Over 20 years ago, the Texas Legislature passed the Texas Economic Development Act, which allows school districts to offer tax incentives for businesses that invest in their communities.[San Marcos, TX] [Hays County news] News, Features San Marcos News, San Marcos Record [Texas State]
After 20 years, the state’s most lucrative corporate welfare program comes to an end.
Oil and gas, manufacturing, and other industries have been clear that Chapter 313 must continue, but in an unexpected twist, the program ran into heavy resistance this legislative session. AP Photo/Eric Gay
After 20 years, the state’s most lucrative corporate welfare program comes to an end.
Oil and gas, manufacturing, and other industries have been clear that Chapter 313 must continue, but in an unexpected twist, the program ran into heavy resistance this legislative session. AP Photo/Eric Gay
Justin Miller
Jun 9, 2021, 6:00 am CST
In 2001, state lawmakers and business leaders warned that the state’s high property tax rates were discouraging corporations from locating big projects in Texas. At the time,
Hartmann’s Inc. in Abilene, rapidly grew from its origins in 1955 as a small auto repair facility to making its own automotive parts.
These days, the company, which recently relocated to a new facility thanks, in part, to help from the Development Corporation of Abilene, is involved in industries as diverse as medical, commercial, energy and aerospace, said Alan Hartmann, whose grandfather started the manufacturer.
The family-owned company moved from Maple Street to a 100,000-square foot facility at Five Points Business Park after buying the property from the DCOA.
In the effort to retain and expand Hartmann s, the DCOA worked with the Small Business Development Center, First Financial Bank, Abilene City Council and Abilene Industrial Foundation, and also secured a federal grant from the Economic Development Administration.
The Development Corporation of Abilene historically has had an image problem, something that Misty Mayo, its president and CEO, and Jack Rich, its board president, understand.
They also are quick to say they want to change that perception, while admitting that the complexity and – at times – secrecy required to brew economic development deals can appear akin to spycraft with its endless code names.
“It s hard to break through and to make those things clear, especially in today s world where there s so many ways to communicate,” Rich said. That can be a source of misinformation as much as accurate reports.
“But that s what the goal is, that s what we re trying to do is to coordinate all of those efforts, he said.
Expansion of controversial Chapter 313 tax break program dies in House
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OCI Solar Power is building the 110-megawatt, Alamo 6 solar farm in Iraan in West Texas to provide renewable power to the city of San Antonio. The project is slated to come online by the end of the year. OCI signed a long-term power contract with San Antonio s municipal utility, CPS EnergyOCI Solar Power
A bill that would have extended for another decade the state’s controversial Chapter 313 tax breaks for corporations was effectively killed in the Texas House this week.
Property tax breaks granted through the program will drain nearly $1.7 billion from the state’s coffers through 2022 to pay corporations that relocate to, or expand in, the state.