Grants & Incentives

Kennedale offers a variety of incentives and financing options to support your business expansion or relocation. We work closely with Tarrant County and the State of Texas to connect you with additional resources. Each incentive is provided and negotiated on a case-by-case basis and our team is here to help — reach out to get started.

grants & incentives

state level

Texas Enterprise Fund

Who Can Apply?

Companies planning a new project including a facility opening or expansion, with significant projected job creation and capital investment, where a single site in Texas is actively competing with at least one viable out-of-state option.

Type of Incentive

“Deal-closing” cash grants are calculated according to a uniform analytical model for each applicant. Award amounts are calculated on the average wage of new employees, taking into account the expected hiring timeline and number of jobs created, with per-employee award
amounts subject to adjustment based on the company’s total proposed capital investment.

Eligibility Details

The single Texas site being considered for the project must be in active competition with at least one out-of-state site and the company must not have made a location decision. Actions signifying the company has already made a location decision include, but are not limited to—signing a
lease, purchasing land, hiring employees and/or making a location announcement.

Projected new job creation must exceed 75 full-time jobs (urban areas) or 25 full-time jobs (rural areas).
The total average wage for new jobs must meet or exceed the average county wage for the county in which the project would be located during the full term of the grant agreement.
The company must demonstrate significant levels of planned capital investment, as determined by the Governor’s Office.
The project must be supported by the city, county and/or school district in which the project would be located, particularly in the form of local economic incentive offers.
The company must be well-established and financially sound.
The company must operate in an advanced industry which affords it other feasible location options nationally and/or internationally.

If and when approved for a TEF grant and upon acceptance of such grant, all TEF awardees must sign a grant contract with the state which legally obligates the company to fulfill, among other things, projected job creation and average wage commitments. No TEF funds are disbursed until after grantees sign a grant contact and meet their respective job and wage targets for each individual period (typically annually).

Grantees are required to maintain these job and wage figures throughout the term of the contract. In the event a grantee fails to do so or fails to meet other terms of the grant contract, certain contract provisions allow the Governor’s Office to demand repayment of previously disbursed grant funds in the form of clawbacks. Each TEF grantee will also participate in a press release with the Governor’s Office announcing the project and the TEF award amount.

Application

With a rolling application period, eligible companies must submit a complete application packet to be considered for a TEF grant.

TEF applicants undergo a thorough 11-step due diligence screening process. Areas of focus include project competitiveness, corporate activity, financial standing, tax status, legal issues, credit ratings, estimated economic impact, and the business climates of competing locations. The Governor, Lieutenant Governor, and Speaker of the House review all applications and must unanimously agree to support the use of TEF for each applicant.

Skills Development Fund

The SDF is Texas’ premier upskilling program. SDF grants provide site-specific, customized training opportunities for Texas businesses and their employees to increase skill levels and wages of the Texas workforce.

Established by the 74th Legislature in 1995, The Skills Development Fund was designed to better utilize the public community and technical college
system in Texas as well as other training organizations and have them partner with businesses throughout the state (with priority on small businesses) to train workers to meet the labor needs of employers and the regional labor market. The grant-covered average training cost is $2,000 per trainee;
however, the benefit may vary depending on the proposal.

local level

Chapter 380 Economic Development Agreements

Chapter 380 of the Texas Local Government Code allows Kennedale to offer a range of incentives for economic development, including the ability to rebate some of the city’s portion of the 1.0% sales and use tax collected from business entities located in the jurisdiction.

Municipality Agreements

Chapter 380 of the Local Government Code authorizes municipalities to offer incentives designed to promote economic development such as commercial and retail projects. Specifically, it provides for offering loans and grants of city funds or services at little or no cost to promote state and local economic development and to stimulate business and commercial activity.

Pre-Requisites for application:

Company must establish place of business within the City
Minimum annual sales tax revenue: $100k
Maximum amount of City sales tax revenue paid: 70%
Duration: Initial term not to exceed 10 years

Kennedale EDC Funding Grant

This is reimbursement grant for pre-approved façade improvements, property improvements and capital equipment expenditures. If qualified and approved, applicants will be eligible to receive up to $25,000 in matching reimbursement grants.

The purpose of this program is to promote the development and expansion of new and existing business enterprises within the City limits of Kennedale, and enhance the economic welfare of the citizens of the City by securing and retaining business enterprises and maintaining a higher level of employment, economic activity, and stability.

Please read the program information packet to learn more!