Incentives & Financing


Our staff has direct access and in-depth understanding of incentives and funding to package incentive proposals targeting to the needs of individual businesses.  Explore our state and local incentives below or email us for more information.

The City of Sugar Land provides incentives that focus on job creation, employee training, tax rebates, expedited permitting and licensing, and infrastructure improvements.  Most of the incentives are granted on a case-by-case basis depending on the type of company, the number of employees, wages and location of the project.

Local Economic Development Programs

Direct Incentives

Tax Abatement

Chapter 380 Agreements

Tax Increment Reinvestment Zones

State of Texas Economic Development Programs

Texas Enterprise Fund

Enterprise Zones

Skills Development Fund

Work Opportunity Tax Credit (WOTC)

In State Tuition for Employees

Commercial & Industrial Standard Offer Program (C&I SOP)



Local Economic Development Programs

Direct Incentives

  • The Sugar Land Development Corporation (SLDC) is an economic development sales tax (Type A) corporation of the City of Sugar Land, which collects a 1/4 cent of sales tax from taxable sales for the purpose of funding economic development activities.
  • The SLDC has a direct incentive program, which may be used to provide cash grants to qualifying projects and companies.  If the company is eligible, the direct incentives are based on a number of factors including total job creation and wages, capital investment, the financial strength of the applicant, the applicant's business history, and an analysis of the relevant business sector. 
  • Direct incentives require a performance agreement with the company and are based on the assumptions used to determine the incentive.  The City of Sugar Land's Office of Economic Development administers the direct incentive program and applications are processed directly through the Economic Development staff.
Download City of Sugar Land Direct Incentive Policy

Download City of Sugar Land Business Incentive Application

Tax Abatement

  • Qualifying businesses considering locating in Sugar Land have the opportunity to be considered for property tax abatement on new value created as a result of the project.  Tax abatement is available from the City of Sugar Land, Fort Bend County and, as applicable, other jurisdictions.  Projects seeking tax abatement may contact the City of Sugar Land to determine eligibility.   Following qualification, formal applications for abatement are processed through the City of Sugar Land's Office of Economic Development.  Abatement terms are up to 10 years and the amount ranges up to 100% of real and personal property annually.
  • In order to encourage new green development, the City of Sugar Land offers a LEED Tax Abatement incentive.  This program is available to projects that qualify for the City's standard  tax abatement and become LEED certified.  The incentive provides a 100% abatement on the incremental cost of incorporating LEED improvements.
Download City of Sugar Land Tax Abatement Guidelines
Download City of Sugar Land Tax Abatement Application

Chapter 380 Agreements

  • Chapter 380.001 of the Texas Local Government Code allows cities to offer a range of incentives for economic development, including the ability to rebate some of the city's portion of the 1.0% sales and use tax collected from business entities located in the jurisdiction. 
Download City of Sugar Land 380 Incentive Policy
Download City of Sugar Land Business Incentive Application

Tax Increment Reinvestment Zones

  • The City has historically utilized Tax Increment Reinvestment Zones (TIRZ) as a powerful vehicle to develop and redevelop qualified projects based on City goals and objectives.  Tax Increment Reinvestment Zones help facilitate development and redevelopment projects, resulting in an overall increase in the value of the commercial property.  Tax increment financing may be available to finance needed public improvements in Sugar Land.

In addition to City of Sugar Land incentives, the Office of Economic Development assists in the identification and coordination of other non-City incentives including County, Regional and State programs.

State of Texas Economic Development Programs

Texas Enterprise Fund (TEF)

  • Total State Funding 2010 - 2011:  $67.6 Million
  • Average Award:  $7,587 per job created
  • Bringing a minimum of 100 new jobs and investment to Texas? If so, the Texas Enterprise Fund is a tremendous resource. Administered by the Governor’s Office of Economic Development and Tourism, the Texas Enterprise Fund was established to provide financial resources to help strengthen the state’s economy and is the largest “deal-closing” fund in the nation intended to attract business and jobs to Texas.

Download State of Texas Enterprise Fund Summary

Enterprise Zones (EZ)

 Total State Refunds 2009:  $16.1 Million

  • Average Award:  $649 per job and $5.82 state tax credit per $1,000 capital investment
  • The City of Sugar Land has the ability to nominate projects for the Texas Enterprise Zone Program. The city may nominate projects to the state per biennium, but there exists a statewide cap of 105 projects every two years.  Upon the city designating a business as an enterprise project, and upon that project’s designation being approved by the state, the business is eligible for a refund of state sales and use taxes paid and used at the qualified business site.  In order to apply for a City nomination to the Enterprise Zone program, please contact Our Team to discuss your project in more detail.
  • The program entitles a company to a refund of sales taxes paid on building and equipment investments that is evaluated based on the total capital investment and number of jobs created or retained by the project. The refund is allocated on a per job basis, not to exceed 500 total jobs, that ranges from a minimum of $2,500 per job to a maximum of $7,500 per job.

Download State of Texas Enterprise Zone Program Summary

Enterprise Project Application Link

* Please submit all applications to the City of Sugar Land - Office of Economic Development 60 days prior to State application deadline 

Skills Development Fund (SDF)

  • Total State Funding 2010 - 2011:  $90.9 Million
  • Average Award:  $506,700 per application or $1,190 per new job or retrained worker
  • The State of Texas Skills Development Fund is Texas' premier workforce training funding mechanism for Texas businesses and workers. Administered by the Texas Workforce Commission, success is achieved through collaboration among businesses, public Community and Technical colleges, Local Workforce Development Boards (Workforce Solutions here in Sugar Land) and economic development partners.
  • The funds are used to support high quality, customized job training projects across the state. Grants for a single business may be limited to $500,000. The City of Sugar Land Economic Development staff will assist the company apply for this program and will act as a liaison between the company, the local college who develops the program and Workforce Solutions who coordinates & oversees the funding.

Download State of Texas Skills Development Fund Program Summary

Work Opportunity Tax Credit (WOTC)

  • State tax refund up to $2,000 per employee
  • State tax refund available to employers if they pay certain State of Texas taxes (franchise, state sales and use, boat and boat motor, PUC gross receipts, inheritance, hotel and/or manufactured housing), as well as pay wages to an employee that received TANF or Medical benefits any month within 6 months of start date.

 Download State of Texas Worker Opportunity Tax Credit Summary

In-State Tuition for Employees

  • The Economic Development and Diversification In-state Tuition Incentive may be offered by the Economic Development & Tourism division of the Office of the Governor to qualified businesses that are in the decision-making process to relocate or expand their operations into Texas. A letter of request to the Governor’s office for consideration into the program will be submitted by the City of Sugar Land on behalf of the company if applicable.   Without this incentive designation, a student must reside in Texas for a 12-month period to be entitled to pay the tuition fees of a Texas resident.  Learn more 

Commercial & Industrial Standard Offer Program (C&I SOP)

  • Total Budget 2012:  $6.2 million

  • Incentive rates vary based upon installed energy improvements

  • Must apply by November 30th annually

  • Commercial & Industrial CenterPoint Energy customers with a peak demand of at least 100 kW at a single site can participate in a rebate program for energy efficiency projects (transmission class customers are excluded from the program). Incentives are paid for verified demand and energy savings measures installed on site