The state of Texas is launching the Jobs, Energy, Technology, and Innovation (JETI) program which cuts property taxes for new manufacturing, research and development facilities.
The program is intended to offer economic incentives program to bring new companies and jobs to the state.
Gov. Greg Abbott announced the opening of applications for the JETI program, which was passed in the Texas Legislature last year, which is intended to provide property tax cuts to eligible companies that move into Texas communities in exchange for job creation.
“Texas is America’s jobs engine, thanks to our welcoming business climate, robust infrastructure, and skilled and growing workforce,” Abbott said in a statement. “But we cannot be complacent as we now compete both nationally and globally in industry sectors critical for growth tomorrow.”
Through the new program, companies can apply to receive a 10-year reduction in their property taxes that help fund the operations of local school districts. Using its general revenue fund, the state will pay school districts to partially restore tax money lost to cuts. Budget analysts say it’s unclear how much taxpayers will shoulder the cost of tax breaks for companies.
Companies that participate in the new program are also required to create a specific number of new full-time jobs, salaried or contracted, with health benefits and competitive pay for salaried positions. Companies also must submit reports to the state on their compliance with these standards every two years.
Each company will receive a 50% abatement, unless their projects are located in economically disadvantaged areas that have been designated as “opportunity zones” by the federal government, where tax cuts are stretched to 75%.
Not all companies that could apply for tax cuts through Chapter 313, or the Texas Economic Development Act, will qualify for the new program. Wind and solar companies — predominant participants in Chapter 313 — and battery power storage projects are all excluded from participating.
Eligible companies include those that support manufacturing, the development of natural resources, hydrogen fuel production and carbon capture facilities, technologies like semiconductor chips, and innovation including research and development