comptroller seal Texas Comptroller of Public Accounts

FOR IMMEDIATE RELEASE

April 18, 2016

Texas Comptroller: Texas Economic Development Act Trades Tax Revenue for Business Investment

(AUSTIN) — In the last few decades, many states have offered economic incentives to companies that promise to bring jobs and investment, and Texas is no exception.

In the latest issue of Fiscal Notes, the Comptroller's office examines the state's largest program of this kind, the Texas Economic Development Act. Commonly known as Chapter 313, the act allows Texas school districts to offer property tax breaks — a 10-year limitation on increases in appraised property value for the maintenance and operations portion of the tax — to companies that build and hire in their communities.

Over the years, Chapter 313 incentives have been credited with helping to bring a Toyota truck plant to San Antonio and a Samsung semiconductor facility to Austin.

"Chapter 313 has both proponents and critics," Texas Comptroller Glenn Hegar said. "As the Legislature continues to debate the value of Chapter 313 agreements, our article discusses exactly how the program works."

Fiscal Notes is an extension of the Comptroller's constitutional responsibilities to monitor the state's economy and estimate state government revenues. It has been published periodically since 1975, featuring in-depth analysis concerning state finances and original research by subject-matter experts in the Comptroller's office.

Published monthly, Fiscal Notes is online at comptroller.texas.gov/fiscalnotes, and can also be received by subscribing via the Comptroller's website.

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