PEDC Grant Assistance

The Development Corporation Act of 1979 provides specific purposes for which Section 4B sales tax proceeds may be expended. During the 2003 Texas Legislative session, changes were made to the Development Corporation Act in the form of HB2912 to refocus the tax back on economic development and projects that create or retain “primary jobs”.

A primary job is defined as a job that is:

1. available at a company for which a majority of the products or services of that company are ultimately exported to regional, stateside, national, or international markets, infusing new dollars into the local economy; and
2. included in one of the following sectors of the North American Industry Classification System (NAICS).

HB 2912 also restricts the extent to which 4A and 4B dollars may be used to fund retail or commercial developments. Corporations may continue to provide retailers with infrastructure assistance but corporations may no longer provide retailers with free land, buildings, equipment, facilities cash grants for relocation costs, loans, or other direct financial incentives.

Performance Agreements

In accordance with HB 2912, the PEDC must enact a "performance agreement" before providing direct incentives to a company. The performance agreement is a written document linking the payment of any financial incentive to the business fulfilling its commitment of number of jobs created and capital investment.

 PEDC Assistance Grant Application Form (11 KB)

PEDC Grant Process

1. The business owner submits a completed PEDC Assistance Application form with required supporting documentation. Supporting documentation includes the following: three years company financials and a statement explaining the need for the assistance grant.
2. PEDC Staff performs a cost-benefit analysis in determining a specific level of assistance.
3. The application is placed on the PEDC Board of Directors or City Council agenda for further action or approval.
4. Grants, if approved by the Board of Directors or City Council, are awarded at the time the City of Pearland issues a Certificate of Occupancy for the project.
5. Companies are required to report the number of employees at their company on an annual basis.

* Each project is evaluated on its individual merits