Residential Tax Abatement

How it works

The Residential Tax Abatement program is administered by the City of Waco Housing & Community Development department to encourage high-quality residential development and improvements in targeted neighborhoods. If approved, the city offers property tax abatement to qualifying homeowners and developers, and may also waive certain fees or liens on a case-by-case basis.

What the money covers

The benefit is a tax break on the increased value of the property after qualifying improvements, expansion, or modernization. The page says the city may also waive project-related fees and, if determined, property liens.

Amounts and matching

• The page says the incentive applies to 100% of the increased taxable value due to qualifying work, based on a sliding scale over five years.
• The first year of city taxes is abated at 50%, progressing to 10% in the fifth year.
• The page cites minimum improvement/value thresholds:
  • At least $30,000 in improvements, expansion, or modernization for an existing single-family residence.
  • At least $50,000 for an existing duplex or townhouse.
  • At least $90,000 for new construction of a single-family residence, rental duplex, or townhouse, measured by sales price or appraised value over the base year value.
• Applicants must pay a $175 fee with the application.

How to apply

The page says applicants must submit an application, the $175 fee by check or money order, and required documents. City staff then reviews the project for compliance with housing and program guidelines, followed by a 30-day public notice and then City Council review for approval.

• The page states the process is governed by the Texas Property Redevelopment and Tax Abatement Act and the City of Waco RTA Guidelines & Policy Statement.
• It also says nothing in the process guarantees approval.
• The page estimates approximately 90 days from submission to review, approval, and agreement execution.

Timing and deadlines

No specific application deadline or close date is listed on the page.