- EDC Creation Checklist (PDF)
- Economic Development Sales Tax Guide (PDF)
- Economic Development Handbook (PDF posted by Office of Attorney General, 2013)
- Local Sales and Use Tax Information
Statutes governing EDCs
- Local Government Code, Chapter 501
- Local Government Code, Chapter 504
- Local Government Code, Chapter 505
For questions, contact the Comptroller's Economic Development and Analysis Division at (1-800-531-5441, ext. 3-4679, or at 512-463-4679.
Eligible Type A Projects
— Developing Industries
Manufacturing and industrial facilities. Photo by office.microsoft.com.
How Type A sales tax revenue can be used
The Type A sales tax is primarily intended for manufacturing and industrial development. EDCs may use Type A revenue to fund land, buildings, equipment, facilities expenditures, targeted infrastructure and improvements for projects including:
- manufacturing and industrial facilities, recycling facilities, distribution centers, and small warehouse facilities;
- research and development facilities, regional or national corporate headquarters facilities, primary job training facilities operated by higher education institutions, job training classes, telephone call centers and career centers not located within a junior college taxing district;
- certain infrastructure improvements that promote or develop new or expanded business enterprises;
- aviation facilities;
- commuter rail, light rail or commuter bus operations;
- port-related facilities, railports, rail switching facilities, marine ports, inland ports; and
- maintenance and operating costs associated with projects.
With voter approval, Type A EDCs may fund projects eligible under Type B without voting to abolish the Type A tax and impose the Type B tax. In this situation, a Type A EDC must publish notice of its intent to fund a Type B project, hold at least one public hearing and conduct a special election. For specific legal requirments and procedures, please see the Attorney General's Economic Development Handbook (PDF).
Type A EDCs also may seek voter approval to spend Type A sales tax funds to clean up contaminated property.
A Type A corporation cannot assume, or pay principal or interest on, debts that existed before voters agreed to establish the EDC.