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Incentive Programs
The purpose is to attract new investment and enhance or create jobs in the City of Mission and/or its extraterritorial jurisdiction (ETJ).
Texas Enterprise Zone Program
This state program is designed to create jobs and induce capital investment in areas of economic distress. Texas rebates to eligible businesses the state portion of the local use and sales tax. As an area of traditionally high unemployment compared to state averages and with higher than normal numbers of low wage earners, Mission qualifies as an Enterprise Zone area.
Freeport Exemption Program
This program allows local taxing authorities the option of exempting from ad valorem property taxes all business inventories acquired in or brought into Texas for fabrication, assembling, manufacturing, storage, or processing and then exported outside the state within 175 days. Taxing entitles that have allowed the Freeport Exemption are; City of Mission, County of Hidalgo, South Texas College and Mission CISD. An application needs to be filed with the Hidalgo County Appraisal District by no later than April 30th of each year. Audited financial statements, internal reports, Texas franchise tax reports, sales records, bills of lading, are examples of documentation which may be required.
Tax Abatement Program (Adopted Sept. 10, 2007)
This incentive may be granted by the discretionary action of the Mission City Council based on varying levels of capital investment and/or job creation/payroll. The minimum number of jobs required to be created is 20 with at least a $500,000 annual payroll. A minimum capital investment of $1 million dollars is also required. Abatement can range from 25% for five years up to 100% for 10 years, solely at the discretion of the governing bodies. Abatement may be granted based on the investment level or annual payroll as regards to the City of Mission’s program while the County of Hidalgo uses investment and total numbers of jobs created.
Job Creation Incentive Program
MEDA may award up to $1,000 per eligible job created. A minimum of 10 jobs must be created, wages must be at least 25% higher than the required minimum federal wage rate, and each job position must accumulate at least 1,600 hours annually.
Job Training Grant
There are various sources of training program funds to provide assistance in training. MEDA will work with Workforce Solutions, the local workforce development agency, to seek funds to be used for customized training programs for the employees and coordinate a job fair to assist in recruiting efforts, customized training, screening potential employees and performing skills tests. South Texas College (STC), through the Institute for Advanced Manufacturing, will also explore the various possible sources of training program funds, as well as provide assistance in fund application and administration. Among the possible sources of funds are four (4) different funding sources for training programs offered through STC: TWC Self-Sufficiency Funds, U.S. Department of Labor-Apprenticeship Program, TWC Skills Development Fund, and MEDA’s local training funds. Customized training is also available on a cash basis at $4.50 per training hour multiplied by the number of employees (minimum of 12) multiplied by the number of training hours. Smaller classes are also available.
Off-Site Improvement Program
MEDA may subsidize up to 2% of total infrastructure costs or improvements by a Mission business for an eligible project. Minimum investment amount is $250,000. Job investment ratio of one new job per $20,000 invested.
Interest Rate Subsidy Program
MEDA may subsidize interest rates on a bank loan for an eligible project. Maximum amount is $250,000. Project should have a job loan ratio of 1 new job per $20,000 in proposed capital investment over an agreed period of time. Employment verification is a must.
Local Sales & Use Tax Refund Program
Designed to assist “qualified businesses” in an Enterprise Zone, a one-time local sales and use tax refund may be granted on certain expenditures during construction (not to exceed 12 months). An investment of at least $1 million in land, building and equipment is required with twenty (20) full time employees (FTE) and retain for two years. Business must have $500,000 in taxable construction costs or new equipment acquired and Business must remain in City of Mission for five years.
The Institute for Advanced Manufacturing will prepare all program applications for funding on behalf of Project Thrust as a part of their service; however, funding availability requires approval by the appropriate agency. A detailed training plan, which would generate an actual training budget, will be prepared upon receipt of job titles and a brief description of training requirements for each position. The training assistance will be administered by STC to relieve Project Thrust of the accounting requirements of the grant.