In the closing weeks of the 2025 legislative session, over 100 Texas IAF leaders mobilized once again to stop a corporate tax giveaway that would have slashed wages and cost Texas schools hundreds of millions in lost revenue.

House Bill 105, filed quietly in the final days for bill filing, would have gutted key wage and job creation standards in the JETI (Jobs, Energy, Technology and Innovation) program. JETI replaced the failed Chapter 313 program in 2023, effectively cutting it in half.

If passed, HB 105 would have created a new class of “Priority Projects” for companies investing $750 million or more, allowing them to:

• Avoid proving their tax breaks were a “compelling factor” in choosing Texas,
• Sidestep any requirement to create new jobs,
• Lower wage standards from 110% of the average industry wage for that type of manufacturing facility to 110% of the average county manufacturing wage, which includes many low wage manufacturing jobs, often tens of thousands of dollars less.

In short, it would have allowed some of the largest companies in the world to drive down the wages in their industry by locating new plants in Texas counties with low average manufacturing wages.

[Excerpt]

“Tax breaks should be decoupled from school funding and from school board decision making, period,” said Rev. Miles Brandon, a [Central Texas] Interfaith leader and pastor of St. Julian of Norwich Episcopal Church...

Brandon said the new program is better than what existed previously because it no longer includes direct payments to schools, which he described as a “perverse incentive” for districts to approve deals despite the cost to the state's overall education system. He also said the decrease in the total size of each tax abatement is an improvement over Chapter 313, as is the requirement that each deal must pass the governor's office.

But he said Austin Interfaith will continue to encourage school board members to vote in opposition to any request by a company to participate in the new program...“As we see how this law unfolds, I think we will continue to oppose" applications, Brandon said."

[Photo Credit: Arnold Wells, Austin Business Journal]

Texas' New Incentives Tool is Ready, Austin Business Journal [link]