Machinery and engine manufacturer Caterpillar will likely see some tax relief after a Chapter 381 agreement was endorsed by the Comal County Commissioners Court on April 25.

The gist

If Caterpillar is able to complete an expansion of its business operations at its Schertz facility—located at 6800 Doerr Lane—and add 25 jobs in the process worth around $1 million in annual payroll, Comal County will provide property tax relief beginning in 2026, according to the agreement document.

As part of the agreement, the new expansion is required to have equipment on the ground by the end of 2025. If by the end of 2026 Caterpillar adds and keeps 25 new employees, a 100% rebate will be applied to their 2026 property taxes. The property taxes would be based on an estimated $70 million of total property value of the facility, according to court agenda documents.

The big picture

The following years, a tax rebate will be applied to their annual county property taxes should Caterpillar maintain those new employees, but the percentage of the rebate would drop by 15% each year, down to a 15% rebate by 2035, according to the agreement.