Value Limitation Agreement

State law defines two overlapping categories of real estate – „qualified investments“ and „qualified property“ – that are used for different purposes in the value limitation process. During the eligible period, the applicant must set up or install qualified investments in excess of a certain amount in order to obtain an estimated value limit, in order to remain eligible and to comply with the agreement. Businesses applying for a restriction apply to the school district where the project may be located. The School District will forward the application to Texas Comptroller for evaluation. The school district cannot grant final approval of the reduction without an analysis of the competencs and without authorization. [2] During the ten years of the tax benefit, revenues from the local school district are significantly replaced by state resources by the school`s public public funding system. [4] As soon as the compleur issues certification, the applicant and the school district negotiate a written prescription agreement based on the presentation provided by the Comptroller. In exchange for estimating the value limit and the tax credit, the owner or developer must enter into an agreement with the school district of a Texas county to create a certain number of jobs and build or install certain types of real and personal property of a given value. This agreement must define what is expected of each party, including the conditions and provisions required by the State of Texas to protect the school district from possible revenue loss. An ISD School Board of Directors may only authorize a property qualified for a value limitation, located in an area designated as a reinvestment area in accordance with Section 311 or 312 of the Texas tax code, or a property designated as a reinvestment area by the district commissioner and the governing body of each municipality, in accordance with the government code of Chapter 2303 , provided that all of the qualified property is located on land within that area. This means that a 313 is not available in all countries.

Most applicants have a qualification period beginning on the date the school district agrees and ends at the end of the second full tax year following that date. The applicant or developer must raise the minimum investment or capital required during the imputation period in order to remain in compliance with the agreement. Nuclear power plants and advanced clean energy projects have longer waiting times.