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Tax Abatement Program


Tax abatement is the reduction of the appraised value on certain types of taxable property, thus lowering a firm's tax payments. Tax abatement provides a stream of benefits to a firm for a period of 5 - 10 years, which contributes toits net present value.

Companies wishing to apply for tax abatement from the City of El Paso must complete the "Tax Abatement Application Form" and submit the application prior to commencement of improvements to the subject property. Tax Abatement will not be considered until the appropriate application fee is paid. In addition, following eligibility, policy implemented by the city must be adhered to. The Tax Abatement Application may be downloaded from the City of El Paso's website. For your convenience, this link will take you directly there.

Eligibility for Tax Abatement

In order to be eligible for tax abatement incentives, a proposed project must meet ALL of the following criteria:

- Be located within a reinvestment zone;
- All created positions must pay a minimum hourly wage of $7.00 an above;
- Applicant must be in compliance with all federal, state and local laws;
- Provide “Added Value” to a property;
- Provide employment opportunity that meets the “Sustainable Wage Requirement”;
- Provide company-paid health insurance for all full-time employees; and
- Constitute a project, which can be demonstrated to create “added value” in an amount of at least $2.5 million.

Targeted Industries

Preferred Industries

Computer Related

Consumer Electronics

Back Office Industry

Plastic Distribution Centers

Medical Related

Pharmaceutical Drugs Manufacturing

Tool & Die

Electronics & Electronic Equipment

Advanced Technical Sector

Environmental Services

Motor Vechicle Production

Food Processing

Company Headquarters

Metal Forging

Retirement Community

Engineering Management

Resorts

Motor Vehicle Equipment

-

Plating & Polishing

-

Primary Metal Industries

-

Printing & Publishing


Quality of Life Projects:
Recreational parks, soccer fields, baseball arenas, ice skating rings, amusement parks, bowling alleys, indoor / outdoor alleys, indoor / outdoor sporting arenas and golf complex. (Source: City of El Paso, Department of Economic Development)


Tax Abatement General Terms:

  • Terms of abatements range from 5 -10 years;
  • Both personal property and improvements to real property are eligible for abatement according to the terms derived by using the Tax Abatement Worksheet;
  • Abatement percentages will not exceed fifty percent (50%) on either the personal property or the improvements to the real property. Eligibility for abatement on improvements to real property is allowed only when accompanied by a minimum improvement to real property of $250,000;
  • Construction is not begun until all tax abatement agreements are signed by the taxing entities;
  • For existing buildings, only improvements will be eligible for abatement;
  • School District will not be asked to participate in Tax Abatement;
  • Any project in the target industry group that creates a minimum of 500 new jobs in any quality for an abatement of 50% real property and 50% personal property;
  • Any new project with a minimum investment of $2.5 million or greater that does not reach the stated number of jobs of its level of investment but sustains a minimum of 25 jobs will receive a Level One(1) abatement of 25% real property and 10% personal property for a 5 year term; and
  • Tax abatements are not available to non-profit organizations.
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