Incentives

The City of Waco offers grants on eligible properties based on the increased taxable value of the property due to significant capital investment usually in conjunction with job creation.

Priority consideration is given to projects that are located in State of Texas Enterprise Zones and other targeted locations.

• Guidelines - Business Grant(PDF, 63KB)
• Target Areas in Business Grant Guidelines target(PDF, 4MB)

The Downtown Waco Façade Improvement Program provides funding to enhance storefronts and buildings in the greater downtown area (see program map). Approved applicants can receive funding for 10% to 50% of project costs, ranging from $500 to $45,000.

Eligible projects should align with one or more goals:

• Preserve or restore the exterior of historic buildings (built before 1964).
• Improve public assets, such as sidewalks or pedestrian lighting.
• Enhance public spaces by addressing deteriorated or substandard building elements.
• Increase a building's appeal for tenants or customers.

Applications must be submitted and approved before work begins, and grants are typically disbursed after project completion.

• Façade Improvement Guidelines and Application(PDF, 115KB)
• Façade Design Standards(PDF, 2MB)
• Imagine Waco: A Plan for Greater Downtown Plan(PDF, 6MB)

City Center Waco is charged with helping bring this plan to fruition on behalf of the City of Waco. For more information contact (254) 754-8898.

U.S. Foreign Trade Zone No. 246 covers over 400 acres in Waco. It is the only foreign trade zone located between Dallas and Austin to provide businesses with advantages in international trade and distribution, such as tariff exemption on goods that are imported, manufactured, and then exported.

For more information contact Kris Collins with the Greater Waco Chamber of Commerce at (254) 757-5635, or kcollins@wacochamber.com.

This tax exemption primarily benefits companies that manufacture and/or distribute goods, wares, merchandise, ores, certain aircraft and aircraft parts that remain in Texas for 175 days or less prior to shipment out of Texas. Goods can be in Texas for storage, assembly, manufacturing, processing, or fabricating.

For more information contact Kris Collins with the Greater Waco Chamber of Commerce at (254) 757-5635, or kcollins@wacochamber.com.

The North American Free Trade Agreement (NAFTA) Impact Zone Program was established to attract and retain major commercial or retail employers investing in significant development projects in Waco. Businesses within a NAFTA Impact Zone may be eligible for benefits such as:

• Waived construction fees
• Municipal sales tax refunds
• Abatements on municipal sales
• Property taxes

Each state may designate up to 25% of its eligible low-income census tracts as Opportunity Zones. Texas designated 628 census tracts in 145 counties as Opportunity Zones. 

• Texas Opportunity Zones
• Frequently Asked Questions

The City of Waco, along with McLennan County and McLennan Community College, offers tax abatements for projects involving significant investments in real property or personal property.

• Real property abatements apply to new facilities or expansions of existing facilities.
• Personal property abatements apply to new equipment and machinery that increase production capacity.

Priority is given to projects located in State of Texas Enterprise Zones or other designated target areas that create new jobs, stimulate economic growth, and support revitalization.

• Guidelines - Tax Abatement(PDF, 2MB)
• State of Texas Enterprise Zones & Economic Development Target Areas(PDF, 1MB)
• Target Areas - Exhibit B(PDF, 4MB)

The City of Waco has three Tax Increment Financing (TIF) zones created for the purpose of facilitating revitalization and development throughout the City. With the approval of the City Council, TIF Board of Directors have invested millions of dollars in infrastructure improvements, acquisition and demolition, landscaping, sidewalk, and streetscape amenities.

• Tax Increment Financing (TIF)

WMCEDC, a partnership between the City of Waco and McLennan County, provides grants for qualified capital investment that creates new full-time jobs with specified wages and health benefits for local residents.