Taxes and Incentives
To make your move easier, we offer a variety of incentives to help offset the cost of locating or expanding a business on state and local levels.
Along with Rockwall’s logistical and workforce advantages, the REDC and the State of Texas offer aggressive incentive packages to help offset costs associated with relocation or expansion.
Your company frequently makes business decisions that benefit shareholders, customers, and employees. At the REDC we are no different. We have various financial tools at our disposal that we use to help catalyze growth for the betterment of Rockwall.
Business Tax Snapshot
Corporate Income Tax: None
Sales Tax: 8.25% (2% directed to the City of Rockwall/REDC)
Consolidated Property Tax Rate: 2.06% per $100 of assessed valuation (in Tax Year 2019)
Direct Financial Incentives: The REDC has funding available to help defray some of the cost associated with relocation, expansion, and operation. Funding can be used to offset the cost of impact or permit fees, cover infrastructure development costs, property or equipment acquisition, address moving expenses or alleviate some of the company’s utility or tax liabilities. The decision to offer a direct incentive, and the amount of the incentive, is subject to the discretion of the REDC. Factors influencing the decision include anticipated jobs and wages to be created by the project, and tax value that will be generated.
Discounted REDC-owned Land: Available directly from REDC, you’ll find plenty of shovel-ready land within the Rockwall Technology Park as well as other prime locations in town. In addition, we provide discounted to no cost land for qualified companies who would make a significant economic impact to Rockwall.
*Companies are encouraged to discuss potential projects with REDC staff before applying.
Freeport Exemption: Available in Rockwall, certain types of inventory that is manufactured here, but transported out of the state within 175 days, is exempt from property tax.
Texas Enterprise Fund (TEF): Designed to attract major employers when one site in Texas is considered against viable out-of-state alternatives, these discretionary cash grants between $1,000 – $10,000 per job may be available to businesses that create at least 75 jobs in metropolitan areas.
Sales Tax Rebate
Enterprise Zone: Businesses that establish operations in an Enterprise Zone are eligible to receive rebates ranging from $2,500 – $7,500 per job (depending upon capital investment, sales tax generated, and jobs created/retained) on state sales and use tax for qualified expenditures.
Manufacturing Sales Tax Exemptions
Machinery and Equipment: Machinery, equipment, parts
Natural Gas & Electricity: Texas companies are exempt from paying state and local sales and use tax on electricity and natural gas used in manufacturing, processing, or fabricating tangible personal property. The company must complete a “predominant use study” that shows 50% of the electricity or natural gas consumed by the business directly causes a physical change to the product.
With plenty of available land, financial incentives, and an educated, experienced workforce, Rockwall may just be your new home. Drop us a line to learn more.
“Doing business in Rockwall and North Central Texas is great for several reasons. First and foremost is the talent pool in which we get to draw. Secondly, the community, schools, and businesses work closely together for the benefit of each other and finally, the quality of life for all of us that work at SPM. Rockwall is an excellent location because of Interstate 30 providing regional access and close proximity to our suppliers and customers.”
“When I came to Texas, I felt this Texas pride. People here, they want to support domestic and local manufacturing and the local manufacturers want to support the local community… In California, it took us five years to build what we have right now. But in Texas, it will only take 12 months to surpass what we’re currently doing in California. I foresee our manufacturing capability will be three times what we’re currently doing in California.”
“The EDC (in Rockwall) has really gone a lot further than what any other EDC would have done. They’ve really made a commitment to help us grow and made a commitment to be there for us… I really believe that it was the perfect decision, coming here to Rockwall. It was a lot better than what we ever thought it would be.”
“The hidden benefit we didn’t recognize initially when we scouted out the territory was really how great the skilled, hourly workforce was going to be. We didn’t realize how good it would be… I’ve worked in twelve manufacturing facilities in corrugated and this is by far the best group I’ve ever had.”