For decades, Texas has led the way in creating a business-friendly environment, attracting companies across all sectors, and with it, high-quality, good-paying jobs. Part of the reason for this success can be attributed to Texas Tax Code Chapter 313.
Also known as the Texas Economic Development Act, the law provides property tax breaks for companies to come to the state. In exchange for receiving these tax incentives, companies pay fees directly to schools in the community. Coupled with no personal or corporate state income tax, as well as a predictable regulatory climate, Texas has been ranked the most business-friendly state by Chief Executive Magazine for 18 consecutive years.
Unfortunately, Chapter 313 is set to expire at the end of the year, and if it does, it could have a negative economic impact on our state. Texas is always competing with other states to attract businesses. By no longer having this law on the books, we put our state at a huge disadvantage.
The unintended consequences of Chapter 313 expiring will unfortunately put current and future jobs in peril, not to mention the critical funding our schools depend on.
In today’s uncertain economic climate, the state needs every tool at its disposal to let companies know Texas is open for business. If Chapter 313 does expire, we urge state legislators to prioritize economic policies that will keep Texas the most business-friendly state in the nation.
