Economic Development

Programs - Freeport Tax Exemptions

Texas allows businesses to export some goods without taxing them: a freeport exemption.

A brief summary of the freeport exemption:

  • Select Houston area¬†taxing jurisdictions¬†exempt personal property taxes on stored goods, goods in process, or raw material.
  • Two types of merchandize remain ineligible for the freeport exemption
    • oil, gas, and petroleum products
    • aircraft or repair parts used by a certificated air carrier.
  • Goods must Texas leave within 175 days after they are acquired or arrive
  • Goods must be in Texas for assembling, storing, manufacturing, repair, maintenance, processing or fabricating purposes.

For more information on the genesis of this program and how to apply for a freeport exemption: