City of Dallas Public/Private Partnership

• Tax Abatement on Real Property. Up to 90% abatement for 10 years on added real property value.
  
• Tax Abatement on Business Personal Property. Up to 75% abatement for 5 years on business personal property new to the site.
  
• Infrastructure Cost Participation. City pays some or all of required City infrastructure (within ROWs or easements dedicated to City). Participation is considered on a "case by case" basis up to a maximum of 50% of eligible costs and contingent upon funding availability. Participation above 30% requires City bidding procedures. City participation represents reimbursement of predetermined project costs once "inspected and accepted" by applicable City departments.
  
• Development Fee Rebates. “Case by case” rebate of fees charged by the City in regulation of land development on not-to-exceed basis. Payable after COD is issued.
  
• Eligible Downtown projects are those that create or retain at least 50 jobs and create minimum investment of $5 million
  
• Target industries are brownfields/recycling, medical and high tech.

City of Dallas Historic Development Program
Structures designated as City of Dallas landmarks or as contributing structures within a City of Dallas designated historic district may receive tax abatements, conservation easements and transfer of development rights. For Downtown and surrounding urban neighborhoods, the following incentives are offered to encourage restoration of historic buildings and revitalization:

• Rehabilitation – 100% abatement of city property taxes for 10 years if qualified expenditures exceed 75% of structure’s pre-restoration appraised value;
  
• Restoration – added value abatement on city property taxes for 10 years if qualified expenditures exceed 50% of structure’s pre-restoration appraised value;
  
• Residential conversion – 100% abatement on city property taxes for 5 years if building is converted to over 50% residential;
  
• Conservation easements – reduction of city property taxes and one-time charitable deduction for donation of contributing element of building’s character, ex. façade
  
• Transfer of development rights – if the building has been restored within the past five years and restoration exceeded 50% of the pre-restoration value, development rights for a minimum of 20,000 square feet may be transferred to building sites in CA-1(A) and CA-2(A) districts. The maximum floor area ratio may be increased by no more than 4.0 through the transfer process.
  
• Qualified expenditures include any work on the building exterior that requires a Certificate of Appropriateness as well as interior work such as carpentry, electrical, plumbing, hardwood floors and basic fixtures such as sinks, bath tubs and toilets.

Tax Increment Financing Districts
The Cedars, City Center, Cityplace, Farmers Market, Oak Cliff Gateway, Sports Arena and State-Thomas Tax Increment Financing (TIF) Districts were created by Dallas City Council to provide funds for public infrastructure projects which, in turn, would attract and support private investment. TIFs use the increment or positive growth in property tax revenues for projects such as parking garages, lighting, streetscape improvements, pedestrian linkages, landscaping, and infrastructure improvements.

State of Texas Enterprise Zone Program

• *State Sales and Use Tax Rebate. Reimbursement of state sales and use tax paid for certain building materials, machinery or equipment purchased in association with new offices. Rebate is $5,000 per new job (up to 250 jobs over the five year designation period).
  
• *Franchise Tax Reduction. Reduction of state franchise tax of 50% of the taxable capital placed in service at that location after the company receives the five year state designation, or 5% reduction of state franchise tax based on the company's apportioned earned surplus income, whichever is greater. (The current tax rate for apportioned taxable capital is .25 per $1000 and for apportioned earned surplus income is $4.50.)

*Company must have an EZ Project designation to qualify; application is a joint process with the City of Dallas.

Freeport Exemption

• A 100% City, County and School District property tax exemption on eligible goods "in transit" - those to be sent out of state within 175 days from acquisition to be assembled, stored, manufactured, processed or fabricated. Oil and natural gas do not qualify.

To learn more about investing in DOWNTOWNDALLAS, contact DID for a free Downtown Market Data Package.

DOWNTOWNDALLAS
1412 Main, Suite 2500
Dallas, TX 75202
info@downtowndallas.org

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