McKinney City Council held a special meeting today at which they nominated PACCAR for the Texas Enterprise Zone Program.

The program is an economic development tool, which allows local communities to partner with the state of Texas to “encourage job creation and capital investment in economically distressed areas,” according to the Texas Comptroller of Public Accounts’ website. Approved projects can apply for state sales tax and use state tax refunds on qualified expenditures. The level of refund depends on the capital investment and the number of jobs created, according to the website.

In order for PACCAR to participate in the program, the company needs an ordinance and resolution approved by the Council in order for the company to submit their application to the state, City Manager Paul Grimes said. The city can recommend up to six applicants every two years; however, applications are due Dec. 1.

This is a competitive program and not all applicants are approved, said Abby Liu, executive vice president for the McKinney Economic Development Corporation.

McKinney has adopted and participated in the Texas Enterprise Zone Program since at least 2006, and adopted ordinances in 2010, 2014 and 2016, according to a presentation at the meeting. Encore Wire and Raytheon are two companies in McKinney that have previously participated in the program.