Incentives Available for Downtown Redevelopment
Downtown Façade Grant
The City of Marshall matches dollar-for-dollar improvements made to the building façade, according to the Design Review Standards up to a limit of $5,000. The building must be in the DRS District. Payment is made on a reimbursement basis. Funding for façade design can be derived from this source. Contact the City of Marshall Planning and Economic Development Department for more information.
Cradle of Entrepreneurship
These are funds made available by the city for up to $10,000 for the start-up of a new business based on the approval of the Cradle of Entrepreneurship Board. Contact the City of Marshall Planning and Economic Development Department for more information.
Federal Tax Credits
A 20 percent federal income tax credit on the value of the improvements is available for the rehabilitation of historic, income-producing buildings that are listed in or determined eligible for listing on the National Register of Historic Places. Building improvements must adhere to the Secretary of Interior’s Standards for Rehabilitation and be overseen by the State Historic Preservation Office. The City of Marshall Planning and Economic Development Office can assist the applicant with contact to the State Historic Preservation Office but the assistance of a tax attorney is advised.
State Historic Tax Credits
A 25% state tax credit on eligible costs for improvements exceeding $5,000. The improvements must meet the Secretary of the Interior’s standards to qualify. Certified historic structures can include properties that are currently listed on the National Register of Historic Places, either individually or as a contributing structure within a historic district or designated as Recorded Texas Historic Landmarks or State Antiquities Landmarks. The City of Marshall Planning and Economic Development Office can assist the applicant with contact to the State Historic Preservation Office but the assistance of a tax attorney is advised.
Opportunity Zones (OZ)
This is a relatively new tool made available in 2017 to enable investment in distressed areas. Capital gains are deferred for investments in areas designated as OZ’s. If the investment is held for ten years, all capital gains on the new investment are waived. The City of Marshall’s designated downtown redevelopment area does fall within an opportunity zone. The assistance of a tax attorney is advised.
Please see the Downtown Opportunity Zone Map
New Market Tax Credits
New Markets Tax Credit Program (“NMTC”) is a federal program intended to encourage private capital investment in eligible, impoverished, low-income communities. Created under the Community Renewal Tax Act of 2000, NMTCs are allocated by the Community Development Financial Institutions Fund (“CDFI”), a bureau within the United States Department of Treasury, under a competitive application process. The NMTC Program provides investors with a 39 percent federal tax credit claimed over a seven-year period. The tax credit proceeds create equity, which can be permanently placed in eligible low-income community projects.