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.

Click here to download our incentive application to be considered for direct financial incentives and discounted REDC-owned land.

*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.

Learn more about this exemption here


Here’s an overview of Texas Business Incentives and Programs


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.

Learn more about this grant here

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.

Learn more about special zoning refunds here

Tax Exemptions

Manufacturing Sales Tax Exemptions
Machinery and Equipment: Machinery, equipment, parts and accessories that are used or consumed in manufacturing, processing, fabricating, or repairing property for sale are exempt from state and local sales and use tax.

Learn more about this exemption here

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.

Ready to make the move? Let’s talk.

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.