Economic Development Incentives

About Prosper

The Prosper Economic Development Corporation has many economic incentives that it may offer for new investments in the Town of Prosper. Qualification for incentives is determined by the Prosper EDC Board of Directors, and the investment must demonstrate direct economic benefit to Prosper.

The incentives listed below serve as a general guideline for us in considering an investment in Prosper. The Town of Prosper is actively engaged in attracting quality development and will be very competitive in order to obtain the project quality desired by its citizens. We would be pleased to consider preparing a detailed incentive offer for potential investors following a meeting of the developers and/or end users with the Prosper EDC staff, completion of a prospect questionnaire, and provision of planned confidential financial commitments by the user/developer.

4A Sales Tax Incentive Grant for Infrastructure

Prosper EDC may provide a grant for the infrastructure of a project in consideration of the investments made by the developer or end user against the cost of said infrastructure with a goal to obtain a return on the investment over 5 to 10 years. The Texas Leverage Fund may be utilized to leverage the available funds of the Prosper EDC. 

4A Sales Tax Incentive Grant for Projects with Primary Jobs

The Prosper EDC may consider providing incentive grants to projects where primary jobs are created or a company’s products or services are ultimately exported to regional, statewide, national, or international markets.

Tax Abatements

The Town of Prosper may consider abating the real estate, personal property and/or sales tax for projects taking into consideration the size of an investment and the number of jobs created. Application and guidelines are available upon request.

Fast Track Permitting and Inspection Procedures

The Town of Prosper and staff aim to be friendly towards business and will provide a fast track, “one stop shop” for permitting and inspections related to the qualifying development.

Chapter 380 Grant

In certain instances, the Prosper Town Council can offer a 380 grant to a company that will create jobs and significant capital investment.  In Texas, 380 grants have broad flexibility and are typically used for major infrastructure costs.

Creation of a Tax Increment Reinvestment Zone (TIRZ)

The Prosper EDC and Town may work with a developer or end user to identify infrastructure needs on a chosen site and then create a Tax Increment Reinvestment Zone that would help pay for the costs of the infrastructure.  The cost of roads, water/sewer lines, detention and drainage, electric and fiber-optic lines, parking lots, and other special infrastructure items can be paid using funds generated in a TIRZ in which property values are increased during the term of the TIRZ.

Texas Dept. of Agriculture/Texas Capital fund for Infrastructure

Prosper is qualified to apply, on behalf of the developer or end user, for funding up to $750,000 for infrastructure or real estate development through the state. The competitive applications are in quarterly periods. Minimum job creation requirement is 30 jobs, and the infrastructure development comes in the form of a grant.

Texas Enterprise Zone

Projects that create more than 10 permanent jobs may be nominated by Prosper as a project for the Texas Enterprise Zone. Prosper EDC may offer to pay for the application preparation ($3,500) and for the application fee ($750). Once nominated, the Texas Enterprise Zone Project is allowed to obtain sales tax rebates at a rate of $2,500 per employee position created. The sales tax rebate is particularly beneficial to obtain rebates on sales tax paid for construction materials and labor. 

Waiving of Agricultural Exemption Taxes Owed

The Town may consider, as part of the total incentive package for a project, the waiving of past due agricultural exemption taxes owed.

Impact Fee Reductions

Depending on the project, the Town of Prosper may consider reducing the impact fees on projects.

Foreign Trade Zone

Prosper lies within the DFW Airport Foreign Trade Zone (FTZ).  The FTZ designation allows area businesses to operate under similar customs guidelines to business conducted in a foreign country.  Typically, through this program, relief from customs duties and tariffs can be obtained.

Skills Development Job Training Funds

For certain projects, the Prosper EDC could support and assist with the application for skills development job training from the Texas Workforce Commission (TWC). The exact amount of funds awarded would be determined by the TWC, and Collin College would partner with the Prosper EDC and a developer/end user in identifying job training programs that would be applicable, and a job training grant amount per job created. 

Workforce Development Job Training Funds

The North Central Texas Workforce distributes over $50 million each year in 14 counties across the DFW region, which includes Prosper.  These federal Workforce Investment Act (WIA) funds can be used by companies to train or re-train employees in new technologies.

EB-5 Equity Funds

Equity funds can be raised through the EB-5 program that is administered by the U.S. Department of Immigration & Naturalization.