Abbott discussed potential replacement programs after a news conference at the Texas Governor’s Mansion, during which Texas received its 11th consecutive Governor’s Cup. The Governor’s Cup is awarded by Site Selection Magazine, which selects states for their success in job creation and economic growth.
During the news conference, Abbott highlighted Texas’ economic success in recent years, which he credited to local leaders, state lawmakers and other officials for their “commitment to make sure that Texas is No. 1 and remains No. 1.” Since 2015, when Abbott became governor, 271 companies have relocated their headquarters to Texas.
In an attempt to continue to bring corporations to Texas, lawmakers filed House Bill 5 on Feb. 28. Known as the Texas Jobs and Security Act, the legislation would allow large businesses to pay lower school district property taxes when they relocate to Texas.
HB 5 is one of House Speaker Dade Phelan’s top legislative priorities. If approved by state lawmakers, it would replace Chapter 313, which gave corporations tax breaks for 10 years. The program expired last year after the Texas Senate chose not to consider a bill extending it during the 2021 legislative session.
Abbott said the bill was an “innovative approach” to creating a new economic incentive program but noted he did not support offering tax breaks to renewable energy companies. HB 5 does not include details about renewable companies.
“There’s already a federal incentive for renewable projects, and those will continue to be allowed,” Abbott said. “As it concerns especially energy and power and the power grid, our focus is on dispatchable power.”
The governor said he was focused on ensuring that reliable dispatchable power—energy used in power plants, such as natural gas and coal—is available to everyone in Texas.
Lt. Gov. Dan Patrick has also expressed his support for dispatchable power. Increasing natural gas production and improving Texas’ power grid are among Patrick’s 30 legislative priorities for the Senate, but he has yet to endorse specific bills on the topic.
