Texas Attorney General Opinion: JC-567 Page: 2 of 9
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Mr. Jeff Moseley - Page 2
conduct or be committed to conducting a trade or business in the enterprise zone; employ a minimum
number of individuals who are residents of the enterprise zone or who are economically
disadvantaged; and the nominating governing body must demonstrate a high level of cooperation
among the public, private, and neighborhood entities in the enterprise zone and that the designation
of the business will significantly contribute to the zone's development. See id. 2303.406(a)
(Vernon Supp. 2002). The Department may designate a maximum of four or six enterprise projects
for each nominating governing body, depending on the population and the jurisdiction of the
governing body, during a biennium. See id. 2303.406(d). An enterprise project designation is
effective for five years. See id. 2303.408 (Vernon 2000).
An enterprise project is eligible for a refund of, among other taxes, state sales and use
taxes related to the number of jobs allocated to the enterprise project by the Department. See id.
2303.407, .504(a)(1) (Vernon Supp. 2002); TEX. TAX CODE ANN. 151.429(a)-(c) (Vernon
2002). When the Department designates a business as an enterprise project, section 2303.407 of the
Act directs the Department to "allocate to the project the maximum number of new permanent jobs
or retained jobs eligible to be included in a computation of a tax refund for the project[,]" not
exceeding the lesser of "250 or a number equal to 110 percent of the number of anticipated new
permanent jobs or retained jobs." TEX. Gov'T CODE ANN. 2303.407 (Vernon Supp. 2002).
Turning to section 151.429 ofthe Tax Code, subsection (a) provides that an enterprise project
is eligible for refunds of sales and use taxes on purchases of certain property and services. See TEX.
TAX CODE ANN. 151.429(a) (Vernon 2002). And subsection (b) provides that "an enterprise
project qualifies for a refund of taxes under this section [151.429] of $5,000 for each new
permanent job or job that has been retained by the enterprise project for a qualified employee." Id.
151.429(b). Finally, subsection (c) limits the total tax refund that an enterprise project may apply
for and receive as follows:
The total amount of tax refund that an enterprise project may
apply for in a state fiscal year may not exceed $250,000. If an
enterprise project qualifies in a state fiscal year for a refund of taxes
in an amount in excess of the limitation provided by this subsection,
it may apply for a refund of those taxes in a subsequent year, subject
to the $250,000 limitation for each year. However, an enterprise
project may not apply for a refund under this section after the end of
the state fiscal year immediately following the state fiscal year in
which the enterprise project's designation as an enterprise project
expires or is removed. The total amount that may be refunded to an
enterprise project under this section may not exceed the amount
determined by multiplying $250,000 by the number of state fiscal
years during which the enterprise project created one or more jobs for
qualified employees.Id. 151.429(c).
(JC-0567)
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Texas. Attorney-General's Office. Texas Attorney General Opinion: JC-567, text, October 29, 2002; (https://texashistory.unt.edu/ark:/67531/metapth274877/m1/2/: accessed July 5, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.