Texas Oil and Gas Producers Want Their Tax Break Back
Texas lawmakers are facing pressure to come up with a replacement for Chapter 313, a recently expired program that helped oil and gas companies, chip manufacturers and other industries secure billions in tax abatements through local school districts.
Nearly 200 representatives of trade organizations, economic development councils and chambers of commerce are included among the signatories of a Feb. 14 letter to the Legislature calling for “a new, transparent, and accountable economic development policy.” The signatories warned that Texas could lose business if legislators don’t hurry up and create a new tax break program.
“Over the last year, Texas lost several multibillion-dollar deals, including Rivian to Georgia, Intel to Ohio, and Micron to New York,” the letter says. “Texas stands to lose more jobs, more investments, more tax base and more growth if we don’t restock our economic development toolbox with a new economic development incentive this legislative session.”
Two days later, Gov. Greg Abbott delivered his State of the State address at a rare earth metals manufacturing plant in San Marcos. “To keep Texas the best state for business, our local communities need new economic development tools this session,” he said. That same day, state Rep. J.M. Lozano, a Republican from the industry-dense region that includes the north side of Corpus Christi Bay, introduced a bill to simply reauthorize the old Chapter 313 with no substantive changes.
