TITLE 34. PUBLIC FINANCE
PART 1. COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 9. PROPERTY TAX ADMINISTRATION
SUBCHAPTER
O.
The Comptroller of Public Accounts adopts amendments to §9.5001, concerning applicant eligibility requirements, and §9.5004 concerning application process. The amendments to §9.5001 are adopted without changes to the proposed text as published in the August 29, 2025, issue of the Texas Register (50 TexReg 5630). This rule will not be republished. The amendments to §9.5004 are adopted with changes to the proposed text as published in the August 29, 2025, issue of the Texas Register (50 TexReg 5630). This rule will be republished. In a separate submission, the comptroller is withdrawing the following based on a comment: proposed amendments to §9.5002, concerning application requirements; §9.5005, concerning agreement for limitation on taxable value of eligible property; §9.5008, concerning job and wage requirements; penalty for failure to comply with job or wage requirement; and §9.5009, concerning biennial compliance report. These proposed amendments addressed the renumbering of Government Code, §§403.601-605.
The amendments to §9.5001 align with the statutory changes from House Bill 1620, 89th Legislature, R.S., 2025, which expanded the ineligibility criteria to cover Chapters 2275 and 2276, Government Code in Section 403.606.
The amendment to §9.5004 clarifies that once the comptroller issues a recommendation, an applicant may modify their application before agreement execution only if the comptroller's recommendation is positive.
The comptroller received a comment from Texas Taxpayers and Research Association (TTARA) regarding adoption of the amendments related to the renumbering of Government Code, §§403.601-605, noting that those changes have not been reflected on Texas Legislature Online. Following the comment and subsequent review, the comptroller has decided to withdraw the proposed amendments to §§9.5002, 9.5005, 9.5008, and 9.5009 pertaining to the renumbering of Government Code, §§403.601-605. The comptroller has also updated §9.5004(e) to align with the comment. No additional comments were received.
The amendments are adopted under Government Code, §403.623, which requires the comptroller to adopt rules necessary to implement the Texas Jobs, Energy, Technology and Innovation Act.
The amendments implement Government Code, Chapter 403, Subchapter T, concerning the Texas Jobs, Energy, Technology and Innovation Act.
§9.5004.
(a) An applicant must submit an application for a limitation on taxable value of eligible property in the form and manner prescribed by the comptroller. The comptroller may require applications to be submitted electronically.
(b) After the eligibility of the applicant is assessed in §9.5001 of this chapter, the comptroller shall review an application to determine if it is administratively complete. An application is considered administratively complete when it includes all the information requested by the comptroller.
(c) The comptroller shall provide notice of an administratively complete application to the applicant, the governor and the applicable school district. The comptroller may provide notice electronically.
(d) If an application is not administratively complete, the comptroller may require an applicant to submit the necessary information by a deadline.
(e) To assess whether a project proposed in an application is an eligible project, the comptroller must find that:
(1) an applicant satisfies the application requirements;
(2) the proposed project meets the definition of eligible project in §9.5000 of this title and Government Code, §403.602(8); and
(3) The applicant is willing to agree and accept the terms described in Government Code, §403.604, and the agreement terms.
(f) To assess whether an agreement is a compelling factor and whether the applicant would make the proposed investment in the absence of the agreement under Government Code, §403.609(b)(3), the comptroller may consider:
(1) any public documents and statements relating to the applicant, the proposed project or the proposed eligible property that is subject to the application;
(2) official statements by the applicant, government officials or industry officials concerning the proposed project;
(3) alternative sites and prospects explored including any specific incentive information;
(4) any information concerning the proposed project's impact on the Texas economy;
(5) previous applications for and subsequent granting of economic development incentives;
(6) documents pertaining to the proposed project's financials, real estate transactions, utilities, infrastructure, transportation, regulatory environment, permits, workforce, marketing, existing facilities, nature of market conditions, and raw materials that demonstrate whether the incentive is a compelling factor in a competitive site selection process to locate the proposed project in Texas; and
(7) any other information that may aid the comptroller in its determination.
(g) Upon request, the comptroller may require that an applicant provides additional documents to demonstrate a compelling factor in a competitive site selection process to locate the proposed project in Texas. Failure to provide these documents may result in the comptroller being unable to make a recommendation under Government Code, §403.609.
(h) Within 60 days of an application being deemed complete, the comptroller shall examine and determine whether the application should be recommended or not recommended for approval based on the criteria in Government Code, §403.609(b).
(i) The comptroller shall provide written notice of action under Government Code, §403.609(a), to the applicant, the governor and the applicable school district.
(1) The notice shall indicate the comptroller's recommendation either for approval or non-approval of the application along with a copy of the application, and all documents or information relied upon to make the findings prescribed by Government Code, §403.609(b).
(2) A recommendation for approval shall specify a performance bond amount that is 10% of the estimated gross tax benefit to the applicant.
(j) An applicant may submit an amended or supplemental application to the comptroller at any time after the submission of the original application. If an applicant modifies an application that previously received a positive comptroller recommendation prior to the execution of the agreement, the applicant must submit said modifications to the comptroller to make a recommendation pursuant to Government Code, §403.609, before the agreement can be executed.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on October 27, 2025.
TRD-202503900
Victoria North
General Counsel for Fiscal and Agency Affairs
Comptroller of Public Accounts
Effective date: November 16, 2025
Proposal publication date: August 29, 2025
For further information, please call: (512) 475-2220