Texas Gov. David Acton has signed the August Texas Strategic Investment and Job Creation Act of 2026, establishing a new state framework intended to attract major private investment through performance-based incentives.

According to the governor’s press release, the law takes effect immediately and provides tiered property-tax abatements for projects that meet specified job and tax-revenue targets. The abatements are capped at $20 million per project.

The measure also permits limited, repayable infrastructure support for projects, including assistance related to roads and utilities. It provides for expedited permitting, which the administration said is intended to reduce delays for qualifying developments.

Acton said the law is designed to link public incentives to measurable economic results. “It rewards projects that deliver real jobs and new tax revenue while protecting taxpayers with hard limits, independent reviews, and automatic clawbacks,” he said in the release.

The law’s stated safeguards include independent third-party verification of project projections, annual public reports on jobs created and return on investment, and automatic repayment requirements with interest if projects fail to meet their targets. The program includes a five-year sunset provision.

The administration said projects will be evaluated through performance tiers that favor developments projected to generate strong net new tax revenue. The release did not identify particular companies, projects, communities, or the exact job and revenue thresholds that applicants must meet.

Acton said the measure could expand the tax base and support local communities, including areas that have not shared equally in economic growth. He also said added investment could provide broader support for schools, roads and other public needs.

The signing follows Acton’s Aug. 12 announcement that he had resubmitted the Strategic Investment Act, describing it at the time as an effort to advance jobs and growth. The governor’s office characterized the newly signed version as a framework balancing economic-development incentives with taxpayer protections.

The law’s effects will depend on the projects that seek and receive incentives, as well as whether those projects meet the required performance standards. Under the law described by the governor’s office, annual reporting and third-party verification are intended to provide public measures of the program’s results during its five-year term.