ANNOUNCEMENT 03 Apr 2012

A Texas state incentive program, which operates through the abatement of taxes imposed by school districts, aims to attract investment in the state.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

This specific deal is summarized on page 142 of Texas Comptroller of Public Accounts, Report of the Texas Economic Development Act 2017 (January, 2017), available online at https://comptroller.texas.gov/economy/docs/96-1359-2016.pdf. See also http://www.statutes.legis.state.tx.us/Docs/TX/htm/TX.313.htm and https://comptroller.texas.gov/economy/local/ch313/index.php.

Inception date: 03 Apr 2012 | Removal date: 03 Apr 2023

Tax or social insurance relief

The Texas Economic Development Act (Chapter 313 of the Tax Code) provides for the extension of investment incentives manufacturers and others through tax abatements. The law allows 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.

One such deal, designated as Agreement #215, was reached between the Brazosport school district and Dow Chemical Company on April 3, 2012. At issue is a facility for the manufacture of goods falling within code 325 of the North American Industry Classification System (i.e., chemical manufacturing). According to the Texas Comptroller of Public Accounts, the estimated total gross tax benefit to the company resulting from this agreement amounts to $221,019,008 over an eleven-year period.

AFFECTED SECTORS

 

AFFECTED PRODUCTS