The Texas Enterprise Zone Program provides a sales and use tax refund to companies that invest in economically distressed areas. Fossil representatives said 35% of the employees they hire over the next five years will live in such areas. Enterprise zones are dictated by the census, according to city documents.
Fossil intends to sink $5 million into property improvements, landscaping, new furniture, fixtures, computers, servers and software at its Richardson headquarters, according to the city. This level of investment will qualify the company for a potential sales tax refund of $2,500 per position for up to a maximum of 500 jobs.
If Fossil's application is approved, it could see a reimbursement from the state of up to $1.3 million, according to city documents.
This is not the first time the city has thrown its weight behind a local company seeking an Enterprise Zone designation. It has also approved resolutions in support of Qorvo, Blue Cross/Blue Shield, Triquint and Raytheon. Companies must be nominated by a city to qualify for the program.
Fossil's application must be submitted by Sept. 1, and projects are typically designated within eight to 10 weeks, according to the program's website. Council members approved on consent the resolution to back Fossil's request at their Aug. 19 meeting.