Local industries may soon have more incentive to buy locally. The Sherman Economic Development Corp. updated its guidelines for local purchase incentives Tuesday morning, effectively increasing the amount that industries can receive back for buying goods and services in Sherman to $50,000.
SEDCO President Kent Sharp said he sees the new incentive agreement as a way to keep money in the community and assist local vendors and service providers benefit from growing and new industries in Sherman.
“Most of these projects run into the millions of dollars and we see this as a way of helping and paying attention to our local businesses,” SEDCO President Kent Sharp said Tuesday.
As a part of many incentive agreements, SEDCO has historically included a provision that would offer 5 percent back on goods and services bought in Sherman as a part of business expansion. However, this would only cover the first $400,000 and cap out at $20,000.
Under the new terms, industries under an incentive agreement would be able to receive the same 5 percent incentive, but it now extends up to the first $1 million of purchases, raising the max incentive to $50,000.
Sharp said the idea to raise the maximum incentive to $50,000 came following comments from members of the SEDCO board regarding the size of many projects that SEDCO incentivizes. As an example, Sharp said one of the smaller incentive projects that SEDCO assisted with was the $4 million relocation of battery manufacturer Eternity Technologies to Sherman in 2019.
Sharp said he did not see the new agreement as a major driver for businesses to come to Sherman, and instead felt it would be more of a driver for those industries to look at options in Sherman rather than from other markets.
“They are going to come here because it makes economic sense,” he said. “Incentives can affect that decisions, but we are already giving them an incentive anyway. What this really is going to do is help our local businesses have a larger part in that decision.”