Texas Senate Bill SB856

Texas 2009 - 81st Regular

Caption

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

Impact

If passed, SB856 would have significant implications for local governments and businesses engaging with economic development programs. By extending these incentives, the state is reinforcing its commitment to attract and maintain business investments, particularly in underdeveloped areas. This amendment could result in an increase in economic activity as municipalities would have an extended opportunity to utilize these incentives to promote growth and job creation in their regions.

Summary

SB856 aims to amend the Texas Economic Development Act by changing the expiration date of certain provisions of the act. Specifically, the bill seeks to push back the expiration of Subchapters B, C, and D, which are currently set to expire on September 1, 2009, effectively altering the existing tax code concerning economic development incentives. The bill reflects an ongoing effort to adjust legislative measures that support business development and retention in Texas through updated tax benefits and incentive parameters.

Contention

Notable points of contention surrounding SB856 include concerns from local stakeholders regarding the effectiveness of these economic incentives. Critics argue that extending these tax benefits without accompanying accountability measures may lead to long-term budget constraints for local government entities, decreasing their ability to fund essential services. Furthermore, there are discussions about the appropriateness of extending benefits to certain industries over others and whether such policies disproportionately favor large corporations at the expense of smaller or locally owned businesses.