| State: |
TX |
| Incentive Type: |
Special Purpose Zone Incentives and Credits |
| Incentive Title: |
Other Tax Incentives/Credits |
| Description: |
1. FOREIGN TRADE ZONES A foreign trade zone is a designated area in the United States considered outside of the U. S. customs territory. This designation allows imported merchandise to be processed in several ways without payment of U.S. customs duty. The customs fee is due only if the imported merchandise is formally entered into the United States. Warehousing facilities as well as industrial property and port sites are designated as foreign trade zones. Foreign trade zone sites in Jefferson, Orange, and Liberty counties offer the advantages of duty-free storage, assembly or manufacture of foreign goods. These zones in southeast Texas contain warehouse space and open storage sites as well as industrial property for sale or lease. Companies requiring zone advantages at their own plant site may be able to receive U.S. government approval to operate as a foreign trade subzone with the same privileges.
2. DEFENSE ECONOMIC READJUSTMENT ZONE PROGRAM (DERZ) Designated readjustment projects are eligible to apply for franchise tax credit and state sales and use tax refund on qualified expenditures. The level and amount of the credit/refund is related to the sales and use tax on qualifying expenditures and the number of jobs created/retained at the site. The number of jobs eligible for a refund will not exceed 500 or a number equal to 110% of the anticipated new permanent/retained jobs. The maximum refund per allocated job is $2,500. Local communities may also offer benefits such as tax abatements, TIF, and others.
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| Eligibility Requirements: |
1. Must be located in a foreign trade zone.
2. A community must nominate and receive designation as a Defense Economic Readjustment Zone and provide specific information as required by statute. A company must receive nomination from their local community. |
| Geographic Restrictions: |
Statewide |
| Granting Authority: |
State of Texas |
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