Economic Incentives

Economics of Historic Preservation

McKinney’s historic districts enhance the quality of life and the distinctive character of McKinney. The sense of place created by the district’s distinctive character sets it apart from other places, serves to attract visitors and is a point of pride for residents of McKinney. 

Consequently, McKinney adopted its historic preservation tax exemption ordinance because incentives encourage proper preservation practices such as maintaining original windows, siding and doors. The plus side of this investment is that the rehabilitation of historic properties serves as a catalyst for neighborhood revitalization and conservation.

Historic Neighborhood Improvement Zone (HNIZ) Tax Exemption Program

The HNIZ was created to help preserve the city's unique and historic neighborhoods while encouraging property owners to maintain and/or rehabilitate their residences. Property owners within the HNIZ boundary may receive ad valorem tax exemptions inclusive of land and building improvements based on verified investment meeting specified criteria.

HNIZ Ordinance Updates: 

  • On March 15, 2022, City Council approved an amendment to the HNIZ ordinance.
  • The amendments to the HNIZ ordinance include the following*:
    • Increase aggregate cap to $500,000 annually.
    • Require properties receiving the HNIZ exemption to be owner-occupied.
    • Require a minimum investment of $10,000 for Level 1 (100%) tax exemptions. The current minimum investments for Levels 2 & 3 will not change.
    • Require houses to be a minimum of 40 years old to be eligible for level 2 or level 3 exemptions. Level 1 minimum age will remain 50 years.  
    • Modify the exemption period from 7 - 15 years to a consistent 10 years.

*Homes with existing exemptions would not be impacted by these changes.

Reminder: Properties that hold a current HNIZ exemption approval must reapply with the Collin Central Appraisal District each year by April 1.

Properties with a Tax Exemption will be visually inspected by the Historic Preservation Office of Planning each January to confirm continued maintenance of the property and continuing to meet the intent and philosophy of the program. 

Neighborhood Empowerment Zone (NEZ)

The NEZ program provides for impact fee waivers for small-scale infill development projects within the boundaries of the NEZ program area. Projects that may be eligible for impact fee waivers include the following types of construction:

  • New single-family residential
  • New multi-family
  • New non-residential
  • Vertically-integrated mixed-use (non-residential and residential uses in a single structure)

Documents

Historic Marker Program

A City of McKinney Historic Marker is a local designation awarded by the Mckinney Historic Preservation Advisory Board. The owner of the house submits an application along with a documented history of the house and property. If the house is awarded a marker, then the house may qualify for a tax exemption for city property taxes.

For more information on economic incentives in downtown McKinney, visit the Downtown Development page.

Get additional information about the Collin County Tax Abatement Certification Program, Tax Credit Program and federal tax credits.