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Texas  + Austin  + Industrial  | 
Texans can re-employ state passed tax break for commercial real estate

Retooled Texas-Sized Tax Break Takes Effect

A widely used and widely criticized school tax abatement program has been retooled by the Texas State Legislature and is ready to start being implemented. Chapter 313 incentives in the past helped secure major projects such as Tesla Inc.’s billion-dollar gigafactory in Travis County and Samsung Electronics Co. Ltd.’s chipmaking plants in Austin and Taylor. However some thought the program took potential revenue from the schools, so the legislature has returned with a new one.

Chapter 403, now called the Texas Jobs, Energy, Technology & Innovation Act, or JETI, went into effect Jan. 16.

JETI is similar to its predecessor in that it allows school districts to limit a property’s taxable value for a portion of school taxes, potentially saving companies tens of millions of dollars on what is typically the largest portion of a property tax bill. But there are some changes: those tax abatements are limited to 50% of a property’s value, or 75% if the project is in a federally designated opportunity zone, compared with 100% of a property’s value under Chapter 313.

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Chapter 403

About Mike Boyd

Mike covers our Texas and Phoenix/Southwest regions. He is a veteran news reporter who spent 10 years in radio and television news, mostly in Tucson, Arizona. Following his career in the media, he spent ten years as a communications executive for a publicly traded development company. Mike is married with three boys and three Huskies.

  • ◦Policy/Gov't
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