Home / Site Selection / Incentives & Financing

Incentives & Financing

The City of Rockdale and the Rockdale MDD offer a variety of incentive programs for catalyst projects that add to the tax base, create high-paying jobs, and encourage redevelopment. Incentive packages are fully customized to each applicant's needs.

When incentives work best

Tie-breakerWhen a company is weighing Rockdale against other communities.
Managing riskWhen incentives help a company manage the risk of choosing Rockdale.
Bridge financingWhen a new company needs help through its startup years.

Incentives at a Glance

Grants for Local Businesses

The MDD’s most popular programs help Rockdale businesses improve their buildings and grow their customer base. Both are reimbursement grants: you complete the work, then the MDD reimburses its share.

Flagship program

Building Improvement Incentive Grant (BIIG)

Matching grants for commercial and industrial properties in Rockdale and its ETJ, in three parts that can be combined:

  • Façade improvements50% match, up to $10,000, for signs, awnings, lighting, paint, windows, doors, and more.
  • Building improvements15% match, up to $15,000, for plumbing, electrical, and structural work that brings a building up to code and back into use.
  • Property redevelopment50% match for demolition (up to $5,000 for a single structure or $15,000 for a large building), environmental remediation (up to $25,000), and legal fees to clear a title (up to $5,000) when a new building goes up.
Download BIIG Guidelines & Application (PDF, 345 KB)
For local businesses

Digital Marketing Grant

A $750 reimbursement for locally owned, non-franchise Rockdale businesses that hire a professional to create digital marketing, such as video, photography, digital ads, websites, or branding.

  • Who qualifiesFor-profit businesses with a physical Rockdale location, a Texas sales tax permit, and at least one year in operation.
  • How it worksThe MDD Board reviews applications at its regular meetings, with a decision within six weeks.
Download Digital Marketing Grant Guidelines & Application (PDF, 91 KB)

Local Incentives

Incentives are considered case by case under the City's Incentives Policy. Manufacturers and other large employers are a top priority.

Property tax abatement

The City can abate property taxes on new buildings, improvements, and business personal property. The schedule depends on how much you invest and how many qualifying jobs you create.

Step 1: Find your scheduleInvestment level and qualifying jobs created
Investment15–20 jobs21–5051–100100+
$1M – $4.9M1223
$5M – $9.9M1234
$10M – $19.9M2344
$20M – $49.9M3345
$50M+4455
Step 2: Read your abatement by yearPercent of city property taxes abated
12345
Year 180%90%90%90%90%
Year 260%80%90%90%90%
Year 340%60%90%90%90%
Year 420%40%80%90%90%
Year 5–20%60%80%90%
Year 6––40%70%80%
Year 7––20%60%70%
Year 8–––50%60%
Year 9–––40%50%
Year 10–––20%30%

Example: a $25 million plant creating 60 jobs falls on schedule 4, with a 90% abatement for the first four years, stepping down to 20% in year 10. Abatements apply to City of Rockdale taxes and are approved case by case under Chapter 312 of the Texas Tax Code.

Milam County may also consider a property tax abatement on county taxes for qualifying projects, negotiated case by case.

Other local tools

Infrastructure assistanceHelp with water, sewer, road, and drainage extensions to your site.
Land and buildingsLand leases and build-to-suit leaseback on MDD property.
Fee reductionsReduced or waived permit, plan review, inspection, and impact fees.
Fast-track approvalsAccelerated zoning, permitting, and inspections.
Hiring supportPer-job grants and help recruiting your workforce.

Inventory tax exemptions

Rockdale is a triple Freeport community: the City of Rockdale, Milam County, and Rockdale ISD all exempt qualifying inventory from property tax.

Who grants each exemption
ExemptionCity of RockdaleMilam CountyRockdale ISD
FreeportGoods held in Texas 175 days or less for assembly, storage, manufacturing, processing, or fabricating, then shipped out of state✓✓✓
Goods-in-TransitGoods stored at a third-party location in Texas and moved to another location within 175 days✓✓–

State Incentives

Texas offers several programs that pair well with local incentives. The MDD can support your application and coordinate with the Governor's Office.

Grants

Texas Enterprise Fund

A deal-closing grant, typically $1,000 to $10,000 per job, when Texas is competing with another state. Rural projects must create at least 25 jobs. Details ↗

Texas Semiconductor Innovation Fund

Grants for semiconductor manufacturing and design projects, funded with $698.3 million under the Texas CHIPS Act. Details ↗

Tax incentives

JETI Act

Up to a 50% abatement of school district property taxes for 10 years. In counties under 100,000 people, like Milam, projects need 10 jobs and $20 million in investment. Details ↗

Texas Enterprise Zone

State sales and use tax refunds of $2,500 to $7,500 per job for projects nominated by the City. Details ↗

Sales tax exemptions

No sales tax on manufacturing machinery and equipment, on electricity and natural gas used in manufacturing, or on semiconductor clean rooms and equipment. Details ↗

Research & Development Tax Credit

A franchise tax credit for qualified research in Texas.

Workforce training

Skills Development Fund

Custom training through community and technical colleges, averaging about $2,400 per trainee. Details ↗

ASCEND

Reimburses training in advanced manufacturing, semiconductors, and other key industries: up to $4,000 per trainee and $500,000 per grantee. Details ↗

Financing

Industrial Revenue Bonds

Tax-exempt financing for land and depreciable property for eligible manufacturing projects. Details ↗

Source: Office of the Governor, Texas Business Incentives & Programs Overview, revised April 2026. Program terms are set by the state and can change.

Federal Programs

Federal financing and tax credits can add to local and state incentives. The MDD can help you identify which ones fit your project.

New Markets Tax Credits

Rockdale is in an eligible census tract, so qualifying projects can draw on below-market financing raised through New Markets Tax Credits. Details ↗

Energy Community Tax Credit Bonus

Rockdale is a designated Energy Community, which can add a 10% bonus to certain federal energy production and investment tax credits for qualifying projects. Details ↗

Semiconductor Manufacturing Tax Credit

A 35% federal investment tax credit (Section 48D) for facilities that make semiconductors or chipmaking equipment. Construction must begin by December 31, 2026.

USDA Business & Industry Loan Guarantees

USDA guarantees bank loans for rural businesses, generally up to 80% of the loan, to help finance land, buildings, equipment, and working capital. Details ↗

SBA 504 Loans

Long-term, fixed-rate financing for land, buildings, and equipment, with as little as 10% down. Details ↗

Federal programs are administered by federal agencies and lenders, and terms can change.

How the Process Works

Applicants are encouraged to contact the MDD office for a pre-application conference before submitting an incentive application. MDD staff review the completed application and make a recommendation. All incentive agreements are subject to approval by the MDD Board of Directors and/or the City of Rockdale.

  1. Talk with usMeet with the Economic Development Director to review your project.
  2. ApplySubmit the Incentives Application with your investment, jobs, and timeline.
  3. Agreement in principleThe MDD Board and City Council review the request and a non-binding term sheet.
  4. Incentive agreementA performance-based agreement with annual reporting and clawback if terms aren't met.

Construction must not begin before an incentive agreement is approved. All incentives are discretionary and are not a commitment until approved by the City Council or MDD Board.

Want to see what your project could qualify for?

Contact Us