufficiency Fund

The Self-Sufficiency Fund is a job-training program that is specifically designed for individuals that receive Temporary Assistance for Needy Families (TANF). The program links the business community with local educational institutions and is administered by the Texas Workforce Commission. The goal of the Fund is to assist TANF recipients to become independent of government financial assistance.

The Fund makes grants available to eligible public colleges or to eligible private, non-profit organizations to provide customized job training and training support services for specific employers. A joint application from the employer and the eligible public college and/or eligible private, non-profit organization is required to be submitted to the Local Workforce Development Board for review and comment prior to approval. For more information visit the Self-Sufficiency Fund Program website.

Texas Product / Business Fund

The Texas Product/Business Fund provides asset back financing to companies currently doing business in the state. Financing is done in the form of direct asset based loans with a variable interest rate tied to London Interbank Offered Rate (LIBOR). Loans can be amortized up to the life of the asset. For more information click here.

Texas Capital Fund

The Texas Capital Fund consists of programs administered by the Texas Department of Agriculture that are designed to promote growth in rural non-entitlement areas generally defined as cities with fewer than 50,000 residents or counties with less than 200,000 residents. Awards are made through eligible cities and counties to assist businesses that employ low- to moderate-income persons. For more information click here.

Foreign Trade Zone (FTZ) 183

Hutto is actively engaged with the Foreign Trade Zone of Central Texas, Inc. A Foreign Trade Zone is an area within the United States, in or near a U.S. Customs port of entry, where foreign and domestic merchandise is considered to be outside the country, or at least, outside of U.S. Customs territory. Certain types of merchandise can be imported into a Zone without going through formal Customs entry procedures or paying import duties. The Foreign Trade Zone may consist of contiguous or non-contiguous sites. The Foreign Trade Zone is intended to serve Central Texas.

Business & Industry Guaranteed Loans

Since the City of Hutto has a population below 50,000, qualified businesses are eligible to participate in the USDA Business and Industry (B&I) Guaranteed Loan program. The purpose of the B&I Guaranteed Loan Program is to improve, develop, or finance business, industry, and employment and improve the economic and environmental climate in rural communities. This purpose is achieved by bolstering the existing private credit structure through the guarantee of quality loans which will provide lasting community benefits.

SBA 504 Loan Program

The SBA 504 Loan Program assists small business owners in the purchase of commercial real estate or machinery/equipment. The SBA 504 Loan Program is a partnership program between a Certified Development Company (CDC) and a lender. Working with qualified lenders, the CDC provides up to 90% financing for commercial property purchases and new construction and, usually, does not require additional collateral. Existing Businesses that meet SBA's definition of a small business are eligible to apply for 504 loans. Start-up ventures with financially strong and/or experienced owners are also eligible.

SBA 7(a) Loan Program

The 7(a) Loan Program is SBA's primary program to help start-up and existing small businesses obtain financing when they might not be eligible for business loans through normal lending channels. The name comes from section 7(a) of the Small Business Act, which authorizes SBA to provide business loans to American small businesses. SBA itself does not make loans, but rather guarantees a portion of loans made and administered by commercial lending institutions.

7(a) loans are the most basic and most commonly used type of loans. They are also the most flexible, since financing can be guaranteed for a variety of general business purposes, including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements, and debt refinancing (under special conditions). Loan maturity is up to 10 years for working capital and generally up to 25 years for fixed assets.