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 us.
The information contained herein is general in nature and is not intended and should not be construed as legal, accounting, or tax advice or opinion provided by Ashmore Consulting LLC to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact Ashmore Consulting LLC or another tax professional prior to taking any action based upon this information. Ashmore Consulting LLC assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.