Texas House Bill HB1984

Texas 2013 - 83rd Regular

Caption

Relating to enterprise project half designations under the enterprise zone program.

Impact

The changes proposed by HB1984 aim to bolster economic development strategies by providing smaller or emerging enterprises with better access to the enterprise zone benefits typically reserved for larger projects. By lowering barriers to entry and emphasizing the ability to split designations, the bill may promote greater job creation and stimulate investment in local economies. This adjustment reflects a growing recognition of the need for state policies to adapt to the changing landscape of business needs within Texas.

Summary

House Bill 1984 introduces amendments to the enterprise zone program in Texas, which allows for the designation of 'half enterprise projects.' This new designation enables an enterprise project to be split into two segments, known as half designations, with each half eligible for certain benefits under the program. Specifically, the bill stipulates that a maximum of 250 jobs may be allocated per project and that each half designation is eligible for a refund of up to $125,000 annually. These changes are designed to enhance flexibility within the program and to encourage more widespread economic development throughout the state by allowing more entities to qualify for support.

Sentiment

Reactions to HB1984 have been generally positive, particularly among business groups and economic development advocates. Supporters argue that the bill will enable more businesses to take advantage of state incentives, potentially leading to significant job growth and increased economic activity in less-served areas. However, there may also be some concerns from local governments regarding how these changes could impact existing criteria for enterprise zone designations and the potential for an overload of applications which could stretch resources thin.

Contention

While there is optimism surrounding the opportunities presented by HB1984, there are also underlying concerns regarding the implementation of the new half project designations. Critics may point out that splitting designations could complicate the administration of the enterprise zone program and lead to inconsistencies in how benefits are allocated. Additionally, there may be discussions on whether this bill adequately addresses the specific needs of both large-scale and smaller enterprises without overextending state resources.