Business Tax Snapshot
Corporate Income Tax: None
Sales Tax: 6.25%
City Tax: 2..00%
Property tax: $1,635 per capita
Taxes & Incentives
The Rockwall EDC and the State of Texas offer a variety of incentives to help offset the cost of locating or expanding a business. Incentives are determined on a project by project basis. Incentives are offered on local, and state and levels.
Texas Enterprise Fund (TEF): Discretionary cash grants may be available to businesses that create at least 25 new jobs in rural areas or 75 jobs in metropolitan areas. To qualify for incentives under this “deal closing fund,” the wages for the jobs should be above the average wage in the county where the project would be located. The amount of the TEF award will be determined by several factors including average project wages, number of net new jobs, capital investment, community support, and the availability of program funds.
The Skills Development Fund: Discretionary grants may be provided to public community and technical colleges that develop customized job training programs for businesses that want to train new workers or upgrade the skills of existing employees. Administered by the Texas Workforce Commission, the average training costs reimbursed are $1,800 per trainee and up to $500,000 for a business, however the actual benefit will depend on the project.
Enterprise Zone: Businesses that establish operations in an Enterprise Zone are eligible to receive refunds on state sales and use tax for qualified expenditures.
Sales and Use Tax Exemptions: Available to taxpayers who manufacture, fabricate, or process tangible property for sale; manufacturing companies are also exempt from paying state sales/use tax on electricity and natural gas used in manufacturing, processing, or fabricating tangible personal property.
Freeport Exemption: Property tax exemptions are available for various types of goods that are detained in Texas for 175 days or less. The goods must be in Texas only for a limited purpose such as assembly, storage, manufacturing, processing or fabricating. This exemption is available in select areas only.
Manufacturing Exemption: Equipment purchased for use in the manufacturing process is exempt for the state sales and use tax.
Data Center Tax Exemption: Data Center projects that result in the creation of at least 20 qualifying jobs and a capital investment of $200 million over a 5-year period can qualify for an exemption on sales and use tax.
Research and Development Tax Credit/Exemption: Provides qualified businesses with the option of selecting either a sales tax exemption on property purchased for purposes of R&D or a franchise tax credit equal to 5% of the difference between the qualified research expense and the base period. The total credit cannot exceed 50% of franchise tax liability.
- Site Development Grant
- Tax Base Incentive Grant
- Utilities Grant
- City Fee grant-Paid Impact and m-Plat Fees
- Fast-track Plan Review and Permitting
- REDC Owned Land Available
- Triple Freeport Exemption
- Workforce Recruitment Assistance
- Relocation Incentive Grant
- Property Acquisition Grant
- Manufacturing Grant