Downtown Grants & Incentives

Downtown Grant Program Area

Historic Overlay District

Expanded Improvement Grants

The Expanded Improvement Grant Program aims to reduce vacancy and increase business retention in Historic Overlay District (HOD) by assisting property owners and tenants with funding to renovate historic buildings for occupancy by long-term or short-term uses that generate significant pedestrian foot traffic in downtown. Grants may be awarded to property owners or tenants for exterior and interior improvements to commercial property within the HOD. This program is intended for renovations and repairs that do not exceed a total project cost of $100,000. This grant will match 80% of the total renovation funds to $25,000 and provide a 50% match to $50,000.

For more information on the program and to download the application click the Expanded Improvement Grants link. 

Façade Improvement Grant Program


The City of Killeen is offering façade grants for eligible rehab projects located in the downtown Historic Overlay District. The grant is structured on a 4:1 basis (80% City / 20% Owner) whereas the City contributes 80% of project costs and the property owner contributes 20% of funds toward façade, and/or sign improvements. These grants are available for up to $10,000 per façade. 


Interested in applying for a façade grant? A copy of the City of Killeen Façade Improvement Grant Program application can be obtained from the City of Killeen Development Services, 200 E. Ave D, 2nd floor or by downloading the application (PDF).

Avenue D Façade - Before

Facade at Avenue D Before Improvements

Avenue D Façade - After

Facade at Avenue D After Improvements


The purpose of the North Killeen Revitalization Program (PDF) is to promote the development and redevelopment of North Killeen. This program includes incentives for residential and commercial business structures' rehabilitation, expansion and/or new construction. The program has been adopted for a period of five years starting September 22, 2015.


Eligible Recipients/Properties
In order for a property owner/developer to be eligible to apply for fee waivers, the property owner/developer:

Must submit an application (view PDF) to the City;

Must not be delinquent in paying property taxes for any property owned by the owner/developer or applicant;

Must not have any City liens filed against any property owned by the applicant property owner/developer or must have initiated a payment program with the City of Killeen to include a 25% down payment against liens owed and payment schedule set.

Approval of the application and waiver of the fees shall not be deemed to be approval of any aspect of the project. All projects are subject to and must comply with all applicable local, State and Federal laws. Before construction, the applicant must ensure that the project is located in the correct zoning district.

Federal and State Tax Credits Available for Downtown Killeen

The Killeen Downtown Historic District has achieved listing in the National Register of Historic Place as well as the federal certified local government designation. Nationally recognized for the historic architecture in downtown as well as the high standards of preservation, make the downtown area available for a number of federal and state tax credits. 

Federal Historic Preservation Tax Incentives: The Federal Historic Preservation Tax Incentives program offers a 20 percent income tax credit for the rehabilitation of historic, income-producing buildings. 

State Historic Preservation Tax Incentives: State incentives include the newly established Texas Historic Preservation Tax Credit Program and a sales tax exemption on labor available for work to buildings listed in the National Register of Historic Places. 


Downtown Killeen is located in Tax Increment Reinvestment Zone (TIRZ) Number Two. The TIRZ Number Two is a designated area in the City that implements tax increment financing. This enables local economic development officials to collect the property tax revenue attributable to the increased assessed value resulting from new investments within the zone. The new revenue can be used to pay for redevelopment, infrastructure, and other community-improvement projects.