JSW Steel (USA) Inc. Chapter 313 Application

For Appraised Value Limitation

To Goose Creek Consolidated

Independent School District July 6, 2017

Table of Contents

Chapter 313 Application………………..……….……… Tab 1

Application Fee………………………………….……… Tab 2

Combined Group…………..………………………..….. Tab 3

Project Description………………..………………….… Tab 4

Limitation as Determining Factor……………………….. Tab 5

Multiple Districts………………………………….…… Tab 6

Qualified Investment Description………………………. Tab 7

Qualified Property Description………………………….. Tab 8

Land description……………………..................................... Tab 9

Description of Not Eligible Property…...……………… Tab 10

Maps……………………………………………………. Tab 11

Job Creation Waiver………………………………….…..Tab 12

Average Wages……………………………………..…… Tab 13

Schedules A1, A2, B, C, and D……………………….…..Tab 14

Economic Impact Analysis……………………………….Tab 15

Reinvestment Zone Description………………………… Tab 16

Signature and Certification………………………………. Tab 17

Tab 1

Chapter 313 Application

For more information, visit our website: www.TexasAhead.org/tax_programs/chapter313/

The Economic Development and Analysis Division at the Texas Comptroller of Public Accounts provides information and resources for taxpayers and local taxing entities.

Application for Appraised Value Limitation on Qualified Property(Tax Code, Chapter 313, Subchapter B or C)

50-296-A • 05-14/2

Economic Development and Analysis

Form 50-296-AINSTRUCTIONS: This application must be completed and filed with the school district. In order for an application to be processed, the governing body (school board) must elect to consider an application, but — by Comptroller rule — the school board may elect to consider the application only after the school district has received a completed application. Texas Tax Code, Section 313.025 requires that any completed application and any supplemental materials received by the school district must be forwarded within seven days to the Comptroller of Public Accounts.

If the school board elects to consider the application, the school district must:• notify the Comptroller that the school board has elected to consider the application. This notice must include:

– the date on which the school district received the application;– the date the school district determined that the application was complete;– the date the school board decided to consider the application; and– a request that the Comptroller prepare an economic impact analysis of the application;

• provide a copy of the notice to the appraisal district;• must complete the sections of the application reserved for the school district and provide information required in the Comptroller rules located at 34

Texas Administrative Code (TAC) Section 9.1054; and• forward the original hard copy of the completed application to the Comptroller in a three-ring binder with tabs, as indicated on page 9 of this

application, separating each section of the documents, in addition to an electronic copy on CD. See 34 TAC Chapter 9, Subchapter F.

The governing body may, at its discretion, allow the applicant to supplement or amend the application after the filing date, subject to the restrictions in 34 TAC Chapter 9, Subchapter F.

When the Comptroller receives the notice and required information from the school district, the Comptroller will publish all submitted application materials on its website. The Comptroller is authorized to treat some application information as confidential and withhold it from publication on the Internet. To do so, however, the information must be segregated and comply with the other requirements set out in the Comptroller rules. For more information, see guidelines on Comptroller’s website.

The Comptroller will independently determine whether the application has been completed according to the Comptroller’s rules (34 TAC Chapter 9, Subchapter F). If the Comptroller finds the application is not complete, the Comptroller will request additional materials from the school district. Pursuant to 9.1053(a)(1)(C), requested information shall be provided within 20 days of the date of the request. When the Comptroller determines that the application is complete, it will send the school district a notice indicating so. The Comptroller will determine the eligibility of the project, issue a certificate for a limitation on appraised value to the school board regarding the application and prepare an economic impact evaluation by the 90th day after the Comptroller receives a complete application—as determined by the Comptroller.

The school board must approve or disapprove the application not later than the 150th day after the application review start date (the date the application is finally determined to be complete), unless an extension is granted. The Comptroller and school district are authorized to request additional information from the applicant that is reasonably necessary to issue a certificate, complete the economic impact evaluation or consider the application at any time during the application review period.

Please visit the Comptroller’s website to find out more about the program at www.texasahead.org/tax_programs/chapter313/. There are links to the Chapter 313 statute, rules, guidelines and forms. Information about minimum limitation values for particular districts and wage standards may also be found at that site.

SECTION 1: School DIstrict Information

1. Authorized School District Representative

________________________________________________Date Application Received by District

________________________________________________ ________________________________________________First Name Last Name

___________________________________________________________________________________________________Title

___________________________________________________________________________________________________School District Name

___________________________________________________________________________________________________Street Address

___________________________________________________________________________________________________Mailing Address

________________________________________________ ____________________________ _________________City State ZIP

________________________________________________ ________________________________________________Phone Number Fax Number

________________________________________________ ________________________________________________Mobile Number (optional) Email Address

2. Does the district authorize the consultant to provide and obtain information related to this application? . . . . . . . . . . . . . . . . . . . . Yes No

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SECTION 1: School DIstrict Information (continued)

3. Authorized School District Consultant (If Applicable)

________________________________________________ ________________________________________________First Name Last Name

___________________________________________________________________________________________________Title

___________________________________________________________________________________________________Firm Name

________________________________________________ ________________________________________________Phone Number Fax Number

________________________________________________ ________________________________________________Mobile Number (optional) Email Address

4. On what date did the district determine this application complete? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ____________________

5. Has the district determined that the electronic copy and hard copy are identical? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

SECTION 2: Applicant Information

1. Authorized Company Representative (Applicant)

________________________________________________ ________________________________________________First Name Last Name

________________________________________________ ________________________________________________Title Organization

___________________________________________________________________________________________________Street Address

___________________________________________________________________________________________________Mailing Address

________________________________________________ ____________________________ _________________City State ZIP

________________________________________________ ________________________________________________Phone Number Fax Number

________________________________________________ ________________________________________________Mobile Number (optional) Business Email Address

2. Will a company official other than the authorized company representative be responsible for responding to future information requests? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

2a. If yes, please fill out contact information for that person.

________________________________________________ ________________________________________________First Name Last Name

________________________________________________ ________________________________________________Title Organization

___________________________________________________________________________________________________Street Address

___________________________________________________________________________________________________Mailing Address

________________________________________________ ____________________________ _________________City State ZIP

________________________________________________ ________________________________________________Phone Number Fax Number

________________________________________________ ________________________________________________Mobile Number (optional) Business Email Address

3. Does the applicant authorize the consultant to provide and obtain information related to this application? . . . . . . . . . . . . . . . . . . Yes No

For more information, visit our website: www.TexasAhead.org/tax_programs/chapter313/50-296-A • 05-14/2 • Page 3

A p p l i c a t i o n f o r A p p r a i s e d Va l u e L i m i t a t i o n o n Q u a l i f i e d P r o p e r t yEconomic Development

and AnalysisForm 50-296-A

SECTION 2: Applicant Information (continued)

4. Authorized Company Consultant (If Applicable)

________________________________________________ ________________________________________________First Name Last Name

___________________________________________________________________________________________________Title

___________________________________________________________________________________________________Firm Name

________________________________________________ ________________________________________________Phone Number Fax Number

________________________________________________Business Email Address

SECTION 3: Fees and Payments

1. Has an application fee been paid to the school district? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

The total fee shall be paid at time of the application is submitted to the school district. Any fees not accompanying the original application shall be con-sidered supplemental payments.

1a. If yes, attach in Tab 2 proof of application fee paid to the school district.

For the purpose of questions 2 and 3, “payments to the school district” include any and all payments or transfers of things of value made to the school dis-trict or to any person or persons in any form if such payment or transfer of thing of value being provided is in recognition of, anticipation of, or consideration for the agreement for limitation on appraised value.

2. Will any “payments to the school district” that you may make in order to receive a property tax value limitation agreement result in payments that are not in compliance with Tax Code §313.027(i)? . . . . . . . . . . . . . . . . . . . . . . . Yes No N/A

3. If “payments to the school district” will only be determined by a formula or methodology without a specific amount being specified, could such method result in “payments to the school district” that are not in compliance with Tax Code §313.027(i)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No N/A

SECTION 4: Business Applicant Information

1. What is the legal name of the applicant under which this application is made? ______________________________________________

2. List the Texas Taxpayer I.D. number of entity subject to Tax Code, Chapter 171 (11 digits) . . . . . . . . . . . . . . . . . . . . . . . ____________________

3. List the NAICS code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ____________________

4. Is the applicant a party to any other pending or active Chapter 313 agreements? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

4a. If yes, please list application number, name of school district and year of agreement

____________________________________________________________________________________________

SECTION 5: Applicant Business Structure

1. Identify Business Organization of Applicant (corporation, limited liability corporation, etc) ________________________________________

2. Is applicant a combined group, or comprised of members of a combined group, as defined by Tax Code §171.0001(7)? . . . . . . Yes No

2a. If yes, attach in Tab 3 a copy of Texas Comptroller Franchise Tax Form No. 05-165, No. 05-166, or any other documentation from the Franchise Tax Division to demonstrate the applicant’s combined group membership and contact information.

3. Is the applicant current on all tax payments due to the State of Texas? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

4. Are all applicant members of the combined group current on all tax payments due to the State of Texas? . . . . . . . Yes No N/A

5. If the answer to question 3 or 4 is no, please explain and/or disclose any history of default, delinquencies and/or any material litigation, including litigation involving the State of Texas. (If necessary, attach explanation in Tab 3)

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SECTION 6: Eligibility Under Tax Code Chapter 313.024

1. Are you an entity subject to the tax under Tax Code, Chapter 171? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

2. The property will be used for one of the following activities:

(1) manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

(2) research and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

(3) a clean coal project, as defined by Section 5.001, Water Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

(4) an advanced clean energy project, as defined by Section 382.003, Health and Safety Code . . . . . . . . . . . . . . . . . . . . . . Yes No

(5) renewable energy electric generation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

(6) electric power generation using integrated gasification combined cycle technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

(7) nuclear electric power generation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

(8) a computer center that is used as an integral part or as a necessary auxiliary part for the activity conducted by applicant in one or more activities described by Subdivisions (1) through (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

(9) a Texas Priority Project, as defined by 313.024(e)(7) and TAC 9.1051 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

3. Are you requesting that any of the land be classified as qualified investment? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

4. Will any of the proposed qualified investment be leased under a capitalized lease? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

5. Will any of the proposed qualified investment be leased under an operating lease? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

6. Are you including property that is owned by a person other than the applicant? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

7. Will any property be pooled or proposed to be pooled with property owned by the applicant in determining the amount of your qualified investment? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

SECTION 7: Project Description

1. In Tab 4, attach a detailed description of the scope of the proposed project, including, at a minimum, the type and planned use of real and tangible per-sonal property, the nature of the business, a timeline for property construction or installation, and any other relevant information.

2. Check the project characteristics that apply to the proposed project:

Land has no existing improvements Land has existing improvements (complete Section 13)

Expansion of existing operation on the land (complete Section 13) Relocation within Texas

SECTION 8: Limitation as Determining Factor

1. Does the applicant currently own the land on which the proposed project will occur? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

2. Has the applicant entered into any agreements, contracts or letters of intent related to the proposed project? . . . . . . . . . . . . . . Yes No

3. Does the applicant have current business activities at the location where the proposed project will occur? . . . . . . . . . . . . . . . . . Yes No

4. Has the applicant made public statements in SEC filings or other documents regarding its intentions regarding the proposed project location? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

5. Has the applicant received any local or state permits for activities on the proposed project site? . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

6. Has the applicant received commitments for state or local incentives for activities at the proposed project site? . . . . . . . . . . . . . Yes No

7. Is the applicant evaluating other locations not in Texas for the proposed project? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

8. Has the applicant provided capital investment or return on investment information for the proposed project in comparison with other alternative investment opportunities? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

9. Has the applicant provided information related to the applicant’s inputs, transportation and markets for the proposed project? . . . . Yes No

10. Are you submitting information to assist in the determination as to whether the limitation on appraised value is a determining factor in the applicant’s decision to invest capital and construct the project in Texas? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

Chapter 313.026(e) states “the applicant may submit information to the Comptroller that would provide a basis for an affirmative determination under Subsection (c)(2).” If you answered “yes” to any of the questions in Section 8, attach supporting information in Tab 5.

For more information, visit our website: www.TexasAhead.org/tax_programs/chapter313/50-296-A • 05-14/2 • Page 5

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and AnalysisForm 50-296-A

SECTION 9: Projected Timeline

1. Application approval by school board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________

2. Commencement of construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________

3. Beginning of qualifying time period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________

4. First year of limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________

5. Begin hiring new employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________

6. Commencement of commercial operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________7. Do you propose to construct a new building or to erect or affix a new improvement after your application review

start date (date your application is finally determined to be complete)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

Note: Improvements made before that time may not be considered qualified property.

8. When do you anticipate the new buildings or improvements will be placed in service? . . . . . . . . . . . . . . . . . . . . . . . . . _____________________

SECTION 10: The Property

1. Identify county or counties in which the proposed project will be located __________________________________________________

2. Identify Central Appraisal District (CAD) that will be responsible for appraising the property ______________________________________

3. Will this CAD be acting on behalf of another CAD to appraise this property? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

4. List all taxing entities that have jurisdiction for the property, the portion of project within each entity and tax rates for each entity:

County: _____________________________________ City: _____________________________________________ (Name, tax rate and percent of project) (Name, tax rate and percent of project)

Hospital District: _______________________________ Water District: _______________________________________ (Name, tax rate and percent of project) (Name, tax rate and percent of project)

Other (describe): _______________________________ Other (describe): _____________________________________ (Name, tax rate and percent of project) (Name, tax rate and percent of project)

5. Is the project located entirely within the ISD listed in Section 1? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

5a. If no, attach in Tab 6 additional information on the project scope and size to assist in the economic analysis.

6. Did you receive a determination from the Texas Economic Development and Tourism Office that this proposed project and at least one other project seeking a limitation agreement constitute a single unified project (SUP), as allowed in §313.024(d-2)? . . . . . . . . Yes No

6a. If yes, attach in Tab 6 supporting documentation from the Office of the Governor.

SECTION 11: Investment

NOTE: The minimum amount of qualified investment required to qualify for an appraised value limitation and the minimum amount of appraised value limita-tion vary depending on whether the school district is classified as Subchapter B or Subchapter C, and the taxable value of the property within the school district. For assistance in determining estimates of these minimums, access the Comptroller’s website at www.texasahead.org/tax_programs/chapter313/.

1. At the time of application, what is the estimated minimum qualified investment required for this school district? . . . . . . _____________________

2. What is the amount of appraised value limitation for which you are applying? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________ Note: The property value limitation amount is based on property values available at the time of application and

may change prior to the execution of any final agreement.

3. Does the qualified investment meet the requirements of Tax Code §313.021(1)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

4. Attach a description of the qualified investment [See §313.021(1).] The description must include:a. a specific and detailed description of the qualified investment you propose to make on the property for which you are requesting an appraised

value limitation as defined by Tax Code §313.021 (Tab 7);b. a description of any new buildings, proposed new improvements or personal property which you intend to include as part of your minimum quali-

fied investment (Tab 7); andc. a detailed map of the qualified investment showing location of tangible personal property to be placed in service during the qualifying time period

and buildings to be constructed during the qualifying time period, with vicinity map (Tab 11).

5. Do you intend to make at least the minimum qualified investment required by Tax Code §313.023 (or §313.053 for Subchapter C school districts) for the relevant school district category during the qualifying time period? . . . . . . . . . . . . . . . . . . Yes No

October 2017

July 2018

January 2019

January 2021

April 2019

July 2020

✔

2021

Chambers County

Chambers County Appraisal district

✔

Chambers County / 100% / .553 N/A

N/A N/A

See Tab 6 See Tab 6

✔

✔

100,000,000.00

100,000,000.00

✔

✔

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SECTION 12: Qualified Property

1. Attach a detailed description of the qualified property. [See §313.021(2)] (If qualified investment describes qualified property exactly, you may skip items a, b and c below.) The description must include:

1a. a specific and detailed description of the qualified property for which you are requesting an appraised value limitation as defined by Tax Code §313.021 (Tab 8);

1b. a description of any new buildings, proposed new improvements or personal property which you intend to include as part of your qualified prop-erty (Tab 8); and

1c. a map of the qualified property showing location of new buildings or new improvements with vicinity map (Tab 11).

2. Is the land upon which the new buildings or new improvements will be built part of the qualified property described by §313.021(2)(A)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

2a. If yes, attach complete documentation including:

a. legal description of the land (Tab 9);

b. each existing appraisal parcel number of the land on which the new improvements will be constructed, regardless of whether or not all of the land described in the current parcel will become qualified property (Tab 9);

c. owner (Tab 9);

d. the current taxable value of the land. Attach estimate if land is part of larger parcel (Tab 9); and

e. a detailed map showing the location of the land with vicinity map (Tab 11).

3. Is the land on which you propose new construction or new improvements currently located in an area designated as a reinvestment zone under Tax Code Chapter 311 or 312 or as an enterprise zone under Government Code Chapter 2303? . . . . Yes No

3a. If yes, attach the applicable supporting documentation:

a. evidence that the area qualifies as a enterprise zone as defined by the Governor’s Office (Tab 16);

b. legal description of reinvestment zone (Tab 16);

c. order, resolution or ordinance establishing the reinvestment zone (Tab 16);

d. guidelines and criteria for creating the zone (Tab 16); and

e. a map of the reinvestment zone or enterprise zone boundaries with vicinity map (Tab 11)

3b. If no, submit detailed description of proposed reinvestment zone or enterprise zone with a map indicating the boundaries of the zone on which you propose new construction or new improvements to the Comptroller’s office within 30 days of the application date. What is the anticipated date on which you will submit final proof of a reinvestment zone or enterprise zone? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________

SECTION 13: Information on Property Not Eligible to Become Qualified Property

1. In Tab 10, attach a specific and detailed description of all existing property. This includes buildings and improvements existing as of the application review start date (the date the application is determined to be complete by the Comptroller). The description must provide sufficient detail to locate all existing property on the land that will be subject to the agreement and distinguish existing property from future proposed property. 

2. In Tab 10, attach a specific and detailed description of all proposed new property that will not become new improvements as defined by TAC 9.1051. This includes proposed property that: functionally replaces existing or demolished/removed property; is used to maintain, refurbish, renovate, modify or upgrade existing property; or is affixed to existing property; or is otherwise ineligible to become qualified property.  The description must provide sufficient detail to distinguish existing property (question 1) and all proposed new property that cannot become qualified property from proposed qualified property that will be subject to the agreement (as described in Section 12 of this application).

3. For the property not eligible to become qualified property listed in response to questions 1 and 2 of this section, provide the following supporting information in Tab 10:

a. maps and/or detailed site plan;

b. surveys;

c. appraisal district values and parcel numbers;

d. inventory lists;

e. existing and proposed property lists;

f. model and serial numbers of existing property; or

g. other information of sufficient detail and description.

4. Total estimated market value of existing property (that property described in response to question 1): . . . . . . . . . . . . $ _____________________

5. In Tab 10, include an appraisal value by the CAD of all the buildings and improvements existing as of a date within 15 days of the date the application is received by the school district.

6. Total estimated market value of proposed property not eligible to become qualified property (that property described in response to question 2): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ _____________________

Note: Investment for the property listed in question 2 may count towards qualified investment in Column C of Schedules A-1 and A-2, if it meets the require-ments of 313.021(1). Such property cannot become qualified property on Schedule B.

For more information, visit our website: www.TexasAhead.org/tax_programs/chapter313/50-296-A • 05-14/2 • Page 7

A p p l i c a t i o n f o r A p p r a i s e d Va l u e L i m i t a t i o n o n Q u a l i f i e d P r o p e r t yEconomic Development

and AnalysisForm 50-296-A

SECTION 14: Wage and Employment Information

1. What is the estimated number of permanent jobs (more than 1,600 hours a year), with the applicant or a contractor of the applicant, on the proposed qualified property during the last complete quarter before the application review start date (date your application is finally determined to be complete)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________

2. What is the last complete calendar quarter before application review start date:

First Quarter Second Quarter Third Quarter Fourth Quarter of _________ (year)

3. What were the number of permanent jobs (more than 1,600 hours a year) this applicant had in Texas during the most recent quarter reported to the Texas Workforce Commission (TWC)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________

Note: For job definitions see TAC §9.1051 and Tax Code §313.021(3).

4. What is the number of new qualifying jobs you are committing to create? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________

5. What is the number of new non-qualifying jobs you are estimating you will create? . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________

6. Do you intend to request that the governing body waive the minimum new qualifying job creation requirement, as provided under Tax Code §313.025(f-1)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

6a. If yes, attach evidence in Tab 12 documenting that the new qualifying job creation requirement above exceeds the number of employees neces-sary for the operation, according to industry standards.

7. Attach in Tab 13 the four most recent quarters of data for each wage calculation below, including documentation from the TWC website. The final actual statutory minimum annual wage requirement for the applicant for each qualifying job — which may differ slightly from this estimate — will be based on information from the four quarterly periods for which data were available at the time of the application review start date (date of a completed application). See TAC §9.1051(21) and (22).

a. Average weekly wage for all jobs (all industries) in the county is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________

b. 110% of the average weekly wage for manufacturing jobs in the county is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________

c. 110% of the average weekly wage for manufacturing jobs in the region is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________

8. Which Tax Code section are you using to estimate the qualifying job wage standard required for this project? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . §313.021(5)(A) or §313.021(5)(B)

9. What is the minimum required annual wage for each qualifying job based on the qualified property? . . . . . . . . . . . . . . _____________________

10. What is the annual wage you are committing to pay for each of the new qualifying jobs you create on the qualified property? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _____________________

11. Will the qualifying jobs meet all minimum requirements set out in Tax Code §313.021(3)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

12. Do you intend to satisfy the minimum qualifying job requirement through a determination of cumulative economic benefits to the state as provided by §313.021(3)(F)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

12a. If yes, attach in Tab 12 supporting documentation from the TWC, pursuant to §313.021(3)(F).

13. Do you intend to rely on the project being part of a single unified project, as allowed in §313.024(d-2), in meeting the qualifying job requirements? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

13a. If yes, attach in Tab 6 supporting documentation including a list of qualifying jobs in the other school district(s).

SECTION 15: Economic Impact

1. Complete and attach Schedules A1, A2, B, C, and D in Tab 14. Note: Excel spreadsheet versions of schedules are available for download and printing at URL listed below.

2. Attach an Economic Impact Analysis, if supplied by other than the Comptroller’s Office, in Tab 15. (not required)

3. If there are any other payments made in the state or economic information that you believe should be included in the economic analysis, attach a sepa-rate schedule showing the amount for each year affected, including an explanation, in Tab 15.

Tab 2

Application Fee

Tab 3

Combined Group

NOT APPLICABLE

Tab 3 Combined Group

The Applicant does not file as part of a combined group in the State of Texas, as defined by Tax Code §171.0001(7).

Tab 4

Project Description

Tab 4 Detailed Project Description

The Applicant is a subsidiary of the JSW Group, an $11 billion conglomerate, who is a worldwide leading supplier of steel products and energy. JSW Steel (USA) Inc. (“JSW USA” or the “Company”) is considering a strategic expansion option for the operations currently located in Baytown, Texas which is the JSW Group’s only steel manufacturing location in North America. The JSW Group has limited capital dollars that it invests across the globe into its 63 facilities in 25 cities on 4 continents. To be successful in competition for these dollars, it is imperative that the Baytown management team develops a strong economic argument which demonstrate sufficient financial return to the organization. JSW Group’s board of directors in India is evaluating this project as well as several other capital projects at this time and partnerships with the state and local governments are a critical component of the evaluation process. The proposed Baytown project would include construction throughout 2018-2020 of a new melt and casting facility designed to produce metal slab. The construction of the facility and the associated equipment results in a capital investment of approximately $250 million. As part of the project, the facility will house a new electric arc furnace (EAF), ladle furnace, vacuum tank degasser, and caster. These specific pieces of equipment will contain the latest technological advancements available in the industry. This proposed Baytown project would result in the creation of 500 new Texas jobs with annual average wages of approximately $65,000. If constructed in Texas, this state-of-the-art melt shop facility would be the first new U.S. facility to melt steel in decades. If constructed alongside the Company’s existing plate and pipe mill, JSW USA could create the only facility of its kind in North America.

Tab 5

Limitation as Determining Factor

Tab 5 Limitation as Determining Factor

The Applicant is a subsidiary of the JSW Group, an $11 billion conglomerate, which is a worldwide leading supplier of steel products and energy. JSW Group is headquartered in India and employs over 40,000 employees globally with 63 locations in Asia, North America, South America, and Africa. As such, the Applicant competes with other members of the JSW Group for approval of a portion of the group’s capital investment budget to fund the capital investment necessary to construct the project. Moreover, the JSW Group has the ability to invest, locate, and develop new projects, such as the one that is the subject of this application, in numerous locations throughout the world. The JSW Group takes a disciplined, long-term approach to investing, regardless of the economic cycle and the geographic location. They consistently seek new global investment opportunities that create value for their stakeholders. Their business model is to conduct an extensive evaluation before they make any final investment decisions. A project team is evaluating these opportunities with a focus on global logistic capabilities, efficiency, scale, and site integration. The company has made no public announcements of a definitive intent to construct the proposed new melt and casting facility adjacent to the Applicant’s Baytown, Texas pipe and plate mill. With respect to potential locations in North America, the Applicant is also reviewing possible construction sites in Louisiana and Arkansas (see attached summary of potential incentives prepared for both; certain sensitive information has been redacted). Competitive abatement programs for the proposed new melt and casting facility exist in alternative locations. The impact of the property tax burden on the economic return of the proposed new facility is an important factor in the Applicant’s site selection evaluation and decision, as well as in obtaining approval for the project internally with the JSW Group’s board of directors in India. For the tax year 2016, Goose Creek CISD’s maintenance and operations (M&O) tax rate represents almost 40% of the total property tax burden imposed on taxable property located at the Baytown location. Consequently, a limitation on appraised value under Chapter 313 of the Texas Tax Code is a determining factor in the Applicant’s decision to invest capital and construct the Project in the State of Texas. The decision to make an investment in a particular jurisdiction depends on the economics of the investment in that jurisdiction. JSW Group’s decision to proceed with the investment in the proposed project will be based on a number of commercial, regulatory, and financial considerations, including the ability to obtain relief regarding property taxes. Capital investments are allocated to projects and locations based on expected economic return, and projected property tax liabilities associated with the proposed project are a substantial ongoing cost of operation. With all the global project proposals JSW Group is considering, the Applicant is requesting a significant portion of the JSW Group's capital investment budget relative to the Applicant's small size within the JSW Group’s global portfolio. The projected tax liabilities for the proposed project, without a Chapter 313 appraised value limitation, lower the economic rate of return and detract from the financial attractiveness of the project. In turn, the project becomes t less competitive with other capital intensive projects that deliver higher rates of return on invested capital. Accordingly, securing a Chapter 313 appraised value limitation is critical to establishing a rate of return competitive with other investment opportunities and, therefore, is an important factor affecting JSW Group’s final investment decision to construct and operate the proposed project in Texas.

A comparison of Goose Creek CISD’s M&O ad valorem taxes with and without the Chapter 313 appraised limitation through the 10th anniversary of the beginning of the limitation period using the current Goose Creek CISD M&O ad valorem tax rate of $1.17 per $100 of the estimated M&O taxable values on Schedule B is shown below:

M&O Ad Valorem Tax Comparison

For Goose Creek CISD With and without Chapter 313 appraised value limitation

Tax Year M&O Taxes Without 313

M&O Taxes With 313

2021 $2,411,370 $1,170,000 2022 $2,363,985 $1,170,000 2023 $2,275,650 $1,170,000 2024 $2,203,110 $1,170,000 2025 $2,114,775 $1,170,000 2026 $2,051,595 $1,170,000 2027 $1,994,850 $1,170,000 2028 $1,906,515 $1,170,000 2029 $1,818,180 $1,170,000 2030 $1,729,845 $1,170,000 Total $20,869,875 $11,700,000

Difference ($9,169,875)

As shown in the attachment, the Chapter 313 appraised value limitation is projected to result in $9.17 million in tax savings. These savings have a material impact on the rate of return and discounted cash flow projections for the project and are equivalent to 3.7% of the projected total investment in the proposed project, which is considered material for financial purposes. At present, the Applicant has received the following offers for local incentives (formal approvals subject to local government approval) at the proposed Baytown project site:

• Chambers County Chapter 381 County Incentive • City of Baytown Industrial District Agreement

Tentative Prelim

inary

Subject to Review

Change

For Discussion Purposes O

nly

Date: 3/7/2017

Page 1 of 4

Summ

ary of Potential Arkansas IncentivesPrepared by: G

rant Thornton LLP

Assumptions

LocationA

rkansasJob Creation

Low-E

ndH

igh-End

Average Salary N

ew Jobs

Personal PropertyReal PropertyLandO

therT

otal Capital Investment

Program N

ame

BenefitN

egotiated / StatutoryProgram

Description

Eligibility

Estim

ated Values

Comm

entsLow

High

I. State Incentives

Sales And Use T

ax Refund

For New

And Expanding

Businesses (Tax Back)

Sales & U

se TaxN

egotiated

Through the state's Tax Back program, A

rkansas provides sales tax refunds onthe purchase of building m

aterials and taxable machinery and equipm

ent toqualified businesses m

eeting investment and job creation requirem

ents. Theprogram

does not allow the refund of tax dedicated to educational or

conservation funds offers sales and use tax, which total 1 percent. W

ith the statesale and use tax rate set at 6.5 percent, the rem

aining 5.5 percent would be

eligible for refund.

Qualifying businesses include m

anufacturers investing more than $100,000 in an

approved project located in Arkansas. A

dditionally, the business must sign a job

creation agreement under the A

dvantage Arkansas or Create Rebate program

sw

ithin 24 months of the Tax Back agreem

ent.

$$

0

Applicants for Tax Back m

ust obtain an endorsement

resolution from a local governing authority authorizing the

refund of its local taxes. Applicants m

ust meet the

qualification criteria under the requisite Advantage

Arkansas or Create Rebate program

in which they are

participating and must be approved by A

rkansas Econom

icD

evelopment Corporation (A

ED

C).

Advantage Arkansas(Incom

e Tax Credit)

Income Tax

Negotiated

Arkansas offers corporate incom

e tax credits to for job creation based on thepayroll of new

, full-time, perm

anent employees hired as the result of a capital

investment project w

ith the state and is earned each tax year for a period of fiveyears. Credit am

ounts awarded through A

dvantage Arkansas range from

1 to 4percent of qualified payroll. The credit cannot offset m

ore than 50 percent of abusiness’ incom

e tax liability in any one year and may be carried forw

ard for nine(9) years beyond the tax year in w

hich the credit was first earned. The credit

begins in the tax year in which the new

employees are hired. E

mployees included

in the new additional payroll under the project m

ust be Arkansas taxpayers.

In order to qualify, taxpayers must m

eet certain job creation, wage and qualifying

investment thresholds. In order to qualify for the A

dvantage Arkansas program

(all tiers), the proposed average hourly wage of the new

employees hired as a

result of the project must be equal to or greater than the low

est county averagehourly w

age. Currently, the average hourly wage threshold for the A

dvantageA

rkansas program is $10.99.

$$

Benefits provided by the Advantage A

rkansas program are

determined in relation to the tier of the county in w

hichthe project is located. Tiers are determ

ined annually byA

ED

C. In addition, due to the limitations on the

utilization of the tax credit, a detailed tax impact analysis of

the project must be conducted to provide a better

understanding of the value.

Investment Incom

e Tax

Credit (ArkPlus)Incom

e TaxN

egotiated

Arkansas offers a state incom

e tax credit through its ArkPlus program

. Thisdiscretionary incentive is offered in highly com

petitive situations and allows a

state income tax credit of 10 percent of the total investm

ent in a new location.

The credit may be used to offset 50 percent of the A

rkansas income tax liability

in the tax year the credit is earned. Any unused credits m

ay be carried forward

for nine (9) years beyond the tax year in which the credit w

as first earned.

ArkPlus requires both a m

inimum

investment and a m

inimum

payroll of new,

full-time, perm

anent employees hired as a result of the project. Total project

expenditures must be incurred w

ithin four (4) years of the date the project isapproved by A

ED

C. New

, full-time, perm

anent employees m

ust be hiredw

ithin 48 months of the date the financial agreem

ent is signed.

$-

$

Minim

um investm

ent and minim

um payroll requirem

entsfor the A

rkPlus program are determ

ined in relation to thetier of the county in w

hich the project is located. Tiers aredeterm

ined annually by AE

DC. In addition, due to the

limitations on the utilization of the tax credit, a detailed tax

impact analysis of the project m

ust be conducted toprovide a better understanding of the value. Term

s arenegotiated w

ith AE

DC.

Create Rebate

Cash RebateN

egotiated

Through the state's Create Rebate program, the state offers annual cash

payments based on a com

pany’s annual payroll for new, full-tim

e, permanent

employees. Credit am

ounts awarded through Create Rebate range from

3.9percent-5 percent of qualified payroll. Benefits are available after the businesscertifies to the A

rkansas Departm

ent of Finance & A

dministration that it has

fulfilled the minim

um payroll requirem

ents and the reported payroll has beenverified.

In order to qualify, taxpayers must create a m

inimum

of $2 million annually in

new payroll. The m

inimum

payroll must be m

et within 24 m

onths of theeffective date of the financial incentive agreem

ent. No benefits m

ay be claimed

until the $2 million annual payroll threshold is m

et.

$$

0

Benefits provided by the Create Rebate program are

determined in relation to the tier of the county in w

hichthe job creation occurs. Tiers are determ

ined annually byA

ED

C. Terms are negotiated w

ith AE

DC.

Infrastructure Grants

Grant

Negotiated

AE

DC shares the cost of project infrastructure needs by com

mitting grants

from state and federal infrastructure funds. The am

ount of assistance comm

ittedis dependent upon the strength of the com

pany, number of jobs, average w

age,project investm

ent and costs associated with facility or site im

provements.

Qualifying businesses include m

anufacturers investing in an approved projectlocated in A

rkansas.

Governor's Q

uick Action Closing Fund and Com

munity

Developm

ent Block Grants m

ay be available to offset thecost of project infrastructure.

Tentative Prelim

inary

Subject to Review

Change

For Discussion Purposes O

nly

Date: 3/7/2017

Page 2 of 4

Arkansas Business andIndustry T

raining Program(BIT

P)Training Funds

Negotiated

Through the Business and Industry Training Program (BITP), A

rkansas has theability to help new

businesses offset workforce training costs. Program

fundsare focused in three areas including; providing financial assistance to recruitingnew

or expanding workforce in A

rkansas, providing pre-employm

ent training asw

ell as on-the-job training.

Qualifying businesses include m

anufacturers investing in an approved projectlocated in A

rkansas. Financial assistance is not allowed for salary of trainees or

new hires.

TBDTBD

Hours of instruction and the num

ber of instructors dependon the types of jobs that require training.

II. Local Incentives

Payment-In-Lieu-O

f-Tax

(PILOT

)Property Tax

Negotiated

Businesses may be able to offset property tax assessm

ents on both real andpersonal property by agreeing to a paym

ent-in-lieu-of-tax (PILOT) w

ith the localgovernm

ent. Property financed by bonds can be exempted from

city and countyproperty taxes during the lease period in w

hich a local government retains title to

the property. The negotiated PILOT can not be less than 35 percent of the

property taxes that would have been paid if the property w

ere on the tax rolls,unless a lesser am

ount is approved by the AE

DC and the State of A

rkansas.

Negotiated paym

ent-in-lieu-of-taxes made by businesses to local governm

ents inlieu of property taxes are generally encouraged and negotiated betw

een theparties involved.

Arkansas cities and counties calculate property tax based

on 20 percent of the market value of real and personal

property and the average annual value of manufacturers'

inventories based on millage rates in individual school

districts. Businesses are subject to annual property tax onall real and personal property.

Comm

unity Developm

entBlock G

rant (CDBG

)G

rantN

egotiatied

The Arkansas Com

munity and E

conomic D

evelopment Program

(ACE

DP) is

the Comm

unity Developm

ent Block Grant (CD

BG) program

for the State ofA

rkansas and is administered by A

ED

C under a grant agreement betw

een thestate of A

rkansas and the federal government. The CD

BG program

is a flexibleprogram

that provides comm

unities to be used for a wide range of developm

entneeds.

Eligible applicants include rural cities and counties w

ith a low-to-m

oderateincom

e population of at least 51 percent. Larger cities receive their own funding

and are not eligible for funds from the program

administered by A

ED

C. Thecities receiving their ow

n CDBG

allocation are: Conway, Fayetteville, Fort

Smith, H

ot Springs, Jacksonville, Jonesboro, Little Rock, North Little Rock,

Pine Bluff, Rogers, Springdale, Texarkana, and West M

emphis.

$-

$The m

aximum

benefit allowed under this program

variesdepending on the locatiion.

III. Federal Incentives

Federal New

Markets T

axCredits

FinancingN

egotiated

The federal government offers tax credits to incentive the investm

ent in lowincom

e areas of the country. The tax credit must be m

onetized by the businessand is sold to a third party. A

s a result, the company realizes the benefit through

a non-amortizing loan w

hich is forgiven over a 7-year period. In order toparticipate, an allocation of credits m

ust be obtained from a third-party entity.

Qualifying projects m

ust be located in some of the m

ost distressed comm

unitiesin the nation. These qualifying census tracts include those w

here the individualpoverty rate is at least 20 percent or w

here median fam

ily income does not

exceed 80 percent of the area median.

$0

The program is highly com

petitive to obtain and anallocation m

ust be obtained from a third party entity. The

company project m

ust be located in a qualified area to beconsidered for an allocation.

Program N

ame

BenefitN

egotiated / StatutoryProgram

Description

Eligibility

Estim

ated Values

Comm

entsLow

High

Tentative Prelim

inary

Subject to Review

Change

For Discussion Purposes O

nly

Date: 3/7/2017

Page 3 of 4

Summ

ary of Potential Louisiana IncentivesPrepared by: G

rant Thornton LLP

Assumptions

LocationLouisiana

Job CreationLow

-End

High-E

ndA

verage Salary New

JobsPersonal PropertyReal PropertyLandO

therT

otal Capital Investment

Program N

ame

BenefitN

egotiated / StatutoryProgram

Description

Eligibility

Estim

ated Values

Comm

entsLow

High

I. State Incentives

Competitive Projects Payroll

Incentive Program R

ebateIncentive

Withholding Tax

Negotiated

The Competitive Projects Payroll Incentive (CPPI) Program

provides anincentive rebate of up to 15 percent of a participating com

pany's new payroll for

up to 10 years. Additionally, a participating com

pany will be eligible for either a

rebate of state sales and use taxes on capital expenditures or a 1.2 percentproject facility expense rebate.

The company m

ust be in a qualifying industry. At least 50 percent of the total

sales of the business from its Louisiana site or sites are to out-of-state custom

ersor buyers, or to in-state custom

ers or buyers who resell the product or service to

an out-of-state customer or buyer for ultim

ate use, or to the federal government,

or any combination. Projects selected to participate in the program

must

demonstrate net new

jobs and payroll within the state and the project is deem

edto be com

petitive in nature. The business offers, or will offer w

ithin ninety daysof the effective date of qualifying for the incentive rebates, a basic healthbenefits plan to the individuals it em

ploys.

TBDTBD

Terms are negotiated w

ith the Louisiana Econom

icD

evelopment office. Based on our initial review

of thebusiness plan and the current program

guidelines, we

believe there is a low-probability of successfully negotiating

this program. H

owever, given the size of this project, w

eare including it as a possibility since the state m

ay considerchanging program

guidelines.

Enterprise Zone Program

Income/Franchise Tax / Sales

& U

se TaxStatutory

The Enterprise Z

one, or EZ

program is a jobs incentive program

that providesLouisiana incom

e and franchise tax credits to a new or existing business located

in Louisiana creating permanent net new

full-time jobs, and hiring at least 50%

of those net new jobs from

one of four targeted groups. The benefit provides:E

ither a one-time $3,500 or $1,000 tax credit for each net new

job created. Arebate of state sales and use taxes paid on qualifying m

aterials, machinery,

furniture, and/or equipment purchased or a 1.5%

refundable investment tax

credit on the total capital investment, excluding tax exem

pted items. The rebate

shall not exceed $100,000 per net new job.

Company m

ust be located within the boundaries of a state E

Z and create a

minim

um of five perm

anent net new full-tim

e jobs within 24 m

onths of theirproject start date or increase their current nationw

ide workforce by 10%

within

the first 12 months. H

ire 50% of the net new

jobs created from one or m

ore ofthe certification requirem

ents from residents w

ho live in Enterprise Z

one within

the state, people receiving an approved form of public assistance, people lacking

basic skills, or people unemployable by traditional standards.

Probability of success varies for this program. H

owever, if

the project is located within the boundaries of an E

Z, it

will qualify for the benefits. Com

pany cannot take theQ

uality Jobs and the Enterprise Z

one program.

Louisiana Fast StartTraining A

ssistanceN

egotiated

The state offers a no-cost workforce training initiative offering services such as

employee recruitm

ent and screening, including assessments, safety and

teamw

ork training, leadership development for m

anagers, and specializedassistance for em

ployees as they transition to new positions. FastStart also

provides the development and delivery of key certification program

s acrossLouisiana's w

orkforce development system

. In addition, services include deliveryof com

prehensive and customized training for industry specific processes and

procedures.

A qualified project m

ust be creating a minim

um of 15 new

permanent

manufacturing or distribution jobs, or at least 50 new

, permanent service-related

jobs.

TBDTBD

Value of the benefit m

ay vary depending on the trainingneeds of the com

pany.

Quality Jobs Program

Income/Franchise Credit /

Sales & U

se Tax /W

ithholding TaxN

egotiated

The Quality Jobs, or Q

J, program provides a cash rebate to com

panies thatcreate w

ell-paid jobs and promote econom

ic development. The program

provides up to a 6% cash rebate on 80%

of gross payroll for new direct jobs for

up to 10 years. Effective July 1, 2018, the rebate is available on 100%

of grossannual payroll. It also provides a 4%

sales/use rebate on capital expenditures ora 1.5%

refundable investment tax credit on the total capital investm

ent,excluding tax exem

pted items.

Company m

ust be in a qualifying industry. In addition, the company m

ust dothe follow

ing: 1) create a minim

um of five new

direct full-time jobs (30 hours

per week); 2) provide a basic health benefit plan/health insurance coverage; 3)

pay employees at least $14.50 per hour in w

ages and healthcare benefits; and 4)have a gross payroll of $250,000 if the com

pany has 50 or fewer em

ployees state-w

ide prior to the start date of the contract, or $500,000 if the company has m

orethan 50 em

ployees statewide prior to the start date of the contract.

The company is in an industry that qualifies for the

program. The state places additional program

requirements on health care w

hich can be provided uponrequest. A

ctual terms are negotiated w

ith the LouisianaE

conomic D

evelopment office. The com

pany cannot takeadvantage of the Q

uality Jobs program and the E

nterpriseZ

one.

Tentative Prelim

inary

Subject to Review

Change

For Discussion Purposes O

nly

Date: 3/7/2017

Page 4 of 4

Industrial Tax E

xemption

Property TaxN

egotiatedThe state offers local property tax abatem

ents for up to 10 years on am

anufacturer's new investm

ent and annual capitalized additions related to them

anufacturing site.

Only m

anufacturers can take advantage of this program. Therefore, to qualify

the company m

ust be engaged in processing or manufacturing in the state to

qualify. Although job creation is not a form

al requirement, the state considers

the number of jobs created in its evaluation of a request for assistance through

the program.

$

Although local tax abatem

ents are awarded by

municipalities in m

ost states, in Louisiana they are awarded

by the state. Furthermore, the local unit of governm

ent isnot required to approve the benefit, but they are notifiedby the state. This program

is most often used for existing

industries.II. Local Incentives

Payment-In-Lieu of T

axAgreem

entProperty Tax

Negotiated

Businesses may be able to offset property tax assessm

ents on both real andpersonal property by agreeing to a paym

ent-in-lieu-of-tax (PILOT) w

ith the city,parish, port com

mission or industrial developm

ent board. Property financed bybonds can be exem

pted from local property taxes during the lease period in

which a local governm

ent retains title to the property. through this program, an

abatement can be extended for u p to 20 years.

PILOT applicants m

ust show that the benefits to the com

munity in the form

ofadditional em

ployment through construction or through perm

anent jobscreation, m

inimum

annual payroll, sales tax revenues, etc., will equal or exceed

the reduction in property tax payments.

$

Local Option Sales T

axR

ebate (AdvantageProgram

s)Sales Tax

Negotiated

Local units of government m

ay offer local option sales and use tax rebate thatcan be applied to building m

aterials, machinery, equipm

ent and permanent

fixtures purchased for the construction and start-up of the qualifying project. An

additional incentive could also offer a ten year exemption on local ad valorem

taxes for new or expanded property and equipm

ent.

Louisiana mandates that the com

pany must certify that it is a com

petitiveproject, create/retain 20 jobs, and the project m

ust be pre-qualified to receivethe State of Louisiana's E

nterprise Zone or Q

uality Jobs incentive.$

-$

Comm

unity Developm

entBlock G

rant (CDBG

)G

rantN

egotiated

Through the Louisiana Comm

unity Developm

ent Block Grant Program

(LCDBG

), the state awards and adm

inisters federal financial assistance to unitsof general local governm

ent in federally designated areas of the state to furtherdevelop com

munities by expanding econom

ic opportunities in accordance with

federal statutory requirements. Funds are generally restricted to support

infrastructure projects.

Eligible applicants are units of general local governm

ent, such as eligiblem

unicipalities and parishes. These applicants pass funds along to thecorresponding business project.

$-

$The m

aximum

benefit allowed under this program

variesdepending on the location.

III. Federal Incentives

New

Markets T

ax CreditsFinancing

Negotiated

The federal government offers tax credits to incentive the investm

ent in lowincom

e areas of the country. The tax credit must be m

onetized by the businessand is sold to a third party. A

s a result, the company realizes the benefit through

a non-amortizing loan w

hich is forgiven over a 7-year period. In order toparticipate, an allocation of credits m

ust be obtained from a third-party entity.

Qualifying projects m

ust be located in some of the m

ost distressed comm

unitiesin the nation. These qualifying census tracts include those w

here the individualpoverty rate is at least 20 percent or w

here median fam

ily income does not

exceed 80 percent of the area median.

$-

$

The program is highly com

petitive to obtain and anallocation m

ust be obtained from a third party entity. The

company project m

ust be located in a qualified area to beconsidered for an allocation.

Program N

ame

BenefitN

egotiated / StatutoryProgram

Description

Eligibility

Estim

ated Values

Comm

entsLow

High

Tab 6

Multiple Districts

NOT APPLICABLE

Tab 6 Multiple Districts

The project is located entirely (100%) within the boundaries of Goose Creek CISD and Chambers County. The project is also located 100% in the following taxing entities and the 2016 tax rate is shown below for each:

JURISDICTION 2016 TAX RATE

NAV Dist. .018 CO Imp Dist .66 Goose Creek ISD 1.43189 Lee College .2453

Tab 7

Qualified Investment Description

Tab 7 Qualified Investment Description

The Applicant’s current Baytown operations are comprised of a 1.8 million square foot facility located at 5200 E McKinney Road. Currently, the Applicant operates plate and pipe mill at this location which is designed to manufacture flat and long steel products. If approved, the proposed Baytown capital project involves the construction of a new melt and casting facility designed to produce metal slab. The construction of the facility and the associated equipment results in a capital investment of approximately $250 million. As part of the project, the facility will house a new electric arc furnace (EAF), ladle furnace, vacuum tank degasser, and caster. These specific pieces of equipment will contain the latest technological advancements available in the industry.

The qualified investment will be located on land currently owned by the Applicant.

Below is a list of the major equipment to be purchased for and utilized in the proposed facilities:

• EAF; • Ladle furnace; • Vacuum tank degasser; and • Caster;

Additional infrastructure to support this property will include:

• Site development; • Additional power lines; • Gas line enhancement; and • Water reservoir work.

Construction is proposed to be initiated in July 2018, with the commencement of commercial operations in October 2020. The successful implementation of this project is pending the following: 1) all necessary regulatory approvals are obtained; 2) adequate customer commitments are secured; 3) supportive economic development incentives are provided; 4) sufficient project financing is arranged; and 5) corporate board approval from JSW Group is received.

Tab 8

Qualified Property Description

Tab 8 Qualified Property Description

The Applicant’s current Baytown operations are comprised of a 1.8 million square foot facility located at 5200 E McKinney Road. Currently, the Applicant operates plate and pipe mill at this location which is designed to manufacture flat and long steel products. If approved, the proposed Baytown capital project involves the construction of a new melt and casting facility designed to produce metal slab. The construction of the facility and the associated equipment results in a capital investment of approximately $250 million. As part of the project, the facility will house a new electric arc furnace (EAF), ladle furnace, vacuum tank degasser, and caster. These specific pieces of equipment will contain the latest technological advancements available in the industry.

The qualified investment will be located on land currently owned by the Applicant.

Below is a list of the major equipment to be purchased for and utilized in the proposed facilities:

• EAF; • Ladle furnace; • Vacuum tank degasser; and • Caster;

Additional infrastructure to support this property will include:

• Site development; • Additional power lines; • Gas line enhancement; and • Water reservoir work.

Construction is proposed to be initiated in July 2018, with the commencement of commercial operations in October 2020. The successful implementation of this project is pending the following: 1) all necessary regulatory approvals are obtained; 2) adequate customer commitments are secured; 3) supportive economic development incentives are provided; 4) sufficient project financing is arranged; and 5) corporate board approval from JSW Group is received.

Tab 9

Land Description

Tab 9 Land Description

The land upon which the new buildings or new improvements will be built will not be part of the qualified property described by 313.021(2)(A). JSW owns 615 acres. The project is located on the following land parcels in Chambers County, Texas: PROPERTY ID GEOGRAPHIC ID NO. LAND (ACRES) 2016 MARKET VALUE 34054 00015-00000-00300-360800 132.990 $ 2,393,820 30188 00015-00000-00300-360200 47.611 $ 857,000

Totals 180.601 $ 3,250,820 See attached CCAD account details and Tab 11 for map.

Property ID: 34054 Owner: U S DENRO STEELS INC

Property ID:

34054

Property Legal Description:

15 TR 0-3-8 JOHN IJAMS

Property Location:

Survey / Sub Division Abstract:

Account Number:

00015-00000-00300-360800

Deed Information:

Volume:

Page:

File Number:

Deed Date:

932

553

22694

2/6/2007

Block:

Section / Lot:

Owner Information:

U S DENRO STEELS INC

5200 MCKINNEY ROAD #200

BAYTOWN TX 77523

Previous Owner:

UNITED STATES STEEL LLC

Property Detail:

Property Exempt:

Category / SPTB Code:

Total Acres:

Total Living Sqft:

Owner Interest:

Homestead Exemption:

Homestead Cap Value:

Land Ag / Timber Value:

Land Market Value:

Improvement Value:

Property Market Value:

E

132.990

See Detail

1.000000

0

0

2,393,820

0

2,393,820

Jur Code Jur Name Total Market Homestead Total Exemption Taxable

01 CHAMBERS COUNTY 2,393,820 0 2,393,820

01R CHAMBERS COUNTY ROAD 2,393,820 0 2,393,820

32 GOOSECREEK ISD 2,393,820 0 2,393,820

32IS GOOSECREEK ISD I&S 2,393,820 0 2,393,820

60 CHAMBERS-LIBERTY NAV 2,393,820 0 2,393,820

64 LEE COLLEGE 2,393,820 0 2,393,820

67 CHAMBERS CO IMP DIST #1 2,393,820 0 2,393,820

Page 1 of 3Chambers County Appraisal District - Account # 00015-00000-00300-360800

6/12/2017http://www.chamberscad.org/(S(5vvvkivjzntwof45g0lauxye))/rprint.aspx?ID=34054&seq=1

Property ID: 34054 Owner: U S DENRO STEELS INC

Land Detail

Land Sequence 1

Acres: 132.99 Market Class: RS32INDS11 Market Value: 2,393,820Land Method: AC Ag/Timber Class: Ag/Timber Value: 0

Land Homesiteable: NO Land Type: Ag Code: Front Foot: N/A Rear Foot: N/A Lot Depth: N/A

Front Ft Avg: N/A Lot Depth %: N/A Land Square Ft: N/A

Total Land Value: $ 2,393,820

Page 2 of 3Chambers County Appraisal District - Account # 00015-00000-00300-360800

6/12/2017http://www.chamberscad.org/(S(5vvvkivjzntwof45g0lauxye))/rprint.aspx?ID=34054&seq=1

Parcel ID Seller Buyer Volume Page File Number Deed Date

34054 UNITED STATES STEEL LLC U S DENRO STEELS INC 932 553 22694 2/6/2007

34054 U S DENRO STEELS INC 348 741 6050-B 11/7/1997

Property ID: 34054 Owner: U S DENRO STEELS INC

Previous Owner Information

Page 3 of 3Chambers County Appraisal District - Account # 00015-00000-00300-360800

6/12/2017http://www.chamberscad.org/(S(5vvvkivjzntwof45g0lauxye))/rprint.aspx?ID=34054&seq=1

Property ID: 30188 Owner: SAW PIPES USA INC

Property ID:

30188

Property Legal Description:

15 TR 0-3-2 J IJAMS

Property Location:

Survey / Sub Division Abstract:

Account Number:

00015-00000-00300-360200

Deed Information:

Volume:

Page:

File Number:

Deed Date:

205

456

2075-B

5/6/1993

Block:

Section / Lot:

Owner Information:

SAW PIPES USA INC

CE TEX CENTER FM 1405

5200 E MCKINNEY RD STE 200

BAYTOWN TX 77523 8534

Previous Owner:

Property Detail:

Property Exempt:

Category / SPTB Code:

Total Acres:

Total Living Sqft:

Owner Interest:

Homestead Exemption:

Homestead Cap Value:

Land Ag / Timber Value:

Land Market Value:

Improvement Value:

Property Market Value:

E

47.611

See Detail

1.000000

0

0

857,000

0

857,000

Jur Code Jur Name Total Market Homestead Total Exemption Taxable

01 CHAMBERS COUNTY 857,000 0 857,000

01R CHAMBERS COUNTY ROAD 857,000 0 857,000

32 GOOSECREEK ISD 857,000 0 857,000

32IS GOOSECREEK ISD I&S 857,000 0 857,000

60 CHAMBERS-LIBERTY NAV 857,000 0 857,000

64 LEE COLLEGE 857,000 0 857,000

67 CHAMBERS CO IMP DIST #1 857,000 0 857,000

Page 1 of 3Chambers County Appraisal District - Account # 00015-00000-00300-360200

6/12/2017http://www.chamberscad.org/(S(5vvvkivjzntwof45g0lauxye))/rprint.aspx?ID=30188&seq=1

Property ID: 30188 Owner: SAW PIPES USA INC

Land Detail

Land Sequence 1

Acres: 47.611 Market Class: RS32INDS7 Market Value: 857,000Land Method: AC Ag/Timber Class: Ag/Timber Value: 0

Land Homesiteable: NO Land Type: Ag Code: Front Foot: N/A Rear Foot: N/A Lot Depth: N/A

Front Ft Avg: N/A Lot Depth %: N/A Land Square Ft: N/A

Total Land Value: $ 857,000

Page 2 of 3Chambers County Appraisal District - Account # 00015-00000-00300-360200

6/12/2017http://www.chamberscad.org/(S(5vvvkivjzntwof45g0lauxye))/rprint.aspx?ID=30188&seq=1

Parcel ID Seller Buyer Volume Page File Number Deed Date

30188 SAW PIPES USA INC 205 456 2075-B 5/6/1993

Property ID: 30188 Owner: SAW PIPES USA INC

Previous Owner Information

Page 3 of 3Chambers County Appraisal District - Account # 00015-00000-00300-360200

6/12/2017http://www.chamberscad.org/(S(5vvvkivjzntwof45g0lauxye))/rprint.aspx?ID=30188&seq=1

Tab 10

Description of Not Eligible Property

Tab 10 Description of All Property Not Eligible to

Become Qualified Property The anticipated site selected for the proposed project will be adjacent to the east side of the Applicant’s existing facility in Baytown, Texas. The proposed project will be on unimproved land.

The existing facility is wholly unrelated to the proposed project as the melt and casting facility will be considered newly constructed property.

Tab 11

Maps

a) Project vicinity

b) Qualified investment including location of tangible personal property to be

placed in service during the qualifying time period and buildings to be constructed

during the qualifying time period

c) Qualified property including location of new buildings or new improvements

d) Existing property

e) Land location within vicinity map

f) Reinvestment or Enterprise Zone within vicinity map, showing the actual or

proposed boundaries and size

JSW Steel (U

SA) Inc.

JSW Steel (U

SA) Inc.

℄

℄

℄

℄

℄

℄

℄

℄

℄

℄

℄

℄

℄

℄

℄

℄

℄

℄

℄℄

℄

℄℄

℄

℄

℄

℄

℄

Proposed P

roject - Melting &

Casting F

acility

All existing improvements located atthe project site will be removed priorto the start of construction.

Parcel ID: 34054Account Number: 00015-00000-00300-360800Market Value: $2,393,820

Parcel ID: 30188Account Number: 00015-00000-00300-360200Market Value: $857,000

*Additional parcel information is attached

Tab 12

Job Creation Waiver

NOT APPLICABLE

Tab 12 Job Creation

No request will be made for a waiver of job creation.

Tab 13

Average Wages

Year PeriodWages

All IndustriesWages

Manufacturing Jobs2016 1st Qtr $1,121.00 $1,843.002016 2nd Qtr $1,200.00 $2,479.002016 3rd Qtr $1,129.00 $1,870.002016 4th Qtr $1,161.00 $1,958.00

$1,152.75 $2,037.50

Houston-Galveston Area CouncilRate per hour $26.44Hours per week 40Average weekly wage $1,057.60

$1,152.75

$2,241.25

$59,943.00

110% of the average weekly wage for manufacturing jobs in the region $1,163.36

Minimum required annual wage (52 weeks)

Average weekly wage for all jobs (all industries) in the county

110% of the average weekly wage for manufacturing jobs in the county

Calculations of Wages for Chambers CountyBased on Most Recent Data Available

Average Weekly Wagefor all jobs in the County

Average

Quarterly Employment and Wages (QCEW)Back

Page 1 of 1 (40 results/page)

Year Period Area Ownership Division Level Ind Code Industry Avg Weekly Wages

2016 1st Qtr Chambers County Total All 00 0 10 Total, All Industries $1,121

2016 2nd Qtr Chambers County Total All 00 0 10 Total, All Industries $1,200

2016 3rd Qtr Chambers County Total All 00 0 10 Total, All Industries $1,129

2016 4th Qtr Chambers County Total All 00 0 10 Total, All Industries $1,161

Page 1 of 1Texas LMCI TRACER, Data Link

5/20/2017http://www.tracer2.com/cgi/dataAnalysis/IndustryReport.asp

Quarterly Employment and Wages (QCEW)Back

Page 1 of 1 (40 results/page)

Year Period Area Ownership Division Level Ind Code Industry Avg Weekly Wages

2016 1st Qtr Chambers County Total All 31 2 31-33 Manufacturing $1,843

2016 2nd Qtr Chambers County Total All 31 2 31-33 Manufacturing $2,479

2016 3rd Qtr Chambers County Total All 31 2 31-33 Manufacturing $1,870

2016 4th Qtr Chambers County Total All 31 2 31-33 Manufacturing $1,958

Page 1 of 1Texas LMCI TRACER, Data Link

5/20/2017http://www.tracer2.com/cgi/dataAnalysis/IndustryReport.asp

COG Hourly Annual

Texas $24.41 $50,778

1. Panhandle Regional Planning Commission $20.64 $42,941

2. South Plains Association of Governments $17.50 $36,408

3. NORTEX Regional Planning Commission $23.28 $48,413

4. North Central Texas Council of Governments $25.03 $52,068

5. Ark-Tex Council of Governments $18.46 $38,398

6. East Texas Council of Governments $19.84 $41,270

7. West Central Texas Council of Governments $19.84 $41,257

8. Rio Grande Council of Governments $18.32 $38,109

9. Permian Basin Regional Planning Commission $25.18 $52,382

10. Concho Valley Council of Governments $18.80 $39,106

11. Heart of Texas Council of Governments $21.41 $44,526

12. Capital Area Council of Governments $29.98 $62,363

13. Brazos Valley Council of Governments $18.78 $39,057

14. Deep East Texas Council of Governments $17.30 $35,993

15. South East Texas Regional Planning Commission $30.41 $63,247

16. Houston-Galveston Area Council $26.44 $54,985

17. Golden Crescent Regional Planning Commission $23.73 $49,361

18. Alamo Area Council of Governments $19.96 $41,516

19. South Texas Development Council $15.87 $33,016

20. Coastal Bend Council of Governments $25.97 $54,008

21. Lower Rio Grande Valley Development Council $16.17 $33,634

22. Texoma Council of Governments $19.04 $39,595

23. Central Texas Council of Governments $18.04 $37,533

24. Middle Rio Grande Development Council $22.24 $46,263

Source: Texas Occupational Employment and Wages

Data published: July 2016

Data published annually, next update will be July 31, 2017

Note: Data is not supported by the Bureau of Labor Statistics (BLS).

Wage data is produced from Texas OES data, and is not to be compared to BLS estimates.

Data intended for TAC 313 purposes only.

2015 Manufacturing Average Wages by Council of Government Region

Wages for All Occupations

Wages

Tab 14

Schedules A1, A2, B, C, and D

Date

7/3/2017Applicant N

ame

JSW Steel (U

SA) Inc.Form

50-296A

ISD N

ame

Goose C

reek CISD

Revised M

ay 2014

Colum

n AC

olumn B

Colum

n CC

olumn D

Colum

n E

YearSchool Year (YYYY-YYYY)

Tax Year (Fill in actual tax year below

) YYYY

New

investment (original cost) in tangible

personal property placed in service during this year that w

ill become Q

ualified Property

New

investment m

ade during this year in buildings or perm

anent nonremovable

components of buildings that w

ill become

Qualified P

roperty

Other new

investment m

ade during this year that w

ill not become Q

ualified Property [S

EE

N

OTE

]

Other new

investment m

ade during this year that m

ay become Q

ualified Property [S

EE

N

OTE

]

Total Investment

(Sum

of Colum

ns A+B

+C+D

)

[The only other investment m

ade before filing com

plete application with district that m

ay becom

e Qualified P

roperty is land.]

00

0

0

0

QTP

12019-2020

20190

0

0

QTP

22020-2021

2020150,000,000

100,000,0000

0

250,000,000

150,000,000100,000,000

00

250,000,000

Total Qualified Investm

ent (sum of green cells)

250,000,000

For All C

olumns: List am

ount invested each year, not cumulative totals.

Colum

n A:

Colum

n B:

Colum

n C:

Colum

n D:

Total Investment:

Add together each cell in a colum

n and enter the sum in the blue total investm

ent row. E

nter the data from this row

into the first row in S

chedule A2.

Qualified Investm

ent:For the green qualified investm

ent cell, enter the sum of all the green-shaded cells.

Com

plete tax years of qualifying time period

Investment m

ade before filing complete

application with district

20182018-2019

Dollar value of other investm

ent that may affect econom

ic impact and total value. E

xamples of other investm

ent that may result in qualified property are land or professional services.

Total Investment through Q

ualifying Time Period [EN

TER this row

in Schedule A2]

This represents the total dollar amount of planned investm

ent in tangible personal property. Only include estim

ates of investment for "replacem

ent" property if the property is specifically described in the application.O

nly tangible personal property that is specifically described in the application can become qualified property.

The total dollar amount of planned investm

ent each year in buildings or nonremovable com

ponent of buildings.D

ollar value of other investment that m

ay affect economic im

pact and total value. Exam

ples of other investment that w

ill not become qualified property include investm

ent meeting the definition of 313.021(1) but not creating a new

improvem

ent as defined by TAC

9.1051. This is proposed property that functionally replaces existing property; is used to m

aintain, refurbish, renovate, modify or upgrade existing property; or is affixed to existing property—

described in SE

CTIO

N 13, question #5 of the application.

Enter amounts from

TOTAL row

above in Schedule A2

Not eligible to becom

e Qualified P

roperty

Investment m

ade after filing complete

application with district, but before final board

approval of application 2018

Investment m

ade after final board approval of application and before Jan. 1 of first com

plete tax year of qualifying tim

e period

Schedule A1: Total Investment for Econom

ic Impact (through the Q

ualifying Time Period)

PRO

PERTY IN

VESTMEN

T AMO

UN

TS

(Estimated Investm

ent in each year. Do not put cum

ulative totals.)

Date

7/3/2017A

pplicant Nam

eJSW

Steel (USA) Inc.

Form 50-296A

ISD N

ame

Goose C

reek CISD

Revised M

ay 2014

Colum

n AC

olumn B

Colum

n CC

olumn D

Colum

n E

YearSchool Year (YYYY-YYYY)

Tax Year (Fill in actual tax year below

) YYYY

New

investment (original cost) in tangible

personal property placed in service during this year that w

ill become Q

ualified Property

New

investment m

ade during this year in buildings or perm

anent nonremovable

components of buildings that w

ill become

Qualified P

roperty

Other investm

ent made during this year that

will not becom

e Qualified P

roperty [SE

E

NO

TE]

Other investm

ent made during this year that

will becom

e Qualified P

roperty {SE

E N

OTE

]Total Investm

ent (A

+B+C

+D)

02017-2018

20170

00

00

02018-2019

20180

00

00

02019-2020

20190

00

00

02020-2021

2020150,000,000

100,000,0000

0250,000,000

1

2021-20222021

00

00

-

22022-2023

20220

00

0-

3

2023-20242023

00

00

-

42024-2025

20240

00

0-

5

2025-20262025

00

00

-

62026-2027

20260

00

0-

7

2027-20282027

00

00

-

82028-2029

20280

00

0-

9

2029-20302029

00

00

-

102030-2031

20300

00

0-

Total Investment m

ade through limitation

150,000,000

100,000,000

00

250,000,000

112031-2032

20310

012

2032-20332032

00

132033-2034

20330

014

2034-20352034

00

152035-2036

20350

016

2036-20372036

00

172037-2038

20370

018

2038-20392038

00

192039-2040

20390

020

2040-20412040

00

212041-2042

20410

022

2042-20432042

00

232043-2044

20430

024

2044-20452044

00

252045-2046

20450

0

***

***For A

ll Colum

ns: List amount invested each year, not cum

ulative totals. Only include investm

ents in the remaining row

s of Schedule A

2 that were not captured on S

chedule A1.

Colum

n A:

Colum

n B:

Colum

n C:

Colum

n D:

Dollar value of other investm

ent that may affect econom

ic impact and total value. E

xamples of other investm

ent that may result in qualified property are land or professional services.

Additional years for 25 year econom

ic impact as required by

313.026(c)(1)

All investm

ents made through the qualifying tim

e period are captured and totaled on Schedule A

1 [blue box] and incorporated into this schedule in the first row.

This represents the total dollar amount of planned investm

ent in tangible personal property. Only include estim

ates of investment for "replacem

ent" property if the property is specifically described in the application.O

nly tangible personal property that is specifically described in the application can become qualified property.

The total dollar amount of planned investm

ent each year in buildings or nonremovable com

ponent of buildings.D

ollar value of other investment that m

ay affect economic im

pact and total value. Exam

ples of other investment that w

ill not become qualified property include investm

ent meeting the definition of 313.021(1) but not creating a new

improvem

ent as defined by TAC

9.1051. This is proposed property that functionally replaces existing property; is used to m

aintain, refurbish, renovate, modify or upgrade existing property; or is affixed to existing property—

described in SE

CTIO

N 13, question #5 of the application.

Only investm

ent made during deferrals of the start of the lim

itation (after the end of qualifying time period but before the start of the V

alue Limitation P

eriod) should be included in the "year prior to start of value limitation period" row

(s). If the limitation starts at the end of the qualifying tim

e period or the qualifying tim

e period overlaps the limitation, no investm

ent should be included on this line.

If your qualifying time period w

ill overlap your value limitation period, do not also include investm

ent made during the qualifying tim

e period in years 1 and/or 2 of the value limitation period, depending on the overlap. O

nly include investments/years that w

ere not captured on Schedule A

1.

Continue to m

aintain viable presence

Each year prior to start of value lim

itation period** Insert as m

any rows as necessary

Each year prior to start of value lim

itation period** Insert as m

any rows as necessary

Each year prior to start of value lim

itation period** Insert as m

any rows as necessary

Schedule A2: Total Investment for Econom

ic Impact (including Q

ualified Property and other investments)

PRO

PERTY IN

VESTMEN

T AM

OU

NTS

(Estimated Investm

ent in each year. Do not put cum

ulative totals.)

Total Investment from

Schedule A

1*--

TOTA

LS FRO

M SC

HED

ULE A

1Enter am

ounts from TO

TAL row

in Schedule A1 in the row

below

Each year prior to start of value lim

itation period** Insert as m

any rows as necessary

Value lim

itation period***

Date

Applicant Nam

eJSW

Steel (USA

) Inc.Form

50-296AISD

Nam

eG

oose Creek C

ISDR

evised May 2014

YearSchool Year (YYYY-YYYY)

Tax Year (Fill in actual tax year) YYYY

Estim

ated Market V

alue of Land

Estim

ated Total Market

Value of new

buildings or other new

improvem

ents

Estim

ated Total Market

Value of tangible personal

property in the new

buildings or "in or on the new

improvem

ents"

Market V

alue less any exem

ptions (such as pollution control) and

before limitation

Final taxable value for I&S

after all reductions

Final taxable value for M

&O

after all reductions

Each year prior to start of V

alue Limitation P

eriod Insert as m

any rows as necessary

02017-2018

20170

00

00

0E

ach year prior to start of V

alue Limitation P

eriod Insert as m

any rows as necessary

02018-2019

20180

00

00

0E

ach year prior to start of V

alue Limitation P

eriod Insert as m

any rows as necessary

Q1

2019-20202019

00

00

00

Each year prior to start of V

alue Limitation P

eriod Insert as m

any rows as necessary

Q2

2020-20212020

00

00

00

12021-2022

20210

79,200,000126,900,000

206,100,000206,100,000

100,000,0002

2022-20232022

079,200,000

122,850,000202,050,000

202,050,000100,000,000

32023-2024

20230

78,400,000116,100,000

194,500,000194,500,000

100,000,0004

2024-20252024

077,600,000

110,700,000188,300,000

188,300,000100,000,000

52025-2026

20250

76,800,000103,950,000

180,750,000180,750,000

100,000,0006

2026-20272026

076,800,000

98,550,000175,350,000

175,350,000100,000,000

72027-2028

20270

76,000,00094,500,000

170,500,000170,500,000

100,000,0008

2028-20292028

075,200,000

87,750,000162,950,000

162,950,000100,000,000

92029-2030

20290

74,400,00081,000,000

155,400,000155,400,000

100,000,00010

2030-20312030

073,600,000

74,250,000147,850,000

147,850,000100,000,000

112031-2032

20310

72,800,00067,500,000

140,300,000140,300,000

140,300,00012

2032-20332032

072,000,000

60,750,000132,750,000

132,750,000132,750,000

132033-2034

20330

70,400,00054,000,000

124,400,000124,400,000

124,400,00014

2034-20352034

069,600,000

47,250,000116,850,000

116,850,000116,850,000

152035-2036

20350

68,800,00040,500,000

109,300,000109,300,000

109,300,00016

2036-20372036

067,200,000

40,500,000107,700,000

107,700,000107,700,000

172037-2038

20370

65,600,00040,500,000

106,100,000106,100,000

106,100,00018

2038-20392038

064,800,000

40,500,000105,300,000

105,300,000105,300,000

192039-2040

20390

63,200,00040,500,000

103,700,000103,700,000

103,700,00020

2040-20412040

061,600,000

40,500,000102,100,000

102,100,000102,100,000

212041-2042

20410

60,000,00040,500,000

100,500,000100,500,000

100,500,00022

2042-20432042

058,400,000

40,500,00098,900,000

98,900,00098,900,000

232043-2044

20430

56,800,00040,500,000

97,300,00097,300,000

97,300,00024

2044-20452044

055,200,000

40,500,00095,700,000

95,700,00095,700,000

252045-2046

20450

53,600,00040,500,000

94,100,00094,100,000

94,100,000N

otes:

Continue to m

aintain viable presence

Market value in future years is good faith estim

ate of future taxable value for the purposes of property taxation.O

nly include market value for eligible property on this schedule.

Additional years for

25 year economic im

pact as required by 313.026(c)(1)

Schedule B: Estim

ated Market And Taxable Value (of Q

ualified Property Only)

Qualified Property

Estimated Taxable Value

Value Lim

itation Period

7/24/2017

Date

Applicant Nam

eJSW

Steel (USA) Inc.

Form 50-296A

ISD N

ame

Goose C

reek CISD

Revised M

ay 2014

Non-Q

ualifying Jobs

Colum

n AC

olumn B

Colum

n CC

olumn D

Colum

n E

YearSchool Year (YYYY-YYYY)

Tax Year (A

ctual tax year) YYYY

Num

ber of Construction

FTE's or m

an-hours (specify)

Average annual wage rates

for construction workers

Num

ber of non-qualifying jobs applicant estim

ates it w

ill create (cumulative)

Num

ber of new qualifying

jobs applicant comm

its to create m

eeting all criteria of S

ec. 313.021(3) (cum

ulative)Average annual w

age of new

qualifying jobs

Each year prior to start of

Value Lim

itation Period

Insert as many row

s as necessary

02017-2018

2017

00

00

$0

Each year prior to start of

Value Lim

itation Period

Insert as many row

s as necessary

02018-2019

2018

00

00

$0

Each year prior to start of

Value Lim

itation Period

Insert as many row

s as necessary

Q1

2019-20202019

00

0122

$65,000

Each year prior to start of

Value Lim

itation Period

Insert as many row

s as necessary

Q2

2020-20212020

36355,000

$ 0

500$65,000

12021-2022

2021364

55,000$

0500

$65,000

22022-2023

20220

00

500$65,000

32023-2024

20230

00

500$65,000

42024-2025

20240

00

500$65,000

52025-2026

20250

00

500$65,000

62026-2027

20260

00

500$65,000

72027-2028

20270

00

500$65,000

82028-2029

20280

00

500$65,000

92029-2030

20290

00

500$65,000

102030-2031

20300

00

500$65,000

Years Following

Value Lim

itation Period

11 through

252031-2046

2031-2045

00

0500

$65,000

Notes:

See TA

C 9.1051 for definition of non-qualifying jobs.

Only include jobs on the project site in this school district.

C1.

YesN

o

C1a.

YesN

o

C1b.

YesN

o

Will the applicant request a job w

aiver, as provided under 313.025(f-1)?

Will the applicant avail itself of the provision in 313.021(3)(F)?

7/3/2017Schedule C

: Employm

ent Information

Construction

Qualifying Jobs

Value Lim

itation Period

The qualifying time period could overlap the

value limitation period.

If yes, answer the follow

ing two questions:

Are the cum

ulative number of qualifying jobs listed in C

olumn D

less than the number of qualifying jobs required by statute? (25

qualifying jobs in Subchapter B

districts, 10 qualifying jobs in Subchapter C

districts)

X XXX

Date

7/3/2017Applicant N

ame

JSW Steel (U

SA) Inc.Form

50-296A

ISD N

ame

Goose C

reek CISD

Revised M

ay 2014

Incentive Description

Taxing Entity (as applicable)

Beginning Year of

Benefit

Duration of B

enefitAnnual Tax Levy w

ithout IncentiveAnnual Incentive

Annual Net Tax Levy

County:

City:

Other:

County:

City:

Other:

County: C

hambers

202010 years

To be determined

To be determined

To be determined

City:

Other:

Freeport Exem

ptionsN

on-Annexation A

greements

Enterprise Zone/P

rojectS

tate of Texas2020

5 yearsN

ot Applicable

727,500

Not A

pplicableE

conomic D

evelopment C

orporationTexas E

nterprise FundS

tate of Texas2020

3 yearsTo be determ

inedE

mployee R

ecruitment

Skills D

evelopment Fund

Training Facility Space and E

quipment

Infrastructure IncentivesTexas C

apital Fund2018

1 year1,125,000

P

ermitting A

ssistanceO

ther: Industrial Agreem

entC

ity of Baytow

n2018

4 yearsTo be determ

inedO

ther:O

ther:O

ther:

TOTAL

-

1,852,500

-

State and Local Incentives for which the Applicant intends to apply (Estim

ated)

Additional inform

ation on incentives for this project:N

o other tax incentive applications have been filed or discussions held with any other taxing jurisdictions at the tim

e of application filing.

Local Governm

ent Code C

hapters 380/381

Schedule D: O

ther Incentives (Estimated)

Tax Code C

hapter 311

Tax Code C

hapter 312

Tab 15

Economic Impact Analysis, other payments made in the state or other economic

information (if applicable)

Tab 16

Reinvestment Zone Description

Tab 17

Signature and Certification