It is difficult to justify Chapter 312 and 313 abatements for any project since they take money from average Texas taxpayers and either redistribute it to wealthy businesses that don’t need it or to marginally viable businesses that cannot compete without subsidies.
Key Points:
- With Chapter 312 abatements, the locality is left with less money to pay for public safety, public transportation, and other government services, or has to tax other businesses and homeowners at a higher rate in order to make up for the loss.
- The estimated total tax abatements given to businesses over the life of current Chapter 313 agreements is $10.3 billion, of which 38 percent, roughly $4 billion, is for renewable energy projects.
- Texas should end Chapter 312 and 313 tax abatements for renewable energy projects to restore the reliability of the electric grid and because these projects create very few permanent jobs.