Financial Incentives: Cash, Tax Abatements, Exemptions and Related Programs
PEDC Staff will assist your company with all of the following programs to maximize the financial incentives for your company. Each project is unique, and PEDC will consider and pursue a variety of options, for example: direct loans (can be bank subordinate), loan guarantees, interest rate write downs, site development costs, including extension of utilities, cash grants for job creation, rent subsidies, build-to-suit with lease-back or purchase options, customized job training, loans with forgiveness based on job creation, reimbursement of relocation expenses, and other options subject to negotiation. Typical incentives include the following:
|Pro-Business Climate||Because of a pro-business attitude, Texas has limited the number of state controls and taxes in regulating the activities of business. Texas is a right-to-work State, and has no personal or corporate income tax, nor a state property tax.|
|Tax Abatements||The City of Paris has a proven track record of negotiating tax 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. Read the official Tax Abatement Criteria here.|
|Local Cash Incentive for Job Creation||The citizens of Paris adopted a ¼ cent sales tax as an incentive assistance program to facilitate industrial locations and expansions. This program is administered directly by the Paris Economic Development Corporation.|
|Industrial Dev. Bonds||PEDC has a history of providing industrial development bonds as a viable alternative for financing industrial expansion and construction.|
|Skills Development Fund||An incentive to relocating or expanding businesses through Texas community and technical colleges and workforce boards to provide customized assessment and training services to business in a timely, efficient and responsive 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. The 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 and other regulatory relief.|
|Freeport Law Tax Exemptions||Article VIII, Section 1 of the Texas Constitution has been amended to allow real and 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, manufacturing, processing, or fabricating in Texas for 175 days or less, may be tax exempt.|
|Financial Services||Local financial services companies in Paris and Lamar County are committed to the 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 mortgage bankers, and other creative financial services.|
|SBA and Other Loan Programs||Small business loans are available through the SBA 504 program. Up to 40% of total cost 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 programs of the ArkTex Council of Governments, and the Texas Leverage Fund.|
All providers of financial services in Paris and Lamar County are committed to the economic growth of this area through commercial and industrial development. Paris is served by seven commercial banks, two savings & loan associations, and has access to mortgage bankers, and other creative financing services. Small business loans are also available through the SBA 504 program. Up to 40% of total costs 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. Paris also utilizes other financing programs such as the SBA 7(A) Loan Guarantee program, the FmHA, the Texas Leverage Fund, our own local Revolving Loan Fund, and other programs of the ArkTex Council of Governments.
Industrial Development Bonds are sometimes a viable alternative in financing industrial expansion and construction. The Paris Economic Development Corporation is available locally for this purpose and to provide other location assistance.
Because of a pro-business attitude, Texas has limited the number of state controls and taxes in regulating the activities of business. This attitude is evidenced by the absence of a personal or corporate income tax, a state property tax, or a unitary form of taxation. The same pro-choice attitude exists toward the Texas worker. The state’s right work law guarantees that every person has an inherent right to work and negotiate freely with their employer, either as an individual or as a group. In addition, the City of Paris will negotiate tax abatement for new and expanding industries. The city has traditionally approved tax abatement up to 10 years. Through the Texas Department of Economic Development, Paris has an Enterprise Zone program that allows qualifying businesses tax rebates, priority on-the-job training, and other preferential treatment on state programs. The City of Paris will further grant partial or deferred payment of sales and use taxes by persons making a taxable purchase, lease, or rental for purposes of development or revitalization in the zone. Paris has also adopted a .25% sales tax to be used to facilitate industrial locations in the area. This incentive assistance program is administered by the Paris Economic Development Corporation.