Property tax abatements under Chapters 312 and 313 of the Texas Tax Code allow counties, cities, school districts, and special purpose districts to reduce the amount of taxes paid by favored businesses that locate or expand within their geographic boundaries. They are often used by renewable energy developers in concert with state and federal subsidies to turn a profit on what would otherwise be an unprofitable investment in highly inefficient renewable energy.

Key Points:

  • Chapters 312 and 313 are used by renewable energy developers in concert with state and federal subsidies to turn a profit on what would otherwise be an unprofitable, inefficient investment.

  • Stopping the Chapter 312 process in cities, counties, and special purpose districts can be very difficult—unnecessarily so—as they take place behind closed doors.

  • There is a clear need in Texas to increase the transparency of the approval process for Chapters 312 and 313 property tax abatements.