Texas House Bill HB116

Texas 2021 - 87th 3rd C.S.

Caption

Relating to the extension of the expiration of certain parts of the Texas Economic Development Act.

Impact

The primary impact of HB 116 is its influence on state laws governing economic incentives. By extending the provisions of the Texas Economic Development Act, it helps maintain a framework that supports business expansion and retention in Texas. This could have positive ramifications for job creation and increase the state's competitiveness in attracting new investments. Additionally, the extension could provide local governments and economic development agencies with more opportunities to negotiate and implement commercial projects, thereby boosting local economies.

Summary

House Bill 116 seeks to amend the Texas Economic Development Act, specifically extending the expiration date of Subchapters B and C from December 31, 2022, to December 31, 2023. This extension allows for the continuation of various tax incentive programs designed to foster economic growth in the state. The bill aims to provide additional time for businesses to capitalize on these incentives, which are crucial for encouraging investment and job creation within Texas. By allowing these provisions to remain in effect for an additional year, the bill addresses concerns from stakeholders who advocated for more time to take advantage of the existing economic support structures.

Contention

While the bill's intent is to promote economic growth, there may be contention surrounding the efficacy of extending these tax incentives. Critics might argue that such incentives can disproportionately benefit larger corporations, leading to potential inequities in how economic development resources are allocated. Furthermore, some may express concerns over the long-term sustainability of relying on tax incentives as a primary means of promoting economic growth, suggesting that more holistic approaches are needed to support various sectors within the economy.