Bill > SB2322

This bill modifies the criteria the Texas Comptroller must use when recommending approval for tax limitation applications under the Texas Jobs, Energy, Technology, and Innovation Act. Specifically, the bill updates the requirements for the Comptroller to recommend an application for a tax value limitation, adding a new condition that for most proposed projects (except those in a specific category related to certain facilities), the agreement must be a "compelling factor" in the company's site selection process. This means the company must demonstrate that without the tax agreement, they would not have chosen to make their investment in Texas. The bill requires the Comptroller to verify that the proposed project is likely to generate enough state and local tax revenue to offset the school district's lost maintenance and operations ad valorem (property) tax revenue within 20 years. Additionally, if the project is located in a qualified opportunity zone, this must be confirmed. The changes will apply to applications submitted on or after the bill's effective date of September 1, 2025, and are designed to ensure tax incentive agreements provide meaningful economic benefits to the state.

Budget and Finance, Business and Industry

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2322