The Texas State Legislature has revamped a controversial school tax abatement program, now known as the Texas Jobs, Energy, Technology & Innovation Act (JETI). This updated version aims to attract major projects like Tesla Inc.’s billion-dollar gigafactory and Samsung Electronics Co. Ltd.’s chipmaking plants in Austin and Taylor. JETI went into effect on January 16th.
Similar to its predecessor, JETI allows school districts to limit a property’s taxable value for a portion of school taxes. This can potentially save companies millions of dollars on their property tax bills – typically the largest portion of their bill. However, there are some changes: under JETI, these tax abatements are limited to 50% or 75% if the project is located in an opportunity zone designated by the federal government – compared with 100% under Chapter 313.
This retooled tax break is expected to have significant economic impact without compromising potential revenue for schools. Its implementation marks another step towards fostering growth and innovation within Texas’ business landscape.
