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Economic Development ProgramsChapters 380, 381
Municipality Agreements
Chapter 380 of the Local Government Code authorizes municipalities to offer loans and grants of city funds or services at little or no cost to promote state and local economic development and to stimulate business and commercial activity.
Cities must review their city charters or local policies that may restrict a city's ability to provide a loan or grant. If eligible, cities must establish a program to implement the incentives.
County Agreements
Chapter 381 allows counties to negotiate directly with developers and businesses to provide incentives encouraging developers to build in their jurisdictions. A county may administer and develop a program to make loans and grants of public money to promote state or local economic development and to stimulate, encourage and develop business location and commercial activity in the county.
Counties may also develop and administer programs for entering into tax abatement agreements (Chapter 312).
Reporting
All local governments are required to report economic development agreements authorized by either Chapter 380 or Chapter 381 of the Local Government Code (HB 2404, GC Sec. 403.0246(c)).
Any agreements entered into, amended or renewed after Jan. 1, 2022, must be reported within 14 days. Failure to comply could result in a $1,000 penalty.
These agreements must be submitted to the economic development database using eSystems.
Local governments that do not have Chapter 380 or 381 agreements do not have to report.
Local Development Agreement Database
The Comptroller's office has created a searchable database of agreements under Local Government Code Chapters 380-381 and Tax Code Chapter 312. Local governments are required to post a link to this Local Development Agreement Database on their website.
To report an agreement that has not been submitted to the database, call 844-519-5672, ext. 8.
Need Help?
For additional information, contact the Data Analysis and Transparency Division via email or at 844-519-5672.