Board Agenda - December 11, 2007

j. Texas Instruments Tax Credit Application

Presenter: Richard Matkin

Purpose: A - Request decision - closure required

Time: No time limit

Description:

Texas Instruments (TI) is eligible for a tax credit for Maintenance and Operation (M&O) taxes paid in excess of the $100 million limitation for the 2005 and 2006 tax years, under the property value limitation agreement entered into by Texas Instruments (TI) and the Plano Independent School District on May 11, 2004.

Key elements to the credit application are:
Tax credit to TI for $2,434,386
Tax credit applied against the M&O tax over the next seven years
Annual credit over seven years calculated at $347,769
Credit of $347,769 per year cannot exceed 50% of the M&O tax levied on the qualified property in any tax year
Balance of credits not received due to the 50% limit will be divided equally in the tax years: 2015, 2016, and 2017
Reimbursement of tax credit by the Texas Education Agency to Plano ISD is subject to approval of the application by the Texas Education Agency

The Districts' advisors and legal counsel, Moak and Casey, have reviewed the application. Please note Dan Casey's letter regarding this matter, which is attached to the agenda item. Upon approval of this resolution, the application will be submitted to the Texas Education Agency. The Texas Education Agency's approval will finalize whether TI will receive a tax credit from Plano ISD and the Texas Education Agency reimburses the District. Letter from Moak & Casey as well as Resolution is attached

Recommendation:

The administration recommends the approval of the Resolution, as submitted.

Business Impact:

Summary:

Appendix:

Return to Meeting Agenda