Development Grants & Incentives

Residential Tax Abatement Program

The Residential Tax Abatement Program offers up to a 10-year, 100 percent city property tax exemption for eligible new construction or major residential rehabilitation projects in the Residential Reinvestment Zone. The program is designed to encourage investment, reduce blight and support long-term neighborhood growth.

North Killeen Revitalization Program

The North Killeen Revitalization Program waives development fees for approved projects. Fees may include building, sign, and demolition permits as well as application fees for board of adjustment, plat and zoning.

NKRA Sewer Rehabilitation & Redevelopment Incentive Program 

The Sewer Rehabilitation & Redevelopment Incentive Program offers a 50 percent matching incentive for private sewer improvements in the North Killeen Revitalizations Area. Upgrade your sewer laterals, clean-outs, grease interceptors, and back-flow prevention devices with our help.

Expanded Improvement Grants

The Expanded Improvement Grant Program aims to reduce building vacancy and improve business retention in the Historic Overlay District (HOD). It provides funding to renovate downtown buildings for long-term and short-term uses that generate significant foot traffic. Grants may be awarded to property owners or tenants for exterior and interior improvements to commercial properties within the Greater Downtown Killeen boundary. This grant will match 50 percent of the total renovation funds up to $25,000.

Façade Improvement Grant Program

The Façade Improvement Grant Program offers façade grants for eligible rehab projects located in the downtown Historic Overlay District. The grant is structured on a 4:1 basis where the City contributes 80 percent of project costs and the property owner contributes 20 percent of funds toward façade and/or sign improvements. These grants are available for up to $10,000 per façade.

Federal and State Tax Credits for Downtown Killeen

The Downtown Killeen Historic District is listed on the National Register of Historic Places and holds a Certified Local Government designation. This national recognition makes downtown properties eligible for a variety of federal and state tax credits.

• Federal Rehabilitation Tax Credit Program: Offers a 20 percent income tax credit for the rehabilitation of historic, income-producing buildings.
• Texas Historic Preservation Tax Credit Program: State incentives include the Texas Historic Preservation Tax Credit Program and a sales tax exemption on labor for work performed on buildings listed in the National Register of Historic Places.

Tax Increment Reinvestment Zone

Downtown Killeen is located in Tax Increment Reinvestment Zone (TIRZ) #2. This designated area uses tax increment financing, which allows the city to capture property tax revenue generated by rising property values from new investments within the zone. That revenue can then be reinvested into redevelopment, infrastructure improvements and other community enhancement projects.