Relating to restrictions on tax and fee benefits for certain private entities that outsource jobs to foreign countries.
Impact
The implementation of HB1137 is expected to create a significant impact on how state agencies handle tax benefits related to businesses that outsource jobs. By denying benefits to companies that fail to contribute to job creation domestically while outsourcing, the bill aims to incentivize such companies to retain jobs within the United States. This shift could potentially alter the competitive landscape for businesses operating in Texas, encouraging more domestic hiring practices and potentially leading to an increase in local job availability.
Summary
House Bill 1137 aims to establish restrictions on tax and fee benefits for certain private entities that outsource jobs to foreign countries. The bill introduces a new chapter in the Government Code that outlines these restrictions, focusing on ensuring that domestic companies that are involved in outsourcing are not eligible for various tax credits, exemptions, or discounts if they eliminate or fail to create jobs in the United States as a result of such outsourcing activities. This legislation is seen as a measure to protect domestic employment and discourage the practice of offshoring jobs to foreign countries.
Contention
Notable points of contention surrounding HB1137 include the potential economic repercussions for industries heavily reliant on outsourcing and the effectiveness of such legislation in genuinely protecting domestic jobs. Critics might argue that while the bill aims to safeguard employment, it could also deter investment from companies that benefit from global operations. The balancing act between maintaining a competitive business environment and protecting jobs will be a central theme in the ongoing discussions and analyses of this proposed legislation.
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 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.