Incentives and Financing

Local Incentives

The City of Granbury, Hood County and economic development partners support business retention and expansion and new business attraction through economic development incentive and assistance programs.  The Application for Economic Development Incentives may be found here. 

Chapter 380 Local Government Code:  This incentive authorizes municipalities to offer a range of incentives designed to promote state or local economic development. Specifically, it allows for the provision of loans and grants of City funds, as well as the use of City staff, City facilities or City services, at minimal or no charge. On a case-by-case basis, the City of Granbury may consider Chapter 380 agreements for qualified projects (minimum of 20 jobs created), for a number of years, based on salaries and anticipated sales and use tax revenue generation by type of industry and/or project. More information.

Chapter 381 Local Government Code:  This incentive allows counties to provide incentives encouraging developers to build in their jurisdictions. A county may administer and develop a program to make loans and grants of public money to promote state or local economic development and to stimulate, encourage and develop business location and commercial activity in the county. A county also may develop and administer a program for entering into a tax abatement agreement. More information.

City Property Tax Abatement on Real and Personal Property:   City Ordinance 23-37 adopting a General Tax Abatement Policy under Chapter 312 of the Texas Local Government Code was approved on May 16, 2023.   This ordinance created a guidelines and criteria for granting property tax abatement in the City limits of the City of Granbury.  Designation of a Reinvestment Zone is required to establish a City Tax Abatement Agreement with eligible entities.   Eligible projects/facilities include manufacturing, distribution centers and warehousing, aviation and aviation related facilities, energy services, headquarters: international-national-regional, research parks and facilities, data centers, target industries, technology companies, and target developments such as business and office parks, shell or spec buildings, and mixed-use developments.   Abatement may be extended to new buildings, structures, site improvements and Business Personal Property as well expansion or modernization of existing facilities and structures for full-time job creation at or above the City of Granbury Annual Salary.  Minimum investment and job creation required is $2 million and 20 full-time jobs for general projects and developments; $1 million and 10 full-time jobs for expansion and modernization of existing facilities and structures, and target industries; and minimum of 5 full-time jobs created for technology companies with no investment requirement.  Agreements are developed for an abatement percentage of 30% to 90% of the new improvements and new value established within the Reinvestment Zone, and for terms of 3 to 10 years, based on the total investment and number of jobs created.  General Tax Abatement Policy-5-16-2023. Abatement Process   

Tax Increment Reinvestment Zone (TIRZ):   The City of Granbury has established two Tax Increment Reinvestment Zones (TIRZ) under Chapter 311 of the Texas Local Government Code, of approximately 6,000 acres, which allows for Tax Increment Financing “TIF” for public works and public improvements, without a property tax increase. The categories of public works and public improvements that are proposed to be financed by the Zone(s) include wastewater, water, paving, right of way and landscaping, transportation projects, airport improvements, and park improvements.  Public improvements may be expanded to include any other category of improvements authorized under the Act.  More information. 

Public Improvement Districts:  The City of Granbury may also consider the establishment of Public Improvement Districts (PIDs), as called for.  Public Improvement Districts may be created by a municipality at the request, or with the consent, of property owners. PIDs allow for the levy of voluntary assessments and the issuance of tax-exempt bonds.  Funds collected through PIDs and any associated bonds may be used for capital improvement projects and maintenance within the geographic area.  More information 

Triple Freeport Exemption:  This is an ad valorem property tax exemption on goods, wares, merchandise, ores, certain aircraft and parts, if they have been detained in Texas for 175 days or less for the purpose of assembly, storage, manufacturing, processing, or fabricating.   In the Commerce Centre of Granbury this tax exemption includes all three taxing authorities, the City of Granbury, Hood County, and Granbury Independent School District. Freeport property includes goods, wares, merchandise, ores and certain aircraft and aircraft parts.  For certain aircraft parts, a community, by official action, may extend the deadline to 730 days.  More information and application. 

Goods-In-Transit Incentive:  House Bill 621 of the 80th Texas Legislature amends the Tax Code and the Government Code to add an exemption from ad valorem taxation for Goods-In-Transit.  To qualify for the exemption, personal property used for assembling, storing, manufacturing, processing or fabricating purposes would have to be acquired in Texas or imported into Texas and stored at a Texas location in which the owner of the goods does not have a direct or indirect ownership interest. The Goods-In-Transit would have to be transported to another location in Texas or out of state no later than 175 days after the property was acquired in or imported into the state. The City of Granbury and Hood County provide this exemption.  Oil and gas and their immediate derivatives, aircraft and dealer’s special inventories do not qualify for the exemption. Companies pursuing inventory exemptions may claim either the Freeport or Goods-In-Transit Exemption, not both.  More information and application.

City of Granbury Neighborhood Historic Tax Incentive Program:  In 2007, the City of Granbury adopted Ordinance 07-234 which relates to a Historic Neighborhood Improvement Zone (HNIZ) and a Neighborhood Empowerment Zone (NEZ). The Historic Neighborhood Improvement Zone is a historic tax incentive program created for the purpose of preserving the City’s unique and historic neighborhoods while encouraging property owners to maintain and/or rehabilitate residences. The tax incentive program allows owners of historic residential buildings, either landmarked or located in the Historic Neighborhood Improvement Zone (HNIZ) and at least 50 years old, to receive a prescribed tax exemption on qualifying expenses for up to 10 years when restoration / rehabilitation costs equal or exceed a select percentage of the value of the building.   The Neighborhood Empowerment Zone (NEZ) is geographically coexistent with the HNIZ. Owners in the NEZ who qualify for tax exemption under any level may receive residential building permit fee waivers on any construction.  Preservation, restoration, rehabilitation, or reconstruction of qualifying properties may receive applicable residential impact fee waivers.

Local Workforce Recruitment & Training Programs:  The Workforce Solutions Office for North Central Texas Ecosystem of Business Services and Partnerships connects businesses to the resources that they may need.  This ecosystem includes the following benefits:  recruitment assistance, workforce planning, reduced training costs, tax credits, fidelity bonding, labor market information, a dedicated business professional, college and technical training partners for custom training programs,  student career exploration and job shadowing, mobile workforce unit (RV for your on-site recruiting, job fair, rapid response, or disaster recovery), hiring events, on-the job training and paid work experience funding. 

Forward Training Center of Hood County:  The goal at the Forward Training Center of Hood County is to provide training, support and inspiration to men and women of Hood County.  All classes and material are free to students enrolled in the classes.  Career and Life Skills Training include Jobs for Life, Financial Literacy, Computer Classes, Reading and Writing Development, GED, and ESL. Other Forward Training Programs include Support Services, Youth Services, Youth Powered for Life, and Higher Education Opportunities for Alumni.