entergy economic development brochure - final

THE INDUSTRIAL RENAISSANCE IS HAPPENING HERE

Welcome tothe Entergy Region

BUSINESSDEVELOPMENT

The South’s Leading Corporate Force for Economic Development

Why Business Is Booming In Our Part Of The World

Questions That Are Critical to Your Success

Single Source for Relocation or Expansion Research, Information and Support

Site Selection and Project Management Services

Large Project Services

Contract Services

Find the Best Fit for Your Business in Our Diverse Region:

- Arkansas

- Louisiana

- Mississippi

- Texas

Supporting Our Communities

2014 Entergy Fuel Mix

Incentives: Louisiana

Incentives: Mississippi

Incentives: Arkansas

Incentives: Texas

3

5

6

6

7

8

9

10

11

12

13

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Entergy Business Development | 3

TOP 10 13 YEARS

FORTUNE 500

LOW RATES

FORBES LIST

Utility in Economic Development

by Site Selection Magazine for seven consecutive years

Only U.S. electric corporation on Dow Jones Sustainability Indices with subsidiaries at

Gold, Silver and Bronze levels

Investor-owned Electric Utility

America’s Most Trustworthy Companies

Entergy rates usually 20% below the national average


The Entergy Region—Arkansas, Louisiana, Mississippi and Texas—is home to the largest industrial base in the U.S. It offers a rare combination of resources: a central U.S. location with direct access to raw materials and markets, an expansive infrastructure, a skilled and affordable workforce and very competitive utility costs.

Our four-state region boasts the world’s largest port system with 11 deep-water facilities, six Class 1 rail lines, 21 international and regional airports and 11 major interstate highways. We are a gateway into the United States’ largest industrial region and into global markets, especially Central and South America.

We have built a thriving industrial economy with super clusters of oil and gas exploration. Every major global petro corporation is located in Texas and Louisiana.

Arkansas, Louisiana, Mississippi and Texas, which are right-to-work states, have trained

workforces with strong manufacturing skills. We offer excellent public and private education opportunities—universities, colleges and technical schools.

State and local leaders are committed to growing our economy. Our favorable cost of doing business and attractive incentives have accelerated our population growth in recent years with an influx of businesses and families.

What links all of this? Entergy Corporation, providing affordable, reliable electric power. With more than $11 billion in annual revenues, we operate 40 plants powered by natural gas, nuclear, coal, oil and hydroelectric power.

The gateway into the United States’ largest industrial region and to global markets

11 Deepwater Facilities

6 Class-One Rail Lines

16 Commercial/Primary Service Airports

11 Major Interstate Highways

WHY BUSINESS IS BOOMING IN OUR PART OF THE WORLD

5 International Airports


Entergy’s Economic Development Team Answers Questions That Are Critical to Your Success

Save time and resources by contacting us early in the process.

GoEntergy.com

Can the infrastructure support my operations?

Will I have easy access to my markets?

Can I get the energy resources I need?

Are raw materials available and accessible?

Will I find the labor I require at the right skill level and wage?

Are government regulations going to support and not hinder my operations?

Is the geography right? Is energy affordable and clean?

What tax incentives and other opportunities are available?

In the event of a natural disaster, will I be supported in rapid recovery?

$

http://www.goentergy.com


Single Source for Relocation or Expansion Research, Information and Support As a Fortune 500 company operating in the region with 2.8 million customers and approximately 13,000 employees, Entergy understands what businesses need to be successful, and our own success is a testament to the business-friendly climate of the region. Based on our experience and the major role energy plays in business operations, Entergy established a Business Development Team to provide comprehensive support for businesses relocating or expanding in the Entergy Region.

Our services make the decision-making easier in each phase of the process, from site selection to energy planning and technical engineering to financing—all the way through to ongoing operations.

You’ll discover many advantages to contacting Entergy as one of your first resources. We hold your proposed project in strict confidentiality and will introduce you to the leaders in government agencies and communities who partner with us in connecting businesses to resources. We’ve built solid relationships with them over the years, relationships you can depend on.

Site Selection and Project Management Services

• Confidential site selection services

• Identification and certification, commercial and industrial sites

• Entergy-prequalification commercial and industrial sites where applicable

• Plans and estimates of energy costs, drawing on diverse energy sources

• Introductions to business and community leaders

• Facilitation of incentives discussions

• Management of electrical and infrastructure requirements

• Engineering services for utility analysis, site evaluation, construction and transportation analysis, conceptual layouts, 3-D modeling and virtual tours

• Strategic analysis, research and business intelligence data, including industries, workforce, markets, supply, raw materials and more

• Community profiles and analysis, and assist communities in developing industrial sites that meet companies’ requirements

• Subject matter experts assigned specifically to support you from project start through completion

• Site tours and field visit coordination

FORTUNE 500company

2.8 MILLION

customers

13,000employees


Large Project ServicesEntergy’s Large Project Services department is the bridge between the engineering and the business sides of our company. The LPS team and our business development team first establish clear “Request for Information” deliverables. They then work together to document facility locations and high-level customer load and reliability requirements.

Our Large Project Services include:

• Producing plans and estimates of energy costs, drawing on diverse energy sources

• Providing 3D modeling, conceptual layouts, virtual site tours and field visit coordination

• Facilitating Class 5 Study responses for distribution and transmission block load requests

• Developing service alternatives to satisfy customer financial constraints and/or improve customer “speed to market”

• Ensuring communications between transmission and distribution planning to confirm solution sets that deliver the best cost/schedule option without negatively impacting system operations

• Developing and administering customer reimbursement agreements as needed for all revenue projects

Large Project Services also oversees the pre-qualification of economic development sites:

• Functions as project SMEs to steer internal processes such as project justification, project funding and closeout (customer refunds) for all block load addition projects

• Handles system-wide “available capacity” mapping requests

• Performs step-progression analysis for select sites

• Provides electrical data for the Certified Site Program

• Provides engineering support to our Entergy Region companies for miscellaneous customer requests

• Supports these companies by providing additional customer project information, discussing service options and assisting in negotiations

in the Utility Industry by Corporate Responsibility Magazine

EPA Climate Protection Award

Best Corporate Citizen

Expert Resources for Projects of Any SizeAs a major industry serving other major industries, we understand operational and resource complexities. That’s why we assign a dedicated team of experts to work with you from the moment you begin thinking about expanding or opening a new location.


Contact the Entergy Business Development team early in your planning process for high-level support that addresses all your requirements and helps you make decisions that are critical to your success.

Talk to a Pro

The Entergy team consists of experienced professionals who specialize in siting and growing these industries:

• Advanced Materials

• Agribusiness

• Automotive Manufacturing

• Chemical Products

• Data Centers

• Distribution & Warehousing

• Energy Services & Manufacturing

• Food Processing

• Metal Fabrication

• Paper Products

• Primary Metals

Contract ServicesFor prospective customers and customers enlarging their facilities, Entergy’s experienced Contract Support Specialists are the go-to folks for rates information. They address energy needs as well as financial and legal requirements in order to establish contracts that reflect the best rates and any available riders. They also serve in a consulting role, providing contract and rate support to the business development team and the operating companies.

Their services include:

• Assisting in developing new contracts and refining existing contracts

• Supporting the operating companies in complex contract negotiations and special rate contracts

• Performing rate estimates and analysis; reviewing company estimates on load and energy requirements

• Assisting in the development of new tariffs and refining existing rate and rider schedules

GoEntergy.com16 Years Consecutively awarded the

EEI Emergency Recovery Award



Find the Best Fit for Your Business in Our Diverse RegionThe four states that make up the region served by Entergy are related geographically, but they offer diverse opportunities so that companies interested in our area can find the right fit in terms of incentives, site infrastructure, workforce and transportation. The common thread is Entergy, a single, convenient, confidential source for prospective businesses to find information vital to relocation or expansion.

Each state in the region offers a compelling, value-added proposition for your company with strong financial incentive packages and advantageous corporate tax environments.


Arkansas

Texas

Louisiana

Mississippi

#1Workforce Training

Program—Business Facilities Magazine

2ndLowest Cost

of Doing Business—CNBC

#1Best States for Business

—Chief Executive Magazine

#1Lowest Cost

of Labor


• Six Fortune 500 companies are headquartered in Arkansas: Dillard’s, J.B. Hunt, Murphy USA, Tyson Foods, Walmart and Windstream.

• Arkansas’s unemployment rate remains well below the national average.

• Arkansas is ranked in the top 10 in percentage of clean technology jobs in the workforce, according to a September 2012 report by DBL Investors.

• Arkansas’s education system ranks fifth in the nation, according to Education Week’s “Quality Counts” report for 2013.

• The Arkansas School for Mathematics, Sciences & the Arts in Hot Springs was ranked #13 in the top 100 high schools in the nation by Newsweek.

• In 2013, Forbes named Fayetteville, Little Rock and Fort Smith among the top MSAs in the U.S. for Business and Careers. Making the magazine’s list of “Best Small Places for Business and Careers” were Jonesboro, Hot Springs and Pine Bluff.

Not only is the cost of doing business in Arkansas one of the lowest in the nation, the average cost of living for all of Arkansas’s metropolitan statistical areas (MSA) is consistently below the national average. Businesses also enjoy low tax obligations through a variety of incentives, exemptions, credits and refunds.

Arkansas

Arkansas has the second lowest cost of doing business in the nation.”–CNBC, June 2014

“

6Fortune 500 Companies

TOP 10in percentage

of clean technology jobs10

3

1

2

3

Inland Ports

Major Interstates

International Airport

Commercial/Primary Airports

Class-One Rail Lines


• The Port of South Louisiana handled more than 238 million short tons of cargo in 2012. More than 4,000 oceangoing vessels and 55,000 barges call at the Port of South Louisiana annually, making it the top ranked in the country for export tonnage and total tonnage.

• Louisiana is one of only three states in the nation where six of North America’s Class 1 rail lines converge. Louisiana has more than 2,699 miles of track in freight service.

• Louisiana’s strategic location equals cost-effective distribution, providing access to suppliers and markets on both coasts.

• Louisiana is home to two companies on the Fortune 500 list: Entergy and CenturyLink.

• Louisiana is No. 1 in the U.S. in Foreign Direct Investment (FDI) Per Capita since 2003 ($324.2 million) and No. 3 in the U.S. in Total Foreign Direct Investment Dollars since 2003.*

*fDi Markets, a service of the Financial Times Ltd.

**USACE Waterborne Commerce Center

Since 2008, Governor Bobby Jindal and Louisiana Economic Development (LED) have secured projects that are creating more than 91,000 new direct and indirect jobs, as well as more than $62 billion in new capital investment. With its strategic central location, Louisiana’s transportation access is second to none—it’s home to the world’s largest port complex, seven commercial service/primary airports, an international airport and six major interstate highways.

Louisiana

55,000barges call at

the Port of South Louisiana annually

238 MILLION

short tons of cargo**

6

6

1

7

6

Deepwater Ports

Major Interstates





Located in the fastest-growing region in the U.S., Mississippi is poised for business growth. A strong network of transportation and trade resources make this state the gateway to all major U.S., Canadian and Latin American markets.

Mississippi

• Nearly 800 miles of commercially navigable waterways give Mississippi businesses economical and efficient access to national and international markets. Three navigable waterways—the Mississippi River to the west, the Tennessee-Tombigbee Waterway to the east and the Gulf of Mexico to the south—give Mississippi a unique transportation advantage.

• Twenty-eight rail systems—including five Class 1 rail lines—serve Mississippi with 2,541 miles of track.

• The roadway system, recently ranked fourth best in the U.S. and the best in the South, includes six interstate highways covering 698 miles and 14 federal highways, positioning Mississippi within a day’s drive of 55 percent of U.S. businesses and major population centers.

• Mississippi is home to seven full-service research and development centers.

In 2013, Kiplinger ranked Mississippi

as the Fourth Most Tax-Friendly State

for Business, and Area Development

Magazine named Mississippi as

a Top State for Doing Business.

Expansion Solutions Magazine named

Mississippi one of the top five states

for permitting speed.

In 2014, 13 global companies located in Mississippi.

Corporate investment generated $1.1 billion in capital

investments and created 7,060 jobs. Exports grew by

380 percent. New investment created 2,480 jobs with

$541.65 million in investments.

4thmost tax-friendly

state for business by Area Development

Magazine2

6

3

4

5

Deepwater Ports

Major Interstates

International Airports



800 MILESof commercially

navigable waterways


For the sixth year in a row, Texas is the highest-ranked state in Development Counsellors International’s “Winning Strategies in Economic Development Marketing” survey of U.S. corporate executives. Texas was also recently ranked number one on Chief Executive Magazine’s best states for business list for the 10th year in a row. Maybe that explains why Texas is home to 52 Fortune 500 companies, including Exxon Mobil, AT&T and Kimberly-Clark.

Texas• In Entergy’s Texas service area,

the existing industry base comprises top Fortune 500 companies, including Exxon Mobil, Valero Energy, Anadarko Petroleum, Chevron, Huntsman, McKesson, Halliburton, Goodyear and DuPont. Fortune Global 500 companies include Total and BASF, among others.

• Engineering firms also have a strong presence: CB&I (The Woodlands) and Richard Design Services (Beaumont).

• Top infrastructure assets of the Entergy service area include:

• I-10, I-45, Grand Parkway extension

• Three deepwater ports; Beaumont, Orange and Port Arthur; close proximity to the Port of Houston

• Rail and oil and natural gas pipelines

• Very close proximity to Houston’s George Bush Intercontinental Airport and the Port of Houston

• The Lone Star College System is the largest institution of higher education in the greater Houston area and one of the fastest-growing community college systems in Texas.

Ranked #1 on Chief Executive Magazine’s best states for business list for the 10th year in a row

1stin economic climate,

Forbes Magazine

2ndin “Top States for Doing Business,”

CNBC

3

2

1

3

3

Major Interstates




Deepwater Ports Close proximity to the Port of Houston


$75 MILLIONcontributed in five years

Supporting Our Communities

Over the past five years, Entergy has contributed more than $75 million in donations to community and nonprofit organizations that support educational and training programs that strengthen our workforce.

Entergy’s MISO Membership Supports Savings and Reliability

Entergy is a member of the Midcontinent Independent System Operator, Inc., an essential link in the safe, cost-effective delivery of electric power across 15 U.S. states. MISO and its members find new ways to strengthen the reliability of our region’s interconnected transmission network, using real-time smart grid technology to benefit all consumers of electricity.


Unlock the potential of your business with the tools, resources and people you need—all from a single confidential source. Entergy gives you access to the information needed to expand and promote your business in Arkansas, Louisiana, Mississippi or Texas.

Our purpose is to help you find solutions to your business needs.

Take Advantage of Entergy’s Economic Leadership

GoEntergy.com

© Entergy Corporation Ver. 2015 |


BUSINESSDEVELOPMENT

The South’s Leading Corporate Force for Economic Development

639 Loyola AvenueNew Orleans, LA 70113

GoEntergy.com

• Fortune 500 investor-owned electric utility

• Forbes list of America’s Most Trustworthy Companies

• Edison Electric Institute Emergency Recovery and/or Assistance Awards: 16 consecutive years

• EPA Climate Protection Award

• Dow Jones Sustainability Indices: 13 consecutive years

• Corporate Responsibility Magazine Best Corporate Citizen in the Utility Industry

• Top Utilities in Economic Development by Site Selection Magazine: seven consecutive years

• Site Selection Magazine named Entergy Corporation one of the nation’s Top 10 Utilities in Economic Development in 2014 for its 2013 efforts to help attract nearly $21 billion in projects that could create more than 9,200 jobs in its four-state service territory.

What others say about Entergy:



A diverse fuel mix helps keep fuel costs low:

• Entergy uses a diverse mix of fuels to generate power for our customers.

• Relying upon a variety of fuel sources and generation technologies helps mitigate risk and reduces cost volatility.

2014 Entergy Fuel Mix

35%Nuclear

27%Gas & Oil

27%Purchases

EMI ENOI ETI

26%35%

20%

19%

56% 54%

25%

13%8%

23%

17%

4%

EAI EGSL ELL70%

20%

38%

38%

34%

37%

25%

9%

15%

3%4%

2%

1%

3%

1%Hydro

Nuclear Purchases Gas & Oil Coal Hydro


Incentives

LED FastStartFastStart provides customized employee recruitment, screening, training development and training delivery for eligible, new or expanding companies — all at no cost. Based on a company’s immediate and long-term workforce needs, the FastStart team crafts unique programs that ensure high-quality, flexible workers are prepared on day one and beyond.

http://www.opportunitylouisiana.com/page/led-faststart

Angel Investor Tax CreditProvides a 35% tax credit on investments by accredited investors who invest in businesses certified by Louisiana Economic Development as Louisiana Entrepreneurial Businesses (LEB), where the principal business operations are in Louisiana, with Louisiana as the primary place of employment for the employees of the business.

http://www.opportunitylouisiana.com/page/angel-investor-tax-credit

Competitive Projects Payroll Incentive ProgramThe Competitive Projects Payroll Incentive Program provides an incentive rebate of up to 15 percent of a participating company’s new payroll for up to 10 years. Additionally, a participating company will be eligible for either a rebate of state sales and use taxes on capital expenditures or 1.5 percent project facility expense rebate.

http://www.opportunitylouisiana.com/page/competitive-projects-payroll-incentive-program

Quality JobsThe Quality Jobs, or QJ, program provides a cash rebate to companies that create well-paid jobs and promote economic development. The Program provides a 5% or 6% cash rebate of annual gross payroll for new, direct jobs for up to 10 years and could provide a 4% sales/use tax rebate on capital expenditures or a 1.5% investment tax credit for qualified expenses.

http://www.opportunitylouisiana.com/page/quality-jobs

Digital Interactive Media and Software Development IncentiveLouisiana’s 35% Digital Interactive Media and Software Development refundable tax credit was put in place to help traditional and digital companies of all sizes gain a competitive edge. It provides a 35% tax credit on payroll for in-state labor and offers a 25% tax credit for qualified production expenses made in Louisiana.

http://www.opportunitylouisiana.com/page/digital-interactive-media-and-software-development-incentive

Research and Development Tax CreditThe Research and Development Tax Credit encourages existing businesses with operating facilities in Louisiana to establish or continue research and development activities within the state. Provides up to a 40% tax credit on qualified research expenditures incurred in Louisiana — with no cap and no minimum requirement.

http://www.opportunitylouisiana.com/page/research-and-development-tax-credit

Louisiana http://www.opportunitylouisiana.com/index/incentives


Enterprise ZoneThe benefit provides a one-time $2,500 job tax credit for each net new job created and a 4% rebate of sales and use taxes paid on qualifying materials, machinery, furniture, and/or equipment purchased or a 1.5% refundable investment tax credit on the total capital investment, excluding tax exempted items for any Louisiana business creating permanent net new full-time jobs, and hiring at least 50% of those net new jobs from one of four targeted groups.

http://www.opportunitylouisiana.com/page/enterprise-zone

Restoration Tax AbatementThe Restoration Tax Abatement, or RTA, program provides a five-year abatement of ad valorem property taxes on the renovations and improvements of existing commercial structures and owner-occupied residences. Equipment that becomes an integral part of that structure can qualify for this exemption. Option for a five-year renewal with local governing authority approval.

http://www.opportunitylouisiana.com/page/restoration-tax-abatement

Industrial Tax ExemptionThe Louisiana Industrial Ad Valorem Tax Exemption Program (ITEP) is an original state incentive program that abates, up to ten years, local property taxes (Ad Valorem) on a manufacturer’s new investment and annual capitalized additions related to the manufacturing site.

http://www.opportunitylouisiana.com/page/industrial-tax-exemption

Sound Recording Investor Tax CreditThe Sound Recording Investor Tax Credit provides a 25% tax credit for sound recording projects made in the State of Louisiana. Sound recording investor tax credits are issued as rebates, and provides a 25% tax credit on recording expenses.

http://www.opportunitylouisiana.com/page/sound-recording-investor-tax-credit

Motion Picture Investor Tax CreditLouisiana’s Motion Picture Investor Tax Credit provides motion picture productions a 30% transferable tax credit on total in-state expenditures, including resident and non-resident labor, with no cap and a minimum spending requirement of $300,000. For productions using in-state labor, Louisiana offers an additional 5% payroll tax credit.

http://www.opportunitylouisiana.com/page/motion-picture-investor-tax-credit

Technology Commercialization Tax CreditThe Technology Commercialization Tax Credit provides a 40% refundable tax credit for companies that invest in the commercialization of Louisiana technology and a 6% payroll rebate for the creation of new, direct jobs.

http://www.opportunitylouisiana.com/page/technology-commercialization-credit-and-jobs-program

Musical and Theatrical Production Tax IncentiveLouisiana offers a robust 25% to 35% tax incentive for musical and theatrical productions and state certified higher education musical or theatrical infrastructure projects with no cap on production expenditures.

http://www.opportunitylouisiana.com/page/musical-and-theatrical-production-tax-incentive

Economic Gardening Initiative*

Through accelerated technical assistance and research, an experienced economic gardening team will provide customized services tailored to your business needs, including a review of core strategies, business development opportunities, and improved internet presence by increasing your company’s visibility and credibility within the market.

http://www.opportunitylouisiana.com/page/economic-gardening-initiative



Hudson Initiative*

Louisiana’s Hudson Initiative is a certification program that is designed to help eligible Louisiana small businesses gain greater access to purchasing and contracting opportunities that are available at the State government level. Your business and contact information will be accessible to State purchasing officials and prime contractors looking for subcontractors.

http://www.opportunitylouisiana.com/page/hudson-initiative

Small Business Loan and Guaranty Program*

The program facilitates capital accessibility for small businesses by providing loan guarantees to banks and other small business lenders in association with the federal State Small Business Credit Initiative. Guarantees may range up to 75% of the loan amount, not to exceed $1.5 million and guarantee fee may be waived (determined by risk).

http://www.opportunitylouisiana.com/page/small-business-loan-and-guaranty-program

Small and Emerging Business Development Program*

Provides for developmental assistance, including entrepreneurial training, marketing, computer skills, accounting, business planning, and legal and industry-specific assistance. Also provides additional consideration for bidding on select products or services purchased by state agencies.

http://www.opportunitylouisiana.com/page/small-and-emerging-business-development-program

Veteran Initiative *

A certification program that is designed to help eligible Louisiana Veteran-owned and Service-Connected Disabled-Veteran-owned small businesses gain greater access to purchasing and contracting opportunities that are available at the state government level.

http://www.opportunitylouisiana.com/page/veteran-initiative

*Specific to New and Existing Small Businesses



Advantage Jobs ProgramThe Advantage Jobs Incentive Program provides for a rebate of a percentage of Mississippi payrolls to qualified employers for a period of up to 10 years. The average of all jobs included in the program must meet the minimum average wage requirements.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/advantage-jobs-incentive-program.html

Broadband Technology Tax CreditBroadband Technology Tax Credits are credits that are provided to entities to encourage the deployment of high-speed internet access throughout the state, with an emphasis on rural areas. Qualifying equipment used in the deployment of broadband technologies includes asynchronous transfer mode switches, digital subscriber line access multiplexers, routers, servers, multiplexes, fiber optics and related equipment.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/broadband-technology-tax-credit.html

Free Port Warehouse Property Tax ExemptionAn exemption from property taxes is available on finished goods inventory in transit to a destination outside Mississippi. A full exemption from property taxes may be granted by local governing authorities on personal property that is being held and stored prior to transport to a final destination outside the state. The exemption may be granted for all local property taxes and may be granted for any period of time set by the local governing authority.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/free-port-warehouse-property-tax-exemption.html

Growth and Prosperity Program (GAP)The Growth and Prosperity Program (GAP) is an incentive program designed to encourage development in economically challenged areas of the state. This program designates specific counties as GAP counties and provides income, franchise, sales and property tax incentives to companies that locate or expand in these areas of the state.

Industrial Property Tax ExemptionUp to a 10-year exemption from property taxes may be granted by local governing authorities on real and tangible personal property being used in the state. The exemption may be granted for all local property taxes except school district taxes on any property, but may not be granted on finished goods or rolling stock. The exemption usually includes land, buildings, machinery, equipment, furniture, fixtures, raw materials and work in process.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/industrial-property-tax-exemption.html

Jobs Tax CreditJobs Tax Credits are calculated as a percentage of eligible payroll each year for five years, based on job location and wages subject to state income tax. The credits are taken in years two through six after the new jobs are created. To be eligible for this credit, the employer must create and maintain an annual average employment of the minimum number of jobs required based on the development ranking of the county.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/jobs-tax-credit.html

Mississippi http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/http://www.mississippi.org/assets/docs/library/incentives-report.pdf


Manufacturing Investment Tax CreditExisting manufacturers that have operated in Mississippi for two or more years may be eligible for investment tax credits that can be applied to the entity’s state income tax liability. To qualify, an existing manufacturer must invest $1,000,000 or more in buildings and/or equipment used in the manufacturing operation. The investment credit is calculated as 5% of the eligible investment for a project.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/manufacturing-investment-tax-credit.html

Motion Picture Production Tax Incentive ProgramA production company that has an approved project is eligible for a rebate of its base investment (local spend) in Mississippi. The rebate is 25% of the base investment in the state, including non-resident payroll. Wages paid to Mississippi residents are eligible for a 30% rebate. A production company also may receive an additional rebate of 5% of the payroll paid for any employee who is an honorably discharged veteran of the United States Armed Forces. In instances where an employee is compensated over $5 million, the rebate will only apply to the first $5 million of eligible wages.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/motion-picture-production-incentive-program.html

Mississippi Aerospace Initiative Incentives ProgramMississippi’s Aerospace Initiative Incentives program provides tax incentives to companies that manufacture or assemble components for the aerospace industry or provide research, development or training services for the sector and are looking to locate or expand in the state. These incentives include a 10-year exemption from income and franchise taxes, as well as a sales and use tax exemption for the start-up of the facility.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/mississippi-aerospace-initiative-incentives-program.html

Mississippi Clean Energy Initiative ProgramThe Mississippi Clean Energy Initiative program allows the Mississippi Development Authority to certify companies that manufacture systems or components used to generate clean, renewable or alternative energy. This includes nuclear, solar, wind and hydro-generation. The program provides qualifying companies with a 10-year exemption from state income and franchise taxes, as well as a sales tax exemption to establish a plant or expand an existing production facility. To qualify, businesses must commit to invest a minimum of $50 million and create 250 full-time jobs.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/mississippi-clean-energy-initiative-program.html

Mississippi Data Center IncentivesThe State of Mississippi provides a state sales tax exemption for all computing equipment and software used by companies certified as data centers by the Mississippi Development Authority. Both new and replacement equipment qualify for the tax exemption. The certification requires a minimum investment of $50 million and the creation of at least 50 new jobs paying 150 percent of the average state wage.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/mississippi-data-center-incentives.html



Mississippi Equity Investment Tax Credit (State New Markets Tax Credit)A credit to Mississippi income or insurance premium tax is available for eligible investments made by Community Development Entities (CDEs) in designated low income census tracts in the state, as defined by the U.S. Census Bureau. These credits are state credits that act as companion credits to the Federal New Markets Tax Credits (NMTC) Program. Mississippi allows a state credit equal to 24% of the Qualified Equity Investment (QEI) in addition to the credits awarded through the federal program.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/mississippi-equity-investment-new-markets-tax-credit.html

Mississippi Health Care Industry Zone Incentive ProgramCertified businesses are eligible to receive an accelerated, 10-year state income tax depreciation deduction; and a sales tax exemption for equipment and materials purchased from the date of the project’s certification until three months after the facility is completed. In addition, the program allows counties and cities to grant a property tax “fee in lieu” for 10 years for any certified project with an investment of more than $10 million or a 10-year ad valorem tax exemption at the city or county’s discretion. Certified companies can also qualify for other Mississippi incentive programs.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/mississippi-health-care-industry-zone-incentive-program.html

National or Regional Headquarters Tax CreditIn transferring or establishing a national or regional headquarters in Mississippi or in expanding existing headquarters operations in the state, a company must create a minimum of 20 qualified jobs within a one-year period to be eligible. The credit is awarded in the amount of $500 per full-time employee per year for a

five-year period. The annual credit amount is increased to $1,000 for each position that pays 125 percent of the average annual state wage and to $2,000 for each position that pays 200 percent of the average annual state wage. To receive the tax credits for the entire five-period, a minimum of 20 full-time jobs must be maintained.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/national-or-regional-headquarters-tax-credit.html

National or Regional Headquarters Sales Tax ExemptionA sales and use tax exemption is available for eligible businesses that create their national or regional headquarters in Mississippi, transfer their headquarters to the state or grow their existing headquarters operations in the state. This exemption applies to component building materials used in the construction or improvement of a facility, as well as the machinery and equipment used in the facility. A minimum of 20 new headquarters jobs must be created at the location in order for a business to qualify for this exemption.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/national-or-regional-headquarters-sales-tax-exemption.html

Property Tax Exemption for Industrial Revenue Bond FinancingAn exemption from property taxes on land, building and equipment is available and is valid for up to 10 years on property purchased with industrial revenue bond proceeds from bonds issued by the Mississippi Business Finance Corporation (MBFC). May be granted by local governing authorities on real and tangible property being used in the state that is purchased with bond proceeds from bonds issued by MBFC.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/property-tax-exemption-for-industrial-revenue-bond-financing.html



Property Tax Exemption on In-State InventoryA 10-year exemption from property taxes may be granted by local governing authorities on finished goods inventory that will remain in the state. The exemption may be granted for all local property taxes except school district taxes on any property.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/property-tax-exemption-on-in-state-inventory.html

Property Tax Exemption for Broadband TechnologyA Broadband Technology full property tax exemption is provided to entities to encourage the deployment of high-speed internet access throughout the state, with an emphasis on rural areas. Qualifying equipment used in the deployment of broadband technologies includes asynchronous transfer mode switches, digital subscriber line access multiplexers, routers, servers, multiplexes, fiber optics and related equipment.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/property-tax-exemption-for-broadband-technology.html

Property Tax Fee in LieuFor new or expansion projects in the state that have a private capital investment in excess of $100,000,000, a negotiated fee can be set that is paid in place of the standard property tax levy. This incentive is provided to encourage development with local communities and must be agreed to by the local board of supervisors and municipal authorities prior to being awarded.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/property-tax-fee-in-lieu.html

Research and Development Skills Tax CreditResearch and Development Skills Tax Credits are credits equal to $1,000 per employee per year for a five year period and can be used to reduce an eligible entity’s income tax liability. These credits are available for any position requiring research or development skills. There is no minimum number of positions that must be created to qualify for this credit.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/research-and-development-skills-tax-credit.html

Rural Economic Development Income Tax CreditRural Economic Development (RED) Credits are credits that can be used to reduce Mississippi corporate income tax. These credits are created based on the amount of bond-related debt service paid on industrial revenue bonds issued by the Mississippi Business Finance Corporation (MBFC).

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/rural-economic-development-red-income-tax-credits.html

Sales and Use Tax Exemption for Bond FinancingFor commercial construction in Mississippi, there is a contractor’s tax assessed on the construction of commercial real property that is calculated as 3.5% of the contractor’s gross receipts from the construction. Contractor’s tax has no exemptions, and the contractor is allowed to purchase all component building materials exempt from sales tax. Under this exemption, component building materials can be purchased directly by the bondholder using bond proceeds. If these materials are not part of the construction contract, they are not subject to contractor’s tax, and sales tax is not due on materials purchased with bond proceeds.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/sales-and-use-tax-exemption-for-industrial-revenue-bond-financing.html



Sales and Use Tax Exemption for Construction or ExpansionEligible businesses include manufacturers and custom processors. In addition, Processing Companies and Technology intensive facilities qualify upon receiving a designation by the Mississippi Development Authority. The amount of exemption that is allowed depends on the location of the facility. For less developed counties, a full exemption from sales tax is provided, and for all other areas of the state, a one-half exemption is available. The development ranking of the county is established annually by the Mississippi Department of Revenue.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/sales-and-use-tax-exemption-for-construction-or-expansion.html

Sales Tax Exemption for Broadband TechnologyBroadband Technology exemption is provided to entities to encourage the deployment of high-speed internet access throughout the state, with an emphasis on rural areas. Qualifying equipment used in the deployment of broadband technologies includes asynchronous transfer mode switches, digital subscriber line access multiplexers, routers, servers, multiplexes, fiber optics and related equipment. The amount of exemption that is allowed depends on the location of the facility. For less developed counties, a full exemption from sales tax is provided, and for all other areas of the state, a one-half exemption is available. The development ranking of the county is established annually by the Mississippi Department of Revenue.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/sales-and-use-tax-exemption-for-broadband-technology.html

Tax Reduction for Motion Picture ProductionThe motion picture production sales and use tax reduction is provided to entities to encourage film production in the state. The reduced rate of 1½% applies to purchases and rentals of specialized equipment used in the production of a motion picture project that has been certified by the Mississippi Development Authority.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/sales-and-use-tax-reduction-for-motion-picture-production.html

Skills Training Income Tax CreditThe Skills Training Income Tax Credit is an incentive for a business to offer training to their Mississippi employees. For expenses to qualify for the Skills Training Credit, the training program must be offered by, or be approved by, the community or junior college in the district where the business is located as well as the Mississippi Department of Revenue. The expenses that qualify for this credit include expenses relating to instructors, instructional materials and equipment, and the construction and maintenance of facilities by an employer designated for training purposes. The eligible amounts are those that are deductible in the employer’s Mississippi income tax return.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/skills-training-income-tax-credit.html

Tourism Rebate ProgramThe Mississippi Tourism Rebate Program provides a tax rebate to qualified applicants of new tourism-oriented projects within the state of Mississippi. The Mississippi Tourism Rebate Program allows a portion of the sales tax paid by visitors to the eligible tourism-oriented enterprise to be paid to the applicant to reimburse the applicant for eligible costs incurred during the construction of the project.

http://www.mississippi.org/mda-library-resources/finance-tax-info/tax-exemptions-incentives-and-credits/tourism-rebate-program.html



InvestArk (Sales and Use Tax Credit)Available to businesses established in Arkansas for two years or longer that invest five million dollars ($5,000,000) or more at a single location in plant or equipment for new construction, expansion or modernization. A credit against the business’ state direct-pay sales and use tax liability, equal to one-half percent (1/2%) above the state sales and use tax rate in effect at the time of application, is earned based on the total eligible project cost. Currently, the percentage that may be earned as credit is 7% of eligible project expenditures.

Tax Back (Sales and Use Tax Refund)Provides sales and use tax refunds on the purchase of building materials and taxable machinery and equipment to qualified businesses investing at least $100,000 and who either a) sign a job creation agreement under the Advantage Arkansas or Create Rebate programs within 24 months of signing the Tax Back agreement or b) have met the requirements of an Advantage Arkansas or Create Rebate agreement within the previous 48 months. The state tax rate is 6.5% so the eligible refund would be 5.5%.

Advantage Arkansas (Income Tax Credit)Offers a state income tax credit for job creation based on the payroll of new, full-time, permanent employees hired as a result of the project. The table above shows the job creation requirements and the available benefit under the program. The Advantage Arkansas income tax credit is earned each tax year for a period of five years. The income tax credit cannot offset more than 50 percent of a business’ income tax liability in any one year and may be carried forward for nine years beyond the tax year in which the credit was first earned.

ArkPlus (Income Tax Credit)A state income tax credit program that provides tax credits of 10% of the total investment in a new location or expansion project. This discretionary incentive is offered in highly competitive situations. ArkPlus requires both a minimum investment and a minimum payroll of new, full-time, permanent employees hired as a result of the project, depending on the tier in which the business locates. Total project expenditures must be incurred within four (4) years of the date the project is approved by AEDC.

Create Rebate (Cash Rebate)Incentives are negotiated and offered at the discretion of the Executive Director of the Arkansas Economic Development Commission. Create Rebate provides annual cash payments based on a company’s annual payroll for new, full-time, permanent employees. In order to qualify, the company must create a minimum of $2 million annually in new payroll. The minimum payroll must be met within 24 months of the effective date of the financial incentive agreement. No benefits may be claimed until the $2 million annual payroll threshold is met.

Infrastructure Grants AEDC shares the cost of project infrastructure needs by committing grants from state and federal infrastructure funds. The amount of assistance committed is dependent upon the strength of the company, number of jobs, average wage, project investment and costs associated with facility/site improvements.

http://arkansasedc.com/incentives/incentivesArkansas


Equity Investment Tax CreditThe Equity Investment Incentive Program is a discretionary incentive targeted toward new, technology-based businesses paying wages in excess of the state or county average wage. If offered, this program allows an approved business to offer an income tax credit to investors purchasing an equity investment in the business. The income tax credit/credits issued under this program are equal to 33 1/3% of the amount invested by an investor in an eligible business.

Exemptions from Sales and Use TaxesMachinery and equipment used directly in manufacturing that are purchased for a new manufacturing facility or to replace existing machinery and equipment are exempt. Machinery and equipment required by Arkansas law to be purchased for air or water pollution control or for removal of sulfur pollutants from refined petroleum are also exempt.

Company Childcare FacilitiesArkansas offers tax incentives for businesses that provide childcare for their employees. A business may choose between two state income tax credit options: 1) a credit of 3.9% of the total annual payroll of the employees working in the childcare facility, or 2) a one-time $5,000 state income tax credit for the first year that the business provides its employees with a childcare facility. Any unused credit may be carried forward tow years.

Recycling Equipment Arkansas allows taxpayers to receive an income tax credit for the purchase of equipment used exclusively for reduction, reuse or recycling of solid waste material for commercial purposes, whether or not for

profit, and the cost of installation of such equipment by outside contractors. The amount of the tax credit shall equal 30% of the cost of equipment and installation costs deemed eligible by the Arkansas Department of Environmental Quality. Credits may be carried forward for three consecutive years following the taxable year in which the credits accrued.

Replacement and Repair of Manufacturing Machinery and Equipment Option AProvides for a refund of one percentage point (1%) of the 5.875% sales and use taxes. May be claimed by a taxpayer for the purchase and installation of certain machinery and equipment used directly in manufacturing and processing. To qualify for this refund, a taxpayer must hold a direct pay sales and use tax permit from the Arkansas Department of Finance and Administration (DFA).

Replacement and Repair of Manufacturing Machinery and Equipment Option BProvides for an increased refund of all sales and use taxes (5.875%). This is a discretionary incentive that may be offered by the Director of the Arkansas Economic Development Commission (AEDC) to a taxpayer who undertakes a major maintenance and improvement project to purchase and install certain machinery and equipment used directly in manufacturing and processing.

Sales Tax Reduction on Electricity and Natural GasReduces sales tax on electricity and natural gas used directly in the manufacturing process.



Tuition ReimbursementArkansas provides a 30% state income tax credit to eligible companies for reimbursements they make on behalf of employees for approved educational expenses. The employees must successfully complete the course at an accredited Arkansas post-secondary educational institution. The credit authorized by this program cannot offset more than 25% of the company’s state income tax liability in any tax year.

In-House Research and DevelopmentNew and existing eligible businesses that conduct “in-house” research that qualifies for federal research and development tax credits may qualify for in-house research income tax credits. The credit allowed is 20% of qualified research expenditures that exceed the base year, for a period of three years and the incremental increase in qualified research and expenditures for the succeeding two years. For a new in-house research facility, the base year is zero. Therefore, in the first three years following the date of the financial incentive agreement, all eligible expenditures can qualify for the credit.

In-House Research by a Targeted BusinessTargeted businesses, at the discretion of the AEDC Executive Director, may be offered income tax credits equal to 33% of the qualified research and development expenditures incurred each year for up to five years. The application for this income tax credit shall include a project plan, which clearly identifies the intent of the project, the expenditures planned, the start and end dates of the project and an estimate of total project costs.

Research and Development in Area of Strategic ValueFor qualifying businesses that invest in: 1) in-house research in an area of strategic value; or 2) a research and development project offered by the Arkansas Science and Technology Authority. Research in an area of strategic value means research in fields having long-term economic or commercial value to the state, and that have been identified in the research and development plan approved from time to time by the Board of Directors of the Arkansas Science and Technology Authority. The income tax credit is equal to 33% of qualified research expenditures. The maximum tax credit that may be claimed by a taxpayer under this program is $50,000 per tax year.

University Based Research and DevelopmentAn eligible business that contracts with one or more Arkansas colleges or universities in performing research may qualify for a 33% income tax credit for qualified research expenditures.

Digital Production / FilmAn eligible production company may earn a 20% rebate on all qualified production expenditures in Arkansas. Salaries and wages paid to resident and nonresident above-the-line employees, as well as resident and nonresident below-the-line employees, will qualify for the 20% rebate and an additional 10% may be earned on the payroll of below-the-line employees who are full-time Arkansas residents for a total rebate of 30% on such wages. Below-the-line does not include directors and producers but for purposes of the additional 10%, resident actors and writers are defined as below-the-line.



Non-Profit Incentive ProgramProvides an annual payroll rebate for up to five years equal to 4 percent of the payroll of new, full-time, permanent employees, hired by national or regional non-profit headquarters locating or expanding in Arkansas. Eligible non-profit organizations must create a payroll for new, full-time, permanent employees of at least $500,000 and pay an average wage in excess of 110% of the state or county average wage (whichever is less) in the county in which the organization locates or expands. This program also provides a sales and use tax refund for eligible projects that invest a minimum of $250,000.

Tourism Development IncentivesProvides state sales and use tax credits and income tax credits to businesses initiating approved tourism attraction projects. Eligible minimum project costs must be $1 million, except in high unemployment counties, where it is $500,000. The sales tax credits are calculated based upon 15% of eligible project cost for projects spending more than $1 million; credits are 25% of eligible project cost for the projects in high unemployment counties. Additionally, eligible businesses may receive a state income tax credit equal to 4% of the annual payroll of new, full-time, permanent employees.

Targeted Business IncentivesAt the discretion of the AEDC Executive Director, targeted businesses may be offered special incentives designed to help new, knowledge-based, start-up businesses, including refund of sales and use taxes paid on the purchase of building materials and machinery and equipment associated with the approved project, A transferable income tax credit equal to 10% of payroll for up to five years, and a transferable income tax credit equal to 33% of eligible research and development expenditures

Sales and Use Tax Refund for Targeted BusinessesProvides a refund of sales and use taxes paid on the purchases of building materials and taxable machinery and equipment associated with the approved project for targeted businesses. A targeted business with an annual payroll in excess of one million dollars ($1 million) is excluded from participating in this program.

Payroll Income Tax Credit for Targeted BusinessesAssists start-up businesses in targeted sectors that pay significantly more than the state or county average wage of the county in which the business locates. A targeted business with an annual payroll in excess of one million dollars ($1 million) is excluded from participating. The benefit for a qualifying targeted business is a 10% income tax credit based on its annual payroll, with a cap of $100,000 per year in earned income tax credits. The incentive may be offered for a period not to exceed five years. A unique feature of this incentive is the ability of the business that earns the targeted business income tax credit to sell the credits.

Targeted ArkPlusTargeted businesses creating new payroll exceeding $250,000 may be offered, at the discretion of the AEDC Executive Director, income or sales and use tax credits based upon investment. Prior to the execution of the financial incentive agreement, the targeted business must elect to receive the credits as sales and use tax credits or income tax credits. To qualify, the average hourly wage of the new, full-time permanent employees must be at least 175% of the state or county average hourly wage, whichever is less. Additionally, targeted businesses must invest a minimum of two hundred fifty thousand dollars ($250,000) within four (4) years of the effective date of the financial incentive agreement.



Texas Enterprise FundThe fund is a cash grant used as a financial incentive tool for projects that offer significant projected job creation and capital investment and where a single Texas site is competing with another viable out-of-state option. Award dollar amounts are determined using an analytical model applied uniformly to each TEF applicant. Variations in award amounts are influenced by the number of jobs to be created, the expected timeframe for hiring, and the average wages to be paid. In the past, awards have ranged from $194,000 to $50 million.

Texas Emerging Technology FundThe TETF is a $485 million fund created by the Texas Legislature in 2005. To date, the TETF has allocated nearly $220 million in grant matching and research superiority funds to Texas universities and more than $205 million to over 145 early stage companies. Additionally, since the inception of the TETF, more than $2.2 billion in additional investment from other non-state sources has followed on to the TETF investment, more than quadrupling the amount invested by the TETF.

Capital Access ProgramThe Capital Access Program was established to increase the availability of financing for businesses and nonprofit organizations that face barriers in accessing capital or fall outside the guidelines of conventional lending. Use of proceeds may include working capital or the purchase, construction, or lease of capital assets, which include buildings and equipment. The state can contribute 4%-8% of loan amount, not to exceed $35,000 per loan or $150,000 for any single loan recipient during a three year period.

https://texaswideopenforbusiness.com/sites/default/files/capitalaccessprogram_1.pdf

Texas Product / Business FundA revolving loan fund financed through original bond issuances. The primary objective of the program is to aid in the development, production and commercialization of new or improved products and to foster and stimulate small business in the state. The fund provides asset-based lending with flexible loan terms, competitive Loan-to-Value (LTV) and interest rates. Loan proceeds can be used for a broad range of capital and operating expenditures.

Texas Leverage FundProvides a source of financing to communities that have adopted an economic development sales tax. Communities may leverage future sales tax revenues to expand economic development through business expansions, business recruitment and exporting. Awarding loans from $25,000 to $5 million, the TLF is available for interim, long-term or gap financing. TLF loans provide flexible financing terms to match the unique needs of communities.

Industrial Revenue Bond ProgramProvides tax-exempt or taxable financing for eligible industrial or manufacturing projects as defined in the Development Corporation Act of 1979. The Act allows cities, counties, and conservation and reclamation districts to form non-profit industrial development corporations (IDCs) or authorities on their behalf to provide bond financing for projects within their jurisdictions. The IDC issues bonds to finance the capital costs for an industrial or manufacturing business.

https://texaswideopenforbusiness.com/services/incentives-financingTexas


Texas Military Value Revolving Loan FundAssists defense communities in enhancing the military value of a military facility in their area. The TMVRLF can help defense communities develop job-creating projects that minimize the negative effects of a defense base realignment or closure decision. The minimum amount of a loan is $1 million, while the maximum amount of a loan is determined by the availability of funds. The amount of financing that can be provided is also dependent upon the creditworthiness of the applicant.

Certified Capital CompaniesPrivate government-sponsored venture capital companies formed to increase the availability of growth capital for small businesses located in Texas. The program is also intended to stimulate job creation in Texas by requiring supported businesses to have at least 80 percent of payroll/manpower located within Texas.

http://www.window.state.tx.us/capco/index.php

Texas Capital Fund Infrastructure ProgramProvides financial resources to non-entitlement communities for public infrastructure projects needed to assist businesses. Communities can use TCFIP grants in the amount of $50,000 to $1.5 million to build public infrastructure (water, sewer, roads, etc.) needed to assist a business which commits to create and/or retain permanent jobs, primarily for low and moderate-income persons.

Texas Capital Fund Real Estate Development ProgramDesigned to provide financial resources to non-entitlement communities. Funds must be used for real estate development (acquisitions, construction and/or renovation) to assist a business which commits to create and/or retain permanent jobs, primarily for low and moderate-income persons. The minimum award is $50,000 and the maximum is $1,500,000. No interest is charged on the loan amount.

Defense Economic Adjustment Assistance Grant ProgramAn infrastructure grant program designed to assist defense communities that have been positively or negatively impacted by a change in defense contracts or an announced change. Funding can also be used proactively to support installations in the event of a change or announced change by the Department of Defense. Available to local municipalities, counties, defense base development authority, junior college districts and Texas State Technical College campuses, and regional planning commissions representing these communities. Grants awarded may range from $50,000 to $2 million per project.

http://gov.texas.gov/military/ http://gov.texas.gov/military/grants/

Texas Enterprise Zone ProgramAn economic development tool for local communities to partner with the State of Texas to promote job creation and significant private investment that will assist economically distressed areas of the state. Approved projects are eligible to apply for state sales and use tax refunds on qualified expenditures. The level and amount of refund is related to the capital investment and jobs created at the qualified business site.

Incentives: Texas


Manufacturing ExemptionsProvide state sales and use tax exemptions to taxpayers who manufacture, fabricate or process tangible property for sale. The exemption generally applies to tangible personal property that becomes an ingredient or component of an item manufactured for sale, as well as taxable services performed on a manufactured product to make it more marketable.

Texas Economic Development ActProvides an eight-year limitation on the taxable value of the property extended to a taxpayer who agrees to build or install property and create jobs. The value limitation applies to the local school district maintenance and operations tax (M&O) portion of the property tax and a tax credit, and varies by school district. The property tax credit is awarded at the end of the eight-year value limitation term.

Freeport ExemptionsA property tax exemption that a community may choose to offer for various types of goods that are detained in Texas for a short period of time. Freeport property includes goods, wares, merchandise, ores, and certain aircraft and aircraft parts. Freeport property qualifies for an exemption from ad valorem taxation only if it has been detained in the state for 175 days or less for the purpose of assembly, storage, manufacturing, processing, or fabricating.

Pollution Control IncentiveThe incentive provides an exemption from property taxation for pollution control equipment. Compliance with environmental mandates through capital investments do not result in an increase in a facility’s property taxes.

Renewable Energy ExemptionsVarious tax exemptions, franchise tax exemptions and franchise tax deductions are available for renewable energy equipment and systems. A franchise tax exemption is available to manufacturers, sellers or installers of solar energy devices. Business owners may deduct the cost of the system from the company’s taxable capital or deduct 10 percent from the company’s income. Texas property tax code also permits a 100 percent exemption on the appraised value of solar, wind or biomass energy devices installed or constructed for the production and use of energy on-site.

LoanSTARFinances energy-related cost-reduction retrofits for state, public school district, public college, public university, and tax-district supported public hospital facilities. Low interest rate loans are provided to assist borrowers in financing their energy-related cost-reduction efforts. Applicants repay the loans through the stream of energy cost savings realized from the projects.

http://seco.cpa.state.tx.us/ls/

Data Center ExemptionApplies to state sales and use tax on certain items necessary and essential to the operation of a qualified data center. The exemption is for state sales tax only.

Research and DevelopmentCompanies engaged in research and development activities can receive reductions in either applicable sales tax or franchise tax (not both). Certain qualifications apply. The R&D tax credit is administered through the Comptroller of Public Accounts.

Incentives: Texas


Skills Development FundA business, consortium of businesses, or trade union identifies a training need, and then partners with a public community or technical college to fill its specific needs. Businesses work with college partners to submit proposals, develop curricula, and conduct training. The Skills Development Fund pays for the training, the college administers the grant, and businesses create new jobs and improve the skills of their current workers.

Self Sufficiency FundGrant recipients (i.e. public community colleges, public technical colleges, and community-based organizations) partner with local businesses that participate in the planning and design of a proposed training project for in-need individuals.

Incentives: Texas

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