The City of Austin uses two factors to calculate the total incentive amount: the Project Type, and the Project Score.
Incentive Amount Depends on Project Type:
Depending on the project (are you adding jobs only? Adding a new facility? Focusing on hiring from a targeted population? A combination or all of the above?), the incentive amount is calculated in different ways. In general, there are three types of avialable incentives:
- Incentive amount based on New Jobs created: Annually, the City will return a share (between 1% - 3%) of the gross income paid to workers in the newly created positions, up to a maximum of $1,800 per job. For existing businesses, these agreements are capped at five years. Per job incentives are only available to current local residents of the City of Austin.
- Incentive amount based on Targeted Hiring New Jobs: Annually, the City will return a dollar amount per newly created job ranging from $1,000 to $3,000 per job depending on whether the company goes through a 3rd party provider to recruit for the positions and if they offer a housing stipend to employees.
- Incentive amount based on Property Tax reimbursement: Annually, the City will return a share of the property tax liability directly generated from the project, up to a maximum of 50% over five years for existing businesses, and 10 years for businesses new to Austin. If the business successfully protests and lowers its property tax valuation, the reimbursement from the City may be reduced proportionately.
ALL Incentive Payments are "Performance-Based", meaning payment/reimbursement will not be provided until the jobs are created, the money is spent on the construction and proof of the activity is provided to the City.
Incentive Amount Depends on Project Score:
For each of the above Incentive calculations, all result in a different amount depending on the Project Score. A higher score means a higher incentive amount. Project Scores are calculated using a scoring system that evaluates the following elements of the project.
- Minimum Requirements – Ensures the project and company comply with a requirements to participate in the program.
- General Eligibility – Determines business size and operational history and the size of the project needed to participate.
- Cost-Benefit Analysis – Calculates the City’s financial position from new economic activity created as a direct result of the project, including the production of new jobs, construction impact and other sources of revenue for the City.
- Community Benefits – Tabulates other benefits the City would get from the project, such as Equity, Talent Development / Hiring Practices, Mobility Solutions, Neighborhood Connections, Sustainable Business Practices, and other community priorities.
- Bonus Qualifiers – Calculates extra points based on things the City considered “nice to have” and extra benefits for the community.
Only Projects that score 50 and above are eligible to receive an incentive.