When Tax Incentives End

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The Texas Public Policy Foundation, a conservative think tank, argues that targeted tax breaks are unfair and increase the burden on everyone else. On the other side of the spectrum, Good Jobs First, a group that mostly aligns with liberal causes, also sees these types of programs as corporate welfare. The Washington-based research center found that 52 mostly low-income districts in Texas lost more than $1,000 in revenue per student in one year because of Chapter 313 agreements.

Source: Texas State Comptroller
Source: Texas State Comptroller

State revenue used to make up for local school district revenue reductions due to Chapter 313 agreements is substantial and is likely to exceed $1 billion in 2023 alone.


In most instances, policymakers have not prioritized better job opportunities for residents when selecting industries to receive place-based program incentives. And many major place-based programs are not directed to specific industries in any way.

Regardless of which strategies governments adopt, they should measure the results of their efforts. Unfortunately, although states and localities have not consistently assessed whether place-based programs are aiding the intended locations, they have done even less to collect and analyze data on whether the programs are serving residents.



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