Texas Revives Economic Development Incentives
By Barry Halpern, Partner, Tax & Business Services
On June 7, 2023, Texas Governor Greg Abbott signed legislation (HB 5) revitalizing Texas’s primary incentive tool for economic development. The new legislation replaces the expired Chapter 313 program, which provided property tax incentives for companies that agree to expand and create jobs in specific locations.
The revised program will similarly offer property tax incentives to attract business to Texas with some differences. Most notably, the renewable energy projects, which comprised most of the approved projects under the predecessor program, are not eligible. Additionally, the revised program does not allow direct payments to local school districts.
The program reduces a portion of the school taxes by 50% (75% reduction in opportunity zones) for up to ten years, requires minimum capital investment, and job creation based on project location.
For additional information regarding the Texas credits and incentive opportunity and its potential impact on your business, please contact Barry Halpern at [email protected], or your Marcum State and Local Credits and Incentives professional.