Bill Caption

Relating to the Texas Economic Development Act; requiring the imposition of an authorized fee and changing the amounts.

Fiscal Notes

Estimated two-year net impact to general revenue related funds for HB 1556, Committee Report 1st House, substituted: a negative impact of ($756,000) through the biennium ending August 31, 2023. The estimated negative impact increased to ($460.7 million) in fiscal year 2031.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

Bill Analysis

HB 1556 would extend for ten years Chapter 313, Tax Code which provides tax abatements in exchange for economic development. In addition to extending the chapter rather than allowing it to expire, the bill would would expand the chapter to make the economic intervention allowed by Chapter 313 even more significant than it already is. 

Vote Recommendation Notes

Under the Texas Economic Development Act, school districts can offer a limitation of the appraised value of property for certain taxable entities that bring certain capital investment to Texas and agree to create a certain number of "qualifying jobs." Tinkering in the economy in this way distorts markets and creates winners and losers in the marketplace. Chapter 313 is antithetical to the basic notions of free markets and limited government. Rather than extend and expand the chapter, we encourage the legislature to allow it to expire altogether. For these reasons, Texas Action opposes HB 1556.