Budget & Taxes (Tax Incentives)

HJR 32 proposes a constitutional amendment to allow Texas lawmakers to create a property tax exemption for certain landowners. It would authorize exempting up to 35% of the appraised value of non-irrigated land (at least half an acre) located in designated "priority groundwater management areas." The exemption would not apply to land already covered by other appraisal laws. This change would directly affect landowners in specific groundwater regions who meet the eligibility criteria, but the actual tax relief would depend on future legislation implementing the exemption.

HB 304 creates a state franchise tax credit for businesses opening grocery stores or "healthy corner stores" (under 2,000 sq. ft. with 20% fresh food space) in designated food deserts. It directly affects businesses that open such stores after January 1, 2026, in low-income areas with limited healthy food access. To qualify, stores must accept WIC and SNAP benefits within 90 days of opening and operate year-round. The credit reduces the business’s state tax liability for establishing these stores, aiming to improve healthy food access in underserved communities.