On July 23, the House Select Committee on Economic Development Incentives met for an overall examination of the use of incentives as an economic development tool. The committee was recently created to determine the effectiveness of incentives and to assess how Texas’ incentive programs fare amongst other competitive states.
Chairman Angie Chen Button noted that Texas is the number one job creator in America, much of which is due to the agreeable business climate; although, incentives also play a role in bringing new business to the state. Greg Leroy, director of Good Jobs First noted that incentives aren’t the best way to bring jobs into an economy. According to Leroy, many companies have been moving to Texas despite better incentive packages being offered by other states because of Texas’ robust economy and low regulatory climate. Kelly Rendzeperis from the Site Selection Group testified that incentives always play a role in businesses site selection process although they may not be the most important factor. Rendzeperis also noted that unlike other states, many incentives in Texas come from the local level and are more difficult and take longer to navigate.
The committee is planning to hold five more meetings and expects to have the draft report to committee members by the first week of December.
Future meetings (tentative dates):
- August 12, Plano – incentive programs such as the Texas Enterprise Fund and Emerging Technology Fund
- August 27, Austin – incentives such as film/music, special events and local programs
- September 24, Houston – energy related programs
- October 15, Austin – tax incentives and the needs of small business
- November 6, Austin – findings and recommendations