Total Petrochemicals gets tax abatement agreement from Jefferson County

12-May-15

Total Petrochemicals has received a tax abatement agreement from Jefferson County, seen as a needed building block in contemplated plans to invest US$1.7 bln in a new natural gas processing unit at its Port Arthur site, as per beaumontenterprise.com. If Total proceeds with plans to build the ethane cracker, it could receive a tax break from the county of 100% on the improvements for 10 years if the investment is US$500 mln or more. The rate is a sliding scale, pegged at 100% for the first two years; 90% in the third and fourth years; 80% in the fifth year and 60% in the sixth year. After that, the company's improvements would be on the tax roll at full value after the abatement period expires.