On January 25, 2023, the City Council approved an amended City of Dallas Economic Development Policy and approved a new Economic Development Incentive Policy. The creation of a new Incentive Policy is a key deliverable from the initial Economic Development Policy, and adds new tools that institutionalize a living wage, streamline the process for smaller developers, create a new fund to address infrastructure challenges and prioritize investment in specific areas.
Dallas has a variety of tools and incentive programs to assist developers realize their real estate projects within the City of Dallas, including Tax Increment Financing (TIF) districts, Property Assessment Clean Energy (PACE) financing, New Markets Tax Credits, and negotiated tax abatements and Chapter 380 grants and loans along with new incentive programs outlined in the new Economic Development Incentive Policy.
City funds are generally the last funding source committed to a project and can be used to fill the gap that remains after other funding sources are maximized.
The new incentive policy directs certain programs and incentives toward designated Target Areas that align with the state’s designated Enterprise Zones, which are census block groups designated as distressed areas.
The new Incentive Tools include the following:
- As-of-right Tax Abatements - activates real estate development and job creation in traditionally underserved areas by offering a simplified process
- Community Development Loans and Grants - improves living and economic conditions of persons of low and moderate income through loans and grants for qualified projects that serve a community development purpose, including projects with non-profit developers
- Predevelopment Loans - supports community developers and qualified women and/or minority developers by providing loans for eligible predevelopment project costs
- Infrastructure Investment Fund - assists in closing the infrastructure gap by directing funding to areas most in need and is capitalized by the ongoing collection of windfall funds from existing TIF districts.
The approval process has been simplified to allow for administrative approval for the incentives listed below. City Council approval is required for all other incentives.
- As-of-right Tax Abatements located in target areas
- Predevelopment Loans for projects that are led by certified women and minority developers
- Negotiated Incentives at or below $1 million for projects that are either inside Target Areas or that are led by certified women and/or minority developers