Designation allows the city manager to negotiate and enter into agreements with developers for economic development incentives including sales tax rebate, property tax abatement, and a reduction in cost for water/sewer line extension.
Within this zone, encompassing the SoDA District, investors can defer tax on any prior capital gains until no later than December 31, 2026 so long as the gain is invested in a Qualified Opportunity Fund.
Chapter 380 of the Local Government Code authorizes municipalities to offer incentives designed to promote economic development, such as commercial and retail projects. Specifically, it provides for offering loans and grants of city funds or services at little or no cost to promote state and local economic development and to stimulate business and commercial activity.
Federal, state, and local tax incentives exist for owners of historic properties. The Federal Historic Preservation Tax Incentives Program includes a 20 percent income tax credit for the rehabilitation of historic, income-producing buildings. The new Texas Historic Preservation Tax Credit Program offers a 25 percent tax credit for the rehabilitation of historic buildings.