| Tax Abatement Schedule I - Qualifications and Sliding Scale Rate | ||||
|
Capital Improvements |
Full-Time Job Creation |
Payroll Increase |
||
|
$500,000 |
and |
25 or More |
or |
$400,000 Annually |
|
$1,000,000 |
and |
5 or More |
or |
$80,000 Annually |
|
ABATEMENT AMOUNT |
||||
|
Year |
Percentage |
|||
|
1, 2, & 3 |
100% |
|||
|
4 |
75% |
|||
|
5 |
50% |
|||
|
6 |
25% |
|||
|
7 |
0% |
|||
| Tax Abatement Schedule II - Qualifications and Sliding Scale Rate | ||||
|
Capital Improvements |
Full-Time Job Creation |
Payroll Increase |
||
|
$500,000 |
and |
5 - 24 |
or |
$200,000 Annually |
|
ABATEMENT AMOUNT |
||||
|
Year |
Percentage |
|||
|
1, 2, & 3 |
50.0% |
|||
|
4 |
37.5% |
|||
|
5 |
25.0% |
|||
|
6 |
12.5% |
|||
|
7 |
0% |
|||
| For extraordinary projects with significant investment and job creation, the taxing entities will consider tax abatements up to 100% for a period of 10 years. | ||||
|
Level of Capital Investment |
Maximum number of jobs allocated
|
Maximum potential refund
|
Maximum refund per job allocation
|
|
$40,000 to $399,999
|
10
|
$25,000
|
$2,500
|
|
$400,000 to $999,999
|
25
|
$62,000
|
$2,500
|
|
$1,000,000 to $4,999,999
|
125
|
$312,500
|
$2,500
|
|
$5,000,000 to $149,999,999
|
500
|
$1,250,000
|
$2,500
|
|
Double Jumbo Project $150,000,000 to $249,999,999
|
500
|
$2,500,000
|
$5,000
|
|
Triple Jumbo Project $250,000,000 or more
|
500
|
$3,750,000
|
$7,500
|
Property Tax Rule 9.105 The Texas Comptroller of Public Accounts offers a refund of franchise and sales/use taxes paid by companies owning certain abated property. A company who meets the following three conditions may apply for a refund:
Texas Economic Development Act (HB 1200) This act provides relief from school district property taxes for companies making large capital investments of $20 million to $100 million or greater. The appraised value of qualifying capital investments is capped based on a sliding scaled tied to the total property wealth of the school district where the investment is located. The investment amount is determined over a 2-year period. In general, a school district may abate 100% of the appraised value over the applicable cap of improvements and tangible personal property used in manufacturing for up to 8 years, beginning in the third year of investment. The company will pay taxes based on the full-appraised value during the first two years but is entitled to a refund of any amounts paid during that period on the value in excess of the applicable cap. In addition the company must create at least 25 new permanent jobs, pay at least 80% of a group health benefit plan for its employees, and pay at least 100% of the county average weekly wage.
The U.S. Department of Commerce recently approved the modification of Gregg County’s Foreign Trade Zone to provide a new benefit for businesses. The new designation, the Alternate Site Designation, is the first of its kind in the nation and will allow companies located within Gregg County to secure Foreign Trade Zone status for warehousing and distribution operation within approximately 30 days, faster than the usual timeframe. Manufacturing companies benefit from the streamlined procedures as well.
Natural Gas and Electricity Sales and Use Tax Exemption Companies are exempt from paying state sales and use tax on electricity and natural gas used in manufacturing, processing, or fabricating tangible personal property. The company must complete a predominate use study showing that at least 50% of the electricity or natural gas consumed by the business directly causes a physical change to a product.
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