The Texas House passed an important bill to extend a tax incentive that has attracted significant investment to the state — and to the state’s school districts. Now the Texas Senate must consider this legislation.
HB 4242 would extend Chapter 313 agreements, which provide a temporary limitation on property taxes for companies locating new facilities in the state. Under the agreements, companies pay school districts so that the reduced property taxes do not harm schools. School districts negotiate with businesses to ensure that the agreements are good for the district’s students and taxpayers.
These agreements, which have brought more than $200 billion in investments to Texas, are beneficial to school districts for a number of reasons:
- They attract investment to Texas, often in rural areas where the tax base is not rapidly growing.
- They create jobs within the community and often spur the development of other businesses.
- The businesses that come to town often develop positive relationships with local schools, creating opportunities for students.
- These large businesses pay taxes to fund bonds issued for construction projects, which lightens the burden for other taxpayers in the community.
HB 4242 would extend the current program for two years. The Texas School Coalition supports the extension of Chapter 313.