AUSTIN— Today, the Texas Public Policy Foundation published the paper, “Chapter 312 and 313 Property Tax Abatements Help Wealthy and Connected Businesses and Taxpayers at Other Texans’ Expense.”
Local property tax abatements are often viewed as a positive part of the modern economic development process. This new paper from the Foundation examines the negative aspects of local tax abatements under Chapters 312 and 313.
“Data recently furnished to the public by the Texas Comptroller indicates the annual cost of Chapter 313 renewable-energy tax abatements to Texas state taxpayers is now $440 million,” said Stanley Greer, the paper’s author. “The estimated cost has more than doubled over just the past two-and-a-half years. Such abatements collectively support very few jobs, and years of experience show they actually make the Texas electricity grid less reliable.”
“Many professional economists credibly argue that special tax preferences for select businesses are always counterproductive,” said Bill Peacock. “But few if any business incentives have proven to be as detrimental to the public interest as the renewable-energy tax abatements authorized by Chapters 312 and 313 of the Texas Tax Code.”
“This research shows how chapters 312 and 313 benefit the wealthy and connected at the expense of other Texans,” said Cutter González, a policy analyst with the Texas Public Policy Foundation. “Luckily, the upcoming Legislature has an opportunity to let the Texas Model flourish by allowing the provisions to expire.”
For the full paper, please visit:
For more information, please contact Sarah Silberstein at firstname.lastname@example.org or 512-472-2700.