Abatements & Exemptions

Foreign Trade Zone

A Foreign Trade Zone (FTZ) is land area within the U.S. that is legally considered outside of national customs territory. These zones are governed by a federal program that streamlines, reduces and sometimes eliminates import tariffs for U.S. importer and exporters. The program was enacted in 1934 to "expedite and encourage foreign commerce." 

Today there are 294 FTZs in the United States.

Manufacturing Sales Tax Exemption

Manufacturing sales tax exemption will apply to the purchase of new machinery or equipment used or consumed in or during the actual manufacturing, processing, or fabrication of tangible personal property for ultimate sale.

Property Tax Abatement

The City of Freeport is committed to the promotion of high quality development. On a case-by-case basis, the city will give consideration to providing tax abatement on the increment in value added to a particular property by a specific development proposal which meets the economic goals and objectives of the city.

Tax abatement may be offered on improvements to real property owned by the applicant and/or on new personal property brought to the site by the applicant. Tax abatement will not be ordinarily considered for projects which would be developed without such incentives unless it can be demonstrated that higher development standards or other development and community goals will be achieved through the use of the abatement.

Brazoria County will work with your businesses for a property tax abatement.

Sales Tax Exemption on Utilities

Sales tax exemption on utilities will apply if more than 50% of utilities are certified for use in manufacturing, processing, or fabricating of products.