LUFKIN, TX (KTRE) - A city economic development board is nominating Lufkin Industries as an enterprise project, which could save the company up to $1.25 million in state sales taxes over five years.
Jim Wehmeier, Lufkin's economic development director, said the city council must approve the nomination before it goes to the state. All of the rebate would come from the state portion of the sales tax.
Wehmeier said the enterprise project status is for state's to use as a recruiting tool for other businesses or, like in this case, as a job retention tool.
For a business to receive enterprise project status, they must meet several qualifications which Lufkin Industries does meet, Wehmeier said.
One of those qualifications is they must be looking at a major local investment over the next five years, which they are doing, he said.
Texas cities are only allowed to have six enterprise projects every two years and this is the first Lufkin is applying for in this period.