TYLER, Texas (News Release) - On Wednesday, Nov. 10, the Tyler City Council passed a resolution to nominate Trane U.S., Inc. for the Texas Enterprise Zone Program. The company which opened its Tyler facility in 1956 has grown to be one of the city’s largest businesses as well as the largest Trane facilities in the world.
Trane is proposing a $76.7 million investment to construct a 190,000-square-foot building and assembly lines at the Tyler facility as a result of the Building 9 collapse from the early 2021 winter storm. In addition to rebuilding four assembly lines, this investment will create three additional assembly lines as well as allow for improved internal and external material flow as well as improved labor productivity.
If approved for the Texas Enterprise Zone Program by the Office of the Governor Economic Development and Tourism through the Texas Economic Development Bank, the capital investment project is estimated to result in a $1.6 million net benefit (after-tax abatement) for Tyler and Smith County. Trane would retain the 400 existing jobs that were assigned to Building 9 and create 387 spin-off jobs, over 10 years.
The program is an economic development tool and 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 are related to the capital investment and jobs created at the qualified business site.
PROJECT REQUIREMENTS:
Communities may nominate projects, for a designation period up to five years, noninclusive of a 90-day window prior to the application deadline. Employment and capital investment commitments must be incurred and met within this timeframe.
Projects may be physically located in or outside of an Enterprise Zone. If located within a zone, the company commits that 25 percent of its new employees will meet economically disadvantaged or enterprise zone residency requirements. If located outside of a zone, the company commits that 35 percent of its new employees will meet economically disadvantaged or enterprise zone residency requirements.
Under limited statutory provisions, an enterprise project designation may be granted for job retention.