Opinion: HB 5 would be a new tool for economic development in Texas
The past few years have underscored how important it is for Texas and America to never be reliant on other countries for essential needs. Our economy has taken hits from supply chain disruptions, bank failures, persistent inflation, and rapidly rising interest rates.
After decades of outsourcing manufacturing to other countries, we are paying the price.
To help alleviate the economic woes caused by the supply chain crisis, geopolitical uncertainty, sky-high inflation, and interest rates we need to take steps to incentivize the next wave of manufacturing, energy production, and the strategic production of everyday goods here in America.
Texas has a unique opportunity to bring more manufacturing to the Lone Star State.
That is where House Bill 5, The Texas Jobs & Security Act, comes in.
The Texas House passed HB 5 by Representative Todd Hunter (R-Corpus Christi). The bill creates a modernized economic development program to attract capital-intensive projects (related to manufacturering, national security, grid reliability, and supply chain infastructre). The program allows school districts to offer limited, temporary, property tax discounts to companies that want to bring jobs and investemnts to local communities. There are also provisions to ensure transparency and accountability. These include reporting requirements on jobs created and wages paid, as well as consequences for projects that do not meet the minimum jobs requirement.
Corpus Christi is a great example of these incentives working to transform a community. Since 2010, the Corpus Christi region has attracted $57.3 billion in new capital — more than most states during that time period. This is direct investment in our community that has directly benefitted the people living here — raising the region's median income and educational attainment levels and increasing our city and county revenue substantially.
Fifteen years ago, America was in the midst of a recession. Texas was spared the worst of it, and during the recovery, we experienced faster-than-average job creation. Now known as the Texas Miracle, it was the result of policies that can be thought of as a three-legged stool: no income tax, a light regulatory touch, and potent economic development incentives. As we face another recession, continuing the Texas Miracle needs all three legs to stand. HB 5 tightens that third leg.
HB 5 is a pro-taxpayer, pro-jobs program that can incentivize a manufacturing, technological, energy, and healthcare renaissance in Texas to secure our future for generations. It is time for Texas to take the lead in bringing jobs and economic growth back to America.
Texans overwhelmingly support an economic development program like HB 5. A recent poll showed 70 percent support a temporary tax discount and over 200 chambers of commerce, trade associations, and economic development corporations such as the Corpus Christi Regional Economic Development Corporation support HB 5 because we understand that when communities land major capital investments, they translate to jobs, economic activity, and long-term tax revenue for government services—especially schools.
We commend Chairman Todd Hunter for his leadership on the Texas Jobs & Security Act.Speaker Dade Phelan and House Members have made their support known. We encourage the Senate to stand up for jobs, prosperity, and a brighter future by passing HB 5.
Mike Culbertson is the Interim CEO of the Corpus Christi Regional Economic Development Corporation.
This article originally appeared on Corpus Christi Caller Times: Opinion: HB 5 would be a new tool for economic development in Texas
