Local incentives can be discussed prior to action by a government entity but they should not be considered a commitment until the entity takes formal action on the incentive agreement. Typically this requires the approval of the EDC Board and the approval of the City Council. In all cases the company will be required to commit to specific investment levels, a specific time frame in which to make that investment, a minimum estimate of the number of employees that will work in the company on the site within specific time frames and the levels of compensation that will be paid to those employees.
Typically all incentives can be confirmed within thirty days or less of the completion of application.
This incentive includes the abatement of City and County ad Valorem taxes over a specific period of time. The term of the abatement is based on the Company’s stated cost of the building and improvements included within the project as well as the value of any new major equipment purchases. Increased investment will qualify for a longer term of abatement and a greater percentage of the tax which is abated.
Tax abatements can only be approved by the City Council and Titus County Commissioners and are based on the governing bodies Tax Abatement Policy. The minimum investment required for a tax abatement is $ 500,000. To qualify the company must be a manufacturer, a major wholesale distributor of product, or engaged in the residential health care business (Nursing home).
Tax abatements require a commitment to make the pledged investment and report the values of that investment to the Titus County Appraisal District. The company must be open and employ the stated number of employees, remain open and operational for a specific period after the abatement expires and not be in default on taxes owed. Failure to meet these requirements can cause the abatement to be canceled and abated taxes to be paid.
Generally the EDC cannot pledge a state incentive. Our policy is to make the prospective primary employer aware of those incentives which the company may qualify for and to partner with the company in seeking those incentives. When necessary, the EDC can employ professional program specialist to prepare applications.
These state incentives will in almost all cases require a specific pledge or employer commitment. These will generally be made in terms of employment, salaries or payroll total and investment in plant and equipment. In almost all cases the company must provide financial and ownership data.
The EDC Staff can assist the company in the identification of those programs which the project will qualify for. The EDC will also aggressively lobby for approval.
This fund is commonly known as the Governor’s Enterprise Fund. Applications for this fund are considered when the company is making major expansions within the state of Texas and paying above the counties pay scale for the various job skills required.
This is a Deal Closing Fund and is used only when the project is being considered in other states. It is never used as an incentive between Texas communities. The company must be considering a minimum of one out of state community and only one Texas community.
The amount of the incentive award is based on the effort generated by the community and the net economic impact of the location/expansion to the State of Texas. Approval of the fund is made by the Governor, the Lieutenant Governor and the Speaker of the Texas House of Representatives.