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(Updated 01-10-2022) <br />POLICY STATEMENT <br />CRITERIA AND GUIDELINES FOR TAX ABATEMENT <br />Capital Investment, Payroll and Job Creation �....nm.. I..... n Criteria <br />an authorized facility <br />located anywhere within the area served increasing new <br />the Taxing Jurisdictions ctions based onthe <br />A tax abatement creating jobs with respect to <br />Yv' y � g following criteria. <br />1. To be eligible for any tax abatement, there must be a minimum capital investment in the authorized facility of $1,000,000 and <br />at least ten (10) new jobs added to the new employer's labor force. <br />2. Any project with a capital investment of more than twenty-five million dollars ($25,000,000), AND accompanied by a <br />newly created minimum annual payroll of two and one-half million dollars ($2,500,000), OR creating more than two <br />hundred twenty-five (225) jobs will be individually negotiated. <br />3. As specified in state law, no abatement will be granted for more than 10 years and the total abatement shall not exceed <br />100%. <br />4. A newly created business must be (or will be) located within an enterprise zone or a designated reinvestment zone. <br />5. The taxing jurisdictions recognize a significant difference in the valuation of real property versus personal property. <br />Because of depreciation schedules, the abatement of personal property could result in a tax exemption. For this reason, the <br />abatement schedule for personal property versus real property may be different. Each industrial account is looked at and <br />valued on an individual basis by the Lamar County Appraisal District (LCAD). The typical depreciation used for <br />industrial accounts by LCAD is as follows: <br />a. Computers — 3 year life <br />b. Furniture & Fixtures— 10 year life <br />c. Vehicles — 7 to 10 year life (depending on type) <br />d. Machinery & Equipment — 15 year life (maybe longer or shorter depending on the type) <br />6. For each abatement request the PEDC will evaluate the equipment (personal property) investment and useful life separate <br />from the real estate (real property) investment to determine the length of the abatement for each. <br />7. If personal property should become obsolete and be replaced while under an abatement agreement, the replacement <br />personal property is not eligible for abatement. <br />8. The charts below provide capital investment guidelines to qualify for tax abatement and the related schedule and <br />percentage of abatement. <br />4 <br />