Caterpillar Inc. is an American Fortune 100 corporation that designs, develops, engineers, manufactures, markets, and sells machinery, engines, financial products, and insurance to customers via a worldwide dealer network. It is the world's largest construction-equipment manufacturer. Caterpillar Inc. is ranked number 78 on the 2022 Fortune 500 list and number 283 on the 2021 Global Fortune 500 list. Their stock is a component of the Dow Jones Industrial Average. With more than 97,300 associates, the company operates 150 locations in 25 countries worldwide and delivers over 4 million Cat products to customers around the world. For fiscal year 2020, the company generated sales of more than $14.7 billion.
In 2010, Caterpillar Inc. established its Schertz, TX Facility at 6800 Doerr Ln. Caterpillar is a model corporate partner and has consistently participated in workforce development events such as Job Shadow Day, Manufacturing Day and other community events.
Currently, Caterpillar Inc. is operating elements of production in another country and is considering a $24,000,000 capital investment into its Schertz, Texas manufacturing facility with the addition of 24 new primary jobs consisting of $1,651,420 of new payroll. Caterpillar is seeking a personal property tax rebate to improve the return on investment for the project as incentives are one of the factors in the project’s financial analysis.
Under the agreement, Caterpillar Inc. must retain 145 team members with an annual base payroll of $6,775,000, create an additional 24 jobs by 2026. The company must maintain a total of 169 jobs and base payroll of $8,462,420 in 2026 and through the end of the agreement. It must also maintain a minimum of $50,000,000 in personal property investment for the life of the agreement. Upon certification of successful annual performance, the company will receive a grant from the Schertz Economic Development Corporation for personal property taxes paid to the City of Schertz on new tangible personal property at a percentage referenced in the following table and for no more than five of this agreement.
Performance Period Ending December 31 |
Full-Time Employees Created and Retained/ Minimum Payroll |
Minimum Retained Existing Personal Property |
New |
Certification Date |
Grant on Incremental Tangible Personal Property Investment |
Tangible Personal Property |
Required & Max Rebate Base Value |
Year 0 – 2023 |
Manufacturing equipment is located on-site by December 31, 2023 |
|
Year 1 – 2024 |
145/ $6,775,000 |
$50,000,0000 |
$21,750,000 |
15-Feb-25 |
100% |
Year 2 - 2025 |
145/ $6,775,000 |
$50,000,0000 |
$19,750,000 |
15-Feb-26 |
90% |
Year 3 - 2026 |
169 /
$8,426,420 |
$50,000,0000 |
$17,750,000 |
15-Feb-27 |
85% |
Year 4 - 2027 |
169 /
$8,426,420 |
$50,000,0000 |
$16,000,000 |
15-Feb-28 |
80% |
Year 5 - 2028 |
169 /
$8,426,420 |
$50,000,0000 |
$14,000,000 |
15-Feb-29 |
75% |
Year 6 - 2029 |
169 /
$8,426,420 |
$50,000,0000 |
$12,000,000 |
15-Feb-30 |
0% |
Year 7 - 2030 |
169 /
$8,426,420 |
$50,000,0000 |
$10,000,000 |
15-Feb-31 |
0% |
Year 8 - 2031 |
169 /
$8,426,420 |
$50,000,0000 |
$8,000,000 |
15-Feb-32 |
0% |
Year 9 – 2032 |
169 /
$8,426,420 |
$50,000,0000 |
$6,500,000 |
15-Feb-33 |
0% |
Year 10 - 2033 |
169 /
$8,426,420 |
$50,000,0000 |
$5,000,000 |
15-Feb-34 |
0% |
|