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(IlReadopted 01-13-2020) <br />POLICY ST"ATEMENT <br />CRITERIA—AND GUIDELANES FORT AXABATEMENT <br />. . ...... . _, O�p#zllnvestment,.Pa old and Job Creation Criteria <br />. . ... . ...... . ............ ... . ---- - . . ........... . . . . .... .... <br />. ...... . . ...... ........... ........... . . . .... ...... . ...... . - - ---- . . . ..... .. ...... . . —11---,", <br />ababnnent may be made available to employers Who are increasing new capivAl investment and cre-a-ti n --g-- <br />jobs with reV.eet to <br />anauthori7ed fhaility located anywhere mathin the area served by the 'l7axing Jurisdic-tionsbased on theEollowing cn.teria. <br />1. To be eligible for any tax abatement, there mustlie an minimum capital investment inMe autlu)rized facility of$ 1,000,000 and <br />at least ten (10) new jobs added to the new employer's labon force. <br />1 Any project with a cpiital investment of more di an t-wenty five million dollars ($25,000,000), AND accompanied by an <br />newly created minimum. annual payroll oft o and one-half million dollars ($2.1500:,000), OR creating more diian two <br />bundred twenty-five (2125) jobs will be individually negotiated. <br />1 As specifiediin state law, no abatemtmt will be granted for more than 10 yea , and fl -ie toW abatementshall riot exceed <br />.1.0011/0. <br />4. knewly created business must be (or will be) located wit1iinan enterprise one or a desigmited reinvestment zone. <br />5. The taxii�g jurisdons recognize a sigrifficant difference in the valuation of real proper t y -versus pensonal prqperty. <br />Because of depreciation schedules, the abatement of personal prol.:=ty could result in a tax exemption. For this rewon, the <br />abatement sebedulefor personal property versus real property may be different, Each. industrial account is In at and <br />valued on -win. individw-A basis by the Latnar County.Appraisal District (1.,CAD). The typical d q, breciation used - for <br />indwstrial accokmts by LCAD is as followb: <br />a. Cru.. paters — 3 year life <br />b. Furniture& Fixtures .10 year Efe <br />c. 'Vehicles .7 to 10 year life, (depending on type) <br />& Machinery & Equipment 15y.earlife (m,,vybelonp!,ii,ror,.shorter dcl)e,,ndin onthaw type) <br />6. For each abatemerit request the PEDC -will evaluate the equipaient (personal property) investment and use:fia life separate <br />from the real estate (yea] property) investment to determine the lenLah of rthe alma ternent for aell <br />7. If personal property should become obsolete and bereplaced while under an abat ment agreement, the, re.placement <br />persond. property is not eligible for abatement. <br />8.. The cham below provide capital invesent guidelines to clunlify for tax,-dbalialment and the related sd.hedule and <br />percentage of ab aternent <br />Investment ($1.M minimurn in.vestment ANDIO iobs for new <br />Yearl <br />Ye�ar 2 <br />Year 3 <br />X.e.arl-5111 J <br />Ye�r 6 <br />Ye#r 7-- <br />50% <br />301ye <br />20% <br />10% <br />1 <br />7�06 [' <br />_ 60% <br />400, <br />3 1. <br />F <br />20% <br />90% � <br />80% <br />70%'— <br />- - � 1-�6 <br />40% 1 <br />. . ......... - <br />30% <br />$25,000,00 1. and Above Forprojects, with capkal inve-iftent abow $2-5'AN D$2.5MM new annualpigyroll OR <br />creadng Pnore than.225 xewph�, the term andpercentage of the abatement are. 110th <br />. .. . .. . ............. - negofiabk but cannot exceed.10)wars or.100191,66. <br />