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Tax Abatements: Johnson County is committed to the promotion of high quality development throughout the area. On a case-by-case basis, the County and each of the cities in the area will give consideration to providing tax abatements on the increment in value added to a particular property by a specific development proposal which meets the economic goals and objectives of the particular city and Johnson County.

Enterprise Zones: Alvarado, Burleson and Cleburne are Enterprise Zone cities.

Businesses located in these zones may be eligible for local and/or state benefits. State incentives can include a refund of state sales and use taxes, franchise tax reductions, and state administered program priority. Local benefits can include property tax abatement, regulatory relief, job training services, refund of local sales and use taxes, utility reductions, low-interest loans, and other individually negotiated benefits.

The Sate of Texas offers a variety of incentive programs designed to make capital more available for businesses looking to expand or locate in the state, as well as for companies already doing business in Texas. Committed to retaining its ìbusiness friendlyî reputation, Texas stands ready to help businesses expand, and become globally competitive. The following programs demonstrate this commitment.

TEXAS ENTERPRISE ZONE PROGRAM
The Texas Enterprise Zone Program encourage permanent job creation and retention, as well as capital investment in economically distressed areas of Texas. Communities find the Enterprise Zone Program a positive, viable economic development strategy by providing state and local incentives to new or expanding businesses.

Businesses located in enterprise zones may be eligible for local and/or state benefits. To obtain state benefits, a business must be designated as an enterprise project. State incentives can include a refund of state sales and use taxes, franchise tax reductions, and stare administered program priority. Additional state benefits are available to qualified businesses designated as enterprise projects, which are nominated by communities or counties on a competitive basis.

Local incentives may include property tax abatement, regulatory relief, job training services, housing improvements, refunds of local sales and use taxes, utility reductions, low-interest loans, and other incentives developed by participating communities.

Since the program began in 1987, more than 334 businesses have been designated as enterprise projects. These businesses have committed to creating more than 53,000 jobs, retaining more than 2,800 jobs, and investing more than $7.4 billion in capital. See ìDepartments and Agenciesî Finance for contract information.

TEXAS CAPITAL FUND
The Texas Capital Fund consists of three programs (Infrastructure Grant, Real Estate Development and Main Street) that are designed to promote growth in rural non-entitlement areas generally defined as cities with fewer than 50,000 residents or counties with less than 200,000 residents. Awards are made through eligible cities and counties to assist businesses that employ low to moderate-income persons.

Infrastructure Grant Program
This program promotes economic development in rural areas by providing financial incentives to assist businesses wishing to locate or expand in their communities. Funds may be used for construction and/or improvements of water or wastewater facilities, public road construction, natural gas line services, rail spurs, and electric power services. Minimum and maximum awards are $50,000 and $750,000, respectively. Awards may not exceed 50 percent of the total project cost. See ìDepartments and Agenciesî Finance for contact information.

Real Estate Development Program
This program promotes economic development in rural areas by providing financial incentives to assist businesses wishing to locate or expand in their communities. Funds may be used to acquire, construct, or rehabilitate real estate to support a for-profit or a non-profit entity willing to commit to creating or retaining jobs primarily for low or moderate income persons. Minimum and maximum awards are $50,000 and $750,000, respectively. Awards may not exceed 50 percent of the total project cost. See ìDepartments and Agenciesî Finance for contact information.

Main Street Program
This program fosters and stimulates the development of small businesses by providing financial assistance to non-entitlement ìMain Street Citiesî (designated by the Texas Historical Commission) for public improvements. Proceeds may be used for the acquisition of land for proposed improvements; architectural, engineering, and design costs for construction or rehabilitation of such improvements; and public improvements integral to the development of the project, including water or wastewater facilities, public road construction, natural gas line services, electric power services, drainage, lighting, sidewalks, public parking lots, and activities required to eliminate architectural barriers for the handicapped. Minimum and maximum awards are $50,000 and &150,000, respectively. Awards may not exceed 50 percent of the total project cost. See ìDepartments and Agenciesî Finance for contact information.

TEXAS LEVERAGE FUND
The Texas Leverage Fund (TLF) is an ìeconomic development bankî that offers financing to communities that have passed the economic development sales tax. The Texas Leverage Fund may be used to provide financing to local businesses for industry expansion or recruitment, industrial parks establishment, or certain community project financing. With the assistance of Bank One, Texas, the TLF was capitalized with $25 million in State of Texas taxable commercial paper. The Fund allows communities to put sales tax money to work quickly, make decisions at the local level, and monitor the project on an on-going basis. Eligible projects include the development or expansion of manufacturing and industrial enterprises, as well as the improvement of infrastructure tied to specific businesses. See "Departments and Agencies" Finance for contact information.

INDUSTRIAL REVENUE BONDS
The State of Texas Small Business Industrial Revenue Bond Program allows local industrial development corporations to issue tax-exempt bonds to finance land and depreciable property for manufacturing facilities. The maximum bond amount is $10,000,000 for tax-exempt issues, and the maturity of the bonds may extend to the lessor of 40 years or 120% of the depreciable life of the assets being financed. Eligible project costs include the acquisition by a business of an existing facility, acquisition of land, construction of new facilities, machinery tools, equipment, and a limited amount of the bond issuance costs.

Industrial revenue bonds may be both taxable and tax-exempt. Tax-exempt bonds must secure a place under the stateís private activity bond volume cap administered by the Texas Bond Review Board. See ìDepartments and Agenciesî Finance for contact information.

TEXAS SMALL BUSINESS INDUSTRIAL DEVELOPMENT CORPORATION
The Texas Small Business Industrial Development Corporation (TSBIDC) has developed the Texas Public Facilities Capital Access Program (TEXCAP) to promote economic development in the State of Texas and to assist eligible borrowers in financing eligible economic development projects. To be eligible, a borrower must be located within the State, within the power of an eligible borrower to finance and approved for financing by the Issuer, the Commission, Issuerís Bond counsel, Issuerís Counsel, and the Administrative Agent.

A project eligible for financing must consist of land, buildings, equipment, facilities and improvements found by the Issuer to be suitable for the development and expansion of certain public infrastructure and facilities. The minimum loan amount is $250,000 (no maximum). Loans are subject to a variable interest rate. Loans may not exceed 120% of the useful life of the assets being financed or extend past year 2026 at which time the TSBIDC bonds will expire. See ìDepartments and Agenciesî Finance for contact information.

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  JOHNSON COUNTY ECONOMIC DEVELOPMENT COMMISSION
10 N. Caddo PMB 215, Cleburne, Texas 76031
Phone: 817-556-6985 - Fax: 817-556-6160 - E-mail:
jcedc@digitex.net