Seguin nominates Caterpillar for Texas Enterprise Zone designation to support $30M local investment

Seguin City Council approved an ordinance on first reading nominating Caterpillar’s Seguin facility for consideration under the Texas Enterprise Zone Program, a state-administered sales-and-use tax refund program designed to encourage private investment and job creation in designated areas.

City staff told council that Caterpillar expects roughly $30 million in additional capital investment in Seguin over the next five years and anticipates moderate employment increases beyond the approximately 1,100 employees it currently supports in the community. The nomination requests that the Office of the Governor’s Economic Development and Tourism consider Caterpillar for the Enterprise Zone designation, which can provide state sales-and-use tax refunds for qualifying capital expenditures.

Staff clarified that the Enterprise Zone program involves state-administered refunds and does not require the city to provide additional property tax abatements; council members asked and staff confirmed the city’s prior local property tax abatement for Caterpillar had expired and that no new city-funded tax abatement is included in this nomination. The ordinance was approved on first reading; staff said the format is an ordinance to meet state program language requirements.

Council moved and approved the item; staff invited company representatives and the incentive consultant to answer more detailed questions if council requested further information.