Texas House Bill HB1137

Texas 2017 - 85th Regular

Caption

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.