Primary Department: Economic Equity and Opportunity
Primary Department Head/Elected Official: Tiko Reynolds-Hausman, Executive Director
Secondary Department: N/A
Secondary Department Head/Elected Official: N/A
Regular or Supplemental RCA: Regular RCA
Type of Request: Public Hearing
Project ID (if applicable): N/A
Vendor/Entity Legal Name (if applicable): N/A
MWBE Contracted Goal (if applicable): N/A
MWBE Current Participation (if applicable): N/A
Justification for 0% MWBE Participation Goal: N/A - Goal not applicable to request
Grant Indirect Costs Rate (if applicable): N/A
Justification for 0% Grant Indirect Costs Rate (if applicable): N/A - Not a grant item
Request Summary (Agenda Caption):
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Request by the Department of Economic Equity and Opportunity for a public hearing on February 12, 2026, to discuss potential re-adoption and updating of the Guidelines and Criteria for Granting Tax Abatement in a Reinvestment Zone Created in Harris County to be effective February 12, 2026 to February 11, 2028, under the Texas Property Tax Code, Chapter 312.002 (c-1).
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Background and Discussion:
The Texas Property Tax Code, Chapter 312.002(c) requires that Tax Abatement guidelines be approved by Commissioners Court every two years.
Following the Texas Property Tax Code requirements, on April 25, 2023, the Commissioners Court adopted and modified the Guidelines and Criteria for Granting Tax Abatement in a Reinvestment Zone Created in Harris County to clarify variance requests in accordance with statute and enhance applicant requirements for community benefits (including local hiring documentation, workforce development policy and plan, and OSHA training and safety protections post construction phase of project), net positive growth for the two years through April 24, 2025.
The proposed enhancements provide (1) clarifying language regarding the “Green Industries Facility,” (2) additional incentive options for the HUD-designated Difficult Development Area (“HUD-DDA”), (3) updates a name change for the Harris Central Appraisal District, where appropriate, and (4) construction worker apprenticeship requirements during the construction phase of the project, depending on the size of the construction budget. The “Green Industries Facility” language clarifies the intent to incentivize companies whose primary business focus is on clean energy and resource conservation. The additional incentive option widens the area beyond the HUD-QCT. As provided by HUD, a DDA is an area with the highest ratio of housing costs to area median income cumulatively comprising 20 percent of the 2020 area population, excluding the HUD-Qualified Census Tract. Thus, an area can be designated as HUD-QCT or HUD-DDA, but not both. Also, the enhancement makes it clear that the additional incentives cannot be stacked together. In other words, a project may qualify for one or the other additional incentive, but not both. The construction worker apprenticeships ensure that at least 15 percent of construction labor hours are performed by U.S. Department of Labor (DOL)-registered apprenticeship program or equivalent bilingual craft training program for projects with construction budgets exceeding $10 million. Projects with construction budgets less than $10 million must achieve at least 10 percent apprenticeship labor hours.
Expected Impact:
The tax abatement guidelines afford Harris County the ability to maintain a strategic tool in its toolbox in support and encouragement of economic development activities and investment while maintaining its competitive profile nationally and internationally. This is balanced with a well-designed and structured program where Harris County’s vision to expand opportunities for workers, businesses of all sizes, and community-driven investments, driving community benefits, are at the forefront of the guidelines.
Alternative Options:
No longer have an active Tax Abatement program.
County Strategic Plan Goal: 3. Make our economy more inclusive.
County Strategic Plan Objective: M: Ensure that Harris County remains the best place in the region to start and grow a business, with a focus on equitable economic growth.
Justice/Safety Initiative (Goal 1): N/A
Infrastructure Initiative (Goal 2): N/A
Economy Initiative (Goal 3): M1: Develop a County economic development strategy that advances effective and equitable economic growth.
Health Initiative (Goal 4): N/A
Climate/Resilience Initiative (Goal 5): N/A
Housing Initiative (Goal 6): N/A
Additional notes related to the Strategic Plan: N/A
Prior Court Action (if any):
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Date |
Agenda Item # |
Action Taken |
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10/27/2020 |
Supplemental item 5 |
Commissioners Court adopted Guidelines and Criteria for Granting Tax Abatement in a Reinvestment Zone Created in Harris County effective October 27, 2020 until October 26, 2022. |
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04/25/2023 |
Regular RCA Item 140 |
Commissioners Court adopted Guidelines and Criteria for Granting Tax Abatement in a Reinvestment Zone Created in Harris County effective April 25, 2023 until April 24, 2025. |
|
04/10/2025 |
Regular RCA Item 93 |
Precinct 4 Commissioner Briones pulled item, no action and asked for stakeholder feedback on Guidelines and Criteria for Granting Tax Abatement in a Reinvestment Zone Created in Harris County. |
Location:
Address (if applicable): N/A
Precinct(s): Countywide
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Anticipated Court Date: 2/12/2026
Anticipated Implementation Date (if different from Court date): Click or tap to enter a date.
Emergency/Disaster Recovery Note: Not an emergency, disaster, or ARPA related item
Contact(s) name, title, department: Tiko Reynolds-Hausman, Executive Director, Economic Equity and Opportunity; Elizabeth Balderrama, Assistant Director, Economic Development Division, Economic Equity and Opportunity
Attachments (if applicable):
• Attachment 1: Order and Guidelines and Criteria for Granting Tax Abatement in a Reinvestment Zone Created in Harris County, effective February 12, 2026 until February 11, 2028, with proposed enhancements (clean version)
• Attachment 2: Guidelines and Criteria for Granting Tax Abatement in a Reinvestment Zone Created in Harris County, effective February 12, 2026 until February 11, 2028, with proposed enhancements (tracked changes version)
• Attachment 3: Texas Tax Code, Chapter 312, Property Redevelopment and Tax Abatement Act
• Attachment 4: Guidelines and Criteria for Granting Tax Abatement in a Reinvestment Zone Created in Harris County, expired April 25, 2025.