Abbott vows Texas will revamp controversial Chapter 313 corporate tax break program

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Abbott vows Texas will revamp controversial Chapter 313 corporate tax break program
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The governor says Texas is suffering from the end of the economic development program,...

Addressing the Greater Arlington Chamber of Commerce on Wednesday, Abbott gave his most extensive public comments yet on the future of economic development in Texas after the end of the so-called Chapter 313 program. Abbott nodded to the politically charged nature of the topic by bringing it up as the “elephant in the room.

Abbott briefly alluded to the debate over the program in his Feb. 9 State of the State speech, saying “local communities need new economic developments tools this session.” That comment and his remarks in Arlington align him with state House Speaker Dade Phelan, R-Beaumont, who is prioritizing a Chapter 313 revival. But they face a large hurdle from Lt. Gov. Dan Patrick, who presides over the Senate and bragged last month that he “killed” Chapter 313 in 2021 because it “had been misused.

Abbott was not as outspoken about Chapter 313 when it was on the chopping block in 2021. He was noncommittal, for example, when asked in November 2021 if he would call a special session to renew the program. A coalition of Chapter 313 opponents also fired back Wednesday, noting the program siphoned away property-tax revenue that could otherwise fund public education.

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