State Tax Incentives

Baker Botts’ state tax section is qualified in state and local tax and other incentives for economic development. Section members have extensive experience negotiating tax incentives for capital-intensive projects.

Examples of economic development services performed include:

  • Negotiating economic development incentive packages
  • Preparing analyses and models supporting incentive requests
  • Preparing analyses of issues impacting eligibility for and maximization of incentives
  • Structuring purchases and contracts to maximize tax benefits and incentives
  • Handling legislative issues related to incentive availability and optimization
  • Litigating challenges to and controversies arising from incentive programs
  • Monitoring and demonstrating compliance with incentive obligations
  • Securing payments from state and local governments and agencies under incentive agreements

We assist clients in understanding and accessing all Texas economic development incentive programs available at the state and local level, including:

  • Chapter 313 agreements limiting appraised value for school district property tax purposes
  • Chapter 312 agreements abating city, county and special district property tax
  • Chapter 380 and Chapter 381 agreements rebating city and county property tax and providing other grants and incentives
  • Chapter 311 tax increment financing arrangements, grants and financing from municipal economic development corporations (Type A and Type B corporations)
  • Non-annexation agreements
  • Incentives relating to the Texas Enterprise Fund, Texas Emerging Technology Fund, Texas Enterprise Zone Program, Texas Skills Development Fund and Texas Capital Fund

We also work closely with the Texas Governor’s Office, Legislature and Comptroller’s Office to organize political support for large economic development projects and to protect and improve the state’s existing economic development programs during legislative sessions.

Our state and local tax lawyers work with clients to structure a proposed project, identify potential incentives, and develop a strategy for approaching state and local officials and negotiating the best possible incentive package, all in the context of a client’s overall tax strategy.