Top navigation skipped
Texas Economic Development Act Chapter 313 Summary Data 2025Tax Code Chapter 313
Executive Summary
The Texas Economic Development Act (Chapter 313 of the Tax Code) allowed school districts to attract new taxable property development by offering a value limitation on the appraised value of the property for the maintenance and operations portion of the school district’s property tax.1 Texas Education Code 48.256 requires the Texas Education Agency commissioner to remove the non-taxed value of 313 projects from the Districts Property Value. Lower District Property Values typically result in increased revenue provided to the district by the state (or lessens recapture paid).
The Chapter 313 program expired on Dec. 31, 2022. This report includes data from agreements entered in to after the reporting deadline for the 2023 report (June 1, 2022) but before the expiration of the program. The total investment, jobs and tax benefit reported below reflect these additional agreements. No additional applications were received during this two-year reporting period.
This analysis is an effort to present the Comptroller’s estimates of the current status of the program, as opposed to the individual project data. This report measures the progress of agreements and is based on information collected from the school districts and the agreements’ beneficiaries. This report includes information not required by statute that is provided for informational purposes only.
Among the report’s highlights are several important benchmarks that may be useful to legislators and others, including:
- Out of the total 817 active agreements, 13 projects did not report and are in material breach of their agreement. Of the 13 projects that did not report, 31 percent are manufacturing and 69 percent are renewable projects.
- Of the 804 reporting agreements, 34 percent are manufacturing and 66 percent are renewable energy. Less than 1 percent are priority projects.
- Of the estimated $670 billion invested under the 804 agreements, 79 percent of the investments are in manufacturing and 18 percent are in renewable energy; less than 3 percent are in priority projects.
- Of the 9,930 qualifying jobs committed for creation under the 804 project agreements, 88 percent are in manufacturing and 12 percent are in renewable energy.
- Of the estimated gross tax benefit of $23.8 billion, manufacturing projects are estimated to receive 79 percent; renewable energy projects will receive 18 percent; and priority projects will receive less than 3 percent.
- Manufacturing projects are returning 9 percent of their tax benefits back to school districts through supplemental payments, while renewable energy projects are returning 15 percent, and priority projects are returning slightly more than 1 percent.
Current and Executed Agreements
Table 1 includes data from all projects with executed agreements that are required to report. Figures are reported by the applicable eligibility categories.
Table 1
Current and Executed Agreements
| Category | Active Projects | Estimated Total Investment for Length of Agreement | Reported Investment Through 2023 | 2023 Taxable Value for M&O if Limitation Were Not in Effect | 2023 Taxable Value for M&O with Limitation in Effect | Total 2023 Taxable Value for M&O Not on the Tax Rolls | Estimated Gross Tax Benefit Through 2023 | Estimated Total Gross Tax Benefit to Company Through Limitation and Tax Credit for Length of Agreement |
|---|---|---|---|---|---|---|---|---|
| Manufacturing | 273 | $531,680,653,000 | $136,401,080,000 | $75,276,902,000 | $13,140,090,000 | $62,136,813,000 | $3,030,212,000 | $18,881,545,000 |
| [Wind] Renewable Energy Electric Generation | 213 | $44,557,808,000 | $36,867,980,000 | $21,108,296,000 | $4,333,327,000 | $16,774,969,000 | $1,025,570,000 | $1,908,850,000 |
| [Non-Wind] Renewable Energy Electric Generation | 316 | $76,558,381,000 | $24,536,057,000 | $10,798,054,000 | $2,754,294,000 | $8,043,759,000 | $191,869,000 | $2,408,203,000 |
| Texas Priority Project | 2 | $17,510,407,000 | $2,410,000 | $1,954,000 | $1,954,000 | $0 | $0 | $576,613,000 |
| TOTAL | 804 | $670,307,249,000 | $197,807,528,000 | $107,185,205,000 | $20,229,665,000 | $86,955,541,000 | $4,247,651,000 | $23,775,210,000 |
Note: Figures are rounded to the nearest thousand. Figures may not sum due to rounding.
Job Creation Summary
Table 2 summarizes the jobs created for each eligibility category.
Table 2
Job Creation Summary
| Category | Reported Number of Qualifying Jobs Created through 2023 | Maximum Number of Qualifying Jobs Recipient Committed to Create on Application | Reported Number of Jobs* Created through 2023 | Total Reported Wages for Jobs* in 2023 |
|---|---|---|---|---|
| Manufacturing | 8,772 | 5,252 | 35,463 | $3,334,084,000 |
| [Wind] Renewable Energy Electric Generation | 928 | 883 | 952 | $67,336,000 |
| [Non-Wind] Renewable Energy Electric Generation | 230 | 533 | 233 | $18,593,000 |
| Texas Priority Project | 0 | 20 | 0 | $0 |
| TOTAL | 9,930 | 6,688 | 36,648 | $3,420,013,000 |
*For projects subject to the statute prior to HB 3390 (2013) reported jobs are “new jobs.” After HB 3390, reported jobs are the total of qualifying jobs and non-qualifying jobs.
Note: Wage figures are rounded to the nearest thousand. Figures may not sum due to rounding.
Estimates of Tax Base and Gross Tax Benefits
Table 3 lists the estimated annual gross company tax benefits over the life of active Chapter 313 project agreements. Taxable values are only included for the length of each agreement. The information included in this table is not required by statute and is provided for informational purposes only. These estimates are provided by beneficiary businesses, school districts and other sources.
Table 3
Estimates of Tax Base and Gross Tax Benefits
| Tax Year | Estimated Market Value with No Exemptions | Estimated I&S Tax Base | Estimated M&O Tax Base | Estimated Tax Benefit Due to Limitation | Estimated Tax Benefit Due to Tax Credit | Estimated Gross Tax Benefit |
|---|---|---|---|---|---|---|
| 2023 | $109,170,115,000 | $107,185,205,000 | $20,229,665,000 | $650,306,000 | $32,224,000 | $678,703,000 |
| 2024 | $128,252,453,000 | $125,368,158,000 | $37,598,181,000 | $655,091,000 | $34,078,000 | $687,362,000 |
| 2025 | $143,143,543,000 | $139,823,500,000 | $41,024,348,000 | $740,591,000 | $24,491,000 | $763,469,000 |
| 2026 | $159,540,970,000 | $155,936,930,000 | $51,837,606,000 | $778,235,000 | $17,171,000 | $793,969,000 |
| 2027 | $164,016,624,000 | $160,264,772,000 | $53,690,986,000 | $799,818,000 | $7,679,000 | $806,220,000 |
| 2028 | $206,656,306,000 | $201,264,442,000 | $44,930,142,000 | $1,162,308,000 | $19,712,000 | $1,180,889,000 |
| 2029 | $197,715,072,000 | $193,645,893,000 | $46,050,575,000 | $1,098,447,000 | $8,490,000 | $1,106,031,000 |
| 2030 | $207,067,216,000 | $202,011,983,000 | $49,861,813,000 | $1,139,706,000 | $0 | $1,138,898,000 |
| 2031 | $199,072,923,000 | $194,284,384,000 | $53,819,522,000 | $1,052,729,000 | $0 | $1,052,010,000 |
| 2032 | $198,397,946,000 | $193,193,417,000 | $53,868,314,000 | $1,049,810,000 | $0 | $1,049,172,000 |
| 2033 | $188,365,687,000 | $183,198,022,000 | $52,214,024,000 | $987,435,000 | $0 | $987,435,000 |
| 2034 | $185,586,546,000 | $180,186,968,000 | $55,498,482,000 | $944,156,000 | $0 | $944,156,000 |
| 2035 | $177,933,099,000 | $172,668,678,000 | $58,672,067,000 | $861,174,000 | $0 | $861,174,000 |
| 2036 | $178,133,819,000 | $172,804,186,000 | $55,313,278,000 | $892,330,000 | $0 | $892,330,000 |
| 2037 | $169,113,128,000 | $164,031,896,000 | $51,320,609,000 | $857,488,000 | $0 | $857,488,000 |
| 2038 | $169,750,798,000 | $164,736,841,000 | $74,705,215,000 | $697,250,000 | $0 | $697,250,000 |
| 2039 | $162,485,526,000 | $158,090,655,000 | $67,135,338,000 | $703,354,000 | $0 | $703,354,000 |
| 2040 | $151,890,464,000 | $148,004,380,000 | $68,207,839,000 | $617,355,000 | $0 | $617,355,000 |
| 2041 | $151,136,341,000 | $147,337,919,000 | $65,991,726,000 | $628,326,000 | $0 | $628,326,000 |
| 2042 | $143,320,022,000 | $139,765,231,000 | $64,436,033,000 | $579,716,000 | $0 | $579,716,000 |
| 2043 | $114,609,392,000 | $111,922,124,000 | $31,556,930,000 | $615,439,000 | $0 | $615,439,000 |
| 2044 | $109,591,363,000 | $107,160,609,000 | $34,262,565,000 | $554,681,000 | $0 | $554,681,000 |
| 2045 | $93,557,484,000 | $91,709,949,000 | $26,132,848,000 | $500,082,000 | $0 | $500,082,000 |
| 2046 | $87,719,364,000 | $86,091,453,000 | $30,225,520,000 | $423,458,000 | $0 | $423,458,000 |
| 2047 | $72,665,175,000 | $71,520,892,000 | $26,326,498,000 | $342,788,000 | $0 | $342,788,000 |
| 2048 | $66,750,959,000 | $65,789,678,000 | $31,699,833,000 | $255,759,000 | $0 | $255,759,000 |
| 2049 | $58,145,980,000 | $57,522,163,000 | $29,998,044,000 | $206,488,000 | $0 | $206,488,000 |
| 2050 | $49,848,744,000 | $49,271,030,000 | $31,371,918,000 | $133,946,000 | $0 | $133,946,000 |
| 2051 | $41,976,466,000 | $41,612,429,000 | $28,854,071,000 | $95,288,000 | $0 | $95,288,000 |
| 2052 | $34,303,370,000 | $33,965,924,000 | $26,742,277,000 | $53,026,000 | $0 | $53,026,000 |
| 2053 | $27,132,106,000 | $27,030,321,000 | $27,030,321,000 | $0 | $0 | $0 |
| 2054 | $22,986,619,000 | $22,889,923,000 | $22,889,923,000 | $0 | $0 | $0 |
| TOTAL | $20,076,579,000 | $143,846,000 | $20,206,263,000 |
Note: All figures are rounded to the nearest thousand. Figures may not sum due to rounding.
Revenue Payments
Chapter 313 includes three types of allowable payments from the business to the school district. The statute requires that each agreement includes “revenue protection payments” to ensure the district does not see a decrease in revenues due to the agreement. The second type of payment is referred to as “supplemental payments.” The following tables provide information on these additional payments, both by year (Table 4A) and by eligibility area (Table 4B). Additionally, Section 313.027(f)(2) allows districts to receive payments from companies for extraordinary educational expenses not funded by the school finance system. No districts to date have reported requesting any such funds.
Table 4A
Other Payments to Districts (By Year)
| Tax Year | Estimated Total Supplemental Company Payments to Districts | Estimated Total Revenue Protection Payments to Districts |
|---|---|---|
| 2003 | $0 | $0 |
| 2004 | $0 | $0 |
| 2005 | $0 | $0 |
| 2006 | $0 | $0 |
| 2007 | $0 | $0 |
| 2008 | $0 | $0 |
| 2009 | $0 | $0 |
| 2010 | $0 | $0 |
| 2011 | $0 | $0 |
| 2012 | $42,760 | $0 |
| 2013 | $2,779,341 | $6,284,544 |
| 2014 | $7,999,141 | $13,560,958 |
| 2015 | $18,161,749 | $22,255,070 |
| 2016 | $28,903,256 | $70,784,396 |
| 2017 | $41,434,916 | $112,815,205 |
| 2018 | $55,753,282 | $100,818,138 |
| 2019 | $72,497,803 | $92,005,238 |
| 2020 | $85,994,893 | $106,726,847 |
| 2021 | $83,385,064 | $127,279,515 |
| 2022 | $87,709,901 | $142,001,265 |
| 2023 | $85,280,584 | $124,775,485 |
| 2024 | $96,263,666 | $139,432,933 |
| 2025 | $108,153,728 | $179,083,700 |
| 2026 | $118,028,986 | $165,683,200 |
| 2027 | $118,139,735 | $88,299,002 |
| 2028 | $114,625,093 | $420,165,344 |
| 2029 | $129,799,169 | $131,811,191 |
| 2030 | $120,592,585 | $209,754,810 |
| 2031 | $110,928,069 | $95,805,621 |
| 2032 | $107,974,983 | $147,397,835 |
| 2033 | $106,284,987 | $99,675,475 |
| 2034 | $101,047,665 | $108,594,468 |
| 2035 | $93,884,641 | $75,043,974 |
| 2036 | $63,957,003 | $86,683,534 |
| 2037 | $60,024,846 | $79,642,586 |
| 2038 | $46,321,622 | $99,346,284 |
| 2039 | $41,408,515 | $73,148,855 |
| 2040 | $39,442,766 | $79,543,214 |
| 2041 | $26,394,907 | $60,946,988 |
| 2042 | $25,518,809 | $47,887,197 |
| 2043 | $16,409,969 | $49,383,928 |
| 2044 | $14,492,099 | $43,652,290 |
| 2045 | $8,804,186 | $38,512,938 |
| 2046 | $5,661,786 | $30,830,885 |
| 2047 | $5,334,386 | $24,873,033 |
| 2048 | $5,056,986 | $17,900,747 |
| 2049 | $4,729,586 | $13,082,364 |
| 2050 | $3,531,549 | $8,769,910 |
| 2051 | $2,985,957 | $5,946,953 |
| 2052 | $2,708,557 | $3,445,802 |
| 2053 | $882,774 | $0 |
| 2054 | $882,774 | $0 |
| TOTAL | $2,270,215,000 | $3,543,652,000 |
Table 4B
Other Payments to Districts (By Category)
| Category | Estimated Supplemental Company Payments to Districts for Length of Agreement | Estimated Revenue Protection Payments to Districts for Length of Agreement |
|---|---|---|
| Manufacturing | $1,613,745,000 | $2,607,860,000 |
| [Wind] Renewable Energy Electric Generation | $249,772,000 | $352,191,000 |
| [Non-Wind] Renewable Energy Electric Generation | $400,092,000 | $501,036,000 |
| Texas Priority Project | $6,606,000 | $82,566,000 |
| TOTAL | $2,270,215,000 | $3,543,652,000 |
Note: All figures are rounded to the nearest thousand. Figures may not sum due to rounding.
1 Texas Tax Code, “Chapter 313. Texas Economic Development Act,” http://www.statutes.legis.state.tx.us/Docs/TX/htm/TX.313.htm.
Need Help?
For additional information, email us or call 800-531-5441 ext. 3-4679, or 512-463-4679.
Disclaimer
This information should not be construed as, and is not a substitute for, legal advice.
Property owners and school districts are urged to consult the Attorney General's Economic Development Handbook and their own legal counsel for any questions or interpretations of economic development laws.