All Chapter 380 agreements are "Performance-Based", meaning the company must demonstrate its compliance annually to receive that year’s payment. No upfront incentives are allowed. This prevents the need for “claw-backs”, or repossession of funds already paid in the event the company does not perform.
Every year, the Economic Development Department reviews the company’s compliance with the agreement requirements, and an independent, third-party reviews the department’s annual review. If both annual reviews confirm compliance, then the company is deemed to have fulfilled its annual obligations, and the payment is made for that year. Payments are made annually until the term of the contract is complete. The total incentive amount will be estimated at the time of the agreement execution and will be capped at that amount. If the cap is reached before the end of the agreement term, the agreement is deemed complete.