In 2001, the 77th Texas Legislature enacted House Bill 1200 creating Tax Code Chapter 313, Texas Economic Development Act, to encourage large‑scale manufacturing, research and development, renewable energy, nuclear and integrated gasification combined cycle electric generation facilities capital investment projects in the state of Texas.
The law requires companies to invest a specified amount of money to qualify for a tax credit and an eight‑year limitation on the appraised value of a property for the maintenance and operations portion of the school district property tax. The local school district must elect to participate for the company to recognize this benefit.
The qualifying investment amount is determined on a sliding scale that begins at $100 million for large urban areas and $30 million for rural areas. The qualifying investment amount is reduced for areas with a lower tax base.