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Hitchcock adopts economic development incentives, sets job, investment minimums
Summary
Council adopted an ordinance establishing City of Hitchcock economic development program guidelines under chapter 3 12 and chapter 3 80 of the Texas tax code, setting job, investment, wage and term thresholds for tax abatements and sales/use tax grants.
The Hitchcock City Council voted to adopt an ordinance establishing economic development program guidelines and criteria under “chapter 3 12 and chapter 3 80 of the Texas tax code.” The ordinance sets eligibility rules for property tax abatements and sales-and-use-tax incentives and was recommended by the Hitchcock Economic Development Corporation.
Lance, presenting the ordinance, told the council the incentives target manufacturing, distribution, grocery, research and development and similar projects. “The minimum job requirement under this policy is the creation of 20 jobs for new companies and 10 jobs for existing companies,” Lance said. He said the capital-investment thresholds are $2,000,000 for new companies and $1,000,000 for expansions, with an average annual wage requirement of $39,000 for property tax abatement or rebates.
Under the draft policy Lance reviewed, abatements or rebates may run up to seven years at a maximum of 70%. For chapter 380 agreements involving sales-and-use-tax grants, companies must generate at least $50,000 in annual sales tax with the same seven-year, 70% cap. After brief council questions and a required public hearing earlier in the agenda, council voted “all in favor” with no opposition to adopt the ordinance.
The council did not record roll-call votes in the transcript. Lance noted neighboring cities have similar guidelines and that the policy aims to help Hitchcock compete for new or expanding businesses.
