The Texas House of Representatives Ways and Means Committee met last Thursday to check the progress of HR 5, the Jobs, Energy, Technology, and Innovation Act (JETI). The bill limits property tax relief for job creation purposes on state and local taxes for job creation.

The meeting aimed to discuss improvements to enhance JETI’s efficiency and usage. Adriana Cruz, Executive Director of Economics, testified and issued her concerns:

“Corporate wages are a concern; the majority of the jobs weren’t manufacturing, and the program’s implementation has been an issue,” she said.

The bill requires a wage of $200,000 per year, and employers must fill a minimum of 75 jobs.

The bill’s goal is to make Texas more competitive nationally and globally. Other issues discussed are the bill’s competitive nature with other states. For example, Louisiana does not have wage requirements for a similar program, and the application is ten pages, while JETI’s application is 100 pages.

The application is 100 pages long because the component that causes this is meeting a 25-year incendiary period. To accurately account for the fact that companies usually estimate a 45-year wage calculation.

After the application is submitted, the Comptrollers have 60 days to reply. The Texas government and the Texas school district both have 30 days to approve measures. The committee was concerned that the school districts were not being informed in a timely matter of projects needing their approval. The committee asserts the process will become more efficient as the program continues.

September 25, 2024