The Texas Senate and House passed a compromised version of HB5 that still fundamentally represents misguided economic development.  A 2-year campaign by Texas IAF and allies, however, led to major reforms in HB 5 compared to the now defunct and failed Chapter 313 program.  When these tax abatement deals are proposed at local school districts, there will now be a fair fight for taxpayers and public school supporters concerned about corporate welfare.  HB 5 Reforms to Chapter 313 include:

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A surprising legislative success in 2021 is on track to be undone in 2023, unless a grass roots left-right coalition can block legislation and the forces behind it that are trying to go backward....

In the name of jobs and economic development, a 2012 tax code trick called Chapter 313 essentially funneled state money, via school district property tax breaks, to private companies doing new industrial construction. The school districts that granted tax breaks under Chapter 313 were reimbursed — and many still are being reimbursed — by the state, meaning we as taxpayers reimbursed them. It was the ultimate insider game of channeling public benefit to private companies.

At the Point Isabel ISD Board meeting, Texas LNG sought last-minute approval for tax abatement through the expiring Chapter 313 program. Leaders from Valley Interfaith, alongside allied organizations, made the case to the board.

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On a unanimous vote Tuesday night, the school district voted not to go forward with the applications.

Several Port Isabel area residents voiced opposition, both to Texas LNG on environmental grounds, and to the abatements, saying Texas LNG deserves to have to pay its fair share of taxes.

Valley Interfaith and the other objectors said Texas LNG doesn’t need the abatement because the project has been planned for years and the company has already decided to build the facility here.

“Valley Interfaith congratulates the superintendent and PIISD Board members for their willingness to look at the facts and reject this application for huge tax abatements for an LNG export terminal they

 have long planned to build in the Port of Brownsville area,” said Father Kevin Collins, O.M.I. pastor of S. Eugene of Mazenod Church in Brownsville and Valley Interfaith. “They don’t need to take money from Texas school children to build a profitable LNG export facility at a time when the whole world is clamoring for liquified natural gas,” Collins said.

Point Isabel School District Rejects Texas LNG Tax Abatement, The Brownsville Herald [pdf]