ANNOUNCEMENT 28 Nov 2016
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
The Texas Economic Development Act (Chapter 313 of the Tax Code) provides for the extension of investment incentives to 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 dated November 28, 2016, was reached between the Gregory-Portland school district and GCGV Asset Holding, LLC. At issue is a facility for the manufacture of ethylene. According to the Texas Comptroller of Public Accounts, the estimated total gross tax benefit to the company resulting from this agreement amounts to $415,731,284 over a 15-year period (i.e., $27,715,418 per year).