Tax Incentive Evaluation Law: Texas
This page is no longer being updated. As of June 15, 2017, newer tax incentive evaluation fact sheets are available here.
To ensure that economic development tax incentives are achieving their goals effectively, many states have approved laws requiring regular, rigorous, independent evaluations of these programs. For a list of states that have passed evaluation laws since the start of 2012, click here.
Texas
H.B. 26, enacted June 18, 2015
What it does
Requires evaluation of all major tax incentives |
---|
The newly created Economic Incentive Oversight Board will evaluate tax incentives, cash grants, and loans. The board will develop performance indicators to determine whether incentives are achieving their goals. |
Ensures that reports draw policy-relevant conclusions |
As part of each evaluation, the board will recommend whether the incentive program should continue and how it might be improved. The board may also recommend that the state auditor study any incentive. |
Excerpt from Texas’ law: Policy recommendations
(a) The board shall develop a schedule for the periodic review of each state incentive program or fund described by Section 490G.005 for the purposes of making recommendations on whether to continue the program or fund or whether to improve program or fund effectiveness and efficiency. The board shall review and make recommendations to the legislature regarding each program or fund according to the review schedule.
(b) After conducting a review of a state incentive program or fund under this chapter, the board may recommend to the legislative audit committee that an audit of the program or fund be included in the audit plan under Section 321.013.
Spotlight on Mental Health
Tax Incentive Programs: Evaluate Today, Improve Tomorrow
MORE FROM PEW
Explore Pew’s new and improved
Fiscal 50 interactive
Your state's stats are more accessible than ever with our new and improved Fiscal 50 interactive:
- Maps, trends, and customizable charts
- 50-state rankings
- Analysis of what it all means
- Shareable graphics and downloadable data
- Proven fiscal policy strategies
Welcome to the new Fiscal 50
Key changes include:
- State pages that help you keep track of trends in your home state and provide national and regional context.
- Interactive indicator pages with highly customizable and shareable data visualizations.
- A Budget Threads feature that offers Pew’s read on the latest state fiscal news.