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State Benefits for Enterprise Zone Projects |
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The Texas Enterprise Zone Program (TEZ) allows communities to nominate
new or expanding businesses for state and local incentives. Through the
nomination of areas based on certain distressed criteria (creation of an
enterprise zone), a community may provide for the capture of various state and
local benefits for businesses who expand or relocate there. State incentives are available to
enterprise projects in the form of a refund of state sales and use taxes paid at
$5,000 for each new permanent job created or retained. The refund is based on the actual number
of jobs created and/or retained up to 110 percent of jobs the enterprise project
commits to create or retain in its application during the five-year designation
period. The maximum state sales and use tax refund allowed is $1.25 million at
an annual refund rate of $250,000.
Enterprise projects are also eligible for a franchise tax reduction
during each year of the five-year designation
period.
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