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TITLE 34PUBLIC FINANCE
PART 1COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 9PROPERTY TAX ADMINISTRATION
SUBCHAPTER OTEXAS JOBS, ENERGY, TECHNOLOGY AND INNOVATION PROGRAM
RULE §9.5000Definitions

As used in this subchapter, the following words and terms shall have the following meanings, unless the context clearly indicates otherwise:

  (1) Agreement holder--A person that is subject to an executed agreement under Government Code, §403.612.

  (2) Construction job--A job that is temporary in nature, typically performed on a full-time basis and occurs before the commencement of the eligible project's incentive period. The purpose of the job is to perform construction, maintenance, remodeling or repair work for an applicant's project.

  (3) Eligible project--The construction of a project, or the expansion of an existing facility that is:

    (A) a manufacturing facility, classified in NAICS 31-33;

    (B) a facility related to the provision of utility services, including an electric generation facility that is considered to be dispatchable because the facility's output can be controlled primarily by forces under human control, classified in NAICS 2211;

    (C) a facility related to the development of natural resources, defined as the following Goods-Producing Industries subsector groups as identified by the U.S. Bureau of Labor Statistics:

      (i) Agriculture, Forestry, Fishing and Hunting, classified in NAICS 11; and

      (ii) Mining, Quarrying, and Oil and Gas Extraction, classified in NAICS 21;

    (D) a facility engaged in research and development, classified in NAICS 5417, or manufacture of high-tech equipment or technology; or

    (E) related to critical infrastructure such as:

      (i) a water intake structure, water treatment facility, wastewater treatment plant, or pump station, classified in NAICS 2213;

      (ii) a liquid natural gas terminal or storage facility, classified in NAICS 424710;

      (iii) pipelines and pipeline appurtenances or facilities, including pipes, valves, meters, pumps, compressors, treating and processing facilities, cathodic protection facilities, and any other equipment, facilities, devices, structures, and buildings used or intended for use in the gathering, transportation, treating, storage, or processing of CO2, oil, gas, or other minerals, and the liquefied or gaseous substances, constituents, products, or mixtures derived from those minerals through refining, processing, or other methods, classified in NAICS 486; and

      (iv) utility-scale water or wastewater storage, treatment, or transmission facilities, classified in NAICS 2213.

  (4) Eligible property--Property that is used in connection with an eligible project and is either wholly owned by an applicant or leased by an applicant through a capitalized lease. To be eligible, the property must be:

    (A) a new building or expansion of an existing building, including a permanent and nonremovable part of a building that is:

      (i) constructed after the execution of the agreement; and

      (ii) located in an area that is, at the time the agreement is executed, designated as a contiguous reinvestment zone under Tax Code, Chapter 311 or 312, or as an enterprise zone under Government Code, Chapter 2303; or

    (B) tangible personal property, excluding inventory, that is initially placed in a zone described in subparagraph(A)(ii) of this paragraph after the agreement execution.

  (5) Full-time job--A permanent position of employment, other than a construction job, requiring a minimum of 1,600 hours of work per year in connection with an eligible project.

  (6) Investment--Capital that is expended on the construction or acquisition of eligible property for an eligible project with the exclusion of expenses related to land and inventory for the project.

  (7) NAICS--North American Industry Classification System, developed by the U.S. Office of Management and Budget as the standard for use in classifying business establishments.

  (8) Performance bond--A surety bond with an amount determined by the comptroller.

  (9) Required job--A job, other than construction jobs, that an applicant commits to create or demonstrate for an eligible project that meets the following requirements:

    (A) must be a new full-time job in this state;

    (B) must be performed by an employee hired by the applicant (including a Texans Work Program trainee under Labor Code, Chapter 308), or by an independent contractor or independent contractor's employee, primarily at the designated project site, allowing for hybrid work schedules but excluding 100% remote work;

    (C) must require at least 1,600 hours of work a year;

    (D) may not be transferred by the applicant from an existing facility or location in this state unless the applicant fills the vacancy caused by the transfer;

    (E) may not create a job to replace an existing job, unless the applicant fills the vacancy caused by the replacement;

    (F) must offer and contribute to a group health benefit plan for each full-time employee of the applicant; and

    (G) must meet the wage requirement.

  (10) Trainee--An individual enrolled in the Texans Work Program who fulfills the following eligibility criteria:

    (A) receives a minimum monthly payment of $300;

    (B) is engaged for a duration of at least 6 months but not exceeding one year;

    (C) contributes at least 30 hours weekly; and

    (D) constitutes no more than 20% of the employer's total workforce.

  (11) Wage Requirement-- For all jobs in the applicable industry sector as computed by the Texas Workforce Commission in the Quarterly Census of Employment and Wages and as described in the executed agreement under Government Code, §403.612, a wage for a job in a specified sector is determined by considering the average annual wage data available during the most recent four quarters. If county level data exists, the wage in a specified industry must exceed 110% of the county average annual wage, giving priority to 6-digit NAICS level, followed by 5-digit NAICS level, and then 4-digit NAICS level. If county data is unavailable, the same evaluation is performed on regional data. In the absence of both county and regional data, statewide average annual wage must be utilized.


Source Note: The provisions of this §9.5000 adopted to be effective January 16, 2024, 49 TexReg 134

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