Incentives

Pharr is a pro business community ready to provide any assistance your business might need. The City of Pharr has access to an array of programs to help promote business development and advanced training for a variety of industry clusters.

Pharr also offers individual incentive packages depending on your company’s structure.

Incentives to be Offered Exclusively Within the Designated City of Pharr Enterprise Zone:

  • Property Tax Abatement
  • State Sales and Use Tax Refunds
  • Franchise Tax Deductions
  • Streamlined Permitting
  • Development Fee Exceptions

Property Tax Abatement
The City may exempt from taxation 90% of the increased value of taxable property of such businesses in the city over the same property’s value of the year in which such tax abatement agreements are executed. The City may exempt from taxation 70% of the increased value of property of such businesses over the increased value of property of the following year.  In the subsequent three (3) years, the tax abatement schedule will continue as followed: Year 3- 50%; Year 4- 30%; and year 5- 10% of the increase in value of property of such year in which such tax abatement agreement was executed.

State Sales and Use Tax Refunds
The sales and used taxes paid on machinery and equipment, building materials, labor for the rehabilitation of existing buildings, and electricity and natural gas purchased for use in the enterprise zone are eligible for refund.  The refund is based on $2,000 for each permanent job created or retained that is certified during the five years designated period for an enterprise project.

Franchise Tax Reduction
The Franchise tax reduction is the amount of capital investment made by the project in the enterprise zone.  The project’s apportioned taxable capitol maybe reduced by 50% of the capitol investment or the apportioned earned surplus income maybe reduced by 5% of the capitol investment made in the enterprise zone.  The business must pay the highest liability.

Streamlined Permitting
Accelerated zoning and permit procedures:  Enterprise zone business will be processed upon receipt, before non-enterprise zone business is already in hand.

Development Fee Exceptions
Waiver of development fees to enterprise zone business meeting minimum standards.

Other Incentives to be Offered

  • Zoning Changes or Variances
    The City of Pharr will consider Zone changes and variances to those businesses that locate or are located in the enterprise zone area designated for a similar or complimentary use and will not endanger the health, safety, and welfare of the general-public.
  • Retaining Program or Customized Job Training
    In conjunction with South Texas Community College, licensed proprietary schools in the area and Hidalgo County Office of Employment and Training, the City of Pharr will actively participate in providing jobs for those individuals in need of employment.
  • Enterprise Zone Project Application Assistance
    The City of Pharr will assist any qualified business located in the Enterprise Zone; by using the application process for the designated business, only then the “Enterprise Zone Project Application Assistance” be used for the approved business.
  • Police & Service
    The City of Pharr provides public safety, fire and police protection, and crime prevention throughout its Police and Fire Departments.  Enterprise Zone businesses will receive immediate police and fire protection.  Community Crime Prevention Programs are also available.
  • Ombudsman Service & Regulatory Relief
    The City of Pharr will act as an Ombudsman when a business is interested inside the enterprise zone.
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