Texas IAF Blocks Billions in State Tax Giveaways to Big Oil
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.
The Texas Chapter 313 defeat is the second recent win against multibillion-dollar oil and gas industry subsidies in fossil fuel states. Last fall, organizers in Louisiana beat back a ballot initiative designed to counteract dramatic reforms to the state’s industry giveaway program. In a state that leans heavily Republican, people voted down the constitutional amendment by a landslide.
Broderick Bagert, who helped organize the Louisiana effort, sees what happened in Texas as part of a turning of the tides in a region where industry has long ruled. “In a lot of cases, it’s not that these battles have been lost — they just haven’t been fought,” he said. “What you’re seeing for the first time is the battles being fought.”
....Bagert noted that Louisiana and Texas are two of a handful of states whose industries will decide what our climate future will look like. “The question of these subsidies is being tied more and more with the question of whether these changes in energy production that we need to save the planet are going to be made in time to save the planet,” he said. “It all boils down to the price of energy. Once industries have to bear the full cost of their production, including emissions and taxes and all the other things that have been subsidized, then it’s no longer advantageous, and that’s when things start happening.”
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]
Together Louisiana Fights for Reforms to State Tax Exemptions
Study findings show that over the last 10 years, $16.7 billion in local tax revenue has been redirected to subsidize heavy manufacturing, amounting to over $535 thousand per job reportedly created. Louisiana's top 5 environmental polluters, according to the EPA, received $506 million in taxpayer subsidies. Even British Petroleum (BP) received $9.4 million in state subsidies during and after the Deepwater Horizon spill. Louisiana is the only state in the country with a board that gives away local tax revenue, without approval from the local governments losing the money.Read more