Tax Abatement
Qualifying businesses locating or expanding in the City of Killeen may apply for a property tax abatement on the incremental value of real and personal property improvements under Chapter 312 of the Texas Tax Code. Abatements apply only to new taxable value created by eligible construction or expansion within a City-designated Reinvestment Zone and may be granted for a term of up to ten (10) years, subject to City Council approval.
Tax Abatement Program
The City of Killeen utilizes tax abatements as a targeted incentive to encourage capital investment, primary job creation, and long-term operational commitments. Abatements are performance-based and governed by the City’s adopted Tax Abatement Guidelines and Criteria, which are reviewed and renewed in accordance with state law.
Key Program Elements:
Statutory Authority: Texas Tax Code Chapter 312
Eligible Projects: New construction, facility expansions, and significant capital improvements with a useful life of at least 10 years
Abatement Structure: Applies only to the increase in taxable value resulting from improvements (not the existing base value)
Term: Up to 10 years
Location Requirement: Must be within a City-designated Reinvestment Zone
Performance Metrics: Capital investment levels, job creation targets, wage standards, and compliance reporting
Approval Process: Public hearing and City Council authorization required
Abatements are evaluated on a case-by-case basis to ensure measurable economic benefit to the community and fiscal responsibility.
Other Jurisdictions
Depending on project location and scope, Bell County and other taxing entities may independently consider tax abatement participation under their respective Chapter 312 policies.