Texas House Bill HB2717

Texas 2013 - 83rd Regular

Caption

Relating to an insurer that establishes or significantly expands physical operations in this state; authorizing a premium tax credit.

Impact

If enacted, HB 2717 would have a considerable impact on state laws surrounding tax incentives for businesses, particularly in the insurance industry. By providing a tax credit that could amount to the entirety of the investments made by insurers in establishing or expanding operations, the state seeks to create a favorable environment for insurance companies. This could lead to more competitive insurance options for consumers while bolstering the state's economy through job creation and heightened fiscal activity.

Summary

House Bill 2717 is designed to incentivize greater economic activity within Texas by offering a premium tax credit to insurers that establish or significantly expand their physical operations in the state. This initiative aims to attract insurance companies to invest in Texas, thereby creating jobs and fostering economic growth. The bill outlines specific criteria under which insurers may qualify for the tax credit, emphasizing a requirement for significant expansion or establishment of operations that yield substantial economic benefits to the state during the applicable taxable year.

Contention

Notable points of contention surrounding HB 2717 could involve discussions about the long-term financial implications for the state's budget, as substantial tax credits could reduce immediate tax revenue. Critics may argue that such incentives disproportionately favor large insurers while potentially setting a precedent for other industries to demand similar treatment. Supporters would contend that the upfront costs are outweighed by the eventual benefits of economic growth and job creation, claiming that the focus should remain on fostering a robust economic landscape that attracts significant investment.