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SANANTONIOINCENTIVES
Under the City's Tax Phase-In program, an abatement of ad valorem taxes may be granted on real and personal property improvements up to 100% for a maximum term of 10 years. Eligibility for a tax phase-in is based on the type of business, project location within the City, level of capital investment, job creation and wages. Under the City's Tax Phase-in Guidelines, a company must also meet the City's wage standard of $9.06/hour for all new, full-time jobs. Current guidelines are pending revision.
The City of San Antonio was designated a federal Empowerment Zone in 2002. The Toyota site, KellyUSA, Brooks City-Base and the Fredericksburg Road corridor are located within the City’s Federal Empowerment Zone. By locating within the Federal EZ area, a company becomes eligible for significant federal wage credits and tax incentives. For example, the Empowerment Zone Employment Credit can be as much as $3,000 per employee per year for any employees that live and work in the Zone.
An EZ is an economic development tool that allows a community to partner with the State to offer local and state tax and regulatory benefits to assist businesses seeking to locate, expand or retain jobs in economically distressed areas. Within the City of San Antonio, all census tract block groups in which at least 20% of the residents have an income at or below 100% of the federal poverty level now qualify as State Enterprise Zone areas. In addition, the area encompassing the City's Federal Empowerment Zone (EZ) qualifies as a State Enterprise Zone. By locating within a State EZ, a company is eligible to apply for EZ project designation, subject to approval by City Council and the State of Texas. Designated projects are eligible for state sales and use tax refunds on taxes paid for equipment and machinery, materials used in building a new structure, taxable services, and electricity/natural gas used in zone business operations. Designation projects are also eligible for state franchise tax credits based on job creation and capital investment.
The City of San Antonio and Bexar County allow personal property tax exemptions up to 100% on property detained in Texas for assembling, storing, manufacturing, processing or fabricating. Property must be transported to destinations outside of Texas within 175 days of acquisition or import.
Regardless of where a company chooses to locate in San Antonio, the City's Economic Development Department can assemble a team of experts to give each company a direct line to key decision-makers to troubleshoot and resolve problems the company may encounter during business development and the permitting process. The team consists of key staff personnel from City departments and representatives from local utility companies. In April 2003, the City opened a new Business Development and Services Center to better serve our customers.
The Alamo Community College District (ACCD) conducts a variety of vocational training programs at various campuses throughout the City. These programs can be customized to fit a company's specific training needs, and if requested can be conducted at their business site. The State Skills Development Fund also assists businesses that partner with ACCD by financing customized job training for new or existing jobs. To learn more about this innovative approach to workforce training and the specific training programs available, the City will set up one-on-one meeting with ACCD.
San Antonio is home to Foreign Trade Zone No. 80. Foreign Trade Zone benefits include: relief from inverted tariffs; duty exemption on re-exports; duty elimination on waste, scrap, and yield loss; and duty deferral until merchandise is imported from the FTZ into the United States. If interested in seeking FTZ designation, the City will assist in the process.
The City of San Antonio, in partnership with 19 independent school districts, the Alamo Community College District and private sector companies established the Alamo Area Aerospace Academy in August 2001 and the Information Technology Security Academy in August 2002. A third Manufacturing Technology Academy will open in the Fall 2004. These innovative programs were developed to help support workforce development in our targeted industries. Through these programs, high school juniors and seniors receive dual-credit courses and summer internships to prepare for employment in the respective industries. These innovative programs have been a huge success and will continue to complement the community's efforts to support workforce requirements for our growing aerospace, information technology and manufacturing industries.