AUSTIN, Texas — A bill aimed at luring even more businesses to Texas is now law.
Gov. Greg Abbott signed HB 5, the Texas Jobs, Energy, Technology and Innovation Act, into law on Wednesday.
The bill essentially replaces a tax program called Chapter 313 that expired last year. That tax code is what a lot of Texas school districts used to give businesses tax breaks to build in those areas, in exchange for things like jobs and internships.
Opponents said it was corporate welfare and that it took tax revenue away from schools.
Now, the new law only allows companies to get a 50% tax break from a school district instead of a full tax break. Lawmakers say the new law includes more audits and oversight but it'll still attract businesses to Texas.
“There's a whole lot of companies that in the past that have received Chapter 313 abatements that after looking at everything else, that would've been here anyway," said State Sen. Mayes Middleton (R-Galveston).
"We’re now dealing with an area no longer with just local; we’re dealing with companies like Samsung. We're dealing with people and groups like Tesla," said State Rep. Todd Hunter (R-Corpus Christi).
The new law will take effect on Sept. 1.