Burkburnett, Texas • Incentives
TAX INCREMENT REINVESTMENT ZONE (TIF)
Tax Increment Financing (TIF) is available within the Tax Increment Reinvestment Zone. This area is designated along the Interstate 44 corridor, and is seen as an area the high development potential. However, this area has been historically underserved by utilities. The TIF program assists development through a transition from vacant land to active commercial development.
The TIF zone is located in either side of I-44 from Daniels Road north to the Burkburnett city limits (see map). This area has limited water and sewer development that, in the past, has hampered commercial development along the entire I-44 corridor. Recent developments through the TIF zone have helped to extend water and sewer development, but the TIF zone remains in effect until 2026, but may be shortened via ordinance from the City of Burkburnett should development fill in the area. The TIF zone may not be extended beyond its 20-year life (2026).
The TIF funding within the Reinvestment Zone is designated for infrastructure development and improvement. Public improvements may include other infrastructures as identified by the Tax Increment Financing Board and approved by the City Council. Improvements may include the following:
- Drainage and Flood Control
Funding for the public improvements in the TIF District may include but may not be limited to the following:
- 4A and 4B Sales Tax Funds
- Capital Bond Financing or Certificates of Obligation
- General City Funds
- Developer Participation
There are many factors that enter into the determination for incentives. Where a company may locate (within unincorporated Wichita County or the City of Burkburnett), wages paid, number of employees, existing building or infrastructure, etc., will determine the variety and availability of incentives. It is difficult to put a dollar figure on any proposal presented to a client without knowing specific site locations and project parameters.
Several financing alternatives are available for businesses seeking to expand or relocate to the City of Burkburnett. Burkburnett Development Corporation will work with businesses to locate sources of funding within the state and local financial assistance programs.
Burkburnett Development Corporation (BDC)
The BDC is the City of Burkburnett’s economic development service provider. The BDC is committed to economic diversification, promoting business expansion, and to the attraction of new primary employers to the Burkburnett region. The BDC will make every effort to assist primary employers expand or locate to the area, and offers the following services to help meet the business’ goals:
Economic Development Services:
- Local economic information and demographics;
- Comparative analysis of competing regions;
- Existing facility and site location assistance;
- Incentives packaging;
- Development-related assistance; and
- Workforce Development support.
Loans and Loan Guarantees: It is the BDC’s desire to act as a participant in loan packages either in a Subordinate position or as a guarantor of all or a portion of the loan.
BDC’s position will not exceed 50% of the cost of the project unless it is a real estate project and BDC has title to the property. Loans or loan guarantees can be used for:
- Building Rehabilitation
- Capital Equipment
BDC will make one-time grant to companies based on the ratio of 1 to 4 dollars or more being invested in the project by the company. Grants can be used for:
- Infrastructure improvement and upgrade*
- Employee training and related expenses
- Relocation and moving expenses by Company or Employees
- Building rehabilitation (50% matching grant; maximum grant $25,000)
*The extension of major infrastructure improvements (water, sewer, roads) are special projects that do not necessarily fit into these guidelines and may be addressed individually.
Burkburnett Development Corporation is a good steward of public funds, and wishes to ensure the success of all businesses. All companies being considered for local incentives will be subject to an extensive review of records, including 1) History of company, operations and business plan; 2) Management/ownership qualifications; 3) 3-years of Financial Statements; 4) Projection of operations to include number of jobs to be created, taxes paid and other benefits to Burkburnett; 5) Performance Contract with BDC; and 6) Application. The BDC and/or the City of Burkburnett will also create an Impact Statement or Cost/Benefit Analysis.
Funds may not be used for: 1) Venture or equity capital; 2) Working capital/inventories or 3) Personal loans.
The Burkburnett Development Corporationowns several parcels of land with all utilities available in commercial/industrial locations. These parcels may be “gifted” for the purpose of building a facility to an employer moving to the area. Conditions apply.
Property Tax Abatement:
The City of Burkburnett and Wichita County may negotiate to abate 100% of their respective portions of increased Ad Valorem tax during the first year that improvements are in place. The abatements are then reduced by 10% each year until the abatements cease during the 10th year. These decisions are made independently and are based upon a project’s capital investment and the number of jobs created as a result of expansion or new project location. Terms of these abatements are negotiated on a case-by-case basis and apply only to primary employers.
Businesses outside the city limits, but wishing to have city services, may agree to pay an amount equal to 25% of the city’s Ad Valorem taxes, and pay one and one-half times the usual rate for services instead of agreeing to be annexed into the city. Additionally, this agreement may offer discounts on outside-user landfill charges. Agreements are generally for seven years and renewable on a case-by-case basis.
The Small Business Development Center at Midwestern State University offers training and free consulting to small business owners. SBDC offers services tailored to a company’s needs utilizing current resources such as databases, handbooks and outside consultants in a variety of specialized areas companies may require. SBDC coordinates public and private networks throughout the State to provide companies with information and solutions to financial management, administrative, personnel, marketing and other related questions.
Many local area banks and private funding groups understand the importance of energy development in the United States, and provide financing for specific projects. As either a commercial lender, or working in conjunction with the Small Business Administration, these companies are very interested in promoting business in Burkburnett:
|Bank Name and Address||Contact and Email||Phone|
|Fidelity Bank301 S Avenue D
Burkburnett, TX 76354
909 8th Street
Wichita Falls, TX 76308
|(940) 569-2868(940) 569-9000
|First Bank300 E Third Avenue
Burkburnett, TX 76354
901 Lamar St
Wichita Falls TX 76301
TEXAS STATE INCENTIVES
Texas and local communities offer a variety of tax incentive and innovative solutions for businesses expanding in or relocating to Texas. Programs include Enterprise Zone sales tax refunds, manufacturing sales tax exemptions, property tax value limitation, and Freeport exemptions.
Texas Enterprise Fund – The Texas Enterprise Fund (TEF) is the largest “deal-closing” fund of its kind in the nation. The fund is used as a final incentive tool for projects that offer significant projected job creation and capital investment and where a single Texas site is competing with another viable out-of-state option.
Texas Emerging Technology Fund – The Texas Emerging Technology Fund (TETF) provides Texas with an unparalleled advantage in the research, development, and commercialization of emerging technologies by offering grants to recruit the best research talent in the world and to help companies take ideas from concept to development to ready for the marketplace.
Workforce Development – Skills Development Fund – The Skills Development Fund is Texas’ premier job training program, providing grants to community and technical colleges to provide customized job training programs for businesses who want to train new workers, or upgrade the skills of their existing workforce.
Workforce Development – Self-Sufficiency Fund – The SSF is a job training program that is specifically designed for individuals that receive Temporary Assistance for Needy Families (TANF) as well as individuals at risk of becoming dependent on public assistance. SSF also assists businesses and trade unions by financing the development and implementation of customized job training projects for new and incumbent workers.
Enterprise Zones – The State of Texas Enterprise Zone Program is an economic development tool for local communities to partner with the State to promote job creation and significant private investment that will assist economically distressed areas of the state. Approved projects are eligible to apply for state sales and use tax refunds on qualified expenditures. The level and amount of refund is related to the capital investment and jobs created at the qualified business site.
|Level of Capital Investment||Maximum Number of Jobs Allocated||Maximum Potential Refund||Maximum Refund per Job Allocation|
|$40,000 – $399,000||10||$25,000||$2,500|
|$400,000 – $999,999||25||$62,000||$2,500|
|$1,000,000 – $4,999,999||125||$312,500||$2,500|
|$5,000,000 – $149,999,999||500||$1,250,000||$2,500|
|Double Jumbo Project$150,000,000 – $249,999,999||500||$2,500,000||$5,000|
|Triple Jumbo Project$250,000,000 or more||500||$3,750,000||$7,500|
Projects may be physically located in or outside of an Enterprise Zone. Projects must meet or exceed county weekly wage averages to be eligible.
Manufacturing Exemptions – State sales and use tax exemptions are available to taxpayers who manufacture, fabricate or process tangible property for sale. The exemption generally applies to tangible personal property involved in the manufacturing process.
Value Limitation and Tax Credits (Texas Economic Development Act) – An appraised value limitation may be extended to a taxpayer who agrees to build or install property and create jobs in exchange for an eight-year limitation on the taxable value of the property. The value limitation applies to the local school district maintenance and operations tax (M&O) portion of the property tax and a tax credit. Project must be located in a reinvestment zone or enterprise zone.
Freeport Exemption –This local incentive exempts 100% of the Ad Valorem taxes (County, City and School District) on all tangible property other than oil, natural gas, or other petroleum products that is imported or acquired in Texas for the purpose of assembly, storage, manufacturing, processing, or fabrication if the property is transported outside Texas within 175 days of its acquisition.
Pollution Control Equipment Incentive – This Texas constitutional amendment provides an exemption from property taxation for pollution control equipment. The intent was to ensure that compliance with environmental mandates, through capital investments, did not result in an increase in the facility’s property taxes. Specific determination criteria apply.
Renewable Energy Incentives – Various tax exemptions, franchise tax exemptions, and franchise tax deductions are available for renewable energy equipment and systems. Renewable energy encompasses solar, wind, ethanol, and biodiesel energy. Business owners may deduct the cost of the system from the company’s taxable capital or deduct 10 percent from the company’s income.
Defense Economic Readjustment Zone Program – A tax refund program for business recruitment and job creation in adversely impacted defense-dependent communities.
Natural Gas & Electricity – Texas manufacturing companies may be exempt from paying state sales and use tax on electricity and natural gas used in manufacturing, processing, or fabricating personal property.
Data Center Exemption – A data center exemption applies to state sales and use tax on certain items necessary and essential to the operation of a qualified data center. The exemption is for state sales tax only. Local sales taxes are due on purchases of qualifying items.
Research & Development – The Research & Development tax credit provides companies the option of selecting either a sales tax exemption on property purchased by persons engaged in qualified research activities (QRAs) or the franchise tax credit, but not both. The sales tax exemption provides for property purchased, stored or used by a person engaged in qualified research. The Franchise Tax Credit is equal to 5 percent of the difference between a company’s qualified research expenses during the tax year for which the credit is claimed and 50 percent of the average qualified research expenses for the three preceding tax years (base period). A company which has no qualified research expenses in one or more of the base period years may still claim the credit by selecting the reduced credit rate of 2.5 percent of credit year qualified research expenses.
Moving Image Industry Incentive Program – Cash production grants between 5 and 29.25 percent of qualified in-state spending on film, television, commercial and video game projects.
TEXAS STATE FINANCING
Texas is committed to providing and facilitating funding for companies and communities with expansion and relocation projects in the Lone Star State. Asset-based loans for companies, leveraged loans to communities, and tax-exempt bond financing are just a few means of obtaining the capital necessary for a successful project.
Texas Product/Business Fund – Asset backed financing for companies in Texas to promote job retention and creation.
Texas Leverage Fund – Financing that allows communities to leverage future sales tax revenues to support job retention or creation.
Industrial Revenue Bond Program – Bonds provide tax-exempt or taxable financing for eligible industrial or manufacturing projects.
Texas Military Value Revolving Loan Fund – Financing provided to defense communities for job creation and infrastructure projects.
The State of Texas also helps communities with business attraction and retention. From public infrastructure projects in non-entitlement communities to cancer research and laboratory facility construction, several types of grants are available to Texas communities and businesses. These grant programs assist communities to upgrade themselves to meet the needs of growing businesses.
- Texas Capital Fund Infrastructure Program – Provides financial resources to non-entitlement communities for public infrastructure projects needed to assist businesses.
- Texas Capital Fund Real Estate Development Program – Loans provide capital to Texas communities at favorable market rates.
- Cancer Prevention and Research General Obligation Bonds – Funding opportunities for promising cancer research and prevention programs.
- Defense Economic Adjustment Assistance Grant Program – A job creation grant program designed to assist adversely and positively impacted defense communities.
(Source: Texas Wide Open for Business, January 2014)
Venture Capital is available through a Certified Capital Company (CAPCO). CAPCOs are private government-sponsored venture capital companies formed to increase the availability of growth capital for small businesses located in Texas. The CAPCO program is also intended to stimulate job creation in Texas by requiring supported businesses to have at least 80 percent of payroll/manpower located in Texas.
|CAPCO Name and Address||Contact and Email||Phone|
|Accent Texas Fund I & II, LP5300 Bee Caves RoadBuilding 1, Suite 240Austin, TX 78746||Mansoor Ghorimansoorg@mail.accentcap.com||(512) 306-9967|
|Aegis Texas Venture Fund I & II, LP11000 Richmond Ave., Suite 550Houston, TX 77042||Kevin Dragankevin@clearspringcg.com
Matt Malone (Dallas)
|(713) 339-1903 x 12(972) 381-2730 x 7730|
|ATVF II LLC (Texas Ventures)5090 Richmond Ave., Suite 319Houston, TX 77056||Scott Cristinfo@texasventures.com
|Enhanced Capital Texas Fund I & II, LLC2802 Flintrock Trace, Suite 220Austin, TX 78738||David Orlandelladorlandella@enhancedcap.com
Shane P. McCarthy
|(512) 610-5555(504) 569-7900
|Lonestar CAPCO Fund, LLCPO Box 637Austin, TX 78767||Mike Shultzmshultz@lscapcopartners.com
Deidra Mills Ryan
|(512) 532-3587(512) 532-3587
|Republic Holdings Texas Fund I & II, LP1601 Rio Grande, Suite 345Austin, TX 78701||Ward Greenwoodwwg@republicholdings.com||(512) 494-9754|
|Stonehenge Capital Texas Fund, Texas, LP3625 N. Hall Street, Suite 615Dallas, TX 75219||Stephen Bennettsabennett@stonehengecapital.com
|(214) 599-8850(225) 408-3255
|Texas ACP, LP5000 Plaza on the Lake, Suite 195Austin, TX 78746||Tim CockshuttDamon Rawie||(512) 380-1168(512) 380-1168|
|CAPCO Name and Address||Contact and Email||Phone|
|Waveland Texas Opportunity Fund, LP515 Congress Ave., Suite 1700Austin, TX 78701||Paul Deslongchampspauld@wavelandventures.com
|(414) 223-1073(512) 450-5111|
|Whitecap Texas Opportunity Fund, LP11412 Bee Caves Road, Suite 300Austin, TX 78733||David Leeinfo@whitecaptexas.com
|(512) 402-1717(770) 576-1987|
|Wilshire Texas Partners I, LLC301 Mexico Blvd., H3-A Room 220Brownsville, TX 78520||Matt Ashmash@newtekbusinessservices.com
|(221) 356-9500(281) 252-9817|
(Source: Window on Texas, January 2014)
- To be eligible, the business must be headquartered in Texas (or relocate to Texas within 90 days of the CAPCO’s first investment)
- The business can have no more than 100 employees at the time of investment
- 80 percent of payroll/manpower must be located in Texas
- Primary business activity may be manufacturing, processing, or assembling products; research and development; or providing services
- The business may not be primarily engaged in retail sales, real estate development, insurance, banking, leasing, lending or professional services
- By statute, a percentage of the CAPCO investments must be used for early stage businesses and businesses located in strategic investment areas.
SBA and Special Financing Programs. The Small Business Administration offers long-term, low cost, low interest loans to Texas small businesses. They also provide loans for land, buildings, equipment and machinery through the 504 program.
The U.S. Department of Agriculture (USDA) offers Business and Industry Loan Guarantees. These loans are made through banks and other business leaders who can make loans to rural businesses. Only areas with a population of less than 50,000 are considered eligible. The funds may be used for real estate, equipment, working capital and refinancing for non-farm businesses. The typical amount of assistance is $300,000 to $10,000,000. Businesses must have strong equity and collateral to qualify for these loan guarantees.
BURKBURNETT INDUSTRIAL PARK
Burkburnett Industrial Park consists of 8 lots, ranging between 2.2 and 3.7 acres, owned by the Burkburnett Development Corporation. The BDC may consider altering the size of the lots as needed.
|Lot 1||2 Acres||Sold|
|Lot 2||2.2 Acres||Available|
|Lot 3||3.7 Acres||Available|
|Lot 4||2.5 Acres||Available|
|Lot 5||2.4 Acres||Available|
|Lot 6||3.1 Acres||Available|
|Lot 7||2.3 Acres||Sold|
|Lot 8||3.6 Acres||Available|
The Industrial Park is ready for full development, with a 10-inch water line around the park perimeter, with 6-inch water lines feeding the sites and fire hydrants. The water is loop-fed with a static pressure of 66 PSI, and a residual pressure of 42 PSI. Sewer is a 6-inch line throughout the park. Loop-fed, 3-phase electric power is available, located 1/4 mile from a sub-station. The road through the Industrial Park is 6-inch concrete, able to carry a maximum load of 80,000 lbs.