Three City of Austin programs that can reduce occupancy risk, improve project feasibility, and support hiring

Austin remains one of the most competitive U.S. metros for business expansion—especially for small and mid-size employers weighing a 2026 relocation, a second location, or a strategic move within the city. But in a high-demand market, the best real estate decision is rarely just about rent. It’s about total project economics: hiring plans, tenant improvements, construction costs, and the long-term stability of your occupancy.

That’s where the City of Austin’s incentive programs can materially change the equation—if your project is structured correctly and you understand what the programs actually reward.

Below are three City of Austin incentive programs worth evaluating for 2026 site decisions, and how businesses can use them strategically.

1) Business Expansion Program (BEP): Incentives tied to employment growth and compliance

The Business Expansion Program (BEP) is an employment-growth incentive program designed to qualify “high-impact” projects for businesses seeking to grow or relocate to Austin. It is explicitly pay-for-performance, meaning payouts occur annually only if the approved project meets ongoing compliance requirements.

The two primary business tracks (and what they really mean)

On the City’s program page, BEP is organized into categories that matter immediately for small vs. larger employers:

Category 1: Local Small Business Growth
This category targets businesses with 100 employees or less and is structured around measurable employment growth. Eligibility criteria include:

Business has 100 employees or less
Business has been operational in the City of Austin for the past 12 months, or has been displaced out of Austin within the past 24 months
Business increases full-time employment by 10%, with at least one (1) full-time job created
If the business does not meet the Living Wage Requirement, it may request a deferment period

Category 2: Large Business Expansion and Relocation
This category targets businesses with more than 100 employees and includes both employment growth and investment thresholds. Eligibility criteria include:

Business has more than 100 employees
Business increases full-time employment by 10%
Business invests a minimum of $2.0 million in real and/or personal property improvements
Business must demonstrate growth and stability

Why BEP matters for 2026 site selection

If your 2026 plan includes adding headcount, consolidating space, or investing in build-out, BEP can support the business case—but only if your project is structured to meet the City’s requirements and ongoing reporting/compliance expectations. BEP is governed by formal program guidelines adopted by ordinance and is administered as a Chapter 380-style performance framework.

2) Place-Based Enhancement Program (PBEP): Commercial affordability relief via real estate development incentives

The Place-Based Enhancement Program (PBEP) is a real estate development program focused on commercial affordability relief, supporting local small businesses, legacy businesses, non-profits, cooperatives, and creative-sector organizations. Like BEP, it is also pay-for-performance with annual payouts tied to compliance.

PBEP is especially relevant if your 2026 move depends on one of these realities:

You need affordable long-term lease terms to make the location pencil,
Your preferred area is experiencing displacement pressure,
Your project requires tenant improvements, redevelopment, or new construction to be viable.

PBEP’s categories (what the City is funding)

PBEP includes four program categories, summarized on the program page:

Category 1: Affordable Space (incentivizes developers to provide affordable, long-term leases to priority targets)
Category 2: Community Impact (supports stand-alone facilities for community benefit targets)
Category 3: Cultural Preservation (supports retention/enhancement of music venues, creative spaces, and legacy businesses to reduce displacement pressure
Category 4: Transformative Infrastructure (supports infrastructure tied to adopted community plans or Council resolutions)

What PBEP can reimburse (and the limit that matters)

PBEP awards are framed as property and/or sales tax reimbursements, with the program page stating up to 100% reimbursement of eligible property and/or sales taxes (category-dependent).

The guidelines add important precision: reimbursements are based on the municipal property and/or sales tax liability on the incremental value of improvements and do not exceed 100% of the net present value of total estimated tax liability (excluding certain dedicated transfers), and are designed to fill the financing gap created by providing the intended community benefits.

PBEP thresholds you should plan around (common deal breakers)

PBEP is not a generic small-business grant. It is a real estate development incentive with specific requirements that often impact site feasibility. For example, Affordable Space eligibility includes:

project types (new construction, expansion, tenant improvements, redevelopment)
$2 million minimum investment threshold for new construction projects providing affordable commercial/nonprofit space
1:2 leverage minimum (City incentive to total project value)
location in a Target Area
affordability terms (including limits like max 3% annual escalation and minimum affordability term requirements)

3) Creative Content Incentive Program (CCIP): Wage-based grants for film, TV, gaming, and related productions

The Creative Content Incentive Program (CCIP) encourages the location and growth of qualifying film, television, and gaming productions in the City of Austin and provides grant payments to support local hiring and promote the city.

What CCIP actually pays

CCIP is wage-based:

Up to 2.50% of wages paid to local residents

The guidelines define “local residents” as individuals whose payroll address is within the Austin MSA (Travis, Hays, Williamson, Bastrop, and Caldwell Counties).

Caps and minimum spend requirements (critical for budgeting)

The published CCIP guidelines state:

award maximum is $150,000 per project per fiscal year (with a note that if funding is available in the last quarter of the financial year, that limit will be removed)
minimum baseline spend includes $150,000 for TV and Film (including Reality TV) and $100,000 for Commercial, Video Game, and Animation/Visual Effects

Eligibility requirements you must satisfy

The City’s CCIP page lists key requirements such as:

project must be film/television/commercial/game/VFX
primary location for the project must be within the City of Austin
must pay at least union wages or the City’s Living Wage for positions for which incentive is received

Why these incentives matter for 2026 relocations and in-city moves

In 2026, many businesses won’t lose deals because they chose the wrong neighborhood—they’ll lose them because they underestimated build-out costs, time-to-open, long-term rent risk, or hiring economics. These programs are designed to address exactly those friction points, but they reward different things:

BEP rewards employment growth tied to measurable workforce expansion (with separate lanes for ≤100 employees vs. >100 employees and an investment minimum for larger projects).
PBEP supports commercial affordability and community-serving real estate outcomes, primarily through municipal tax reimbursements tied to new improvements and defined community benefits.
CCIP offsets a portion of local wage spend for eligible creative production projects, with a defined cap and MSA-based “local resident” definition.

How we help clients turn incentives into real estate leverage

Free initial consultation available

As a commercial real estate broker and business consultant, our job is to make sure incentives don’t live in a PDF—they show up in your deal structure.

In a free initial consultation, we can help you:

Identify which program aligns best with your 2026 plan (relocation, second site, consolidation, or neighborhood move)
Stress-test eligibility early (headcount, wage requirements, investment thresholds, location/Target Area fit, affordability terms)
Model your total occupancy cost with incentives included
Coordinate site strategy with incentive timelines so you don’t sign the wrong lease structure before you know what’s approvable

If you’re planning a 2026 Austin move—either into Austin or within Austin—schedule a free consultation, and we’ll map the incentives, the real estate options, and the compliance path into one actionable plan.

Disclaimer: This article is provided for informational purposes only and does not constitute legal, tax, financial, or economic development advice. City of Austin incentive programs, including eligibility requirements, funding availability, award amounts, and approval timelines, are subject to change and are administered at the sole discretion of the City of Austin and its related departments. Incentive approvals are not guaranteed and typically require formal applications, compliance reviews, and ongoing performance reporting. Businesses should consult with qualified legal, tax, and financial professionals before making relocation, expansion, or investment decisions.

Our firm does not represent or guarantee approval of any incentive program; however, we assist clients in evaluating eligibility, coordinating site selection strategy, and navigating the incentive planning process as part of our broader commercial real estate and business consulting services.