Hitchcock is a great place to locate, expand or start a business! Below is information on the major local incentive programs available in the City of Hitchcock. Click here for the Hitchcock Incentives Application.
Chapter 380 Economic Development Agreements: Section 380.001 of the Local Government Code, authorizes municipalities to offer a range of incentives designed to promote state or local economic development. Specifically, it allows for the provision of loans and grants of city funds, using performance agreements, based on sales taxes, property taxes, or city fees and services, as well as the use of city staff, city facilities or city services, at minimal or no charge. To establish a loan or grant or to offer discounted or free city services, the city must meet the requirements contained in the Texas Constitution and in applicable Texas statutes. Additionally, cities must review their city charters and any other local provisions that may limit the city’s ability to provide such a grant or loan. The City of Hitchcock approved incentive guidelines and criteria for Chapter 380 Incentives on May 19, 2025. Projects that may be eligible for property tax abatement include: distribution (NAIC 54); energy services (NAIC 22); grocery store (NAIC 445110); health care (NAIC 62); hotels, destination tourism & recreation (NAICS: 72110, 713990); information technology & artificial intelligence; Maintenance, Repair and Overhaul in Aviation and in other industry sectors (NAIC 4581); manufacturing (NAIC 31-33); regional, national and corporate headquarters (NAIC 55141); and research & development (NAIC 5417). Minimum job requirement is 20 jobs for new companies and 10 jobs for existing companies, with a $2 million capital investment for new companies and $1 million investment for existing companies. The average annual wage requirement is $39,000 per year for property tax rebates with a maximum term of 7 years at 70%. Under Chapter 380 for Sales and Use Tax Grants, companies must create a minimum of $50,000 in sales tax annually. Maximum term is 7 years and 70% reimbursement for larger projects. Chapter 312 and Chapter 380 Economic Development Program Guidelines, Criteria and Policy More information: Economic Development Programs (texas.gov)
Chapter 380 Agreements:
Chapter 312 Tax Abatement: A Chapter 312 tax abatement is a local agreement between a taxpayer and a taxing unit that exempts all or part of the increase in the value of the real property and/or tangible personal property (ad valorem) from taxation for a period not to exceed 10 years. Tax abatements are an economic development tool available to cities, counties and special districts to attract new industries and to encourage the retention and development of existing businesses through property tax exemptions or reductions. School districts may not enter into abatement agreements. Local governments often use property tax abatements to attract new industry and commercial enterprises and to encourage the retention and development of existing businesses. Incorporated cities, counties and special districts are allowed to enter into tax abatement agreements based on incentive guidelines and/or policies and inside a Reinvestment Zone. The City of Hitchcock approved incentive guidelines and criteria for Chapter 312 and Chapter 380 Incentives on May 19, 2025. Projects that may be eligible for property tax abatement include: distribution (NAIC 54), energy services (NAIC 22), grocery store (NAIC 445110), health care (NAIC 62), hotels, destination tourism & recreation (NAICS: 72110, 713990), information technology & artificial intelligence, Maintenance, Repair and Overhaul in Aviation and in other industry sectors (NAIC 4581), manufacturing (NAIC 31-33), regional, national and corporate headquarters (NAIC 55141), and research & development (NAIC 5417). Minimum job requirement is 20 jobs for new companies and 10 jobs for existing companies, with a $2 million capital investment for new companies and $1 million investment for existing companies. The average annual wage requirement is $39,000 per year for property tax abatement or rebates with a maximum term of 7 years at 70%. Chapter 312-380 Incentive Guidelines, Criteria and Policy Tax Abatement Process
HEDC 4A Direct Incentive: As a 4A Texas Corporation, HEDC is authorized to provide grants and loans for economic development projects. The HEDC Board and City Council approved Direct Incentive Guidelines, Criteria and Policy on May 19, 2025, targeted to primary job creation in particular types of industries. These industries include manufacturing, distribution, research and development, primary job training facilities at educational institutions, small warehouses, and regional and corporate headquarters. Minimum job requirement is 20 jobs for new companies and 10 jobs for existing companies, with a $2 million capital investment for new companies and $1 million investment for existing companies. The average annual wage requirement is $56,000 per year for new companies and $46,000/year for existing companies. Grants are based on $2,000 per job created with a minimum job requirement of 10 jobs at the above annual average wage rates and a maximum grant of $100,000. Grants will be distributed over a five-year period. Direct Incentive Description
HEDC Storefront and Streetscape Improvement Program: The Storefront and Streetscape Improvement Program (SSIP) assists commercial property and/or business owners in rehabilitating their storefronts and the streetscapes located adjacent to their buildings to revitalize neighborhood commercial areas, eliminate blight and enhance the livability of surrounding neighborhoods. Funding is provided by the Hitchcock Economic Development Corporation (“HEDC”). The program goals include: (1) Revitalize and improve the appearance of commercial areas to positively impact the aesthetics, marketability, and perception of Hitchcock. (2) Activate the Hitchcock business environment by improving the pedestrian experience. (3) Stimulate private investment, while at the same time encouraging a higher level of quality and design of retail, commercial and professional storefronts, and streetscapes. The Storefront and Streetscape Improvement Program offers commercial property owners and business tenants up to a 50% matching grant of up to a maximum of $5,000 per building/retail center, on a reimbursement basis only, for the funding of well-designed improvements in enhancing their storefronts and streetscapes. The cumulative amount awarded by the Hitchcock Economic Development Corporation (HEDC) for the 2025-2026 Fiscal Year will not exceed $25,000. SSIP Guidelines SSIP Application
Freeport Exemption: This is an ad valorem property tax exemption on goods, wares, merchandise, ores, certain aircraft and parts, if they have been detained in Texas for 175 days or less for the purpose of assembly, storage, manufacturing, processing, or fabricating. The City of Hitchcock provides this exemption within the City limits. Freeport property includes goods, wares, merchandise, ores and certain aircraft and aircraft parts. For certain aircraft parts, a community, by official action, may extend the deadline to 730 days. More information and Application
Public Improvement District (“PID”): This program enables a commercial area to make improvements benefiting the area and spread the cost equally among all properties. The City can levy and collect special assessments on property owners within the PID. These assessments may be used to pay the debt service on bonds, or they may be used to pay for services directly if no bonds are issued. PID funds may be used to purchase real property in connection with improvements. Improvements include a wide variety of enhancements such as water and wastewater, streets, drainage, parking, landscaping, etc. City of Hitchcock PID Policy Chapter 372 Detail
Foreign Trade Zone #36 (FTZ): This FTZ operates a Service Area that includes all of Galveston County, including the City of Hitchcock. As Grantee of the Zone, the Port of Galveston sponsors applications for new sites and interfaces with the U.S. Foreign-Trade Zones Board and zone users. Additionally, the Grantee is responsible for compiling and sending an annual report to Washington that chronicles each year’s zone activity. The port also works closely with Customs and Border Protection to ensure that all zone activities are properly handled by the Zone Operators. FTZ #36 includes sites operating within the Port’s property boundaries on Galveston Island. FTZ #36 is a general-purpose zone which can store and manipulate imported goods before they enter the commerce of the United States or are re-exported. Other approved zone activities include assembling, packaging, destroying, storing, cleaning, exhibiting, re-packing, distributing, sorting, grading, testing, labeling, repairing, combining with foreign or domestic content, or processing. Manufacturing and processing require specific FTZ Board approval. Port of Galveston FTZ Page FTZ#36 Schedule No. 5 FTZ Procedures
Industrial Development Bonds: Tax Exempt Industrial Revenue Bonds are designed to provide tax-exempt financing for land and depreciable property on eligible industrial or manufacturing projects. The maximum bond amount is $20 million (which can include certain capital and administrative costs). These bonds must receive a reservation under the state’s volume limitation (“volume cap”) managed by the Texas Bond Review Board. Some manufacturing businesses may qualify for low-interest bond financing up to $10 million. Industrial Revenue Bonds
HGAC Local Development Corporation Business Loan Fund: The Business Loan Fund is available for helps finance new or expanding small businesses when traditional funding isn't available or isn't enough. All applicants must have applied for funding from a private lending institution before being considered for the Business Loan Fund. Loan amounts range from $25,000 to $300,000. Higher loan amounts may be considered under special circumstances. A 10% minimum down payment is required. The Business Loan Fund offers interest rates starting at 4% and repayment terms up to 10 years. One job must be created for every $75,000 of loan funds. Eligible Uses of Funds include: purchase of assets including buildings, equipment, furniture and inventory (50% or more of each loan must be used to purchase assets); closing costs; and working capital. HGALDC | Houston-Galveston Area Local Development Corporation
On-The-Job Training (OJT)-Workforce Solutions: This training program offers participants an opportunity to earn as they learn, while employers benefit from a partial wage reimbursement during the training period. OJT focuses on jobs that involve new technologies, production, service or additional skills for full-time positions (30 hours per week is considered full-time) paying at least $12.00 per hour or more. Advantages to the employer include: no cost access to a carefully screened pool of available talent. The company sets the qualifications, interview, and selects the individual. The individual receives customized training, at the company workplace. The company receives a 50% reimbursement of the new employee's wage, up to $21.00 per hour, while they are training (up to 400 hours and based upon the targeted occupation). The average employer reimbursement is $3,000; WS partners with employers in various industries and locations throughout the 13-county region and offers a team of specialized recruiters to help match skill sets and positions. WS invites employers from the private non-profit or private sectors with a current state issued tax ID and a recent history of taxable wages on at least three current employees to participate. To get a copy of the eligibility questionnaire, contact talent@wrksolutions.com or call 713-688-6890. OJT is only available for new employees, and training information must be established prior to the start date. OJT
Workforce Solutions (WS) Employer Service Division: This agency can help companies find qualified candidates who are trained and equipped with the right skills to fill your position. WS can also help companies find solutions for human resources needs, including technical assistance with government regulations and programs, tax incentives and credits, and training for employees. Depending on specific needs, WS Business Consultants work behind the scenes screening candidates for open positions; and can help create job postings that attract qualified applicants for companies. Consulting services offered include specialized testing, hiring events, interview space, customized training and outplacement. Talent Management Work Based Learning
Chapter 380 Economic Development Agreements: Section 380.001 of the Local Government Code, authorizes municipalities to offer a range of incentives designed to promote state or local economic development. Specifically, it allows for the provision of loans and grants of city funds, using performance agreements, based on sales taxes, property taxes, or city fees and services, as well as the use of city staff, city facilities or city services, at minimal or no charge. To establish a loan or grant or to offer discounted or free city services, the city must meet the requirements contained in the Texas Constitution and in applicable Texas statutes. Additionally, cities must review their city charters and any other local provisions that may limit the city’s ability to provide such a grant or loan. The City of Hitchcock approved incentive guidelines and criteria for Chapter 380 Incentives on May 19, 2025. Projects that may be eligible for property tax abatement include: distribution (NAIC 54); energy services (NAIC 22); grocery store (NAIC 445110); health care (NAIC 62); hotels, destination tourism & recreation (NAICS: 72110, 713990); information technology & artificial intelligence; Maintenance, Repair and Overhaul in Aviation and in other industry sectors (NAIC 4581); manufacturing (NAIC 31-33); regional, national and corporate headquarters (NAIC 55141); and research & development (NAIC 5417). Minimum job requirement is 20 jobs for new companies and 10 jobs for existing companies, with a $2 million capital investment for new companies and $1 million investment for existing companies. The average annual wage requirement is $39,000 per year for property tax rebates with a maximum term of 7 years at 70%. Under Chapter 380 for Sales and Use Tax Grants, companies must create a minimum of $50,000 in sales tax annually. Maximum term is 7 years and 70% reimbursement for larger projects. Chapter 312 and Chapter 380 Economic Development Program Guidelines, Criteria and Policy More information: Economic Development Programs (texas.gov)
Chapter 380 Agreements:
- Comptroller’s Online Chapter 380-381 Economic Development Agreements Database
- 80-381 Economic Development Agreements Database
Chapter 312 Tax Abatement: A Chapter 312 tax abatement is a local agreement between a taxpayer and a taxing unit that exempts all or part of the increase in the value of the real property and/or tangible personal property (ad valorem) from taxation for a period not to exceed 10 years. Tax abatements are an economic development tool available to cities, counties and special districts to attract new industries and to encourage the retention and development of existing businesses through property tax exemptions or reductions. School districts may not enter into abatement agreements. Local governments often use property tax abatements to attract new industry and commercial enterprises and to encourage the retention and development of existing businesses. Incorporated cities, counties and special districts are allowed to enter into tax abatement agreements based on incentive guidelines and/or policies and inside a Reinvestment Zone. The City of Hitchcock approved incentive guidelines and criteria for Chapter 312 and Chapter 380 Incentives on May 19, 2025. Projects that may be eligible for property tax abatement include: distribution (NAIC 54), energy services (NAIC 22), grocery store (NAIC 445110), health care (NAIC 62), hotels, destination tourism & recreation (NAICS: 72110, 713990), information technology & artificial intelligence, Maintenance, Repair and Overhaul in Aviation and in other industry sectors (NAIC 4581), manufacturing (NAIC 31-33), regional, national and corporate headquarters (NAIC 55141), and research & development (NAIC 5417). Minimum job requirement is 20 jobs for new companies and 10 jobs for existing companies, with a $2 million capital investment for new companies and $1 million investment for existing companies. The average annual wage requirement is $39,000 per year for property tax abatement or rebates with a maximum term of 7 years at 70%. Chapter 312-380 Incentive Guidelines, Criteria and Policy Tax Abatement Process
HEDC 4A Direct Incentive: As a 4A Texas Corporation, HEDC is authorized to provide grants and loans for economic development projects. The HEDC Board and City Council approved Direct Incentive Guidelines, Criteria and Policy on May 19, 2025, targeted to primary job creation in particular types of industries. These industries include manufacturing, distribution, research and development, primary job training facilities at educational institutions, small warehouses, and regional and corporate headquarters. Minimum job requirement is 20 jobs for new companies and 10 jobs for existing companies, with a $2 million capital investment for new companies and $1 million investment for existing companies. The average annual wage requirement is $56,000 per year for new companies and $46,000/year for existing companies. Grants are based on $2,000 per job created with a minimum job requirement of 10 jobs at the above annual average wage rates and a maximum grant of $100,000. Grants will be distributed over a five-year period. Direct Incentive Description
HEDC Storefront and Streetscape Improvement Program: The Storefront and Streetscape Improvement Program (SSIP) assists commercial property and/or business owners in rehabilitating their storefronts and the streetscapes located adjacent to their buildings to revitalize neighborhood commercial areas, eliminate blight and enhance the livability of surrounding neighborhoods. Funding is provided by the Hitchcock Economic Development Corporation (“HEDC”). The program goals include: (1) Revitalize and improve the appearance of commercial areas to positively impact the aesthetics, marketability, and perception of Hitchcock. (2) Activate the Hitchcock business environment by improving the pedestrian experience. (3) Stimulate private investment, while at the same time encouraging a higher level of quality and design of retail, commercial and professional storefronts, and streetscapes. The Storefront and Streetscape Improvement Program offers commercial property owners and business tenants up to a 50% matching grant of up to a maximum of $5,000 per building/retail center, on a reimbursement basis only, for the funding of well-designed improvements in enhancing their storefronts and streetscapes. The cumulative amount awarded by the Hitchcock Economic Development Corporation (HEDC) for the 2025-2026 Fiscal Year will not exceed $25,000. SSIP Guidelines SSIP Application
Freeport Exemption: This is an ad valorem property tax exemption on goods, wares, merchandise, ores, certain aircraft and parts, if they have been detained in Texas for 175 days or less for the purpose of assembly, storage, manufacturing, processing, or fabricating. The City of Hitchcock provides this exemption within the City limits. Freeport property includes goods, wares, merchandise, ores and certain aircraft and aircraft parts. For certain aircraft parts, a community, by official action, may extend the deadline to 730 days. More information and Application
Public Improvement District (“PID”): This program enables a commercial area to make improvements benefiting the area and spread the cost equally among all properties. The City can levy and collect special assessments on property owners within the PID. These assessments may be used to pay the debt service on bonds, or they may be used to pay for services directly if no bonds are issued. PID funds may be used to purchase real property in connection with improvements. Improvements include a wide variety of enhancements such as water and wastewater, streets, drainage, parking, landscaping, etc. City of Hitchcock PID Policy Chapter 372 Detail
Foreign Trade Zone #36 (FTZ): This FTZ operates a Service Area that includes all of Galveston County, including the City of Hitchcock. As Grantee of the Zone, the Port of Galveston sponsors applications for new sites and interfaces with the U.S. Foreign-Trade Zones Board and zone users. Additionally, the Grantee is responsible for compiling and sending an annual report to Washington that chronicles each year’s zone activity. The port also works closely with Customs and Border Protection to ensure that all zone activities are properly handled by the Zone Operators. FTZ #36 includes sites operating within the Port’s property boundaries on Galveston Island. FTZ #36 is a general-purpose zone which can store and manipulate imported goods before they enter the commerce of the United States or are re-exported. Other approved zone activities include assembling, packaging, destroying, storing, cleaning, exhibiting, re-packing, distributing, sorting, grading, testing, labeling, repairing, combining with foreign or domestic content, or processing. Manufacturing and processing require specific FTZ Board approval. Port of Galveston FTZ Page FTZ#36 Schedule No. 5 FTZ Procedures
Industrial Development Bonds: Tax Exempt Industrial Revenue Bonds are designed to provide tax-exempt financing for land and depreciable property on eligible industrial or manufacturing projects. The maximum bond amount is $20 million (which can include certain capital and administrative costs). These bonds must receive a reservation under the state’s volume limitation (“volume cap”) managed by the Texas Bond Review Board. Some manufacturing businesses may qualify for low-interest bond financing up to $10 million. Industrial Revenue Bonds
HGAC Local Development Corporation Business Loan Fund: The Business Loan Fund is available for helps finance new or expanding small businesses when traditional funding isn't available or isn't enough. All applicants must have applied for funding from a private lending institution before being considered for the Business Loan Fund. Loan amounts range from $25,000 to $300,000. Higher loan amounts may be considered under special circumstances. A 10% minimum down payment is required. The Business Loan Fund offers interest rates starting at 4% and repayment terms up to 10 years. One job must be created for every $75,000 of loan funds. Eligible Uses of Funds include: purchase of assets including buildings, equipment, furniture and inventory (50% or more of each loan must be used to purchase assets); closing costs; and working capital. HGALDC | Houston-Galveston Area Local Development Corporation
On-The-Job Training (OJT)-Workforce Solutions: This training program offers participants an opportunity to earn as they learn, while employers benefit from a partial wage reimbursement during the training period. OJT focuses on jobs that involve new technologies, production, service or additional skills for full-time positions (30 hours per week is considered full-time) paying at least $12.00 per hour or more. Advantages to the employer include: no cost access to a carefully screened pool of available talent. The company sets the qualifications, interview, and selects the individual. The individual receives customized training, at the company workplace. The company receives a 50% reimbursement of the new employee's wage, up to $21.00 per hour, while they are training (up to 400 hours and based upon the targeted occupation). The average employer reimbursement is $3,000; WS partners with employers in various industries and locations throughout the 13-county region and offers a team of specialized recruiters to help match skill sets and positions. WS invites employers from the private non-profit or private sectors with a current state issued tax ID and a recent history of taxable wages on at least three current employees to participate. To get a copy of the eligibility questionnaire, contact talent@wrksolutions.com or call 713-688-6890. OJT is only available for new employees, and training information must be established prior to the start date. OJT
Workforce Solutions (WS) Employer Service Division: This agency can help companies find qualified candidates who are trained and equipped with the right skills to fill your position. WS can also help companies find solutions for human resources needs, including technical assistance with government regulations and programs, tax incentives and credits, and training for employees. Depending on specific needs, WS Business Consultants work behind the scenes screening candidates for open positions; and can help create job postings that attract qualified applicants for companies. Consulting services offered include specialized testing, hiring events, interview space, customized training and outplacement. Talent Management Work Based Learning