Local Incentives

Site in the Killeen Business Park

KEDC owns a business park with developed sites zoned for office/commercial/manufacturing use. The park has restrictive covenants that have the effect of creating a buffer zone between non-compatible uses. Depending upon the economic impact of the project, land prices are discounted and, in some cases, may be provided free of charge. A map of the Killeen Business Part is attached to this document.

Build-to-Suit Option: KEDC will provide a building, at KEDC’s cost, custom built to meet the company’s requirements, in exchange for a long term lease. A long term lease is one defined as having an initial lease term of five years with a five year option to renew the lease.

New Job Creation Grants: KEDC offers cash payments on new jobs created in Killeen. Payments are made on a per job basis. The amount of the grant is determined by the salary and benefits accompanying the job. Past offers range from $1000 to $3,500 per job. Typically, a partial grant payment is made when operations are commenced. The balance is paid after an employee has been on the payroll for twelve consecutive months.

Retained Job Grants: In some instances, KEDC offers cash payments on jobs that are determined to be at risk that are retained in Killeen. Payments are made on a per job basis. The amount of the grant is determined by the salary and benefits accompanying the job. Past offers range from $1,000 to $2,500 per job. Typically, full payment is made after an employee had been on the payroll for twelve consecutive months.

Ad Valorum Tax Abatements: Both the City of Killeen and Bell County have policies in place under which property taxes can be abated in amounts up to 100% for up to five years. The amount of the abatement is determined by a formula contained in the policy.  There are three factors considered in the formula: Dollar Value of Improvements (Investments greater than $5 million receive maximum credit); Number of Jobs Created and Retained (More than 100 jobs receive maximum credit); and, Positive Impact on the Community (Impacts rated exceptional receive maximum credit).

• Tax Abatement Criteria
• Tax Abatement Application

380 Agreements

If the company is engaged in a process where sales taxes are collected, the City of Killeen can enter into an agreement, under Section 380 of the State Government Code, where a portion of the sales taxes collected for local use (1% of purchase price) can be reimbursed to the company.

Ad Valorum Tax Payments

KEDC can elect to pay property taxes at negotiated levels for negotiated period for companies not eligible for tax abatement under existing City and County policies.

Leasehold Property Tax Payments

KEDC can elect to pay leasehold property tax payments for tenants in KEDC-owned buildings, typically build-to-suit facilities. Leasehold property taxes are calculated by dividing the annual lease payment by $100 and multiplying the resulting factor by the property tax rate of $2.7757. For example, an annual lease payment of $100,000 would require a tax payment of $2,775.70.

Employment Assistance

Our Central Texas Workforce Center offers the following employee assistance: Advertising of job openings; applicant pre-screening and processing; and meeting rooms for interviewing and orientation.

Fast Track Permitting: The City of Killeen offers Fast Track Permitting for companies meeting at least one of the following criteria –

a.       Create a minimum of 50 permanent full-time jobs within the first 12-months after its expansion or relocation to the City of Killeen ; or

b.      Create a minimum increase in property value of 300% for construction of a new facility; or

c.       50% for expansion of an existing facility for an investment of at least $250,000 in taxable assets; or

d.      Be a targeted industrial, commercial or service project eligible for incentives; or

e.       Produce $2 million in gross annual payroll.

Click here for a copy of the Fast Track Permitting Process.