Local Incentives
The Fairfield EDC (FEDC) is the City of Fairfield’s lead agency for coordinating economic assistance and incentive agreements for the business community seeking to expand or relocate operations to Fairfield.
To qualify for incentive funding through Fairfield EDC and/or the City of Fairfield, a representative of the project or business must first complete an Application for Assistance found here. Upon receipt of the application, the President of the EDC will evaluate the application to ensure the project does qualify for assistance. This may involve a thorough review
of a company’s business plan and financial information. The next steps will be consideration for approval by the Fairfield EDC board and then the Fairfield City Council. The amount of incentive funds, if any, are granted on a case-by-case basis based on the merits of the project, including number, type and average wage of primary jobs. Additional consideration will be taken for sales tax revenue and ad valorem tax value.
Fairfield EDC Incentives
- Land: Land grants of EDC owned land
- Equipment Grants: Cash grants for Equipment & Infrastructure or rebate incentives
- Infrastructure: Assistance with costs of infrastructure and utilities necessary to develop a property.
- Workforce Assistance: Assistance with workforce training and development through our workforce partners at the Heart of Texas Workforce Solutions in Waco, Texas and at our partner colleges, Texas State Technical College (TSTC) or Navarro College
City of Fairfield Incentives
The city stands ready to partner with the FEDC to provide a desirable business with incentives necessary to commit to a Fairfield location.
- Ad-Valorem Taxes: Utilizing a Tax Abatement or Chapter 380 Performance Agreement,
the City may reduce or grant back to the business a portion of their real property taxes
paid. - Sales Tax Grants: Grant back to the business a portion of the sales taxes generated at
the business. - Infrastructure Participation: Participate in the cost of public infrastructure necessary to
establish the business. - Construction Sales Tax: Provide a grant for a portion of the sales tax paid to local
merchants for building materials supporting new construction or business expansion. - TIF / TIRZ: Establishment of strategic locations for Tax Increment Financing (TIF) within
Tax Increment Reinvestment Zones (TIRZ). - Building and Utility Connection Fees: Provide a full or partial reduction in these fees for
certain developments. - Development Review: Commitment to an expedited process for the development of
business in the city. Support a hassle-free environment with expert plan reviews and
responsive comments to prospective developers and businesses. - Freeport Tax Exemption: Certain businesses may apply for an exemption from personal
property tax on Freeport and Goods-in-Transit inventory. - Workforce Assistance: Partner with the business and other allies to provide workforce
recruiting, development and training, potentially assisted by the State’s Skills
Development Fund. - Small Business Focus: A commitment to provide an environment encouraging the development of new and expansion of existing small businesses.
- Texas Enterprise Zone Program: Partner with the State of Texas to promote job creation and capital investment in economically distressed areas of the city.
Local Tax Rates
Following are the ad-valorem tax rates per $100 valuation for each of the applicable
jurisdictions:
- City of Fairfield – $0.3087
- Freestone County – $0.3219
- Fairfield ISD – $0.97526
- Fairfield Hospital – $0.135374
Inventory Taxes: Inventory would be taxed at the same rates as noted above. Qualifying businesses can apply for Freeport Tax Exemption and Goods-in-Transit Exemption in some cases.
- City General Fund – 1.5%
- City EDC – .5%
State of Texas Incentives
The State of Texas offers a wide variety of incentives to attract businesses to Texas. Texas
takes the initiative to invest in its future by offering competitive incentives to companies who are
creating jobs and driving innovation in Texas.
Economic Development Finance, within the Texas Economic Development & Tourism Office,
provides globally competitive, cost-effective financial tools to expanding businesses operating in
the state and businesses relocating to Texas. Programs administered by this office include
various grants, financing and tax refund programs, which all promote economic development,
job creation and capital investment. The office partners with local governments and other
entities to deliver programs targeted at small businesses, communities and universities in the
state, among other entities.
Please see the following link for details
Franchise Tax:
The Texas franchise tax is a privilege tax imposed on each taxable entity
chartered/organized in Texas or doing business in Texas. Click Here for more information.