Tax Abatement

Tax Phase-In (abatement) is available from the City of San Antonio, Bexar County and most surrounding communities. It is designed to lower the property tax liability on the value of new investments made locally. The program targets certain types of companies that create or sustain jobs in the local area. Targeted industries include agribusiness, aviation, biotechnology, creative services, environmental technology, finance, IT, manufacturing, and others. Eligible companies can apply for reduction of real and personal property taxes if specific job creation and / or investment thresholds are reached. For more information about Tax Abatement, visit www.sanantonio.gov or view our abatement guideline chart here.

Freeport Exemption

The City of San Antonio, Bexar County and some independent school districts allow a personal property tax exemption to companies that deal with goods in-transit or inventories used in the manufacturing process. To qualify for the exemption, inventory must be used for the purpose of assembly, storage, manufacturing, processing, or fabricating. In addition, it must be transported to destinations outside Texas no later than 175 days after the date acquired in Texas or imported into Texas. For more information about Freeport Exemption, visit www.sanantonio.gov.

Foreign Trade Zone

A company may choose to locate in a Foreign Trade Zone (FTZ) for reduction of duties levied on domestic and foreign goods. Through the use of the FTZ, companies can structure their import and export operations to pay the lowest possible custom duties. For the community, the Zone is a means to stimulate the local economy by expanding trade and increasing employment, particularly in manufacturing and goods handling industries. San Antonio has 10 general-purpose FTZ sites. For detailed information on incentives offered within an FTZ, visit www.freetradealliance.org or click here to compare advantages of an FTZ over a bonded warehouse.

To view the Foreign Trade Zone map, click here.

Subzone Designation

If the general-purpose sites do not fully meet the company’s requirements, an application for subzone designation is available. Subzone sites are areas that are physically separate from the general purpose site, but are legally and administratively attached. Subzones typically accommodate existing facilities that cannot be located on the general-purpose site. Subzones offer all of the advantages of a Foreign Trade Zone. For more information about Subzone Designation, visit www.freetradealliance.org.

Industrial District

The City may designate, at the request of the applicant, a qualified parcel of land as an industrial district, providing that it is 10 acres or larger and adjoins (in most cases) the city limits of San Antonio. The property must be in the extra-territorial jurisdiction of the City and must be in the control of a single owner or developer.

A contract is signed by the City and the owner of the land specifying that said parcel will be exempt from annexation for a period not to exceed seven years, hence exempting the property from City ad valorem taxes. It also specifies that the City will provide certain municipal services for the same period at an established rate, provided that the property is utilized for industrial purposes. Visit www.sanantonio.gov for more information.

Industrial Development Bonds

To promote industrial development, industrial revenue bonds are available through San Antonio's Industrial Development Authority (IDA) and the County's Industrial Development Corporation (BCIDC). IDA bonds are tax-exempt revenue bonds that can be issued for new construction, building improvements, and the purchase of machinery and equipment. IDA bonds are available for projects with total cost up to $10 million. In addition, the South Texas Business Fund offers loans for small-to-medium sized businesses at competitive interest rates. Visit www.sanantonio.gov for more information about the IDA. Visit www.bexar.org/ed for more information about the BCIDC.

Tax Increment Financing

In a city-designated area, a certain percentage of tax revenue is designated specifically for public infrastructure improvements. The area must face problems that impede redevelopment and must be considered a distressed or blighted area to be designated as such. Visit www.sanantonio.gov for more information.

Pollution Control Property

Bexar County Appraisal District, in cooperation with the Texas Natural Resource and Conservation Commission (TNRCC), may grant exemptions from all or part of real or personal property taxes for a facility, device or method that controls air, water or land pollution. The definition of "facilities, devices or methods" encompasses buildings, machinery, equipment and property investments.

Interested parties may complete a TNRCC exemption application, which requests information regarding anticipated environmental benefits, the costs, and the purpose of the facility, method or device. The application is then submitted to the chief appraiser of the Bexar County Appraisal District for processing.