Chapter 313 agreements have been making headlines as Texas-based technology giant Samsung is reportedly seeking to negotiate a deal that could provide extensive tax savings from the state.
If you`re not familiar with what a Chapter 313 agreement is, it is essentially a Texas economic development tool that allows for a school district to offer a property tax limit for a company in exchange for new job creation. In essence, it`s a tax incentive program that encourages businesses to expand and create jobs in the state.
Reports state that Samsung is seeking to negotiate a Chapter 313 agreement with the Texas Tech University System (TTUS) that could potentially provide the tech company with an estimated $1 billion in tax savings over the course of 20 years. The agreement would reportedly be in place for a new semiconductor manufacturing facility that the company wishes to construct in the state.
This is not the first time that Samsung has utilized a Chapter 313 agreement in Texas. In 2012, the company was granted a tax incentive package by the state of Texas under the Chapter 313 program for a $3.6 billion semiconductor plant in Austin.
This potential agreement with TTUS has garnered both support and criticism from the public. Supporters argue that it will bring job opportunities and economic growth to the state, while critics claim that it is unfair for the state to offer such a large tax incentive to a large corporation.
Regardless of where you may stand on the matter, it is clear that Chapter 313 agreements are a valuable tool for economic development in Texas. These agreements can provide an incentive for businesses to expand and create jobs, which ultimately benefits the state`s economy as a whole.
It will be interesting to see how the negotiations between Samsung and TTUS play out, and whether or not this potential Chapter 313 agreement will come to fruition. In the meantime, we can continue to examine the impact and effectiveness of these tax incentive programs in the Lone Star State.