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Texas Strategic Investment and Job Creation Act of 2026

Status: HopperState: TexasIssue: Jobs

Summary

This bill creates temporary Texas tax abatements and limited infrastructure support for large projects like sports venues, factories, data centers, and mixed-use developments if they meet job and revenue targets. It also adds fast-track permitting, annual reporting, clawbacks for missed promises, and a five-year sunset.

Full text

A BILL TO BE ENTITLED AN ACT
relating to strategic investment and job creation incentives; providing for a short title and sunset provision.


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This Act shall be known and may be cited as the Texas Strategic Investment and Job Creation Act of 2026.


SECTION 2. Targeted Tax Incentives.
Property tax abatements are available for qualifying major projects (including sports venues, manufacturing, data centers, and mixed-use developments) that commit to:
(a) Job creation targets; and
(b) Tax revenue exceeding the value of the abatement within seven (7) years.
Abatements are subject to automatic clawback if targets are not met.


SECTION 3. Infrastructure Support.
State infrastructure grants or loans (prioritized for roads & utilities development) may be provided for qualifying projects, capped at 15% of total project cost and fully repayable, if applicable, via increased tax revenue or user fees. Public-private agreements shall include clear revenue-sharing provisions.


SECTION 4. Expedited Permitting.
Approved projects receive 30-day fast-track permitting (deemed approved if unmet). Regulatory waivers may be granted for zoning and permitting hurdles in exchange for meeting investment and job commitments.


SECTION 5. Transparency and Reporting.
All incentives require annual reporting to the Legislature on jobs created, revenue generated, and return on investment.


SECTION 6. Sunset Provision.
This Act sunsets five (5) years after the effective date.


SECTION 7. This Act takes effect immediately upon passage and approval by the Governor.

Annual abatements approved under this provision subject to statewide approval shall not exceed $75 million per year in estimated lost tax revenue. New projects approved in a year shall not exceed this number in cost to the state due to lost revenue.

Analysis on tax revenue and abatement valuation shall be conducted either by the state or by an independent third party submitted with the original application for benefits under this act. Analysis shall be confirmed by the state if an independent third party was conducted.

SECTION 4. Expedited Permitting.
Approved projects receive 60-day fast-track permitting (deemed approved if unmet). Regulatory waivers may be granted for zoning and permitting hurdles in exchange for meeting investment and job commitments.