Economic Development

Programs - Tax Abatements

Houston created a program that encourages new growth, new development, and new jobs: tax abatements. These abatements attempt to strengthen Houston’s existing competitive advantages, while augmenting Houston’s emerging markets.

Executed Tax Abatements (.pdf)

02/03/2016 Fairway Energy Partners LLC Ord. 2016-101
12/16/2015 UPS - United Parcel Service Ord. 2015-1294
12/16/2015 Cullen SH Apartments Ord. 2015-1276
12/16/2015 Halliburton Ord. 2015-1246
6/17/2015 The Kroger Company Ord. 2015-589
6/3/2014 Aspen Heights Ord. 2014-479
8/7/2013 Chevron USA 2013 (1600 Louisiana) Ord. 2013-710
5/14/2013 CyrusOne Ord. 2013-403
5/23/2012 BVSW Garden Oaks Ord. 2012-465
3/23/2011 Chevron USA 2004 (AMENDMENT) Ord. 2004-219
12/15/2010 Emerson Process Management  LLP Ord. 2010-1015
9/1/2010 Oak Farms (Southern Foods) Ord. 2010-688
7/3/2007 Action Box #2 Ord. 2007-808
7/7/2004 Memorial Hermann Medical Plaza Ord. 2004-749
3/10/2004 Chevron USA 2004 Ord. 2004-181

What projects qualify for abatements?

  • A developer builds in a declining part of Houston, a place where the project increases  job opportunities,reduces poverty, or redevelops an area.
  • The rare situation when a developer requires an abatement to remain, expand, or locate, in Houston, a situation where Houston’s job and economic market is significantly strengthened by the developer’s presence.
  • A company invests in real estate that serves the public. Such an investment could provide affordable housing or rejuvenate a blighted area.

What project costs qualify for an abatement?

  • A developer improves their building or equipment
  • A developer improves or modernizes their site*
  • The property is deteriorated or demolished, qualifying under section 44-132 of Ordinance 2014-0245

What project costs are unqualified for abatements?

  • Property that receives a historic site exemption
  • Land, inventory, supplies, tools, vehicles, vessels and aircrafts
  • Improvements that generate electrical energy not entirely consumed by the new development
  • Any improvements, including those to produce, store or distribute natural gas, fluids or gases, that are not integral to the operation of the facility

Is there anything else we should know about COH abatements?

  • The lessor must be part of the abatement agreement if it involves leased property.
  • The City is highly interested in projects that also receive state economic or federal  development funds.
  • Senior economic development officials meet with developers to discuss the abatement offer in the final stages of the abatement process 

What are the requirements to receive an abatement?

  1. A project must increase the value of their taxable property by at least $1,000,000.00 for deteriorated/demolished property or $5,000,000 for other development.
  2. A project must retain or “create” at least 25 permanent jobs at the beginning of the abatement, continuing throughout the remaining years of the agreement.
  3. The City must receive a detailed financial pro forma from the developer that explains all costs and projected revenue in line-item detail.   
  4. If the project site is located within a Texas Enterprise Zone (TEZ), the minimum investment requirements is $500,000 and the project must create five permanent jobs.

How does the city determine the terms of an abatement?

The City decides how many years an abatement should last based on the impact the project creates for the City.

What happens if the developer doesn't meet abatement terms?

The City will recapture taxes abated if the developer defaults on the agreement.

For more information please contact us.