Local Incentives
Midland Development Corporation Incentives
Midland has an array of local and state incentives available to qualified and diversified companies.
The Development Corporation Act of 1979 gives cities the ability to finance new and expanded business enterprises in their local communities through economic development corporations (EDCs). Chapters 501, 504, and 505 of the Local Government Code outline the characteristics of Type A and Type B EDCs, authorize cities to adopt a sales tax to fund the corporations and define projects EDCs are allowed to undertake. Midland adopted the Type A Sales Tax in 2002.
Type A sales tax is primarily intended for manufacturing and industrial development. The Statute allows targeted infrastructure and improvements for projects including:
- manufacturing and industrial facilities, recycling facilities, distribution centers, and small warehouse facilities;
- research and development facilities, regional or national corporate headquarters facilities, primary job training facilities operated by higher education institutions, job training classes, telephone call centers and career centers not located within a junior college taxing district;
- certain infrastructure improvements that promote or develop new or expanded business enterprises;
- aviation facilities;
- commuter rail, light rail or commuter bus operations;
- port-related facilities, rail ports, rail switching facilities, marine ports, inland ports; and maintenance and operating costs associated with projects.
Incentives are based on project investment, the number of new basic jobs and payroll. Any request for incentives must be approved by the Board of Directors of the MDC and the Midland City Council.
The main requirement is that the businesses bring new money into the community by providing primary jobs. A primary job is one at a company that exports a majority of its products or services to markets outside the local region, infusing new dollars into the local economy. Primary jobs are further limited to specific industry sectors such as agriculture, mining, manufacturing and scientific research and development. Those industry limitations can be found in Local Government Code, Chapter 501.
The MDC must enter into a written performance agreement with any business enterprise that it funds directly or makes expenditures that benefit an eligible project. At a minimum, the performance agreement must contain:
- a schedule of additional payroll or jobs to be created or retained;
- the capital investment to be made by the business enterprise; and
- the terms for repayment of the MDC's investment if the business fails to meet the performance requirements specified in the agreement
Assistance may be in the form of:
Leasehold improvements, construction, real estate purchase, training, personal property or equipment, and infrastructure needs.
