The Texas House of Representatives just took an important step to keep Texas attractive to companies looking to create jobs and invest here. As lawmakers were discussing ways to bolster the economy, they extended the Texas Economic Development Act that allows school districts to offer temporary tax incentives to attract economic development projects like Toyota in San Antonio and Caterpillar in Seguin.
The program is set to expire in 2014 and a two-year extension is critical because major new investment projects require a long lead time. Many promising projects currently on the drawing boards may not break ground for several years.
If companies were to see that this program was set to expire soon, they would look to create new jobs elsewhere - in states where property taxes are lower and incentives are greater and more certain.
As companies are looking to make new investments again in the wake of the worst recession in 75 years, the House took a solid step to grow more jobs here. We hope the Senate is equally committed to keeping Texas moving in the right direction.
Texas Association of Manufacturers