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JSW Steel (USA) Inc. Chapter 313 Application
For Appraised Value Limitation
To Goose Creek Consolidated
Independent School District July 6, 2017
Table of Contents
Chapter 313 Application………………..……….……… Tab 1
Application Fee………………………………….……… Tab 2
Combined Group…………..………………………..….. Tab 3
Project Description………………..………………….… Tab 4
Limitation as Determining Factor……………………….. Tab 5
Multiple Districts………………………………….…… Tab 6
Qualified Investment Description………………………. Tab 7
Qualified Property Description………………………….. Tab 8
Land description……………………..................................... Tab 9
Description of Not Eligible Property…...……………… Tab 10
Maps……………………………………………………. Tab 11
Job Creation Waiver………………………………….…..Tab 12
Average Wages……………………………………..…… Tab 13
Schedules A1, A2, B, C, and D……………………….…..Tab 14
Economic Impact Analysis……………………………….Tab 15
Reinvestment Zone Description………………………… Tab 16
Signature and Certification………………………………. Tab 17
Tab 1
Chapter 313 Application
For more information, visit our website: www.TexasAhead.org/tax_programs/chapter313/
The Economic Development and Analysis Division at the Texas Comptroller of Public Accounts provides information and resources for taxpayers and local taxing entities.
Application for Appraised Value Limitation on Qualified Property(Tax Code, Chapter 313, Subchapter B or C)
50-296-A • 05-14/2
Economic Development and Analysis
Form 50-296-AINSTRUCTIONS: This application must be completed and filed with the school district. In order for an application to be processed, the governing body (school board) must elect to consider an application, but — by Comptroller rule — the school board may elect to consider the application only after the school district has received a completed application. Texas Tax Code, Section 313.025 requires that any completed application and any supplemental materials received by the school district must be forwarded within seven days to the Comptroller of Public Accounts.
If the school board elects to consider the application, the school district must:• notify the Comptroller that the school board has elected to consider the application. This notice must include:
– the date on which the school district received the application;– the date the school district determined that the application was complete;– the date the school board decided to consider the application; and– a request that the Comptroller prepare an economic impact analysis of the application;
• provide a copy of the notice to the appraisal district;• must complete the sections of the application reserved for the school district and provide information required in the Comptroller rules located at 34
Texas Administrative Code (TAC) Section 9.1054; and• forward the original hard copy of the completed application to the Comptroller in a three-ring binder with tabs, as indicated on page 9 of this
application, separating each section of the documents, in addition to an electronic copy on CD. See 34 TAC Chapter 9, Subchapter F.
The governing body may, at its discretion, allow the applicant to supplement or amend the application after the filing date, subject to the restrictions in 34 TAC Chapter 9, Subchapter F.
When the Comptroller receives the notice and required information from the school district, the Comptroller will publish all submitted application materials on its website. The Comptroller is authorized to treat some application information as confidential and withhold it from publication on the Internet. To do so, however, the information must be segregated and comply with the other requirements set out in the Comptroller rules. For more information, see guidelines on Comptroller’s website.
The Comptroller will independently determine whether the application has been completed according to the Comptroller’s rules (34 TAC Chapter 9, Subchapter F). If the Comptroller finds the application is not complete, the Comptroller will request additional materials from the school district. Pursuant to 9.1053(a)(1)(C), requested information shall be provided within 20 days of the date of the request. When the Comptroller determines that the application is complete, it will send the school district a notice indicating so. The Comptroller will determine the eligibility of the project, issue a certificate for a limitation on appraised value to the school board regarding the application and prepare an economic impact evaluation by the 90th day after the Comptroller receives a complete application—as determined by the Comptroller.
The school board must approve or disapprove the application not later than the 150th day after the application review start date (the date the application is finally determined to be complete), unless an extension is granted. The Comptroller and school district are authorized to request additional information from the applicant that is reasonably necessary to issue a certificate, complete the economic impact evaluation or consider the application at any time during the application review period.
Please visit the Comptroller’s website to find out more about the program at www.texasahead.org/tax_programs/chapter313/. There are links to the Chapter 313 statute, rules, guidelines and forms. Information about minimum limitation values for particular districts and wage standards may also be found at that site.
SECTION 1: School DIstrict Information
1. Authorized School District Representative
________________________________________________Date Application Received by District
________________________________________________ ________________________________________________First Name Last Name
___________________________________________________________________________________________________Title
___________________________________________________________________________________________________School District Name
___________________________________________________________________________________________________Street Address
___________________________________________________________________________________________________Mailing Address
________________________________________________ ____________________________ _________________City State ZIP
________________________________________________ ________________________________________________Phone Number Fax Number
________________________________________________ ________________________________________________Mobile Number (optional) Email Address
2. Does the district authorize the consultant to provide and obtain information related to this application? . . . . . . . . . . . . . . . . . . . . Yes No
For more information, visit our website: www.TexasAhead.org/tax_programs/chapter313/Page 2 • 50-296-A • 05-14/2
Economic Development and Analysis
Form 50-296-AA p p l i c a t i o n f o r A p p r a i s e d Va l u e L i m i t a t i o n o n Q u a l i f i e d P r o p e r t y
SECTION 1: School DIstrict Information (continued)
3. Authorized School District Consultant (If Applicable)
________________________________________________ ________________________________________________First Name Last Name
___________________________________________________________________________________________________Title
___________________________________________________________________________________________________Firm Name
________________________________________________ ________________________________________________Phone Number Fax Number
________________________________________________ ________________________________________________Mobile Number (optional) Email Address
4. On what date did the district determine this application complete? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ____________________
5. Has the district determined that the electronic copy and hard copy are identical? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
SECTION 2: Applicant Information
1. Authorized Company Representative (Applicant)
________________________________________________ ________________________________________________First Name Last Name
________________________________________________ ________________________________________________Title Organization
___________________________________________________________________________________________________Street Address
___________________________________________________________________________________________________Mailing Address
________________________________________________ ____________________________ _________________City State ZIP
________________________________________________ ________________________________________________Phone Number Fax Number
________________________________________________ ________________________________________________Mobile Number (optional) Business Email Address
2. Will a company official other than the authorized company representative be responsible for responding to future information requests? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
2a. If yes, please fill out contact information for that person.
________________________________________________ ________________________________________________First Name Last Name
________________________________________________ ________________________________________________Title Organization
___________________________________________________________________________________________________Street Address
___________________________________________________________________________________________________Mailing Address
________________________________________________ ____________________________ _________________City State ZIP
________________________________________________ ________________________________________________Phone Number Fax Number
________________________________________________ ________________________________________________Mobile Number (optional) Business Email Address
3. Does the applicant authorize the consultant to provide and obtain information related to this application? . . . . . . . . . . . . . . . . . . Yes No
For more information, visit our website: www.TexasAhead.org/tax_programs/chapter313/50-296-A • 05-14/2 • Page 3
A p p l i c a t i o n f o r A p p r a i s e d Va l u e L i m i t a t i o n o n Q u a l i f i e d P r o p e r t yEconomic Development
and AnalysisForm 50-296-A
SECTION 2: Applicant Information (continued)
4. Authorized Company Consultant (If Applicable)
________________________________________________ ________________________________________________First Name Last Name
___________________________________________________________________________________________________Title
___________________________________________________________________________________________________Firm Name
________________________________________________ ________________________________________________Phone Number Fax Number
________________________________________________Business Email Address
SECTION 3: Fees and Payments
1. Has an application fee been paid to the school district? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
The total fee shall be paid at time of the application is submitted to the school district. Any fees not accompanying the original application shall be con-sidered supplemental payments.
1a. If yes, attach in Tab 2 proof of application fee paid to the school district.
For the purpose of questions 2 and 3, “payments to the school district” include any and all payments or transfers of things of value made to the school dis-trict or to any person or persons in any form if such payment or transfer of thing of value being provided is in recognition of, anticipation of, or consideration for the agreement for limitation on appraised value.
2. Will any “payments to the school district” that you may make in order to receive a property tax value limitation agreement result in payments that are not in compliance with Tax Code §313.027(i)? . . . . . . . . . . . . . . . . . . . . . . . Yes No N/A
3. If “payments to the school district” will only be determined by a formula or methodology without a specific amount being specified, could such method result in “payments to the school district” that are not in compliance with Tax Code §313.027(i)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No N/A
SECTION 4: Business Applicant Information
1. What is the legal name of the applicant under which this application is made? ______________________________________________
2. List the Texas Taxpayer I.D. number of entity subject to Tax Code, Chapter 171 (11 digits) . . . . . . . . . . . . . . . . . . . . . . . ____________________
3. List the NAICS code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ____________________
4. Is the applicant a party to any other pending or active Chapter 313 agreements? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
4a. If yes, please list application number, name of school district and year of agreement
____________________________________________________________________________________________
SECTION 5: Applicant Business Structure
1. Identify Business Organization of Applicant (corporation, limited liability corporation, etc) ________________________________________
2. Is applicant a combined group, or comprised of members of a combined group, as defined by Tax Code §171.0001(7)? . . . . . . Yes No
2a. If yes, attach in Tab 3 a copy of Texas Comptroller Franchise Tax Form No. 05-165, No. 05-166, or any other documentation from the Franchise Tax Division to demonstrate the applicant’s combined group membership and contact information.
3. Is the applicant current on all tax payments due to the State of Texas? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
4. Are all applicant members of the combined group current on all tax payments due to the State of Texas? . . . . . . . Yes No N/A
5. If the answer to question 3 or 4 is no, please explain and/or disclose any history of default, delinquencies and/or any material litigation, including litigation involving the State of Texas. (If necessary, attach explanation in Tab 3)
For more information, visit our website: www.TexasAhead.org/tax_programs/chapter313/Page 4 • 50-296-A • 05-14/2
Economic Development and Analysis
Form 50-296-AA p p l i c a t i o n f o r A p p r a i s e d Va l u e L i m i t a t i o n o n Q u a l i f i e d P r o p e r t y
SECTION 6: Eligibility Under Tax Code Chapter 313.024
1. Are you an entity subject to the tax under Tax Code, Chapter 171? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
2. The property will be used for one of the following activities:
(1) manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
(2) research and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
(3) a clean coal project, as defined by Section 5.001, Water Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
(4) an advanced clean energy project, as defined by Section 382.003, Health and Safety Code . . . . . . . . . . . . . . . . . . . . . . Yes No
(5) renewable energy electric generation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
(6) electric power generation using integrated gasification combined cycle technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
(7) nuclear electric power generation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
(8) a computer center that is used as an integral part or as a necessary auxiliary part for the activity conducted by applicant in one or more activities described by Subdivisions (1) through (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
(9) a Texas Priority Project, as defined by 313.024(e)(7) and TAC 9.1051 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
3. Are you requesting that any of the land be classified as qualified investment? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
4. Will any of the proposed qualified investment be leased under a capitalized lease? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
5. Will any of the proposed qualified investment be leased under an operating lease? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
6. Are you including property that is owned by a person other than the applicant? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
7. Will any property be pooled or proposed to be pooled with property owned by the applicant in determining the amount of your qualified investment? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
SECTION 7: Project Description
1. In Tab 4, attach a detailed description of the scope of the proposed project, including, at a minimum, the type and planned use of real and tangible per-sonal property, the nature of the business, a timeline for property construction or installation, and any other relevant information.
2. Check the project characteristics that apply to the proposed project:
Land has no existing improvements Land has existing improvements (complete Section 13)
Expansion of existing operation on the land (complete Section 13) Relocation within Texas
SECTION 8: Limitation as Determining Factor
1. Does the applicant currently own the land on which the proposed project will occur? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
2. Has the applicant entered into any agreements, contracts or letters of intent related to the proposed project? . . . . . . . . . . . . . . Yes No
3. Does the applicant have current business activities at the location where the proposed project will occur? . . . . . . . . . . . . . . . . . Yes No
4. Has the applicant made public statements in SEC filings or other documents regarding its intentions regarding the proposed project location? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
5. Has the applicant received any local or state permits for activities on the proposed project site? . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
6. Has the applicant received commitments for state or local incentives for activities at the proposed project site? . . . . . . . . . . . . . Yes No
7. Is the applicant evaluating other locations not in Texas for the proposed project? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
8. Has the applicant provided capital investment or return on investment information for the proposed project in comparison with other alternative investment opportunities? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
9. Has the applicant provided information related to the applicant’s inputs, transportation and markets for the proposed project? . . . . Yes No
10. Are you submitting information to assist in the determination as to whether the limitation on appraised value is a determining factor in the applicant’s decision to invest capital and construct the project in Texas? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
Chapter 313.026(e) states “the applicant may submit information to the Comptroller that would provide a basis for an affirmative determination under Subsection (c)(2).” If you answered “yes” to any of the questions in Section 8, attach supporting information in Tab 5.
For more information, visit our website: www.TexasAhead.org/tax_programs/chapter313/50-296-A • 05-14/2 • Page 5
A p p l i c a t i o n f o r A p p r a i s e d Va l u e L i m i t a t i o n o n Q u a l i f i e d P r o p e r t yEconomic Development
and AnalysisForm 50-296-A
SECTION 9: Projected Timeline
1. Application approval by school board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________
2. Commencement of construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________
3. Beginning of qualifying time period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________
4. First year of limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________
5. Begin hiring new employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________
6. Commencement of commercial operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________7. Do you propose to construct a new building or to erect or affix a new improvement after your application review
start date (date your application is finally determined to be complete)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
Note: Improvements made before that time may not be considered qualified property.
8. When do you anticipate the new buildings or improvements will be placed in service? . . . . . . . . . . . . . . . . . . . . . . . . . _____________________
SECTION 10: The Property
1. Identify county or counties in which the proposed project will be located __________________________________________________
2. Identify Central Appraisal District (CAD) that will be responsible for appraising the property ______________________________________
3. Will this CAD be acting on behalf of another CAD to appraise this property? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
4. List all taxing entities that have jurisdiction for the property, the portion of project within each entity and tax rates for each entity:
County: _____________________________________ City: _____________________________________________ (Name, tax rate and percent of project) (Name, tax rate and percent of project)
Hospital District: _______________________________ Water District: _______________________________________ (Name, tax rate and percent of project) (Name, tax rate and percent of project)
Other (describe): _______________________________ Other (describe): _____________________________________ (Name, tax rate and percent of project) (Name, tax rate and percent of project)
5. Is the project located entirely within the ISD listed in Section 1? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
5a. If no, attach in Tab 6 additional information on the project scope and size to assist in the economic analysis.
6. Did you receive a determination from the Texas Economic Development and Tourism Office that this proposed project and at least one other project seeking a limitation agreement constitute a single unified project (SUP), as allowed in §313.024(d-2)? . . . . . . . . Yes No
6a. If yes, attach in Tab 6 supporting documentation from the Office of the Governor.
SECTION 11: Investment
NOTE: The minimum amount of qualified investment required to qualify for an appraised value limitation and the minimum amount of appraised value limita-tion vary depending on whether the school district is classified as Subchapter B or Subchapter C, and the taxable value of the property within the school district. For assistance in determining estimates of these minimums, access the Comptroller’s website at www.texasahead.org/tax_programs/chapter313/.
1. At the time of application, what is the estimated minimum qualified investment required for this school district? . . . . . . _____________________
2. What is the amount of appraised value limitation for which you are applying? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________ Note: The property value limitation amount is based on property values available at the time of application and
may change prior to the execution of any final agreement.
3. Does the qualified investment meet the requirements of Tax Code §313.021(1)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
4. Attach a description of the qualified investment [See §313.021(1).] The description must include:a. a specific and detailed description of the qualified investment you propose to make on the property for which you are requesting an appraised
value limitation as defined by Tax Code §313.021 (Tab 7);b. a description of any new buildings, proposed new improvements or personal property which you intend to include as part of your minimum quali-
fied investment (Tab 7); andc. a detailed map of the qualified investment showing location of tangible personal property to be placed in service during the qualifying time period
and buildings to be constructed during the qualifying time period, with vicinity map (Tab 11).
5. Do you intend to make at least the minimum qualified investment required by Tax Code §313.023 (or §313.053 for Subchapter C school districts) for the relevant school district category during the qualifying time period? . . . . . . . . . . . . . . . . . . Yes No
October 2017
July 2018
January 2019
January 2021
April 2019
July 2020
✔
2021
Chambers County
Chambers County Appraisal district
✔
Chambers County / 100% / .553 N/A
N/A N/A
See Tab 6 See Tab 6
✔
✔
100,000,000.00
100,000,000.00
✔
✔
For more information, visit our website: www.TexasAhead.org/tax_programs/chapter313/Page 6 • 50-296-A • 05-14/2
Economic Development and Analysis
Form 50-296-AA p p l i c a t i o n f o r A p p r a i s e d Va l u e L i m i t a t i o n o n Q u a l i f i e d P r o p e r t y
SECTION 12: Qualified Property
1. Attach a detailed description of the qualified property. [See §313.021(2)] (If qualified investment describes qualified property exactly, you may skip items a, b and c below.) The description must include:
1a. a specific and detailed description of the qualified property for which you are requesting an appraised value limitation as defined by Tax Code §313.021 (Tab 8);
1b. a description of any new buildings, proposed new improvements or personal property which you intend to include as part of your qualified prop-erty (Tab 8); and
1c. a map of the qualified property showing location of new buildings or new improvements with vicinity map (Tab 11).
2. Is the land upon which the new buildings or new improvements will be built part of the qualified property described by §313.021(2)(A)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
2a. If yes, attach complete documentation including:
a. legal description of the land (Tab 9);
b. each existing appraisal parcel number of the land on which the new improvements will be constructed, regardless of whether or not all of the land described in the current parcel will become qualified property (Tab 9);
c. owner (Tab 9);
d. the current taxable value of the land. Attach estimate if land is part of larger parcel (Tab 9); and
e. a detailed map showing the location of the land with vicinity map (Tab 11).
3. Is the land on which you propose new construction or new improvements currently located in an area designated as a reinvestment zone under Tax Code Chapter 311 or 312 or as an enterprise zone under Government Code Chapter 2303? . . . . Yes No
3a. If yes, attach the applicable supporting documentation:
a. evidence that the area qualifies as a enterprise zone as defined by the Governor’s Office (Tab 16);
b. legal description of reinvestment zone (Tab 16);
c. order, resolution or ordinance establishing the reinvestment zone (Tab 16);
d. guidelines and criteria for creating the zone (Tab 16); and
e. a map of the reinvestment zone or enterprise zone boundaries with vicinity map (Tab 11)
3b. If no, submit detailed description of proposed reinvestment zone or enterprise zone with a map indicating the boundaries of the zone on which you propose new construction or new improvements to the Comptroller’s office within 30 days of the application date. What is the anticipated date on which you will submit final proof of a reinvestment zone or enterprise zone? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________
SECTION 13: Information on Property Not Eligible to Become Qualified Property
1. In Tab 10, attach a specific and detailed description of all existing property. This includes buildings and improvements existing as of the application review start date (the date the application is determined to be complete by the Comptroller). The description must provide sufficient detail to locate all existing property on the land that will be subject to the agreement and distinguish existing property from future proposed property.
2. In Tab 10, attach a specific and detailed description of all proposed new property that will not become new improvements as defined by TAC 9.1051. This includes proposed property that: functionally replaces existing or demolished/removed property; is used to maintain, refurbish, renovate, modify or upgrade existing property; or is affixed to existing property; or is otherwise ineligible to become qualified property. The description must provide sufficient detail to distinguish existing property (question 1) and all proposed new property that cannot become qualified property from proposed qualified property that will be subject to the agreement (as described in Section 12 of this application).
3. For the property not eligible to become qualified property listed in response to questions 1 and 2 of this section, provide the following supporting information in Tab 10:
a. maps and/or detailed site plan;
b. surveys;
c. appraisal district values and parcel numbers;
d. inventory lists;
e. existing and proposed property lists;
f. model and serial numbers of existing property; or
g. other information of sufficient detail and description.
4. Total estimated market value of existing property (that property described in response to question 1): . . . . . . . . . . . . $ _____________________
5. In Tab 10, include an appraisal value by the CAD of all the buildings and improvements existing as of a date within 15 days of the date the application is received by the school district.
6. Total estimated market value of proposed property not eligible to become qualified property (that property described in response to question 2): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ _____________________
Note: Investment for the property listed in question 2 may count towards qualified investment in Column C of Schedules A-1 and A-2, if it meets the require-ments of 313.021(1). Such property cannot become qualified property on Schedule B.
For more information, visit our website: www.TexasAhead.org/tax_programs/chapter313/50-296-A • 05-14/2 • Page 7
A p p l i c a t i o n f o r A p p r a i s e d Va l u e L i m i t a t i o n o n Q u a l i f i e d P r o p e r t yEconomic Development
and AnalysisForm 50-296-A
SECTION 14: Wage and Employment Information
1. What is the estimated number of permanent jobs (more than 1,600 hours a year), with the applicant or a contractor of the applicant, on the proposed qualified property during the last complete quarter before the application review start date (date your application is finally determined to be complete)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________
2. What is the last complete calendar quarter before application review start date:
First Quarter Second Quarter Third Quarter Fourth Quarter of _________ (year)
3. What were the number of permanent jobs (more than 1,600 hours a year) this applicant had in Texas during the most recent quarter reported to the Texas Workforce Commission (TWC)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________
Note: For job definitions see TAC §9.1051 and Tax Code §313.021(3).
4. What is the number of new qualifying jobs you are committing to create? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________
5. What is the number of new non-qualifying jobs you are estimating you will create? . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________
6. Do you intend to request that the governing body waive the minimum new qualifying job creation requirement, as provided under Tax Code §313.025(f-1)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
6a. If yes, attach evidence in Tab 12 documenting that the new qualifying job creation requirement above exceeds the number of employees neces-sary for the operation, according to industry standards.
7. Attach in Tab 13 the four most recent quarters of data for each wage calculation below, including documentation from the TWC website. The final actual statutory minimum annual wage requirement for the applicant for each qualifying job — which may differ slightly from this estimate — will be based on information from the four quarterly periods for which data were available at the time of the application review start date (date of a completed application). See TAC §9.1051(21) and (22).
a. Average weekly wage for all jobs (all industries) in the county is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________
b. 110% of the average weekly wage for manufacturing jobs in the county is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________
c. 110% of the average weekly wage for manufacturing jobs in the region is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________
8. Which Tax Code section are you using to estimate the qualifying job wage standard required for this project? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . §313.021(5)(A) or §313.021(5)(B)
9. What is the minimum required annual wage for each qualifying job based on the qualified property? . . . . . . . . . . . . . . _____________________
10. What is the annual wage you are committing to pay for each of the new qualifying jobs you create on the qualified property? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________
11. Will the qualifying jobs meet all minimum requirements set out in Tax Code §313.021(3)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
12. Do you intend to satisfy the minimum qualifying job requirement through a determination of cumulative economic benefits to the state as provided by §313.021(3)(F)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
12a. If yes, attach in Tab 12 supporting documentation from the TWC, pursuant to §313.021(3)(F).
13. Do you intend to rely on the project being part of a single unified project, as allowed in §313.024(d-2), in meeting the qualifying job requirements? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No
13a. If yes, attach in Tab 6 supporting documentation including a list of qualifying jobs in the other school district(s).
SECTION 15: Economic Impact
1. Complete and attach Schedules A1, A2, B, C, and D in Tab 14. Note: Excel spreadsheet versions of schedules are available for download and printing at URL listed below.
2. Attach an Economic Impact Analysis, if supplied by other than the Comptroller’s Office, in Tab 15. (not required)
3. If there are any other payments made in the state or economic information that you believe should be included in the economic analysis, attach a sepa-rate schedule showing the amount for each year affected, including an explanation, in Tab 15.
Tab 2
Application Fee
Tab 3
Combined Group
NOT APPLICABLE
Tab 3 Combined Group
The Applicant does not file as part of a combined group in the State of Texas, as defined by Tax Code §171.0001(7).
Tab 4
Project Description
Tab 4 Detailed Project Description
The Applicant is a subsidiary of the JSW Group, an $11 billion conglomerate, who is a worldwide leading supplier of steel products and energy. JSW Steel (USA) Inc. (“JSW USA” or the “Company”) is considering a strategic expansion option for the operations currently located in Baytown, Texas which is the JSW Group’s only steel manufacturing location in North America. The JSW Group has limited capital dollars that it invests across the globe into its 63 facilities in 25 cities on 4 continents. To be successful in competition for these dollars, it is imperative that the Baytown management team develops a strong economic argument which demonstrate sufficient financial return to the organization. JSW Group’s board of directors in India is evaluating this project as well as several other capital projects at this time and partnerships with the state and local governments are a critical component of the evaluation process. The proposed Baytown project would include construction throughout 2018-2020 of a new melt and casting facility designed to produce metal slab. The construction of the facility and the associated equipment results in a capital investment of approximately $250 million. As part of the project, the facility will house a new electric arc furnace (EAF), ladle furnace, vacuum tank degasser, and caster. These specific pieces of equipment will contain the latest technological advancements available in the industry. This proposed Baytown project would result in the creation of 500 new Texas jobs with annual average wages of approximately $65,000. If constructed in Texas, this state-of-the-art melt shop facility would be the first new U.S. facility to melt steel in decades. If constructed alongside the Company’s existing plate and pipe mill, JSW USA could create the only facility of its kind in North America.
Tab 5
Limitation as Determining Factor
Tab 5 Limitation as Determining Factor
The Applicant is a subsidiary of the JSW Group, an $11 billion conglomerate, which is a worldwide leading supplier of steel products and energy. JSW Group is headquartered in India and employs over 40,000 employees globally with 63 locations in Asia, North America, South America, and Africa. As such, the Applicant competes with other members of the JSW Group for approval of a portion of the group’s capital investment budget to fund the capital investment necessary to construct the project. Moreover, the JSW Group has the ability to invest, locate, and develop new projects, such as the one that is the subject of this application, in numerous locations throughout the world. The JSW Group takes a disciplined, long-term approach to investing, regardless of the economic cycle and the geographic location. They consistently seek new global investment opportunities that create value for their stakeholders. Their business model is to conduct an extensive evaluation before they make any final investment decisions. A project team is evaluating these opportunities with a focus on global logistic capabilities, efficiency, scale, and site integration. The company has made no public announcements of a definitive intent to construct the proposed new melt and casting facility adjacent to the Applicant’s Baytown, Texas pipe and plate mill. With respect to potential locations in North America, the Applicant is also reviewing possible construction sites in Louisiana and Arkansas (see attached summary of potential incentives prepared for both; certain sensitive information has been redacted). Competitive abatement programs for the proposed new melt and casting facility exist in alternative locations. The impact of the property tax burden on the economic return of the proposed new facility is an important factor in the Applicant’s site selection evaluation and decision, as well as in obtaining approval for the project internally with the JSW Group’s board of directors in India. For the tax year 2016, Goose Creek CISD’s maintenance and operations (M&O) tax rate represents almost 40% of the total property tax burden imposed on taxable property located at the Baytown location. Consequently, a limitation on appraised value under Chapter 313 of the Texas Tax Code is a determining factor in the Applicant’s decision to invest capital and construct the Project in the State of Texas. The decision to make an investment in a particular jurisdiction depends on the economics of the investment in that jurisdiction. JSW Group’s decision to proceed with the investment in the proposed project will be based on a number of commercial, regulatory, and financial considerations, including the ability to obtain relief regarding property taxes. Capital investments are allocated to projects and locations based on expected economic return, and projected property tax liabilities associated with the proposed project are a substantial ongoing cost of operation. With all the global project proposals JSW Group is considering, the Applicant is requesting a significant portion of the JSW Group's capital investment budget relative to the Applicant's small size within the JSW Group’s global portfolio. The projected tax liabilities for the proposed project, without a Chapter 313 appraised value limitation, lower the economic rate of return and detract from the financial attractiveness of the project. In turn, the project becomes t less competitive with other capital intensive projects that deliver higher rates of return on invested capital. Accordingly, securing a Chapter 313 appraised value limitation is critical to establishing a rate of return competitive with other investment opportunities and, therefore, is an important factor affecting JSW Group’s final investment decision to construct and operate the proposed project in Texas.
A comparison of Goose Creek CISD’s M&O ad valorem taxes with and without the Chapter 313 appraised limitation through the 10th anniversary of the beginning of the limitation period using the current Goose Creek CISD M&O ad valorem tax rate of $1.17 per $100 of the estimated M&O taxable values on Schedule B is shown below:
M&O Ad Valorem Tax Comparison
For Goose Creek CISD With and without Chapter 313 appraised value limitation
Tax Year M&O Taxes Without 313
M&O Taxes With 313
2021 $2,411,370 $1,170,000 2022 $2,363,985 $1,170,000 2023 $2,275,650 $1,170,000 2024 $2,203,110 $1,170,000 2025 $2,114,775 $1,170,000 2026 $2,051,595 $1,170,000 2027 $1,994,850 $1,170,000 2028 $1,906,515 $1,170,000 2029 $1,818,180 $1,170,000 2030 $1,729,845 $1,170,000 Total $20,869,875 $11,700,000
Difference ($9,169,875)
As shown in the attachment, the Chapter 313 appraised value limitation is projected to result in $9.17 million in tax savings. These savings have a material impact on the rate of return and discounted cash flow projections for the project and are equivalent to 3.7% of the projected total investment in the proposed project, which is considered material for financial purposes. At present, the Applicant has received the following offers for local incentives (formal approvals subject to local government approval) at the proposed Baytown project site:
• Chambers County Chapter 381 County Incentive • City of Baytown Industrial District Agreement
Tentative Prelim
inary
Subject to Review
Change
For Discussion Purposes O
nly
Date: 3/7/2017
Page 1 of 4
Summ
ary of Potential Arkansas IncentivesPrepared by: G
rant Thornton LLP
Assumptions
LocationA
rkansasJob Creation
Low-E
ndH
igh-End
Average Salary N
ew Jobs
Personal PropertyReal PropertyLandO
therT
otal Capital Investment
Program N
ame
BenefitN
egotiated / StatutoryProgram
Description
Eligibility
Estim
ated Values
Comm
entsLow
High
I. State Incentives
Sales And Use T
ax Refund
For New
And Expanding
Businesses (Tax Back)
Sales & U
se TaxN
egotiated
Through the state's Tax Back program, A
rkansas provides sales tax refunds onthe purchase of building m
aterials and taxable machinery and equipm
ent toqualified businesses m
eeting investment and job creation requirem
ents. Theprogram
does not allow the refund of tax dedicated to educational or
conservation funds offers sales and use tax, which total 1 percent. W
ith the statesale and use tax rate set at 6.5 percent, the rem
aining 5.5 percent would be
eligible for refund.
Qualifying businesses include m
anufacturers investing more than $100,000 in an
approved project located in Arkansas. A
dditionally, the business must sign a job
creation agreement under the A
dvantage Arkansas or Create Rebate program
sw
ithin 24 months of the Tax Back agreem
ent.
$$
0
Applicants for Tax Back m
ust obtain an endorsement
resolution from a local governing authority authorizing the
refund of its local taxes. Applicants m
ust meet the
qualification criteria under the requisite Advantage
Arkansas or Create Rebate program
in which they are
participating and must be approved by A
rkansas Econom
icD
evelopment Corporation (A
ED
C).
Advantage Arkansas(Incom
e Tax Credit)
Income Tax
Negotiated
Arkansas offers corporate incom
e tax credits to for job creation based on thepayroll of new
, full-time, perm
anent employees hired as the result of a capital
investment project w
ith the state and is earned each tax year for a period of fiveyears. Credit am
ounts awarded through A
dvantage Arkansas range from
1 to 4percent of qualified payroll. The credit cannot offset m
ore than 50 percent of abusiness’ incom
e tax liability in any one year and may be carried forw
ard for nine(9) years beyond the tax year in w
hich the credit was first earned. The credit
begins in the tax year in which the new
employees are hired. E
mployees included
in the new additional payroll under the project m
ust be Arkansas taxpayers.
In order to qualify, taxpayers must m
eet certain job creation, wage and qualifying
investment thresholds. In order to qualify for the A
dvantage Arkansas program
(all tiers), the proposed average hourly wage of the new
employees hired as a
result of the project must be equal to or greater than the low
est county averagehourly w
age. Currently, the average hourly wage threshold for the A
dvantageA
rkansas program is $10.99.
$$
Benefits provided by the Advantage A
rkansas program are
determined in relation to the tier of the county in w
hichthe project is located. Tiers are determ
ined annually byA
ED
C. In addition, due to the limitations on the
utilization of the tax credit, a detailed tax impact analysis of
the project must be conducted to provide a better
understanding of the value.
Investment Incom
e Tax
Credit (ArkPlus)Incom
e TaxN
egotiated
Arkansas offers a state incom
e tax credit through its ArkPlus program
. Thisdiscretionary incentive is offered in highly com
petitive situations and allows a
state income tax credit of 10 percent of the total investm
ent in a new location.
The credit may be used to offset 50 percent of the A
rkansas income tax liability
in the tax year the credit is earned. Any unused credits m
ay be carried forward
for nine (9) years beyond the tax year in which the credit w
as first earned.
ArkPlus requires both a m
inimum
investment and a m
inimum
payroll of new,
full-time, perm
anent employees hired as a result of the project. Total project
expenditures must be incurred w
ithin four (4) years of the date the project isapproved by A
ED
C. New
, full-time, perm
anent employees m
ust be hiredw
ithin 48 months of the date the financial agreem
ent is signed.
$-
$
Minim
um investm
ent and minim
um payroll requirem
entsfor the A
rkPlus program are determ
ined in relation to thetier of the county in w
hich the project is located. Tiers aredeterm
ined annually by AE
DC. In addition, due to the
limitations on the utilization of the tax credit, a detailed tax
impact analysis of the project m
ust be conducted toprovide a better understanding of the value. Term
s arenegotiated w
ith AE
DC.
Create Rebate
Cash RebateN
egotiated
Through the state's Create Rebate program, the state offers annual cash
payments based on a com
pany’s annual payroll for new, full-tim
e, permanent
employees. Credit am
ounts awarded through Create Rebate range from
3.9percent-5 percent of qualified payroll. Benefits are available after the businesscertifies to the A
rkansas Departm
ent of Finance & A
dministration that it has
fulfilled the minim
um payroll requirem
ents and the reported payroll has beenverified.
In order to qualify, taxpayers must create a m
inimum
of $2 million annually in
new payroll. The m
inimum
payroll must be m
et within 24 m
onths of theeffective date of the financial incentive agreem
ent. No benefits m
ay be claimed
until the $2 million annual payroll threshold is m
et.
$$
0
Benefits provided by the Create Rebate program are
determined in relation to the tier of the county in w
hichthe job creation occurs. Tiers are determ
ined annually byA
ED
C. Terms are negotiated w
ith AE
DC.
Infrastructure Grants
Grant
Negotiated
AE
DC shares the cost of project infrastructure needs by com
mitting grants
from state and federal infrastructure funds. The am
ount of assistance comm
ittedis dependent upon the strength of the com
pany, number of jobs, average w
age,project investm
ent and costs associated with facility or site im
provements.
Qualifying businesses include m
anufacturers investing in an approved projectlocated in A
rkansas.
Governor's Q
uick Action Closing Fund and Com
munity
Developm
ent Block Grants m
ay be available to offset thecost of project infrastructure.
Tentative Prelim
inary
Subject to Review
Change
For Discussion Purposes O
nly
Date: 3/7/2017
Page 2 of 4
Arkansas Business andIndustry T
raining Program(BIT
P)Training Funds
Negotiated
Through the Business and Industry Training Program (BITP), A
rkansas has theability to help new
businesses offset workforce training costs. Program
fundsare focused in three areas including; providing financial assistance to recruitingnew
or expanding workforce in A
rkansas, providing pre-employm
ent training asw
ell as on-the-job training.
Qualifying businesses include m
anufacturers investing in an approved projectlocated in A
rkansas. Financial assistance is not allowed for salary of trainees or
new hires.
TBDTBD
Hours of instruction and the num
ber of instructors dependon the types of jobs that require training.
II. Local Incentives
Payment-In-Lieu-O
f-Tax
(PILOT
)Property Tax
Negotiated
Businesses may be able to offset property tax assessm
ents on both real andpersonal property by agreeing to a paym
ent-in-lieu-of-tax (PILOT) w
ith the localgovernm
ent. Property financed by bonds can be exempted from
city and countyproperty taxes during the lease period in w
hich a local government retains title to
the property. The negotiated PILOT can not be less than 35 percent of the
property taxes that would have been paid if the property w
ere on the tax rolls,unless a lesser am
ount is approved by the AE
DC and the State of A
rkansas.
Negotiated paym
ent-in-lieu-of-taxes made by businesses to local governm
ents inlieu of property taxes are generally encouraged and negotiated betw
een theparties involved.
Arkansas cities and counties calculate property tax based
on 20 percent of the market value of real and personal
property and the average annual value of manufacturers'
inventories based on millage rates in individual school
districts. Businesses are subject to annual property tax onall real and personal property.
Comm
unity Developm
entBlock G
rant (CDBG
)G
rantN
egotiatied
The Arkansas Com
munity and E
conomic D
evelopment Program
(ACE
DP) is
the Comm
unity Developm
ent Block Grant (CD
BG) program
for the State ofA
rkansas and is administered by A
ED
C under a grant agreement betw
een thestate of A
rkansas and the federal government. The CD
BG program
is a flexibleprogram
that provides comm
unities to be used for a wide range of developm
entneeds.
Eligible applicants include rural cities and counties w
ith a low-to-m
oderateincom
e population of at least 51 percent. Larger cities receive their own funding
and are not eligible for funds from the program
administered by A
ED
C. Thecities receiving their ow
n CDBG
allocation are: Conway, Fayetteville, Fort
Smith, H
ot Springs, Jacksonville, Jonesboro, Little Rock, North Little Rock,
Pine Bluff, Rogers, Springdale, Texarkana, and West M
emphis.
$-
$The m
aximum
benefit allowed under this program
variesdepending on the locatiion.
III. Federal Incentives
Federal New
Markets T
axCredits
FinancingN
egotiated
The federal government offers tax credits to incentive the investm
ent in lowincom
e areas of the country. The tax credit must be m
onetized by the businessand is sold to a third party. A
s a result, the company realizes the benefit through
a non-amortizing loan w
hich is forgiven over a 7-year period. In order toparticipate, an allocation of credits m
ust be obtained from a third-party entity.
Qualifying projects m
ust be located in some of the m
ost distressed comm
unitiesin the nation. These qualifying census tracts include those w
here the individualpoverty rate is at least 20 percent or w
here median fam
ily income does not
exceed 80 percent of the area median.
$0
The program is highly com
petitive to obtain and anallocation m
ust be obtained from a third party entity. The
company project m
ust be located in a qualified area to beconsidered for an allocation.
Program N
ame
BenefitN
egotiated / StatutoryProgram
Description
Eligibility
Estim
ated Values
Comm
entsLow
High
Tentative Prelim
inary
Subject to Review
Change
For Discussion Purposes O
nly
Date: 3/7/2017
Page 3 of 4
Summ
ary of Potential Louisiana IncentivesPrepared by: G
rant Thornton LLP
Assumptions
LocationLouisiana
Job CreationLow
-End
High-E
ndA
verage Salary New
JobsPersonal PropertyReal PropertyLandO
therT
otal Capital Investment
Program N
ame
BenefitN
egotiated / StatutoryProgram
Description
Eligibility
Estim
ated Values
Comm
entsLow
High
I. State Incentives
Competitive Projects Payroll
Incentive Program R
ebateIncentive
Withholding Tax
Negotiated
The Competitive Projects Payroll Incentive (CPPI) Program
provides anincentive rebate of up to 15 percent of a participating com
pany's new payroll for
up to 10 years. Additionally, a participating com
pany will be eligible for either a
rebate of state sales and use taxes on capital expenditures or a 1.2 percentproject facility expense rebate.
The company m
ust be in a qualifying industry. At least 50 percent of the total
sales of the business from its Louisiana site or sites are to out-of-state custom
ersor buyers, or to in-state custom
ers or buyers who resell the product or service to
an out-of-state customer or buyer for ultim
ate use, or to the federal government,
or any combination. Projects selected to participate in the program
must
demonstrate net new
jobs and payroll within the state and the project is deem
edto be com
petitive in nature. The business offers, or will offer w
ithin ninety daysof the effective date of qualifying for the incentive rebates, a basic healthbenefits plan to the individuals it em
ploys.
TBDTBD
Terms are negotiated w
ith the Louisiana Econom
icD
evelopment office. Based on our initial review
of thebusiness plan and the current program
guidelines, we
believe there is a low-probability of successfully negotiating
this program. H
owever, given the size of this project, w
eare including it as a possibility since the state m
ay considerchanging program
guidelines.
Enterprise Zone Program
Income/Franchise Tax / Sales
& U
se TaxStatutory
The Enterprise Z
one, or EZ
program is a jobs incentive program
that providesLouisiana incom
e and franchise tax credits to a new or existing business located
in Louisiana creating permanent net new
full-time jobs, and hiring at least 50%
of those net new jobs from
one of four targeted groups. The benefit provides:E
ither a one-time $3,500 or $1,000 tax credit for each net new
job created. Arebate of state sales and use taxes paid on qualifying m
aterials, machinery,
furniture, and/or equipment purchased or a 1.5%
refundable investment tax
credit on the total capital investment, excluding tax exem
pted items. The rebate
shall not exceed $100,000 per net new job.
Company m
ust be located within the boundaries of a state E
Z and create a
minim
um of five perm
anent net new full-tim
e jobs within 24 m
onths of theirproject start date or increase their current nationw
ide workforce by 10%
within
the first 12 months. H
ire 50% of the net new
jobs created from one or m
ore ofthe certification requirem
ents from residents w
ho live in Enterprise Z
one within
the state, people receiving an approved form of public assistance, people lacking
basic skills, or people unemployable by traditional standards.
Probability of success varies for this program. H
owever, if
the project is located within the boundaries of an E
Z, it
will qualify for the benefits. Com
pany cannot take theQ
uality Jobs and the Enterprise Z
one program.
Louisiana Fast StartTraining A
ssistanceN
egotiated
The state offers a no-cost workforce training initiative offering services such as
employee recruitm
ent and screening, including assessments, safety and
teamw
ork training, leadership development for m
anagers, and specializedassistance for em
ployees as they transition to new positions. FastStart also
provides the development and delivery of key certification program
s acrossLouisiana's w
orkforce development system
. In addition, services include deliveryof com
prehensive and customized training for industry specific processes and
procedures.
A qualified project m
ust be creating a minim
um of 15 new
permanent
manufacturing or distribution jobs, or at least 50 new
, permanent service-related
jobs.
TBDTBD
Value of the benefit m
ay vary depending on the trainingneeds of the com
pany.
Quality Jobs Program
Income/Franchise Credit /
Sales & U
se Tax /W
ithholding TaxN
egotiated
The Quality Jobs, or Q
J, program provides a cash rebate to com
panies thatcreate w
ell-paid jobs and promote econom
ic development. The program
provides up to a 6% cash rebate on 80%
of gross payroll for new direct jobs for
up to 10 years. Effective July 1, 2018, the rebate is available on 100%
of grossannual payroll. It also provides a 4%
sales/use rebate on capital expenditures ora 1.5%
refundable investment tax credit on the total capital investm
ent,excluding tax exem
pted items.
Company m
ust be in a qualifying industry. In addition, the company m
ust dothe follow
ing: 1) create a minim
um of five new
direct full-time jobs (30 hours
per week); 2) provide a basic health benefit plan/health insurance coverage; 3)
pay employees at least $14.50 per hour in w
ages and healthcare benefits; and 4)have a gross payroll of $250,000 if the com
pany has 50 or fewer em
ployees state-w
ide prior to the start date of the contract, or $500,000 if the company has m
orethan 50 em
ployees statewide prior to the start date of the contract.
The company is in an industry that qualifies for the
program. The state places additional program
requirements on health care w
hich can be provided uponrequest. A
ctual terms are negotiated w
ith the LouisianaE
conomic D
evelopment office. The com
pany cannot takeadvantage of the Q
uality Jobs program and the E
nterpriseZ
one.
Tentative Prelim
inary
Subject to Review
Change
For Discussion Purposes O
nly
Date: 3/7/2017
Page 4 of 4
Industrial Tax E
xemption
Property TaxN
egotiatedThe state offers local property tax abatem
ents for up to 10 years on am
anufacturer's new investm
ent and annual capitalized additions related to them
anufacturing site.
Only m
anufacturers can take advantage of this program. Therefore, to qualify
the company m
ust be engaged in processing or manufacturing in the state to
qualify. Although job creation is not a form
al requirement, the state considers
the number of jobs created in its evaluation of a request for assistance through
the program.
$
Although local tax abatem
ents are awarded by
municipalities in m
ost states, in Louisiana they are awarded
by the state. Furthermore, the local unit of governm
ent isnot required to approve the benefit, but they are notifiedby the state. This program
is most often used for existing
industries.II. Local Incentives
Payment-In-Lieu of T
axAgreem
entProperty Tax
Negotiated
Businesses may be able to offset property tax assessm
ents on both real andpersonal property by agreeing to a paym
ent-in-lieu-of-tax (PILOT) w
ith the city,parish, port com
mission or industrial developm
ent board. Property financed bybonds can be exem
pted from local property taxes during the lease period in
which a local governm
ent retains title to the property. through this program, an
abatement can be extended for u p to 20 years.
PILOT applicants m
ust show that the benefits to the com
munity in the form
ofadditional em
ployment through construction or through perm
anent jobscreation, m
inimum
annual payroll, sales tax revenues, etc., will equal or exceed
the reduction in property tax payments.
$
Local Option Sales T
axR
ebate (AdvantageProgram
s)Sales Tax
Negotiated
Local units of government m
ay offer local option sales and use tax rebate thatcan be applied to building m
aterials, machinery, equipm
ent and permanent
fixtures purchased for the construction and start-up of the qualifying project. An
additional incentive could also offer a ten year exemption on local ad valorem
taxes for new or expanded property and equipm
ent.
Louisiana mandates that the com
pany must certify that it is a com
petitiveproject, create/retain 20 jobs, and the project m
ust be pre-qualified to receivethe State of Louisiana's E
nterprise Zone or Q
uality Jobs incentive.$
-$
Comm
unity Developm
entBlock G
rant (CDBG
)G
rantN
egotiated
Through the Louisiana Comm
unity Developm
ent Block Grant Program
(LCDBG
), the state awards and adm
inisters federal financial assistance to unitsof general local governm
ent in federally designated areas of the state to furtherdevelop com
munities by expanding econom
ic opportunities in accordance with
federal statutory requirements. Funds are generally restricted to support
infrastructure projects.
Eligible applicants are units of general local governm
ent, such as eligiblem
unicipalities and parishes. These applicants pass funds along to thecorresponding business project.
$-
$The m
aximum
benefit allowed under this program
variesdepending on the location.
III. Federal Incentives
New
Markets T
ax CreditsFinancing
Negotiated
The federal government offers tax credits to incentive the investm
ent in lowincom
e areas of the country. The tax credit must be m
onetized by the businessand is sold to a third party. A
s a result, the company realizes the benefit through
a non-amortizing loan w
hich is forgiven over a 7-year period. In order toparticipate, an allocation of credits m
ust be obtained from a third-party entity.
Qualifying projects m
ust be located in some of the m
ost distressed comm
unitiesin the nation. These qualifying census tracts include those w
here the individualpoverty rate is at least 20 percent or w
here median fam
ily income does not
exceed 80 percent of the area median.
$-
$
The program is highly com
petitive to obtain and anallocation m
ust be obtained from a third party entity. The
company project m
ust be located in a qualified area to beconsidered for an allocation.
Program N
ame
BenefitN
egotiated / StatutoryProgram
Description
Eligibility
Estim
ated Values
Comm
entsLow
High
Tab 6
Multiple Districts
NOT APPLICABLE
Tab 6 Multiple Districts
The project is located entirely (100%) within the boundaries of Goose Creek CISD and Chambers County. The project is also located 100% in the following taxing entities and the 2016 tax rate is shown below for each:
JURISDICTION 2016 TAX RATE
NAV Dist. .018 CO Imp Dist .66 Goose Creek ISD 1.43189 Lee College .2453
Tab 7
Qualified Investment Description
Tab 7 Qualified Investment Description
The Applicant’s current Baytown operations are comprised of a 1.8 million square foot facility located at 5200 E McKinney Road. Currently, the Applicant operates plate and pipe mill at this location which is designed to manufacture flat and long steel products. If approved, the proposed Baytown capital project involves the construction of a new melt and casting facility designed to produce metal slab. The construction of the facility and the associated equipment results in a capital investment of approximately $250 million. As part of the project, the facility will house a new electric arc furnace (EAF), ladle furnace, vacuum tank degasser, and caster. These specific pieces of equipment will contain the latest technological advancements available in the industry.
The qualified investment will be located on land currently owned by the Applicant.
Below is a list of the major equipment to be purchased for and utilized in the proposed facilities:
• EAF; • Ladle furnace; • Vacuum tank degasser; and • Caster;
Additional infrastructure to support this property will include:
• Site development; • Additional power lines; • Gas line enhancement; and • Water reservoir work.
Construction is proposed to be initiated in July 2018, with the commencement of commercial operations in October 2020. The successful implementation of this project is pending the following: 1) all necessary regulatory approvals are obtained; 2) adequate customer commitments are secured; 3) supportive economic development incentives are provided; 4) sufficient project financing is arranged; and 5) corporate board approval from JSW Group is received.
Tab 8
Qualified Property Description
Tab 8 Qualified Property Description
The Applicant’s current Baytown operations are comprised of a 1.8 million square foot facility located at 5200 E McKinney Road. Currently, the Applicant operates plate and pipe mill at this location which is designed to manufacture flat and long steel products. If approved, the proposed Baytown capital project involves the construction of a new melt and casting facility designed to produce metal slab. The construction of the facility and the associated equipment results in a capital investment of approximately $250 million. As part of the project, the facility will house a new electric arc furnace (EAF), ladle furnace, vacuum tank degasser, and caster. These specific pieces of equipment will contain the latest technological advancements available in the industry.
The qualified investment will be located on land currently owned by the Applicant.
Below is a list of the major equipment to be purchased for and utilized in the proposed facilities:
• EAF; • Ladle furnace; • Vacuum tank degasser; and • Caster;
Additional infrastructure to support this property will include:
• Site development; • Additional power lines; • Gas line enhancement; and • Water reservoir work.
Construction is proposed to be initiated in July 2018, with the commencement of commercial operations in October 2020. The successful implementation of this project is pending the following: 1) all necessary regulatory approvals are obtained; 2) adequate customer commitments are secured; 3) supportive economic development incentives are provided; 4) sufficient project financing is arranged; and 5) corporate board approval from JSW Group is received.
Tab 9
Land Description
Tab 9 Land Description
The land upon which the new buildings or new improvements will be built will not be part of the qualified property described by 313.021(2)(A). JSW owns 615 acres. The project is located on the following land parcels in Chambers County, Texas: PROPERTY ID GEOGRAPHIC ID NO. LAND (ACRES) 2016 MARKET VALUE 34054 00015-00000-00300-360800 132.990 $ 2,393,820 30188 00015-00000-00300-360200 47.611 $ 857,000
Totals 180.601 $ 3,250,820 See attached CCAD account details and Tab 11 for map.
Property ID: 34054 Owner: U S DENRO STEELS INC
Property ID:
34054
Property Legal Description:
15 TR 0-3-8 JOHN IJAMS
Property Location:
Survey / Sub Division Abstract:
Account Number:
00015-00000-00300-360800
Deed Information:
Volume:
Page:
File Number:
Deed Date:
932
553
22694
2/6/2007
Block:
Section / Lot:
Owner Information:
U S DENRO STEELS INC
5200 MCKINNEY ROAD #200
BAYTOWN TX 77523
Previous Owner:
UNITED STATES STEEL LLC
Property Detail:
Property Exempt:
Category / SPTB Code:
Total Acres:
Total Living Sqft:
Owner Interest:
Homestead Exemption:
Homestead Cap Value:
Land Ag / Timber Value:
Land Market Value:
Improvement Value:
Property Market Value:
E
132.990
See Detail
1.000000
0
0
2,393,820
0
2,393,820
Jur Code Jur Name Total Market Homestead Total Exemption Taxable
01 CHAMBERS COUNTY 2,393,820 0 2,393,820
01R CHAMBERS COUNTY ROAD 2,393,820 0 2,393,820
32 GOOSECREEK ISD 2,393,820 0 2,393,820
32IS GOOSECREEK ISD I&S 2,393,820 0 2,393,820
60 CHAMBERS-LIBERTY NAV 2,393,820 0 2,393,820
64 LEE COLLEGE 2,393,820 0 2,393,820
67 CHAMBERS CO IMP DIST #1 2,393,820 0 2,393,820
Page 1 of 3Chambers County Appraisal District - Account # 00015-00000-00300-360800
6/12/2017http://www.chamberscad.org/(S(5vvvkivjzntwof45g0lauxye))/rprint.aspx?ID=34054&seq=1
Property ID: 34054 Owner: U S DENRO STEELS INC
Land Detail
Land Sequence 1
Acres: 132.99 Market Class: RS32INDS11 Market Value: 2,393,820Land Method: AC Ag/Timber Class: Ag/Timber Value: 0
Land Homesiteable: NO Land Type: Ag Code: Front Foot: N/A Rear Foot: N/A Lot Depth: N/A
Front Ft Avg: N/A Lot Depth %: N/A Land Square Ft: N/A
Total Land Value: $ 2,393,820
Page 2 of 3Chambers County Appraisal District - Account # 00015-00000-00300-360800
6/12/2017http://www.chamberscad.org/(S(5vvvkivjzntwof45g0lauxye))/rprint.aspx?ID=34054&seq=1
Parcel ID Seller Buyer Volume Page File Number Deed Date
34054 UNITED STATES STEEL LLC U S DENRO STEELS INC 932 553 22694 2/6/2007
34054 U S DENRO STEELS INC 348 741 6050-B 11/7/1997
Property ID: 34054 Owner: U S DENRO STEELS INC
Previous Owner Information
Page 3 of 3Chambers County Appraisal District - Account # 00015-00000-00300-360800
6/12/2017http://www.chamberscad.org/(S(5vvvkivjzntwof45g0lauxye))/rprint.aspx?ID=34054&seq=1
Property ID: 30188 Owner: SAW PIPES USA INC
Property ID:
30188
Property Legal Description:
15 TR 0-3-2 J IJAMS
Property Location:
Survey / Sub Division Abstract:
Account Number:
00015-00000-00300-360200
Deed Information:
Volume:
Page:
File Number:
Deed Date:
205
456
2075-B
5/6/1993
Block:
Section / Lot:
Owner Information:
SAW PIPES USA INC
CE TEX CENTER FM 1405
5200 E MCKINNEY RD STE 200
BAYTOWN TX 77523 8534
Previous Owner:
Property Detail:
Property Exempt:
Category / SPTB Code:
Total Acres:
Total Living Sqft:
Owner Interest:
Homestead Exemption:
Homestead Cap Value:
Land Ag / Timber Value:
Land Market Value:
Improvement Value:
Property Market Value:
E
47.611
See Detail
1.000000
0
0
857,000
0
857,000
Jur Code Jur Name Total Market Homestead Total Exemption Taxable
01 CHAMBERS COUNTY 857,000 0 857,000
01R CHAMBERS COUNTY ROAD 857,000 0 857,000
32 GOOSECREEK ISD 857,000 0 857,000
32IS GOOSECREEK ISD I&S 857,000 0 857,000
60 CHAMBERS-LIBERTY NAV 857,000 0 857,000
64 LEE COLLEGE 857,000 0 857,000
67 CHAMBERS CO IMP DIST #1 857,000 0 857,000
Page 1 of 3Chambers County Appraisal District - Account # 00015-00000-00300-360200
6/12/2017http://www.chamberscad.org/(S(5vvvkivjzntwof45g0lauxye))/rprint.aspx?ID=30188&seq=1
Property ID: 30188 Owner: SAW PIPES USA INC
Land Detail
Land Sequence 1
Acres: 47.611 Market Class: RS32INDS7 Market Value: 857,000Land Method: AC Ag/Timber Class: Ag/Timber Value: 0
Land Homesiteable: NO Land Type: Ag Code: Front Foot: N/A Rear Foot: N/A Lot Depth: N/A
Front Ft Avg: N/A Lot Depth %: N/A Land Square Ft: N/A
Total Land Value: $ 857,000
Page 2 of 3Chambers County Appraisal District - Account # 00015-00000-00300-360200
6/12/2017http://www.chamberscad.org/(S(5vvvkivjzntwof45g0lauxye))/rprint.aspx?ID=30188&seq=1
Parcel ID Seller Buyer Volume Page File Number Deed Date
30188 SAW PIPES USA INC 205 456 2075-B 5/6/1993
Property ID: 30188 Owner: SAW PIPES USA INC
Previous Owner Information
Page 3 of 3Chambers County Appraisal District - Account # 00015-00000-00300-360200
6/12/2017http://www.chamberscad.org/(S(5vvvkivjzntwof45g0lauxye))/rprint.aspx?ID=30188&seq=1
Tab 10
Description of Not Eligible Property
Tab 10 Description of All Property Not Eligible to
Become Qualified Property The anticipated site selected for the proposed project will be adjacent to the east side of the Applicant’s existing facility in Baytown, Texas. The proposed project will be on unimproved land.
The existing facility is wholly unrelated to the proposed project as the melt and casting facility will be considered newly constructed property.
Tab 11
Maps
a) Project vicinity
b) Qualified investment including location of tangible personal property to be
placed in service during the qualifying time period and buildings to be constructed
during the qualifying time period
c) Qualified property including location of new buildings or new improvements
d) Existing property
e) Land location within vicinity map
f) Reinvestment or Enterprise Zone within vicinity map, showing the actual or
proposed boundaries and size
JSW Steel (U
SA) Inc.
JSW Steel (U
SA) Inc.
℄
℄
℄
℄
℄
℄
℄
℄
℄
℄
℄
℄
℄
℄
℄
℄
℄
℄
℄℄
℄
℄℄
℄
℄
℄
℄
℄
Proposed P
roject - Melting &
Casting F
acility
All existing improvements located atthe project site will be removed priorto the start of construction.
Parcel ID: 34054Account Number: 00015-00000-00300-360800Market Value: $2,393,820
Parcel ID: 30188Account Number: 00015-00000-00300-360200Market Value: $857,000
*Additional parcel information is attached
Tab 12
Job Creation Waiver
NOT APPLICABLE
Tab 12 Job Creation
No request will be made for a waiver of job creation.
Tab 13
Average Wages
Year PeriodWages
All IndustriesWages
Manufacturing Jobs2016 1st Qtr $1,121.00 $1,843.002016 2nd Qtr $1,200.00 $2,479.002016 3rd Qtr $1,129.00 $1,870.002016 4th Qtr $1,161.00 $1,958.00
$1,152.75 $2,037.50
Houston-Galveston Area CouncilRate per hour $26.44Hours per week 40Average weekly wage $1,057.60
$1,152.75
$2,241.25
$59,943.00
110% of the average weekly wage for manufacturing jobs in the region $1,163.36
Minimum required annual wage (52 weeks)
Average weekly wage for all jobs (all industries) in the county
110% of the average weekly wage for manufacturing jobs in the county
Calculations of Wages for Chambers CountyBased on Most Recent Data Available
Average Weekly Wagefor all jobs in the County
Average
Quarterly Employment and Wages (QCEW)Back
Page 1 of 1 (40 results/page)
Year Period Area Ownership Division Level Ind Code Industry Avg Weekly Wages
2016 1st Qtr Chambers County Total All 00 0 10 Total, All Industries $1,121
2016 2nd Qtr Chambers County Total All 00 0 10 Total, All Industries $1,200
2016 3rd Qtr Chambers County Total All 00 0 10 Total, All Industries $1,129
2016 4th Qtr Chambers County Total All 00 0 10 Total, All Industries $1,161
Page 1 of 1Texas LMCI TRACER, Data Link
5/20/2017http://www.tracer2.com/cgi/dataAnalysis/IndustryReport.asp
Quarterly Employment and Wages (QCEW)Back
Page 1 of 1 (40 results/page)
Year Period Area Ownership Division Level Ind Code Industry Avg Weekly Wages
2016 1st Qtr Chambers County Total All 31 2 31-33 Manufacturing $1,843
2016 2nd Qtr Chambers County Total All 31 2 31-33 Manufacturing $2,479
2016 3rd Qtr Chambers County Total All 31 2 31-33 Manufacturing $1,870
2016 4th Qtr Chambers County Total All 31 2 31-33 Manufacturing $1,958
Page 1 of 1Texas LMCI TRACER, Data Link
5/20/2017http://www.tracer2.com/cgi/dataAnalysis/IndustryReport.asp
COG Hourly Annual
Texas $24.41 $50,778
1. Panhandle Regional Planning Commission $20.64 $42,941
2. South Plains Association of Governments $17.50 $36,408
3. NORTEX Regional Planning Commission $23.28 $48,413
4. North Central Texas Council of Governments $25.03 $52,068
5. Ark-Tex Council of Governments $18.46 $38,398
6. East Texas Council of Governments $19.84 $41,270
7. West Central Texas Council of Governments $19.84 $41,257
8. Rio Grande Council of Governments $18.32 $38,109
9. Permian Basin Regional Planning Commission $25.18 $52,382
10. Concho Valley Council of Governments $18.80 $39,106
11. Heart of Texas Council of Governments $21.41 $44,526
12. Capital Area Council of Governments $29.98 $62,363
13. Brazos Valley Council of Governments $18.78 $39,057
14. Deep East Texas Council of Governments $17.30 $35,993
15. South East Texas Regional Planning Commission $30.41 $63,247
16. Houston-Galveston Area Council $26.44 $54,985
17. Golden Crescent Regional Planning Commission $23.73 $49,361
18. Alamo Area Council of Governments $19.96 $41,516
19. South Texas Development Council $15.87 $33,016
20. Coastal Bend Council of Governments $25.97 $54,008
21. Lower Rio Grande Valley Development Council $16.17 $33,634
22. Texoma Council of Governments $19.04 $39,595
23. Central Texas Council of Governments $18.04 $37,533
24. Middle Rio Grande Development Council $22.24 $46,263
Source: Texas Occupational Employment and Wages
Data published: July 2016
Data published annually, next update will be July 31, 2017
Note: Data is not supported by the Bureau of Labor Statistics (BLS).
Wage data is produced from Texas OES data, and is not to be compared to BLS estimates.
Data intended for TAC 313 purposes only.
2015 Manufacturing Average Wages by Council of Government Region
Wages for All Occupations
Wages
Tab 14
Schedules A1, A2, B, C, and D
Date
7/3/2017Applicant N
ame
JSW Steel (U
SA) Inc.Form
50-296A
ISD N
ame
Goose C
reek CISD
Revised M
ay 2014
Colum
n AC
olumn B
Colum
n CC
olumn D
Colum
n E
YearSchool Year (YYYY-YYYY)
Tax Year (Fill in actual tax year below
) YYYY
New
investment (original cost) in tangible
personal property placed in service during this year that w
ill become Q
ualified Property
New
investment m
ade during this year in buildings or perm
anent nonremovable
components of buildings that w
ill become
Qualified P
roperty
Other new
investment m
ade during this year that w
ill not become Q
ualified Property [S
EE
N
OTE
]
Other new
investment m
ade during this year that m
ay become Q
ualified Property [S
EE
N
OTE
]
Total Investment
(Sum
of Colum
ns A+B
+C+D
)
[The only other investment m
ade before filing com
plete application with district that m
ay becom
e Qualified P
roperty is land.]
00
0
0
0
QTP
12019-2020
20190
0
0
QTP
22020-2021
2020150,000,000
100,000,0000
0
250,000,000
150,000,000100,000,000
00
250,000,000
Total Qualified Investm
ent (sum of green cells)
250,000,000
For All C
olumns: List am
ount invested each year, not cumulative totals.
Colum
n A:
Colum
n B:
Colum
n C:
Colum
n D:
Total Investment:
Add together each cell in a colum
n and enter the sum in the blue total investm
ent row. E
nter the data from this row
into the first row in S
chedule A2.
Qualified Investm
ent:For the green qualified investm
ent cell, enter the sum of all the green-shaded cells.
Com
plete tax years of qualifying time period
Investment m
ade before filing complete
application with district
20182018-2019
Dollar value of other investm
ent that may affect econom
ic impact and total value. E
xamples of other investm
ent that may result in qualified property are land or professional services.
Total Investment through Q
ualifying Time Period [EN
TER this row
in Schedule A2]
This represents the total dollar amount of planned investm
ent in tangible personal property. Only include estim
ates of investment for "replacem
ent" property if the property is specifically described in the application.O
nly tangible personal property that is specifically described in the application can become qualified property.
The total dollar amount of planned investm
ent each year in buildings or nonremovable com
ponent of buildings.D
ollar value of other investment that m
ay affect economic im
pact and total value. Exam
ples of other investment that w
ill not become qualified property include investm
ent meeting the definition of 313.021(1) but not creating a new
improvem
ent as defined by TAC
9.1051. This is proposed property that functionally replaces existing property; is used to m
aintain, refurbish, renovate, modify or upgrade existing property; or is affixed to existing property—
described in SE
CTIO
N 13, question #5 of the application.
Enter amounts from
TOTAL row
above in Schedule A2
Not eligible to becom
e Qualified P
roperty
Investment m
ade after filing complete
application with district, but before final board
approval of application 2018
Investment m
ade after final board approval of application and before Jan. 1 of first com
plete tax year of qualifying tim
e period
Schedule A1: Total Investment for Econom
ic Impact (through the Q
ualifying Time Period)
PRO
PERTY IN
VESTMEN
T AMO
UN
TS
(Estimated Investm
ent in each year. Do not put cum
ulative totals.)
Date
7/3/2017A
pplicant Nam
eJSW
Steel (USA) Inc.
Form 50-296A
ISD N
ame
Goose C
reek CISD
Revised M
ay 2014
Colum
n AC
olumn B
Colum
n CC
olumn D
Colum
n E
YearSchool Year (YYYY-YYYY)
Tax Year (Fill in actual tax year below
) YYYY
New
investment (original cost) in tangible
personal property placed in service during this year that w
ill become Q
ualified Property
New
investment m
ade during this year in buildings or perm
anent nonremovable
components of buildings that w
ill become
Qualified P
roperty
Other investm
ent made during this year that
will not becom
e Qualified P
roperty [SE
E
NO
TE]
Other investm
ent made during this year that
will becom
e Qualified P
roperty {SE
E N
OTE
]Total Investm
ent (A
+B+C
+D)
02017-2018
20170
00
00
02018-2019
20180
00
00
02019-2020
20190
00
00
02020-2021
2020150,000,000
100,000,0000
0250,000,000
1
2021-20222021
00
00
-
22022-2023
20220
00
0-
3
2023-20242023
00
00
-
42024-2025
20240
00
0-
5
2025-20262025
00
00
-
62026-2027
20260
00
0-
7
2027-20282027
00
00
-
82028-2029
20280
00
0-
9
2029-20302029
00
00
-
102030-2031
20300
00
0-
Total Investment m
ade through limitation
150,000,000
100,000,000
00
250,000,000
112031-2032
20310
012
2032-20332032
00
132033-2034
20330
014
2034-20352034
00
152035-2036
20350
016
2036-20372036
00
172037-2038
20370
018
2038-20392038
00
192039-2040
20390
020
2040-20412040
00
212041-2042
20410
022
2042-20432042
00
232043-2044
20430
024
2044-20452044
00
252045-2046
20450
0
***
***For A
ll Colum
ns: List amount invested each year, not cum
ulative totals. Only include investm
ents in the remaining row
s of Schedule A
2 that were not captured on S
chedule A1.
Colum
n A:
Colum
n B:
Colum
n C:
Colum
n D:
Dollar value of other investm
ent that may affect econom
ic impact and total value. E
xamples of other investm
ent that may result in qualified property are land or professional services.
Additional years for 25 year econom
ic impact as required by
313.026(c)(1)
All investm
ents made through the qualifying tim
e period are captured and totaled on Schedule A
1 [blue box] and incorporated into this schedule in the first row.
This represents the total dollar amount of planned investm
ent in tangible personal property. Only include estim
ates of investment for "replacem
ent" property if the property is specifically described in the application.O
nly tangible personal property that is specifically described in the application can become qualified property.
The total dollar amount of planned investm
ent each year in buildings or nonremovable com
ponent of buildings.D
ollar value of other investment that m
ay affect economic im
pact and total value. Exam
ples of other investment that w
ill not become qualified property include investm
ent meeting the definition of 313.021(1) but not creating a new
improvem
ent as defined by TAC
9.1051. This is proposed property that functionally replaces existing property; is used to m
aintain, refurbish, renovate, modify or upgrade existing property; or is affixed to existing property—
described in SE
CTIO
N 13, question #5 of the application.
Only investm
ent made during deferrals of the start of the lim
itation (after the end of qualifying time period but before the start of the V
alue Limitation P
eriod) should be included in the "year prior to start of value limitation period" row
(s). If the limitation starts at the end of the qualifying tim
e period or the qualifying tim
e period overlaps the limitation, no investm
ent should be included on this line.
If your qualifying time period w
ill overlap your value limitation period, do not also include investm
ent made during the qualifying tim
e period in years 1 and/or 2 of the value limitation period, depending on the overlap. O
nly include investments/years that w
ere not captured on Schedule A
1.
Continue to m
aintain viable presence
Each year prior to start of value lim
itation period** Insert as m
any rows as necessary
Each year prior to start of value lim
itation period** Insert as m
any rows as necessary
Each year prior to start of value lim
itation period** Insert as m
any rows as necessary
Schedule A2: Total Investment for Econom
ic Impact (including Q
ualified Property and other investments)
PRO
PERTY IN
VESTMEN
T AM
OU
NTS
(Estimated Investm
ent in each year. Do not put cum
ulative totals.)
Total Investment from
Schedule A
1*--
TOTA
LS FRO
M SC
HED
ULE A
1Enter am
ounts from TO
TAL row
in Schedule A1 in the row
below
Each year prior to start of value lim
itation period** Insert as m
any rows as necessary
Value lim
itation period***
Date
Applicant Nam
eJSW
Steel (USA
) Inc.Form
50-296AISD
Nam
eG
oose Creek C
ISDR
evised May 2014
YearSchool Year (YYYY-YYYY)
Tax Year (Fill in actual tax year) YYYY
Estim
ated Market V
alue of Land
Estim
ated Total Market
Value of new
buildings or other new
improvem
ents
Estim
ated Total Market
Value of tangible personal
property in the new
buildings or "in or on the new
improvem
ents"
Market V
alue less any exem
ptions (such as pollution control) and
before limitation
Final taxable value for I&S
after all reductions
Final taxable value for M
&O
after all reductions
Each year prior to start of V
alue Limitation P
eriod Insert as m
any rows as necessary
02017-2018
20170
00
00
0E
ach year prior to start of V
alue Limitation P
eriod Insert as m
any rows as necessary
02018-2019
20180
00
00
0E
ach year prior to start of V
alue Limitation P
eriod Insert as m
any rows as necessary
Q1
2019-20202019
00
00
00
Each year prior to start of V
alue Limitation P
eriod Insert as m
any rows as necessary
Q2
2020-20212020
00
00
00
12021-2022
20210
79,200,000126,900,000
206,100,000206,100,000
100,000,0002
2022-20232022
079,200,000
122,850,000202,050,000
202,050,000100,000,000
32023-2024
20230
78,400,000116,100,000
194,500,000194,500,000
100,000,0004
2024-20252024
077,600,000
110,700,000188,300,000
188,300,000100,000,000
52025-2026
20250
76,800,000103,950,000
180,750,000180,750,000
100,000,0006
2026-20272026
076,800,000
98,550,000175,350,000
175,350,000100,000,000
72027-2028
20270
76,000,00094,500,000
170,500,000170,500,000
100,000,0008
2028-20292028
075,200,000
87,750,000162,950,000
162,950,000100,000,000
92029-2030
20290
74,400,00081,000,000
155,400,000155,400,000
100,000,00010
2030-20312030
073,600,000
74,250,000147,850,000
147,850,000100,000,000
112031-2032
20310
72,800,00067,500,000
140,300,000140,300,000
140,300,00012
2032-20332032
072,000,000
60,750,000132,750,000
132,750,000132,750,000
132033-2034
20330
70,400,00054,000,000
124,400,000124,400,000
124,400,00014
2034-20352034
069,600,000
47,250,000116,850,000
116,850,000116,850,000
152035-2036
20350
68,800,00040,500,000
109,300,000109,300,000
109,300,00016
2036-20372036
067,200,000
40,500,000107,700,000
107,700,000107,700,000
172037-2038
20370
65,600,00040,500,000
106,100,000106,100,000
106,100,00018
2038-20392038
064,800,000
40,500,000105,300,000
105,300,000105,300,000
192039-2040
20390
63,200,00040,500,000
103,700,000103,700,000
103,700,00020
2040-20412040
061,600,000
40,500,000102,100,000
102,100,000102,100,000
212041-2042
20410
60,000,00040,500,000
100,500,000100,500,000
100,500,00022
2042-20432042
058,400,000
40,500,00098,900,000
98,900,00098,900,000
232043-2044
20430
56,800,00040,500,000
97,300,00097,300,000
97,300,00024
2044-20452044
055,200,000
40,500,00095,700,000
95,700,00095,700,000
252045-2046
20450
53,600,00040,500,000
94,100,00094,100,000
94,100,000N
otes:
Continue to m
aintain viable presence
Market value in future years is good faith estim
ate of future taxable value for the purposes of property taxation.O
nly include market value for eligible property on this schedule.
Additional years for
25 year economic im
pact as required by 313.026(c)(1)
Schedule B: Estim
ated Market And Taxable Value (of Q
ualified Property Only)
Qualified Property
Estimated Taxable Value
Value Lim
itation Period
7/24/2017
Date
Applicant Nam
eJSW
Steel (USA) Inc.
Form 50-296A
ISD N
ame
Goose C
reek CISD
Revised M
ay 2014
Non-Q
ualifying Jobs
Colum
n AC
olumn B
Colum
n CC
olumn D
Colum
n E
YearSchool Year (YYYY-YYYY)
Tax Year (A
ctual tax year) YYYY
Num
ber of Construction
FTE's or m
an-hours (specify)
Average annual wage rates
for construction workers
Num
ber of non-qualifying jobs applicant estim
ates it w
ill create (cumulative)
Num
ber of new qualifying
jobs applicant comm
its to create m
eeting all criteria of S
ec. 313.021(3) (cum
ulative)Average annual w
age of new
qualifying jobs
Each year prior to start of
Value Lim
itation Period
Insert as many row
s as necessary
02017-2018
2017
00
00
$0
Each year prior to start of
Value Lim
itation Period
Insert as many row
s as necessary
02018-2019
2018
00
00
$0
Each year prior to start of
Value Lim
itation Period
Insert as many row
s as necessary
Q1
2019-20202019
00
0122
$65,000
Each year prior to start of
Value Lim
itation Period
Insert as many row
s as necessary
Q2
2020-20212020
36355,000
$ 0
500$65,000
12021-2022
2021364
55,000$
0500
$65,000
22022-2023
20220
00
500$65,000
32023-2024
20230
00
500$65,000
42024-2025
20240
00
500$65,000
52025-2026
20250
00
500$65,000
62026-2027
20260
00
500$65,000
72027-2028
20270
00
500$65,000
82028-2029
20280
00
500$65,000
92029-2030
20290
00
500$65,000
102030-2031
20300
00
500$65,000
Years Following
Value Lim
itation Period
11 through
252031-2046
2031-2045
00
0500
$65,000
Notes:
See TA
C 9.1051 for definition of non-qualifying jobs.
Only include jobs on the project site in this school district.
C1.
YesN
o
C1a.
YesN
o
C1b.
YesN
o
Will the applicant request a job w
aiver, as provided under 313.025(f-1)?
Will the applicant avail itself of the provision in 313.021(3)(F)?
7/3/2017Schedule C
: Employm
ent Information
Construction
Qualifying Jobs
Value Lim
itation Period
The qualifying time period could overlap the
value limitation period.
If yes, answer the follow
ing two questions:
Are the cum
ulative number of qualifying jobs listed in C
olumn D
less than the number of qualifying jobs required by statute? (25
qualifying jobs in Subchapter B
districts, 10 qualifying jobs in Subchapter C
districts)
X XXX
Date
7/3/2017Applicant N
ame
JSW Steel (U
SA) Inc.Form
50-296A
ISD N
ame
Goose C
reek CISD
Revised M
ay 2014
Incentive Description
Taxing Entity (as applicable)
Beginning Year of
Benefit
Duration of B
enefitAnnual Tax Levy w
ithout IncentiveAnnual Incentive
Annual Net Tax Levy
County:
City:
Other:
County:
City:
Other:
County: C
hambers
202010 years
To be determined
To be determined
To be determined
City:
Other:
Freeport Exem
ptionsN
on-Annexation A
greements
Enterprise Zone/P
rojectS
tate of Texas2020
5 yearsN
ot Applicable
727,500
Not A
pplicableE
conomic D
evelopment C
orporationTexas E
nterprise FundS
tate of Texas2020
3 yearsTo be determ
inedE
mployee R
ecruitment
Skills D
evelopment Fund
Training Facility Space and E
quipment
Infrastructure IncentivesTexas C
apital Fund2018
1 year1,125,000
P
ermitting A
ssistanceO
ther: Industrial Agreem
entC
ity of Baytow
n2018
4 yearsTo be determ
inedO
ther:O
ther:O
ther:
TOTAL
-
1,852,500
-
State and Local Incentives for which the Applicant intends to apply (Estim
ated)
Additional inform
ation on incentives for this project:N
o other tax incentive applications have been filed or discussions held with any other taxing jurisdictions at the tim
e of application filing.
Local Governm
ent Code C
hapters 380/381
Schedule D: O
ther Incentives (Estimated)
Tax Code C
hapter 311
Tax Code C
hapter 312
Tab 15
Economic Impact Analysis, other payments made in the state or other economic
information (if applicable)
Tab 16
Reinvestment Zone Description
Tab 17
Signature and Certification