Button Bill Lets Some Tax Deals Skip The Deciding-Reason Test

The text as introduced · 446 words

By: Button
H.B. No. 4149

A BILL TO BE ENTITLED

AN ACT

relating to the Texas Jobs, Energy, Technology, and Innovation Act.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 406.609(b), Government Code, is amended

to read as follows:

Sec. 403.609. COMPTROLLER ACTION ON APPLICATION. (a) The

comptroller shall determine whether to recommend or not recommend

for approval an application submitted to the comptroller under

Section 403.607. The comptroller shall recommend an application

for approval if the comptroller makes the findings prescribed by

Subsection (b). The comptroller may not recommend an application

for approval if the comptroller is unable to make the findings

prescribed by that subsection.

(b) The comptroller may not recommend an application for

approval unless the comptroller finds that:

(1) the proposed project that is the subject of the

application is an eligible project;

(2) the proposed project is reasonably likely to

generate, before the 20th anniversary of the first day of the

construction period, state or local tax revenue, including ad

valorem tax revenue attributable to the effect of the project on the

economy of this state, in an amount sufficient to offset the school

district maintenance and operations ad valorem tax revenue lost as

a result of the agreement;

(3) for a project described by Section

403.602(8)(A)(i)(a), (c), (d) or (ii), the agreement is a

compelling factor in a competitive site selection determination and

that, in the absence of the agreement, the applicant would not make

the proposed investment in this state; and

(4) if the application indicates that the eligible

project is proposed to be located in a qualified opportunity zone,

the project is located in the zone.

(c) In making the finding required by Subsection (b)(3), the

comptroller shall consider factors related to the selection of the

proposed site for the project, including the workforce, the

regulatory environment, infrastructure, transportation, market

conditions, investment alternatives, and any specific incentive

information provided by the applicant related to other potential

sites.

(d) Not later than the 60th day after the date the

comptroller determines that an application is complete, the

comptroller shall take the action required by Subsection (a)

regarding the application and provide written notice of the action

to the governor, the school district in which the project is

proposed to be located, and the applicant.

(e) The comptroller shall send to the governor and the

applicable school district with the notice required by Subsection

(d) regarding an application recommended by the comptroller under

Subsection (a) a copy of the application and each document and item

of information the comptroller relied on to recommend the

application.

SECTION 2. This Act takes effect September 1, 2025.