2011-026 ORD PARTICIPATING IN THE TEXAS ENTERPRISE ZONE PROGRAM UNDER CH 2303

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Exhibit A Paris, Tezas Financial Incentives (Cash, Tax Abatements, Exemptions and Related Programs) entives ~or or , , 1 M11111 21 MW Pro-Business Because of a pro-business attitude, Texas has limited the number of state controls and taaces Climate in regulating the activities of business. Teacas is a right-to-work State, and has no personal or co orate income tax, nor a state property tax. Tax Abatements The City of Paris has a proven track record of negotiating talc abatements for up to 10 years for new and expanding industries. In addition, Lamar County and Paris Jr. College will consider local tax abatements for projects with significant job creation and private capital investment. Local Cash The citizens of Paris adopted a'/4 cent sales taac as an incentive assistance program to Incentive for Job facilitate industrial locations and expansions. This program is administered directly by the Creation Paris Economic Develo ment Co oration. Indastrial Dev. PEDC has a history of providing industrial development bonds as a viable alternative for Bonds fmancin industrial ex ansion and construction. 5kills An incentive to relocating or expanding businesses through Texas community and technical Development colleges and workforce boards to provide customized assessment and training services to Fund business in a timel , efficient and res onsive manner. Enterprise Zone Depending on the exact site location, Paris is a qualified Enterprise Zone (EZ). If your development or revitalization project is located in the EZ, the City of Paris can approve partial or deferred payment of sales and use taxes for qualified purchases, leases, or rentals. Specifically, the EZ provides sales and use tax rebates on machinery and equipment, building materials, labor for the rehabilitation of existing buildings, and electricity and natural gas purchases. The EZ also provides priority job training, and other preferential treatment on state and federal programs. T'he tax refund is $2,000 for each permanent job the project creates or retains during the five year designation period. Qualifying projects may also be eligible for franchise tax reduction, property tax abatement up to 100% of the estimated local tax increase to be levied on the proposed property improvements for a term not to exceed ten 10 ears, and other re lato relief. Freeport Law Article VIII, Section 1 of the Texas Constitution has been amended to allow real and Taz Ezemptions personal property to be tax-exempt (city, county and school districts.) All goods, wares, merchandise, other than tangible personal property (inventory) acquired in or imported into Texas to be forwarded outside this state, which is detained for storing, assembling, manufacturin , rocessin , or fabricatin in Texas for 175 da s or less, ma be tax exem t. Financial Local financial services companies in Paris and Lamar County are committed to the Services economic growth of the region through aggressive commercial and industrial development. Paris is currently served by seven commercial banks, two savings & loan associations, and has access to morta e bankers, and other creative financial services. 5BA and Other Small business loans are available through the SBA 504 program. Up to 40% of total cost Loan Programs can be provided in the form of subordinate debt to SBA for most fixed asset projects at interest cost of 2 to 3% below market for periods of 15-25 years. This type of financing can provide 90% of the long-term financing needs of a small business. Also available are the SBA 7(A) Loan Guarantee program, the FmHA, Paris' local Revolving Loan Fund, various ro ams of the ArkTex Council of Govemments, and the Texas Levera e Fund. (Updated 8-4-11)