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Exhibit A
<br />Paris, Texas Financial Incentives
<br />(Cash, Tax Abatements, Exemptions and Related Programs)
<br />PEDC Staff will assist your company all of the following programs to maximize the ftaaneud incentives
<br />foryourcompany. Each project is unique# and PEDC will couddarand pursue a varlety,of options, for
<br />direct loans (can be bank su inate} l tees, interest downs, site , development
<br />including extension of utilities, is for job creation, rent subsidies, build-to-suit with 1 back or
<br />purchase options, customizedjob training, loans,with forgiveness on job creation, reimbursement of
<br />relocation expenses, and other options subject to negotiation. Typical incentives include the follow"
<br />Pro-Business
<br />Because of a pro- business attitude, Texas has limited the number of state controls and taxes
<br />Climate
<br />in regulating the activities of business. Texas is a right -to -work State, and has no personal or
<br />corporate income tax, nor a state property tax.
<br />Tax Abatements
<br />The City of Paris has a proven track record of negotiating tax abatements for up to 10 years
<br />for new and expanding industries. In addition, Lamar County and Paris Jr. College will
<br />consider local tax abatements for projects with significant job creation and private capital
<br />investment.
<br />Local Cash
<br />The citizens of Paris adopted a' /4 cent sales tax as an incentive assistance program to
<br />Incentive for Job
<br />facilitate industrial locations and expansions. This program is administered directly by the
<br />Creation
<br />Paris Economic Development Corporation.
<br />Industrial Dev.
<br />PEDC has a history of providing industrial development bonds as a viable alternative for
<br />Bonds
<br />financing industrial expansion and construction.
<br />Skills
<br />An incentive to relocating or expanding businesses through Texas community and technical
<br />Development
<br />colleges and workforce boards to provide customized assessment and training services to
<br />Fund
<br />business in a timely, efficient and responsive manner.
<br />Enterprise Zone
<br />Depending on the exact site location, Paris is a qualified Enterprise Zone (EZ). If your
<br />development or revitalization project is located in the EZ, the City of Paris can approve
<br />partial or deferred payment of sales and use taxes for qualified purchases, leases, or rentals.
<br />Specifically, the EZ provides sales and use tax rebates on machinery and equipment, building
<br />materials, labor for the rehabilitation of existing buildings, and electricity and natural gas
<br />purchases. The EZ also provides priority job training, and other preferential treatment on
<br />state and federal programs. The tax refund is $2,000 for each permanent job the project
<br />creates or retains during the five year designation period. Qualifying projects may also be
<br />eligible for franchise tax reduction, property tax abatement up to 100% of the estimated local
<br />tax increase to be levied on the proposed property improvements for a term not to exceed ten
<br />(10) years, and other regulatory relief.
<br />Freeport Law
<br />Article VIII, Section 1 of the Texas Constitution has been amended to allow real and
<br />Tax Exemptions
<br />personal property to be tax - exempt (city, county and school districts.) All goods, wares,
<br />merchandise, other than tangible personal property (inventory) acquired in or imported into
<br />Texas to be forwarded outside this state, which is detained for storing, assembling,
<br />manufacturing, processing, or fabricating in Texas for 175 days or less, may be tax exempt.
<br />Financial
<br />Local financial services companies in Paris and Lamar County are committed to the
<br />Services
<br />economic growth of the region through aggressive commercial and industrial development.
<br />Paris is currently served by seven commercial banks, two savings & loan associations, and
<br />has access to mortgage bankers, and other creative financial services.
<br />SBA and Other
<br />Small business loans are available through the SBA 504 program. Up to 40% of total cost
<br />Loan Programs
<br />can be provided in the form of subordinate debt to SBA for most fixed asset projects at
<br />interest cost of 2 to 3% below market for periods of 15 -25 years. This type of financing can
<br />provide 90% of the long -term financing needs of a small business. Also available are the
<br />SBA 7(A) Loan Guarantee program, the FmHA, Paris' local Revolving Loan Fund, various
<br />programs of the ArkTex Council of Governments, and the Texas Leverage Fund.
<br />(Updated 11- 14 -16)
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