Texas Close to Approving CRE-Friendly Tax Incentives

Texas is big on economic development. But sometimes businesses need a nudge. The much-used Chapter 313 rule allowed businesses to get relief on school property taxes, if they agreed to build projects of a certain size with a healthy number of local workers. It expired at the end of 2022.

Last week, the Texas House approved the Texas Jobs and Security Act, which basically replaces 313 with a similar measure.

House Bill 5 would create new incentives using school property tax abatements, similar to the Chapter 313 program. Proponents say the bill is needed to keep Texas competitive for large corporate projects, and point to companies such as Tesla Inc. and Samsung Electronics Co. Ltd. using Chapter 313 to set up large facilities in the Austin area. Opponents have argued that it revives corporate welfare. It is expected to receive state senate approval, and a signature from Governor Greg Abbott.