ANNOUNCEMENT 01 Aug 2019

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
Inception date: 01 Jan 2022 | Removal date: 31 Dec 2031

Tax or social insurance relief

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, was reached August 1, 2019 between the Sinton Independent School District and Buffalo LLC. At issue is a facility for the manufacture of flat roll steel coils. According to the Texas Comptroller of Public Accounts, the estimated total gross tax benefit to the company resulting from this agreement amounts to $148,619,150 over a 10-year period. (i.e., an average of $14,861,951 per year), from 2022 through 2031.

AFFECTED SECTORS

 

AFFECTED PRODUCTS