Property Tax Economic Development Programs

Value Limitation and Tax Credits

Chapter 313, Tax Code

An appraised value limitation is an agreement in which a taxpayer agrees to build or install property and create jobs in ex-change for an eight-year limitation on the taxable property value for school district maintenance and operations tax (M&O) purposes and a tax credit. The minimum limitation varies by school district. The application for a limitation on the ap-praised value for M&O purposes is submitted directly to the school district and requires an application fee, which is estab-lished by each school district.
View Application Form 50-296

To qualify for a tax credit, a separate application must be submitted to the school district. The credit is for the M&O taxes paid in excess of the limitation amount in the first two years. The school district’s tax collector must credit the overage in equal parts over the last seven years of the agreement, but the credit may not exceed 50 percent of the total taxes paid on the qualified prop-erty for a given year. Any eligible amount not credited in the seven-year period must be credited over the next three years, but not to exceed the total taxes paid on the qualified property in each year.
View more information about the Appraised Value Limitation and Tax Credit.

Texas Economic Development Act Reports

The following reports assess the progress of each property tax value limitation agreement in effect in the applicable time period.