JETI/Chapter 403
The JETI program (Chapter 403) incentivizes companies to expand or relocate to Texas. It replaces the Chapter 313 program, which ended on December 31, 2022. JETI provides property tax valuation reductions in exchange for significant investments and job creation, strengthening Texas as a hub for economic growth and innovation. Passed as HB 5 in 2023, the program is new and holds great potential, but it faces challenges that need to be addressed this session to maximize its impact.
Chapter 380/381
Chapters 380 and 381 of the Local Government Code allow Texas municipalities and counties to provide a grant or a loan of city or county funds or services to promote economic development. The statute provides the flexibility necessary to tailor agreements to the goals and needs of local economies and communities, allowing local governments to encourage the growth of a variety of businesses and industries. Protecting the statutory authority of these agreements is essential to preserving this vital economic tool.
R&D Tax Credit
Texas law provides a franchise tax credit and a sales tax exemption for qualifying research activities, but that statute expires on December 31, 2026. The State of Texas must extend and improve its Research and Development (R&D) incentive program within the Texas Tax Code to (1) be competitive, (2) support a thriving Innovation Economy and (3) achieve its goal of becoming a top destination for innovation, business growth, and high-quality jobs.
Infrastructure
Sufficient Power and water are two of the most talked about issues in economic development. This is true in all states, but especially in Texas, where population growth has strained resources, and notable power outage events have drawn national attention. Investing in public infrastructure is one of the most important roles of government, and Texas is at a critical juncture for making commitments that will shape the state’s economy for the next twenty years, and beyond.
Education & Workforce
The backbone of any economy are the talented men and women who make up the workforce. Increasingly, companies see the Austin region, and Texas as a whole, as a desirable place to do business because of the rich-talent pool. Much of that is because of the legislature’s wise investments in skills training programs, dual-credit coursework incentives, and nationally recognized institutions of higher education. To meet the demand of tomorrow’s workforce, the state must continue to be a leader in innovative and outcomes-based programs and funding models.