The Texas Jobs, Energy, Technology, and Innovation (JETI) Act, created by House Bill 5 of the 88th Legislature, is a new incentive program aimed at attracting large, capital-intensive projects to Texas. It offers a 10-year, 50% school district tax appraisal reduction for companies meeting specific job and investment criteria. Projects in Opportunity Zones may receive an additional 25% reduction. Eligible projects include manufacturing, dispatchable electric generation, natural resource development, and high-tech infrastructure facilities. Applications are available on the Texas Comptroller’s website and require approval from the Governor and local school district. The Comptroller’s Office began accepting applications in January 2024.
Who Can Apply?
Eligible projects include:
Manufacturing facilities
Dispatchable electric generation facilities
Natural resource development facilities
High-tech infrastructure equipment or technology R&D/manufacturing
Construction/expansion of critical infrastructure
Exclusions: Renewable energy projects and energy storage facilities are not eligible.
Type of Incentive
Tax Limitation: 10-year, 50% limitation on school district maintenance and operations (M&O) tax appraised value, based on job and investment minimums.
Additional Benefit: Projects in qualified Opportunity Zones get an extra 25% limitation.
Eligibility Requirements (Based on County Population)
750,000+ population: 75 jobs, $200 million investment
250,000 – 749,999 population: 50 jobs, $100 million investment
100,000 – 249,999 population: 35 jobs, $50 million investment
99,999 or less population: 10 jobs, $20 million investment
Note: Dispatchable electric generation projects have no job requirements.
Application Process
Where to Apply: Texas Comptroller’s website.
Approval Needed: Applications reviewed by the Texas Comptroller, Governor, and applicable school district.
Start Date: Applications accepted beginning January 2024.