Businesses and residents alike are drawn to Denton’s authenticity and opportunities. Our community is characterized by a vision for smart growth and business investment, a friendly, small-town feel paired with big-city amenities, two thriving state universities, and a commitment to sustainability. Denton offers a favorable business climate, exceptional livability, and a diversity of choices in employment, lifestyle, and neighborhoods.
The Economic Development Department helps Denton grow by:
- Expanding Denton’s economy through location of new businesses and the retention and expansion of current employers
- Fostering Denton’s thriving culture of business, technology, and artistic creation and innovation
- Attracting, developing, and retaining skilled and talented workers to support existing and future employers
- Building relationships with Denton businesses and residents through outreach, education, and engagement
Economic Development offers support and services to businesses in all sectors and of all sizes. From facilitation of the Skills Development Fund Training Grant or Texas Enterprise Zone Program applications, to support of local merchants through the S.H.O.P. Denton and Shop Small Saturday programs, City economic developers are invested in supporting Denton’s diverse business community.
As part of Denton’s business recruitment and expansion efforts, the City Council has awarded a total of 26 economic development incentives to foster tax base and employment expansion in the community. The City has invested $13.6 million in tax-related incentives, and in return, has benefited from a net increase in property and sales tax revenues in the amount of $40.7 million since the inception of the incentive program in 1999. The return on investment for all of the incentives awarded is 300 percent. Sales tax incentives represented the highest rate of return on investment at 366 percent, followed by property tax incentives at 177 percent. There have been 6,115 jobs created or retained by incentivized projects.
Economic development incentives are negotiated with new and expanding businesses on a case-by-case basis subject to the qualifications, conditions, and requirements of the City of Denton Tax Abatement and Incentive Policy and the approval of the Denton City Council. Qualifying criteria:
- New or expanding businesses
- Minimum capital investment of $5 million
The history and philosophy of the firm, project specifications, and the potential impact on the community are factors that are considered during the application approval process.
Powering Growth: Denton Municipal Electric Economic Growth Rider
Denton’s electric utility service provider is Denton Municipal Electric (DME). New and expanding industrial and commercial service customers may receive a reduction from DME in their demand billing. Qualifying criteria:
- New and expanding industrial and commercial service customers
- Customers whose electric service represents demand not previously served by the City at any location in the City’s service area in the last 12 months
- Metered demand is in excess of 1,000 kVa per month. The monthly demand billing will be adjusted in accordance with the system demand.
Triple Freeport Tax Exemption
The City, Denton County, and Denton Independent School District have passed the Freeport Amendment, which exempts certain business personal property from ad valorem taxes. Goods, wares, merchandise, other tangible personal property, ores (other than oil, natural gas and other petroleum products) are exempt from ad valorem taxation if the property is (1) used for assembling, storing, manufacturing, processing, or fabricating and (2) is shipped outside the state no longer than 175 days after it is acquired.
Industrial Revenue Bonds
The City has established a nonprofit industrial development corporation authorized to issue tax-exempt or taxable revenue bonds. Eligible projects must promote the development or expansion of manufacturing facilities in Denton. Bond proceeds may be used for land, depreciable property, inventory, raw materials, finance charges, and research and development costs.