After Together West Michigan demanded transparency and public benefits from a proposed public investment in the Fulton Market Three Towers project, developers dedicated an additional $20 million toward hiring women, minority, and micro-local contractors, almost double the original commitment.

Over 160 people overflowed from chambers for the Three Towers vote, with Third Ward Commissioner Perdue standing with Together West Michigan.

"I want to acknowledge that [this]... was only possible because of the advocacy that you all provided," said Commissioner Perdue. "There's much, much more work to do...I'm committed to keep fighting with you and look forward to what's next."

Because of the spotlight Together West Michigan put on this development, public scrutiny was introduced into a process that's often been a rubber stamp.

TWM introduced many voices that wouldn't otherwise have been heard and more attention to this development than any previous one in Grand Rapids in recent memory.  Leaders plan to continue the push for more transparency and public benefit to the new City Commission in 2025.

How Would $565 Million in Taxes Help Pay for the "Three Towers" in Grand Rapids?, FOX 17 [pdf]

GR Commission OK's Project That Would Create Downtown's Tallest Building, Channel 8 News [pdf]

GR Commission Advances Three Towers Project, WZZM 13 [pdf]

[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]

[Excerpt]

"Gov. John Bel Edwards sided with New Orleans officials Monday by denying tax breaks sought by Folgers Coffee Co. that would have cost the city millions of dollars in property tax revenue....

ITEP has become a hot-button political issue in recent years. Business groups argue that allowing companies to avoid taxes they would owe on new equipment and machinery encourages those types of investments. Critics, led by Together Louisiana, argue that companies have been allowed to skip out on taxes from investments that they would have made anyway and that schools and sheriffs need the taxes to improve the quality of life in their communities.

[Excerpt]

Over the years, critics argued certain requirements were whittled away and some companies were bringing few or low-paying jobs with little benefits. Some, including a coalition of interfaith leaders with The Metropolitan Organization, Central Texas Interfaith and Texas Industrial Areas Foundation Organizations, have called out the program as “corporate welfare” and for leaving the rest of the Texas taxpayers to essentially “make up the difference.”

Reverend Minerva Camarena Skeith of St. John's Episcopal Church explains to Jon Stewart how Central Texas Interfaith/Texas IAF organizations fight corporate incentives that negatively impact public budgets, including schools.

“What’s happening right here, right now, very powerful.” -- Jon Stewart

In a Behind the Scenes Cut, Rev. Minerva Camarena-Skeith describes how communities can organize.  

Full episode and panel discussion streaming on Apple TV+.  

[Excerpt]

State Lawmakers Discuss Bringing Back Tax Incentive Program for School Districts, KVUE [pdf]

Clock is Ticking on Texas' Chapter 313 Incentives -- and Major Projects May Miss Out, Austin Business Journal [pdf]

[Excerpt]

A section of the Texas tax code that is used by local governments as lucre to attract corporate relocations but that often ends up pitting city against city and school district against school district is set to expire.

Based on hearings last week, there will likely be calls to reinstate it in the next Legislature. That would be a mistake....

In 2015, Gov. Greg Abbott complained that each job created by this program cost taxpayers $341,000. Using Abbott’s calculation, the Houston Chronicle updated the numbers last year: now every job created by a 313 incentive costs $1.1 million, the paper reported.

What’s more, a 2018 study by the W.E. Upjohn Institute for Employment Research found that 313 incentives were the deciding factor in fewer than 25% of relocations, meaning three quarters of the time, the relocation would have happened anyway. Taxing districts are leaving money on the table and cities are fighting cities in a game that actually hurts their residents and students....

in many cases, the choice is not between attracting a company to Texas or failing to do so. The choice is between attracting a company to Taylor or Round Rock; Sherman or Plano.

That highlights another problem: 313 favors districts where it’s easiest to acquire land and build facilities. In an analysis by Dallas Area Interfaith, the losers under 313 are large, urban school districts like Dallas ISD.

[Graphic: Dallas Morning News]

Sapped by Subsidies: 313 Deals Hurt Texas Cities, Dallas Morning News [pdf]

Last year Texas IAF organizations led the charge to end Chapter 313, a program that had given away $10 billion in windfall tax breaks for corporations. However, hundreds of Chapter 313 applications are being filed in the rush to get in before the end of the program, including some with projects slated for decades from now. 

[Excerpts]

“It’s like hogs at the trough,” said Bishop John Ogletree, an official with the faith-based Texas Industrial Areas Foundation, which has opposed the arrangements.

The Chapter 313 deals — named for their location in the state tax code — let companies slash 10 years worth of school property tax bills they otherwise would owe on newly constructed factories and energy projects.

Over the past decade the state comptroller’s office has received an average of about 90 applications annually from companies seeking the subsidy.

Since the Legislature adjourned at the end of May 2021, by comparison, records show companies have filed requests for more than 460 new tax breaks — about 400 in the past five months alone.

Typically, companies sought Chapter 313 tax breaks for projects two to four years in the future, with the occasional oil and gas facility taking six or seven years to complete. Since last May, however, companies have applied for 120 of the subsidies for facilities not scheduled to open until at least 2028. At least 10 won’t be online for a decade or more.

Despite the program’s demise, applicants “have figured out how to extend it,” said Rev. Minerva Camarena-Skeith, of Central Texas Interfaith.

Their strategy seems to be, “Just in case, let’s get 10 years of requests in in one year,” added Bob Fleming, of The Metropolitan Organization, the Houston branch of the Texas Industrial Areas Foundation. “I don’t know anybody who can forecast their needs 30 years out.”

....by slow-walking the end of a program they said was giving away too much money to corporations at the expense of Texas taxpayers, legislators have now put the state on the hook for billions of additional tax breaks that Texans will be paying off well into the middle of the century.

[Photo Credit: Mark Mulligan, Houston Chronicle]

Lawmakers Killed a Costly Corporate Tax Break Program, but Loopholes Will Still Cost Texas Billions, Houston Chronicle [pdf]

When NXP sprung a request for a Chapter 313 tax subsidy before the Austin Independent School District, Central Texas Interfaith leaders decided to descend upon a meeting of the Board of Trustees to ask them to reject the request.  Chapter 313 tax subsidies are 10 year tax breaks to major gas, oil and manufacturing corporations that drain $1 Billion from state coffers on an annual basis.  In response to a barrage of 20 CTI leaders testifying over the phone and in person against the tax giveaway,  NXP (the company requesting the subsidy) changed the number of promised jobs on their application during the meeting from the statutory minimum of 25 to 500 overall. 

[Excerpt]

The majority of community members who provided testimony on May 19 asked the board to vote against the Chapter 313 agreement with NXP.  [Twenty] speakers were members of Central Texas Interfaith, a nonpartisan coalition of congregations, schools and unions that opposes Chapter 313.

“Hardworking taxpayers don’t get this kind of giveaway. Nor do small businesses, or responsible corporations,” said Central Texas Interfaith leader Trenton Henderson. “We want our money to go to public schools, but not to pay the bills for corporations shirking their responsibility to public education. Without a Chapter 313 agreement, NXP would have to pay their full share of school taxes.”

Austin ISD Moves Forward With Semi-Conductors Agreement, Faces Community Opposition, Community Impact [pdf]

Austin ISD Considering Proposal That Would Help Lower Recapture Payments, Faces Opposition, CBS Austin [pdf]

NXP Seeking Up To $140 Million in Tax Breaks for School Districts, Austin American Statesman [pdf] 

Chapter 313 Incentives: What They Are and Why They're Suddenly the Talk of the Town, Austin Business Journal [pdf]

Oped: Don't Ask Texas Schoolchildren to Fund Your Corporate Expansion, Austin Chronicle [pdf] 

AISD Board Meeting Broadcast, Austin Independent School District [calls begin at -2:33:30, in person testimony at -1:52:30] 

[Excerpts]

When organizers set out to overturn Texas’s giveaway program for the oil and gas industry, they had a long game in mind. Over 20 years, the tax exemption program known as Chapter 313 had delivered $10 billion in tax cuts to corporations operating in Texas — with petrochemical firms being the biggest winners. This year, for the first time in a decade, the program was up for reauthorization. Organizers decided to challenge it for the first time.

At the beginning of last week, as Texas’s biennial legislative session approached its end, the aims of organizers remained modest. “We thought it would be a victory if the two-year reauthorization passed so we could organize in interim,” said Doug Greco, the lead organizer for Central Texas Interfaith, one of the organizations fighting to end the subsidy program.

At 4 a.m. last Thursday, it became clear that something unexpected was happening: The deadline for reauthorization passed. “The bill never came up,” Greco told The Intercept. Organizers stayed vigilant until the legislative session officially closed on Monday at midnight, but the reauthorization did not materialize....

“No one had really questioned this program,” said Greco, of Central Texas Interfaith.

The reauthorization was a once-in-a-decade chance to challenge it. “We knew in our guts that the program was just a blank check, but we also are very sober about the realities of the Texas legislature.”  ....an unlikely coalition...emerged from across the political spectrum — including the right-wing Texas Public Policy Foundation, the progressive Every Texan, and [Texas IAF], which does nonpartisan political work among religious groups.

....

In Blow to Big Oil, Corporate Subsidy Quietly Dies in Texas, The Intercept [pdf]

Texas Legislature Dooms Chapter 331, Which Gives Tax Breaks to Big Businesses, Business Journal [pdf]

Missed Deadline Could Doom Controversial $10B Tax-Break Program, Houston Chronicle

A Texas Law Offers Tax Breaks to Companies, but It's Renewal Isn't a Done Deal, Texas Tribune [pdf]

A Controversial Tax Program Promised High Paying Jobs. Instead, Its Costs Spiraled Out of Control, Houston Chronicle [pdf]

Losers and Winners from Chapter 313, Central Texas Interfaith

The Unlikely Demise of Texas’ Biggest Corporate Tax Break, Texas Observer [pdf]