It is with pleasure that Little Elm, Texas outlines for you the incentives that we may be able to offer for investments related to the development of a business or manufacturing facility with the Town of Little Elm. To determine if your project qualifies for economic incentives, a formal Business Plan is required at the time of inquiry.
That plan needs to include the following information:
- The amount of the capital investment
- Number of jobs it will create
- Anticipated Annual Sales
- Will it all be taxable? If so, what % sales tax is expected to be generated
These decisions are not made at the staff level. If this concept appears to be a viable option, it will need to be presented and approved by either Council and/or the EDC Board. Approval for incentives is determined on a case by case basis.
Impact Fee Reductions:
The Town of Little Elm may consider reducing the impact fees on projects with a real estate investment over $5,000,000 up to 60% and under $5,000,000 up to 50%, based in part on the sales tax return and value of each project.
The Town of Little Elm may consider abating the real estate and/or personal property tax for projects with an investment over $5,000,000 for variable rates of abatement.
Fast Track Permitting and Inspection Procedures:
Town of Little Elm staff may provide a fast track, one-stop location for permitting and inspections related to the development.
Waiving of Platting, Zoning and Building Permit Fees:
For projects over $5,000,000 in value, the Town of Little Elm may consider waiving zoning and platting fees, a portion of the building permit, plan review fees, and inspection fees.
4A Sales Tax Incentive Grant:
The Little Elm Economic Development Corporation may consider a grant for infrastructure and site improvements; plus grants for land, buildings, equipment, facilities, expenditures, plus job training for development, expansion and retention of manufacturing and industrial facilities, research and development facilities, transportation facilities, distribution centers, small warehouse facilities, and call centers as authorized by the State Economic Development laws. The goal is to obtain a return on the investment over 5 to 10 years. The Texas Leverage Fund may be utilized to leverage the available funds of the Economic Development Corporation.
Little Elm Reinvestment Zones #1 and #2:
The Town of Little Elm and Little Elm Economic Development Corporation have approved plans for two Tax Increment Reinvestment Zones. These Zones allow for the financing of public improvements through utilization of the increase in value due to the development proposed generating additional and future ad valorum taxes as well as sales tax generated by the new development. For more information on the Project Plan and Reinvestment Zone Financing Plan see the Plan for Zone No. 1 and the Plan for Zone No.2. The Little Elm Redevelopment Authority assists the Town and the Little Elm Economic Development Corporation in administration of the Zones.
Texas Dept. of Agriculture/ Texas Capital Fund for Infrastructure or Real Estate:
The Town of Little Elm and Little Elm Economic Development Corporation may assist in application preparations for funding up to $750,000 for infrastructure or real estate development. Applications are competitive and received quarterly. The minimum job creation requirement is 30 jobs. The infrastructure development is a grant and real estate development is a lease for 20 years. Terms of the lease are negotiable.
Texas Enterprise Zone:
Projects that create more than 10 permanent jobs for the Town of Little Elm may be nominated as a project for the Texas Enterprise Zone. The Little Elm Economic Development Corporation may pay the application preparation and the application fee. Once nominated, the Texas Enterprise Zone project is allowed to obtain sales tax rebates on a per employee basis as well as deductions from franchise tax payments.
Texas Enterprise Fund:
The Town of Little Elm and Little Elm Economic Development Corporation may assist in application preparations for obtaining a Texas Enterprise Fund Grant for the purpose of securing a significant new business or significant expansion of an existing business as part of a competitive recruitment situation.
Freeport Tax Exemption:
The Town of Little Elm will exempt Freeport inventory. Denton and Frisco ISD’s have the Freeport Exemption. Denton County has the Freeport Exemption.