Chapter 312 of the Texas Tax Code authorizes local governments to abate 100 percent of ad valorem property taxes on the value of new property improvements for up to 10 years, including real property, tangible personal property, and inventory and supplies. The City of San Antonio is required by this same statute to develop and review guidelines at least every two years for the eligibility and award of a tax abatement.
These Guidelines support the City’s priorities for attracting new investment and job retention/creation in the SA2020 targeted industries of Healthcare and Biosciences, Information Technology and Information Security, Aerospace and the New Energy Economy. The City Council is committed to fully evaluating the merits and benefits of each individual project and retaining the flexibility to offer any project up to the maximum tax abatement allowed under the law. The City Council has also directed staff to carefully consider high-priority opportunities with significant investment and/or job creation in the SA2020 targeted industries and high-wage jobs, and to exercise flexibility in offering the maximum tax abatement necessary to attract such projects to San Antonio regardless of where they locate in the community.
The growth, sustainability, and diversity of a regional economy are critical goals to the long-term prosperity of a community and its citizens. Communities must strategically plan and implement policies and incentive programs to achieve these goals. San Antonio’s Tax Abatement Guidelines demonstrate a pro-business environment to help attract, retain and expand targeted industries, increase employment and high-wage jobs, expand the tax base, and create long-term capital investment and new wealth opportunities in the community.