Texas House Bill HB1502

Texas 2021 - 87th Regular

Caption

Relating to the extension of the expiration of certain parts of the Texas Economic Development Act.

Impact

If passed, this bill would result in a significant impact on the stability and predictability of Texas's economic development framework. By extending the expiration date, businesses will continue to benefit from the incentives provided under the Act for an additional ten years. This extension is expected to encourage more businesses to invest in Texas and is seen as a strategic move to maintain competitiveness in attracting new businesses and retaining existing ones.

Summary

House Bill 1502 aims to extend the expiration period for certain provisions within the Texas Economic Development Act. This bill proposes to amend Section 313.007 of the Tax Code to change the expiration date from December 31, 2022, to December 31, 2032. The Texas Economic Development Act has been instrumental in providing various financial incentives to businesses for development projects in Texas, promoting job creation and investment in the state.

Contention

While the bill has the support of many economic development advocates and business groups, there may be concerns regarding its long-term financial implications for the state. Critics might argue that extending tax incentives can limit the state's revenue in the future, potentially affecting funding for public services. Additionally, questions may arise about how effectively these financial incentives contribute to sustainable economic growth and whether they are equitably distributed among communities within Texas.