Taxes and Incentives

Along with Rockwall’s logistical and workforce advantages, the REDC and the State of Texas offer aggressive incentive packages to qualified businesses to help offset costs associated with relocation or expansion.

Your company frequently makes business decisions that benefit shareholders, customers, and employees. At the REDC we are no different. We have various financial tools at our disposal that we use to help catalyze growth for the betterment of Rockwall.

Business Tax Snapshot

Corporate Income Tax: None
Sales Tax: 8.25% (2% directed to the City of Rockwall/REDC)
Consolidated Property Tax Rate: $1.9367 per $100 of assessed valuation.

Local

Direct Financial Incentives: The REDC has funding available to help defray some of the cost associated with relocation, expansion, and operation. Funding can be used to offset the cost of impact or permit fees, cover infrastructure development costs, property or equipment acquisition, address moving expenses or alleviate some of the company’s utility or tax liabilities. The decision to offer a direct incentive, and the amount of the incentive, is subject to the discretion of the REDC. Factors influencing the decision include anticipated jobs and wages to be created by the project, and tax value that will be generated.

Discounted REDC-owned Land: You’ll find plenty of shovel-ready land within the Rockwall Technology Park, as well as on Justin Road. We provide discounted land for qualified companies that will make a significant economic impact to Rockwall. If REDC-owned land is not the ideal fit, increased direct financial incentives may be available to help with the acquisition.

Click here to download our incentive application to be considered for direct financial incentives and discounted REDC-owned land.

*Companies are encouraged to discuss potential projects with REDC staff before applying.

Freeport Exemption: Available in Rockwall, certain types of inventory that is manufactured here, but transported out of the state within 175 days, is exempt from property tax by all local taxing jurisdictions (Rockwall ISD, Rockwall County, City of Rockwall).

Learn more about this exemption here

State

Here’s an overview of Texas Business Incentives and Programs

Grants

Texas Enterprise Fund (TEF): Designed to attract major employers when one site in Texas is considered against viable out-of-state alternatives, these discretionary cash grants between $1,000 – $10,000 per job may be available to businesses that create at least 75 jobs in metropolitan areas.

Learn more about this grant here

Sales Tax Rebate

Enterprise Zone: Businesses that establish operations in an Enterprise Zone are eligible to receive rebates ranging from $2,500 – $7,500 per job (depending upon capital investment, sales tax generated, and jobs created/retained) on state sales and use tax for qualified expenditures.

Learn more about the Enterprise Zone here

Tax Exemptions

Manufacturing Sales Tax Exemptions
Machinery and Equipment: Machinery, equipment, parts and accessories that are used or consumed in manufacturing, processing, fabricating, or repairing property for sale are exempt from state and local sales and use tax.

Learn more about this exemption here

Natural Gas & Electricity: Texas companies are exempt from paying state and local sales and use tax on electricity and natural gas used in manufacturing, processing, or fabricating tangible personal property. The company must complete a “predominant use study” that shows 50% of the electricity or natural gas consumed by the business directly causes a physical change to the product.

For more information on taxes and incentives, check out this link from the Texas Economic Development Corporation.