About

Harris County Industrial Development Corporation (HCIDC) is a domestic nonprofit corporation formed in the State of Texas on August 13, 1981. HCIDC operates under authority granted by Texas Government Code Chapter 501 on behalf of Harris County, Texas.

HCIDC is a conduit issuer of revenue bonds. Since its inception, HCIDC has issued over $750 Million in industrial revenue bonds with $225 Million currently outstanding.

In authorizing the creation of HCIDC, the Legislature found that the issuance of revenue bonds by HCIDC under Chapter 501 was in the public interest in order to promote and develop "new and expanded business enterprises to provide and encourage employment and the public welfare."

Revenue bonds issued by HCIDC are not supported by Harris County's credit. Harris County is specifically prohibited from lending its credit or anything of value in aid of HCIDC bonds. Responsibility for payment of interest and repayment of principal on the bonds rest with the developer of the business enterprise.

Revenue bonds issued under Chapter 501 may be taxable or tax‐exempt, however, HCIDC's primary focus is on the issuance of tax‐exempt revenue bonds. Tax‐exempt revenue bonds generally have the advantage of lower interest costs than similar corporate bonds and those lower costs are passed on to the developer.

Texas Government Code Chapter 501, Subchapter C, provides detailed guidance on the types of projects for which Chapter 501 revenue bonds can be issued. Depending on the type of project, guidance provided in Sections 142, 144 or 1394 of the Internal Revenue Code must be used to determine whether an issuance under Chapter 501 is tax‐exempt.

HCIDC has the capacity to assist non‐governmental entities in developing new or expanding business enterprises through the issuance of Private Activity Bonds that comply with Chapter 501 and meet the requirements of the above‐cited Internal Revenue Code sections. Projects meeting these criteria include:

* Waste management and recycling facilities

* Highway facilities (Title 23 funded)

* Freight transfer facilities

* Qualified carbon dioxide capture facilities

* Qualified broadband facilities

* Airport facilities

* Docks and wharves

* Environment enhancements of hydro‐electric generating facilities

* Qualified green buildings  

*Qualified sustainable design projects

* Qualified enterprise zone facilities

* New empowerment zone facilities

* Manufacturing facilities (<$10 Mil.)

* Industrial facilities (<$10 Mil.)

For additional details on Texas’ industrial revenue bond issuance program, please see Texas Industrial Revenue Bond Regulations.