Greg: This is PKF Texas, The Entrepreneurs Playbook. I’m Greg Price, Director of Consulting Solutions, and I’m here again with Mark Scimemi, our Director of State and Local Tax at PKF Texas. Mark, welcome back to the Playbook.
Mark: Thanks, Greg.
Greg: Mark, the last time you were here you were talking about the Texas Enterprise Zone, and there were some credits and incentives, and you mentioned some challenges. What are some of those?
Mark: There are risks with the Texas Enterprise Zone program. The primary risk is that you will go through all the work of applying for it and ultimately not receive the benefit. This is because there are only a certain number of designations that are awarded, and the governor’s office metes them out based on a competition based on points. That’s one of the big issues. We work with companies at the very front end to manage their expectations on their likelihood of success.
The second risk issue for many companies are the disclosures that have to be made to the governor’s office when you actually receive the incentive. You have to disclose compensation amounts, you have to disclose other personal information, like addresses of your employees. And so for some companies this is just more than they’re willing to do. And so we take them through everything that will happen up to the point of them receiving the benefit, so that there are no surprises.
Greg: So I can see why now it takes someone that’s got the competency, the experience, and the background to assist a client through this process towards a positive resolution.
Greg: Very good. Well, we’ll have our folks call you if they have any questions about that, and we’ll direct them to that website for that.
Greg: All right. Thanks for being here today. This has been another Thought Leader production brought to you by PKF Texas, the Entrepreneurs Playbook. Tune in next week for another chapter, and if you’re interested in the Texas Enterprise Zone work program go to www.PKFTexas.com and look for Mark Scimemi.