Texas lawmakers have revived tax breaks for businesses, allowing them to reduce their school tax bill in exchange for creating jobs. Chapter 403 of the Texas Tax Code gives school districts the ability to cap the taxable value of a property for up to 10 years on maintenance and operations portion of school taxes, which pay for day-to-day operations of public schools. This could save participants millions or even billions in some cases.
The incentives are seen as an important tool that helps make Texas competitive when it comes to attracting major economic development projects due its relatively high property taxes compared with other states. However, critics argue that these incentives amount corporate welfare and pad bottom lines companies who were coming anyway regardless if they received any benefits or not.
Expired last year, these generous tax breaks led many large companies such as Tesla and Samsung build super factories in Texas – making it one state where businesses can benefit from significant savings through this incentive program once again
