Thread by @dlavine

#txlege may debate #HB5 - the replacement for #Chapter313 corporate subsidies - this week. Would it be an improvement?

Spoiler alert: Nope

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Renewable energy projects, which got construction incentives under #Chapter313, are cut out of #HB5. With the minor exception of providing energy to batteries to power the grid. #txlege

#Chapter313 covered only new construction.
#HB5 would give tax breaks to expansion of existing facilities, dramatically increasing the likely cost in forgone school property tax revenue that must be replaced with state funds. #txlege

#Chapter313 required a minimum number of permanent full-time jobs pegged to manufacturing wages and health benefits.

#HB5 counts temporary construction jobs, links to only wages for all jobs in a county (lower than manuf wages) and completely omits health benefits. #txlege

#Chapter313 did not make a company show it wouldn't locate in Texas w/o the tax break. #HB5 repeats the same test that the subsidy is only "a determining factor" - one of many. A low bar that almost every application cleared. #txlege

No one ever had to check whether job/wage reports submitted by #Chapter313 projects were accurate. #HB5 similarly lacks independent verification. The State Auditor checks only for conflicts of interest and whether all the forms are filed. #txlege

#Chapter313 finally died because #txlege was forced to renew it every few years. #HB5 wouldn't be examined again until 2036 - a long time to let an expensive new program run without a mandatory evaluation.

#HB5 would require school boards to forward all applications to the Comptroller - with no hearing or vote. If the Comptroller approves (as it almost always does), then the board has only 35 days to act. Not enough time for the public to digest and react to the proposal. #txlege

Don't forget: last year's gold rush of last-minute #Chapter313 applications covers projects for many years to come - for a total cost of $31 billion. #HB5 would just pile future costs on top. #txlege

According to the Comptroller's tax incidence report, half of the benefits of #Chapter313 go out of state and half of the rest go to TX families w incomes >$166K. We can't be sure because there's no meaningful tax equity note on #HB5, but it's probably the same. #txlege