Relating to restrictions on tax and fee benefits for certain private entities that outsource jobs to foreign countries; changing taxes and fees.
Impact
If enacted, HB1001 would require a state agency responsible for issuing tax benefits to develop rules that determine the eligibility for such benefits based on the entity's outsourcing practices. Furthermore, entities wishing to apply for tax benefits would need to report their employment practices concerning job creation domestically and abroad. This change could have significant implications for businesses that rely on international operations for cost management, possibly discouraging them from outsourcing while incentivizing local job creation.
Summary
House Bill 1001 seeks to establish restrictions on tax and fee benefits for private entities that engage in outsourcing jobs to foreign countries. The bill specifically targets domestic private entities that have eliminated or failed to create jobs in the United States due to outsourcing practices. It aims to encourage job retention and creation within the state by preventing these entities from receiving any state-imposed tax credits, exemptions, or discounts if they have outsourced jobs abroad during the previous two years.
Contention
The bill may spark debate surrounding the balance between economic efficiency and job protection. Proponents argue that imposing penalties on outsourcing will help safeguard American jobs and maintain local economies, while critics may contend that such restrictions could inhibit business growth and competitiveness. Additionally, there may be concerns about the practicality of the reporting requirements and whether they could impose an undue burden on businesses, especially small or mid-sized firms that may not have adequate resources to comply with the new regulations.
Relating to the establishment of the Texas Mircale Act (TMA), allowing for certain fees, authorizing certain ad valorem tax incentives for economic development, specifically certain tax relief from school district taxes for certain corporations and limited liability companies that make large investments that create jobs in this state, to authorizing the imposition of certain fees, and the repeal of Chapter 313 of Texas Tax Code and the Economic Development Act of the 77th Legislature.
Relating to agreements authorizing a limitation on taxable value of certain property to provide for the creation of jobs and the generation of state and local tax revenue; authorizing fees; authorizing penalties.
Relating to small business recovery funds and insurance tax credits for certain investments in those funds; imposing a monetary penalty; authorizing fees.