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.
- Tax Abatement Application (.pdf, updated June 2021)
- Green Tax Abatement Application (.pdf)
- Chapter 44, Article IV
- Ordinance 2020-1091 (.pdf)
- Ordinance 2020-424 Amended (.pdf)
Executed Tax Abatements (.pdf)
|12/11/2019||Brittmoore Founders District||Ord. 2019-1022|
|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|
|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|
|5/23/2012||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.
- A company invests in Green Stormwater Infrastructure within the new development or redevelopment. See the GSI Tax Abatement Application and Evaluation Process document (.pdf) for more information.
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?
- 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.
- 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.
- The City must receive a detailed financial pro forma from the developer that explains all costs and projected revenue in line-item detail.
- 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.