The McGregor Economic Development Corporation is committed to the promotion of high quality development in all parts of our community. The following economic development tools are available on a case-by-case basis to eligible companies considering expanding or relocating to McGregor.

Reinvestment Zone
The City of McGregor has established a reinvestment zone for the purpose of tax abatements, tax increment financing and public improvement districts.

Property Tax Abatements
To promote and retain high quality development in all parts of the city, the City of McGregor and McLennan County will consider providing property tax abatement on the appraised value of real property improvements and business personal property in accordance with the City's Policy Statement for Economic Development incentives.

Tax Increment Financing
The City will consider using Tax Increment Financing to finance needed public improvements in a defined area. The costs of public infrastructure improvements to the defined area are repaid by the contribution of future tax revenues by each taxing entity that levies taxes against the property.

Public Improvement Districts
The Public Improvement District Act allows a city to levy and collect special assessments on a property that is within the city or its extraterritorial jurisdiction (ETJ). The public improvement district may be formed to accomplish improvements such as water, wastewater, drainage, streets and sidewalks, parking and parks.

Triple Freeport Exemption
Freeport property is exempt from property tax for various types of goods that are detained in Texas for 175 days or less. The goods must be in Texas for only a limited purpose such as assembly, storage, manufacturing, or fabricating. This exemption has been approved by the City of McGregor, McLennan County, and the McGregor Independent School District, making McGregor a triple Freeport Exemption city.

Defense Economic Readjustment Zone
The Defense Readjustment Zone was established as a tool for business recruitment and job creation in impacted defense-dependent communities. The incentives offered to qualifying businesses as a result of the program are similar to the Texas Enterprise Zone Program. Major incentives for businesses designated as Defense Readjustment Projects by the Texas Department of Economic Development include
• Up to $2500 job credit for each job created, with a maximum
of 500 jobs and/or a maximum of $250,000 per year
• Franchise Tax reductions

Economic Development Grants and Loans
Chapter 380 of the Local Government Code provides legislative authority for municipalities to establish a program for making loans and grants available to promote state and local economic development and to stimulate business and commercial activity in the City.