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Chapter 380 Agreements

Chapter 380 of the Texas Local Government Code allows Texas municipalities to provide a grant or a loan of city funds or services to promote economic development.  Under a Chapter 380 agreement, a developer and taxing body negotiate a contract to provide sales tax incentives in return for the project meeting performance benchmarks.  The agreement should help the business offset some costs associated with construction and infrastructure.
Projects will be evaluated individually.  The maximum sales tax rebate granted, by law, will be 50%.  The rebate must be put into approved infrastructure improvements on the property.