As the landscape of educational funding continues to evolve, it is imperative for Texas school districts to thoroughly understand the financial implications of participating in the Jobs, Energy, Technology and Innovation (JETI) Act. While the tax advantages to the prospective business are more evident, the complexities of the JETI agreement combined with the school finance system leave the benefits for the school district less clear.

CG Strategies works with Clients to provide JETI applicants and school districts with a detailed understanding of how adopting a JETI agreement will impact their financial resources. Specifically, through our extensive financial impact analysis we aim to assess the following key areas:

Maintenance and Operations Funding: Evaluate how participation in the JETI program will affect the allocation of funds for maintaining day-to-day operations within the school district.

Interest and Sinking Funding: Analyze the impact of the JETI program on funds designated for debt service.

Local Taxpayer Burden: Assess the extent to which participation in the JETI program will influence local taxpayers' financial obligations and any potential changes in property tax rates.

Our extensive financial impact analysis of the JETI program will provide qualified JETI applicants and school districts with valuable insights to navigate the complexities of JETI application and approval process. We Engage with key stakeholders, including school district administrators, board members, taxpayers, and community leaders, to share key findings and feedback on the proposed analysis. By understanding the implications of participating in the JETI program, districts can make informed decisions to optimize their financial resources and support student success.

Created by constitutional amendment in 1989, freeport exemptions provide a tax exemption for manufacturing goods that enter and exit the state within a 175 day period. While the impact of adopting such an exemption can be offset by state funding on the M&O revenue, the I&S tax implications are much more complex. With no State offset, the program allows for the negotiation of hold-harmless payment paid by the local taxpayer receiving the benefit.

Foreign Trade Zones (FTZs) in Texas are designated areas where companies can import goods without paying certain taxes or duties until the goods leave the zone and enter the U.S. market. These zones are beneficial for businesses looking to streamline their operations and reduce costs associated with importing goods. We ensure that the best interests of the school district are kept at the forefront of these agreements and help communicate to all parties thes impact of these agreements on a school district’s funding.

- Preparation of the annual revenue-loss and school-district benefit report to be submitted for the school district and the company, as required under the agreements.

- Assistance with the completion and submission to the Comptroller’s Office the annual eligibility report form, biennial progress report form, and school district form indicating any benefit payments, extraordinary educational expenses, and revenue protection payments.

- Assistance with the processing of any received applications for tax credits on qualified property, as needed.

- Processing the application for reimbursement of tax credit payments from the Texas Education Agency.

- Providing ongoing interpretation and administration of the existing Chapter 313 Agreement.

- Distribution of monthly newsletter detailing the most recent legislative, programmatic and school finance related information

- Provide first of the tax year update to all revenue loss and supplemental payment estimates for the upcoming budget cycle.