Johns Manville RFQ

Request for Qualifications

BUSINESS INCENTIVES

Incentives may be negotiated at both the state and local level. In Texas, typically the biggest portion of the incentives are negotiated with the city and county. Depending on the size of investment, incentives may also be negotiated with the school districts. The State of Texas may also award cash grants depending on project size and location. TEXAS INCENTIVE OVERVIEW

PROPERTY TAX

SALES TAX

INVENTORY TAX

• Cities/Counties may

• Manufacturing equipment is generally exempt from sales tax • Electricity and natural gas

• Cities, Counties and School Districts have the ability to approve a Freeport exemption (“triple freeport”) but not have. • Some cities will include non-freeport inventory in their Chapter 380 incentive (county and school taxes will still apply)

provide property tax relief through either a property tax abatement or Chapter 380/381 • Depending on the location and the capital investment, a Chapter 313 may be negotiated which would

used in the manufacturing process is also generally exempt

• If an Enterprise Zone is negotiated project can

create a property tax “floor” and anything above could become exempt

receive a refund of sales tax incurred on project

LOCAL GRANTS & OTHER RELIEF

TRAINING ASSISTANCE

PROJECT INVESTMENT

• May negotiate training through the Skills Development Fund • Must partner with a community or technical college • Grants per business are capped at $500,000 • Some cities have also

• State can provide a grant

• Certain cities may provide a cash grant based upon the number of new jobs created. • Certain cities will provide

through the Texas Enterprise Fund

• Will require creation of at least 75 full-time jobs in an urban area with an average wage that meets or exceeds the average county wage • Grants up to $10,000/ job but typically between $5,000 - $7,000/job

permitting and impact fee relief, which would create a property tax “floor” and anything above could become exempt

created job training assistance programs

FINANCING BENEFITS

• New Markets Tax Credits may be available depending on the location and availability. • The NMTC is a 39% federal credit that is earned on a Qualified Equity Investment (QEI) into a certified Community Development Entity (CDE). It is claimed over a 7-year compliance period • Typically, Client does not receive a tax credit but instead receives cash up-front to reduce Client’s cash investment in the project (typically 17% - 22%). • Investment fund makes interest-only payments during 7-year compliance period with balloon payment of principal due at maturity.

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