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
Incentives at a Glance
- Up to 10 yearsOf city property tax abatement for qualifying projects
- 10 jobs, $20MMinimum to qualify for a state JETI school tax abatement in Milam County
- $4,000Per trainee available through the state's ASCEND training grants
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.
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.
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.
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.
| Investment | 15–20 jobs | 21–50 | 51–100 | 100+ |
|---|---|---|---|---|
| $1M – $4.9M | 1 | 2 | 2 | 3 |
| $5M – $9.9M | 1 | 2 | 3 | 4 |
| $10M – $19.9M | 2 | 3 | 4 | 4 |
| $20M – $49.9M | 3 | 3 | 4 | 5 |
| $50M+ | 4 | 4 | 5 | 5 |
| 1 | 2 | 3 | 4 | 5 | |
|---|---|---|---|---|---|
| Year 1 | 80% | 90% | 90% | 90% | 90% |
| Year 2 | 60% | 80% | 90% | 90% | 90% |
| Year 3 | 40% | 60% | 90% | 90% | 90% |
| Year 4 | 20% | 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
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.
| Exemption | City of Rockdale | Milam County | Rockdale 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
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 ↗
Grants for semiconductor manufacturing and design projects, funded with $698.3 million under the Texas CHIPS Act. Details ↗
Tax incentives
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 ↗
State sales and use tax refunds of $2,500 to $7,500 per job for projects nominated by the City. Details ↗
No sales tax on manufacturing machinery and equipment, on electricity and natural gas used in manufacturing, or on semiconductor clean rooms and equipment. Details ↗
A franchise tax credit for qualified research in Texas.
Workforce training
Financing
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.
Rockdale is in an eligible census tract, so qualifying projects can draw on below-market financing raised through New Markets Tax Credits. Details ↗
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 ↗
A 35% federal investment tax credit (Section 48D) for facilities that make semiconductors or chipmaking equipment. Construction must begin by December 31, 2026.
USDA guarantees bank loans for rural businesses, generally up to 80% of the loan, to help finance land, buildings, equipment, and working capital. Details ↗
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.
- Talk with usMeet with the Economic Development Director to review your project.
- ApplySubmit the Incentives Application with your investment, jobs, and timeline.
- Agreement in principleThe MDD Board and City Council review the request and a non-binding term sheet.
- 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?
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