Texas brings back business tax incentives — and this time with guardrails
Texas has re-introduced a meaningful tax incentive: the Texas Job and Investment Tax Credit (JETI) under Section 403. The program is designed to replace Section 313, which expired at the end of 2022, and has been revised to reduce the amount of tax previously abated, limit eligible projects, and add oversight into the abatement process.
For qualifying commercial projects, this is worth understanding before you're deep in your underwriting. The new program is narrower and more closely monitored than its predecessor, but the incentive structure — when you qualify — remains meaningful for site selection and development economics.
The lesson from Section 313's sunset: Texas will continue to compete aggressively for investment and jobs. The terms keep getting more specific. Know what you qualify for before you need to know.
Incentive structures affect acquisition economics before the deal closes, not after. If commercial development is part of your calculus in Texas, JETI is worth a conversation with a qualified tax advisor before you're in contract.
Tax incentive programs are subject to legislative change. This reflects our understanding as of publication date. Consult a qualified tax advisor for guidance specific to your project and situation.