Texas is a leader in economic development, but businesses may need assistance to reach their goals. The Chapter 313 rule, which expired at the end of 2022, allowed businesses to receive relief on school property taxes if they agreed to build projects with a certain size and number of local workers. Last week, the Texas House approved the Texas Jobs and Security Act as an effective replacement for 313.
House Bill 5 would create new incentives using school property tax abatements that are similar to those offered by Chapter 313. Supporters believe this bill will help keep Texas competitive for large corporate projects; Tesla Inc., Samsung Electronics Co., Ltd., and other companies have used Chapter 313 in Austin area developments already. Opponents argue that it revives corporate welfare; however it is expected to pass state senate approval before receiving Governor Greg Abbott’s signature soon after .
