Local Incentive

City of Tomball Tax Abatement Program​

Summary

The City of Tomball and the Tomball Economic Development Corporation is committed to the promotion of high-quality development within the City and to the improvement in the quality of life of its citizens. In order to meet these goals, the City will, on a case-by-case basis, consider providing tax abatement, or full or partial exemption from ad valorem taxes, within designated reinvestment zones as stimulation for economic development in the City.

On February 4, 2008, the City of Tomball passed a resolution creating a tax abatement policy. This policy was created to "assist Tomball in competing for economic development projects against other cities in the Houston area."

Under the policy, the tax abatement can be up to 100% for a period not to exceed 10 years. Each project is reviewed on a case-by-case basis. The amount of the abatement will be determined based on the merits of the projects, including, but not limited to the location of the project, its size, total capital investment value, the number of temporary and permanent jobs created, the costs and benefits for Tomball, and the project's impact on Tomball's economy.

Facilities that qualify are corporate headquarters, manufacturing facilities, research facilities, regional distribution facilities, regional service facilities, regional entertainment/tourism facilities, and other basic industry facilities.

Tax abatements can be authorized for investments related to new facilities, facility expansions, or facility modernizations.

Buildings, structures, fixed machinery, equipment, personal property, site improvements, and related office space can all be abated.

In order to qualify for abatement, a new business must invest a minimum of two million dollars ($2,000,000) and create a minimum of twenty-five (25) jobs. An existing business looking to expand must invest one million dollars ($1,000,000) and must prevent the loss of payroll or retain, increase, or create payroll on a permanent basis in the City of Tomball.