Highlights 77th Texas Legislature - Senate

_________________ E CONOMIC
CONOMIC DEVELOPMENT
77 th Texas Legislature
Requires that the plan provide for establishing goals and standards to measure whether state efforts are
having a positive economic effect; tracking benefits and wage and retention performance measures; and
reevaluating economic development initiatives that offer fewer benefits in relation to their costs. Requires
that the plan be updated every five years.
Development Zones in Economically Distressed Areas - H.B. 1053
by Representative Coleman
Senate Sponsor: Senator Gallegos
Authorizes municipalities and counties to create commercial and industrial development zones in areas of
pervasive poverty, unemployment, or economic distress to promote and encourage commercial
development including business development in the technology field; workforce development; excellence in
education; public and private sector partnerships; and the revitalization of neighborhoods.
Requires that such zones be adjacent to major transportation nodes and thoroughfares, which may be used
for exporting products to major airports, railways, and ports.
Authorizes a creating body to use tax increment financing to fund a development zone.
Texas Economic Development Act - H.B. 1200
by Representative Brimer, et al.
Senate Sponsor: Senator Harris
Creates the Texas Economic Development Act (TEDA) and authorizes certain ad valorem tax incentives
for economic development, including authorizing school districts to provide tax relief for certain corporations
and limited liability companies that make large investments that create jobs in this state, authorizing the
imposition of certain impact fees, and continuing the Property Redevelopment and Tax Abatement Act.
The provisions of the bill concerning property value limitations and school tax credits expire December 31,
2007.
Pertains only to property owned by a corporation or limited liability company which applies for tax relief.
Requires that to be eligible for a limitation on appraised value, the corporation or limited liability company
must use the property in connection with manufacturing, research and development, or renewable energy
electric generation.
Provides that for purposes of determining an applicant's eligibility, the land on which a building or
component of a building is located is not considered a qualified investment; property that is leased under a
capitalized lease may be considered a qualified investment; property that is leased under an operating
lease may not be considered a qualified investment; and property that is owned by a person other than the
applicant and that is pooled or proposed to be pooled with property owned by the applicant may not be
included in determining the amount of the applicant's qualifying investment.
Requires that, to be eligible for a limitation on appraised value, at least 80 percent of all the new jobs
created by the property owner must be qualified jobs.
Senate Research Center 74