Primary Department: Economic Equity and Opportunity
Primary Department Head/Elected Official: Estella Gonzalez, Executive Director
Secondary Department: N/A
Secondary Department Head/Elected Official: N/A
Regular or Supplemental RCA: Regular RCA
Type of Request: Policy
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 for approval of updated Guidelines and Criteria for Granting Tax Abatement in a Reinvestment Zone Created in Harris County to be effective April 25, 2025 - April 24, 2027, 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 include required applicant community benefits (competitive market wages, worker and safety protections, access to affordable and quality healthcare, second chance hiring policy, local hiring, MWBE utilization commitment, environmental protections, commitment to sustainable workforce development, updated definition of the U.S. Department of Housing and Urban Development (“HUD”)-Qualified Census Tract (“QCT”), and net positive economic growth for the two years through April 25, 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”), and (3) updates a name change for the Harris Central Appraisal District, where appropriate. The “Green Industries Facility” 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.
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:
While the Tax Abatement guidelines are not specifically identified as an initiative in the County’s Strategic Plan, it is a strategic component of the Economic Initiative M1: Develop a County economic development strategy that advances effective and equitable economic growth.
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 |
Location:
Address (if applicable): N/A
Precinct(s): Countywide
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Anticipated Court Date: 4/10/2025
Anticipated Implementation Date (if different from Court date): 4/25/2025
Emergency/Disaster Recovery Note: Not an emergency, disaster, or COVID-19 related item
Contact(s) name, title, department:
Estella Gonzalez, Executive Director, Economic Equity and Opportunity;
Judit Haracsek, 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 April 25, 2025 until April 24, 2027, with proposed enhancements (clean version)
• Attachment 2: Guidelines and Criteria for Granting Tax Abatement in a Reinvestment Zone Created in Harris County, effective April 25, 2025 until April 24, 2027, 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, expiring April 24, 2025.