Chapter 312 of the Texas Tax Code allows but does not obligate or require, the City to grant a tax abatement on the value added to a particular property on account of a specific development project that meets the eligibility requirements set forth in this policy. In order for the City to participate in tax abatement, the City is required to establish guidelines and criteria governing tax abatement agreements. This policy is intended to set forth those guidelines and criteria for persons or entities interested in receiving tax abatement from this City.
Chapter 312 Guidelines
The City of Laredo is committed to the promotion of high-quality development in all parts of the City, and to an ongoing improvement in the quality of life for its citizens. Insofar as these objectives are generally served by the enhancement and expansion of the local economy, the City of Laredo, will on a case-by-case, give consideration to providing tax abatement as stimulation for economic development in Laredo. It is the policy of the City of Laredo to make available tax abatement for both new facilities and for the expansion or modernization of existing buildings and structures.
General Eligibility
Abatements under this program may be granted for New Facilities and improvements to existing facilities for the purpose of Modernization or Expansion.
A Tax Abatement can only be granted to persons or entities eligible for tax abatement pursuant to Section 312.204(a) of the Texas Tax Code, which persons or entities as of the effective date of this Policy are (i) the owner of taxable real property located in a tax abatement reinvestment zone; or (ii) the owner of a leasehold interest in taxexempt real property located in a tax abatement reinvestment zone. A Tax Abatement will not be granted for any development in which a building permit has been filed or is obtaining a Tax Abatement under Neighborhood Empowerment Zone (NEZ) Program.
Guidelines and Criteria Governing Tax Abatements by The City of Laredo
Effective February 22, 2024, through February 21, 2026 Click here to download the document
Click here to download the application
City of Laredo Chapter 380 Incentive Program
Chapter 380 Tax Incentive Programs are property tax rebate programs that promote state and local economic development and stimulate business and commercial activity. These programs are based on investment and job creation.
Chapter 380 Guidelines
The City of Laredo seeks transformative public-private partnerships to strengthen the local economy, sustain economic activity, and build resilience against national economic downturns. The Program guidelines have been developed to govern the implementation of new agreements and to establish a process for program creation, project selection, program stewardship, and regular reassessment.
The basic framework for spending City funds is:
1. City funds must be spent for a City purpose (municipal purpose);
2. The City must get a benefit that is roughly equivalent to what it is spending; and
3. The City must be able to track that the purpose is being achieved;
4. Additionally, the Texas Constitution generally prohibits the use of public funds for a private purpose, prohibits the City from giving a gift; and prohibits the City from investing in private entities.
General Eligibility
Although the City will consider all applications for the 380 Grants that meet the eligibility requirements set forth in the Policy, it is especially interested in supporting projects that are expected to produce a meaningful impact on the City and its economy and that result in one or more of the following:
Growth of business activity, employment, or investment especially, but not limited to identified target industries such as:
A. Manufacturing/Advanced & Light
B. Healthcare Industry
C. Large Distribution Centers & Logistics; Produce & Cold Storage
D. Destination Retail/Hospitality
– Creation of high-wage and quality jobs or large number of jobs
– Growth of business, employment, or investment in Downtown, Inner City, or South Laredo
– Revitalization in a key employment node or specifically designated area of the city
– Retention or expansion of an existing major employer, logistics included;
– Other opportunities as specified by Chapter 380, Texas Local Government Code;
– Businesses must submit an online application for program consideration. A $2,500 fee is required.
Click here to download the application
