Current through Reg. 49, No. 12; March 22, 2024
(b) Definition of terms. The following words
and terms, when used in this chapter, shall have the following meanings, unless
the context clearly indicates otherwise.
(1)
Act--The Texas Enterprise Zone Act, Chapter 2303, Texas Government Code, as
amended.
(2) Active
designation--The period of time from the designation date to the ending date of
the project or activity as provided in the nominating ordinance, order or
resolution.
(3) Applicant--The
municipality or county filing an application with the Bank on behalf of a
qualified business for designation of an enterprise project under the Act,
§2303.405, and this chapter.
(4) Application date--The first business day
of the months of September, December, March and June, if there are designations
available.
(5) Approval date--The
application date of an enterprise project as approved by the Bank.
(6) Capital investment--Money paid to
purchase capital assets to be used in the regular conduct of the business or
activity at the qualified business site, or fixed assets including but not
limited to land, buildings, labor used to construct or renovate a capital
asset, furniture, manufacturing machinery, computers and software, or other
machinery and equipment. Expenditures for routine and planned maintenance
required to maintain regular business operations are only considered qualified
capital investment if there will be a measurable increase in production
capacity or if the expenditures will result in increased productivity which may
be expressed as a decrease in the overall cost per unit produced, and are
limited to 40 percent of the total capital investment spent at the qualified
business site. Property that is leased under a capitalized lease is considered
a qualified capital investment but property that is leased under an operating
lease is not considered a qualified capital investment.
(7) Claim period--A twelve-month period,
during the active designation period, for which hours are accumulated by
qualified employees to be claimed for benefit.
(8) Concurrent designation--Two or more
enterprise project designations for the same qualified business at the same
qualified business site for separate projects or activities, with overlapping
designation periods.
(9) Controlled
group--A group of businesses as defined in Title 26, Subtitle A, Subchapter B,
Part II, Section 1563(a), Internal Revenue Code, or business entities with the
same ownership.
(10) Director--The
Director of the Texas Economic Development Bank.
(11) Distressed county--A county that has a
poverty rate above 15.4 percent based on the most recent decennial census; in
which at least 25.4 percent of the adult population does not hold a high school
diploma or high school equivalency certificate based on the most recent
decennial census; and that has an unemployment rate that has remained above 4.9
percent during the preceding five years, based on Texas Workforce Commission
data.
(12) Economic Development and
Tourism--Economic Development and Tourism Office in the Governor's Office
(Office) as established under Chapter 481, Texas Government Code.
(13) Eligible taxable proceeds--Taxable
proceeds generated, paid, or collected by a qualified hotel project or a
business at a qualified hotel project including hotel occupancy taxes, ad
valorem taxes, sales and used taxes, and mixed beverage taxes.
(14) Enterprise project--A designation given
to a qualified business by the Bank under the Act, § 2303.406, and §
RSA
176.3 of this title (relating to
Qualification for Designation of Enterprise Projects) making the qualified
business eligible for the state tax incentives provided by law for an
enterprise project.
(15) Executive
Director--The Executive Director of the Office.
(16) Extraterritorial jurisdiction--Territory
in the extraterritorial jurisdiction (ETJ) of a municipality that is considered
to be in the jurisdiction of the municipality, as defined by Chapter 42, Local
Government Code.
(17) Governing
body--The governing body of a municipality or county participating in the
program.
(18) Governing body
liaison--The person who holds the position set out in the ordinance or order
indicating participation in the program, for the municipality or county to
communicate and negotiate with the Bank or Office, qualified businesses
nominated to be enterprise projects and any other entities affected by the
enterprise zone.
(19) Local
government--A municipality or county.
(20) Local incentive--Each tax incentive,
grant, other financial incentive or benefit, or program to be provided by the
governing body to business enterprises through the program.
(21) Ninety-day window--The period 90 days
prior to the quarterly application deadline date for which an enterprise
project is approved. The period of time in which the project may begin making
investment and creating jobs for purposes related to the enterprise project
designation.
(22) Nominating
body--The governing body of a municipality or county that nominated a project
or activity of a qualified business for designation as an enterprise project
which is located within the jurisdiction of that governing body.
(23) Primary job--A job to be created or
retained for benefit by a designated enterprise project, as defined by the
Development Corporation Act of 1979.
(24) Qualified property--Any one or more of
the following:
(A) tangible personal property
located at the qualified business site that was acquired by a taxpayer not
earlier than the 90th day before the date of designation as an enterprise
project and was or will be used predominantly by the taxpayer in the active
conduct of a trade or business;
(B)
real property located at a qualified business site that:
(i) was acquired by the taxpayer not earlier
than the 90th day before the date of designation of the enterprise project, and
used predominantly by the taxpayer in the active conduct of a trade or
business; or
(ii) was the principal
residence of the taxpayer on the date of the sale or exchange; or
(C) interest in a corporation,
partnership, or other entity if, for the most recent taxable year of the entity
ending before the date of sale or exchange, the entity was a qualified
business.
(25)
Staff--The staff of the Texas Economic Development Bank.
(26) Undocumented worker--An individual who,
at the time of employment, is not:
(A)
lawfully admitted for permanent residence to the United States; or
(B) authorized under law to be employed in
that manner in the United States.
(c) Amendment and suspension of the rules.
These sections may be amended by the executive director at any time in
accordance with the Administrative Procedure Act, Texas Government Code,
Subchapter B, as amended. The executive director may suspend or waive a
section, not statutorily imposed, in whole or in part, upon the showing of good
cause or when, at the discretion of the executive director, the particular
facts or circumstances render such waiver of the section appropriate in a given
instance.
(d) Written communication
with the office. Application and other written communication to the office
should be addressed to the attention of the Office of the Governor, Economic
Development and Tourism, Texas Economic Development Bank, Attn: Texas
Enterprise Zone Program, Post Office Box 12428, Austin, Texas 78711-2428, or by
overnight mail to Office of the Governor, Economic Development and Tourism,
Texas Economic Development Bank, Attn: Texas Enterprise Zone Program, 1100 San
Jacinto Street, Austin, Texas 78701, (512) 936-0100.