TEZ NOMINATION PROPOSED FOR MILLERCOORS
During the Feb. 4 work session, the Fort Worth City Council received an informal report on a proposed Texas Enterprise Zone Nomination for MillerCoors LLC.
Council is expected to vote on an agenda item at its Feb. 18 meeting.
Local communities must nominate a company as an Enterprise Project to be eligible to participate in the Texas Enterprise Zone Program. Communities may nominate projects for a designation period up to five years, non-inclusive of a 90-day window prior to the application deadline. Employment and capital investment commitments must be incurred and met within this time frame.
“The proposed designation for MillerCoors will allow continued investment and expansion opportunities at the Fort Worth plant, which is a significant job producer in south Fort Worth,” Economic Development Director Robert Sturns said.
Sturns noted that MillerCoors qualifies for a single Enterprise Project designation with a planned capital investment in excess of $28 million in various facility and equipment upgrades between October 2019 and March 2025. Additional capital investments totaling approximately $15 million are expected.
If designated as an Enterprise Project, MillerCoors has committed to hiring 25% economically disadvantaged persons or enterprise zone residents at the Fort Worth location. The company has reported that it expects to retain all full-time jobs for benefit under the program.
The Texas Enterprise Zone Program is an economic development tool for local communities to partner with the State of Texas to promote job creation and capital investment in economically distressed areas of the state. Designated projects are eligible to apply for state sales and use tax refunds on qualified expenditures.
Qualified expenditures include building materials, machinery and equipment, electricity, gas and tangible property purchased and consumed in the normal course of business, and taxable services. The level and amount of refund is related to the capital investment and jobs created at the qualified business site.
The single project designation allows for a state sales and use tax refund on qualified expenditures of $2,500 per job, for up to 500 jobs, with a maximum benefit of $1.25 million over a five-year period.
Under the Texas Enterprise Zone Act at least 25% of a business’ new or retained employees will be residents of an enterprise zone, economically disadvantaged individuals or veterans. In addition, the jobs will be provided through the end of the designation period or at least three years after the date on which a state benefit is received, whichever is later.