Texas House Bill HB3040

Texas 2021 - 87th Regular

Caption

Relating to the continuation and application of the Texas Economic Development Act.

Impact

The amendments proposed in HB 3040 extend the expiration of the Economic Development Act provisions to December 31, 2032, thus offering a longer duration for companies to utilize tax incentives. The bill also broadens the definition of eligible projects to include not only traditional manufacturing and research but also newer sectors like integrated gasification for power generation, seawater desalination, and interregional water supply projects. This could foster economic growth and attract investments in cutting-edge technologies that address both energy needs and environmental sustainability.

Summary

House Bill 3040 aims to continue and enhance the Texas Economic Development Act by revising applicable sections of the Tax Code. Specifically, the bill addresses the expiration of certain provisions and expands eligibility for tax limitations based on property usage. The revisions outline the diverse sectors that can benefit from tax incentives, including renewable energy, aquifer storage, and desalination projects, indicating a strong legislative focus on promoting sustainable practices within Texas.

Contention

Despite its potential benefits, the bill may face scrutiny from advocacy groups concerned about the implications of extending tax incentives toward specific industries, particularly in the context of environmental protection and resource management. Discussions may center around balancing economic growth with sustainable practices, especially given the expanding definition of eligible projects. Lawmakers will likely need to navigate these concerns to ensure that the bill promotes economic activities without compromising environmental integrity.