MCALLEN, Texas – McAllen Economic Development Corporation has thrown its weight behind legislation to create a new incentives package to lure big corporations to Texas.

Legislation is being crafted in Austin to replace Chapter 313. This was an incentive program designed to attract new businesses by offering them a 10-year limitation on their appraised property value for a portion of the school district property tax. 

In exchange for the value limitation, the business agreed to build or install new property and create jobs in the school district.

Chapter 313 expired at the end of 2022. 

Keith Patridge, president and CEO of McAllen EDC, told board directors that he had sent a letter to state lawmakers in support of a new tax abatement package.

“It’s a letter requesting support from the Legislature for the implementation of a new piece of legislation to take the place of the 313, which was a major incentive package that the State of Texas had,” Patridge said.

“We were asked by our lobbyist as well as by several people in Austin, the different associations, to send this support letter. So we have sent this up to the Legislature.”

Patridge said McAllen Mayor Javier Villalobos also planned to send a letter in support of a new tax abatement package. 

“The mayor was asked to send a letter on behalf of the city as well,” Patridge said. “So, they are getting as many signatures as they can in support of a new 313 of some sort. We don’t know what format that will take. It is still early in the session.”

McAllen EDC letter to the Legislature

Here is a copy of the MEDC letter:

February 22, 2023


Our organizations are committed to working with the Legislature to preserve the business climate and foster future growth by developing a new, transparent and accountable economic development policy. This mission is critical to ensuring Texas can compete for large capital intensive investments, which bring jobs and long term revenue to Texas communities. 

Companies locate their projects where the capital costs are favorable. Texas has been a national leader in securing large capital intensive investments, but we could fall behind. Other states and countries are deploying their own temporary tax discounts and incentives. Over the last year, Texas lost several multi-billion dollar deals, including Rivian to Georgia, Intel to Ohio and Micron to New York. Texas stands to lose more jobs, more investments, more tax base and more growth if we don’t restock our economic development toolbox with a new economic development incentive in the legislative session.

Research shows that Texas voters overwhelmingly agree that limited temporary property tax discounts make sense when exchanged for long term revenue and economic development. 

Research also demonstrates that voters feel strongly that Texas should enhance its supply chain to promote economic independence and national security. In fact, 84 percent agree that we’re too reliant on other nations for the products we need. Texas lawmakers have an opportunity to once again be the solution to some of the most difficult problems for our country and our state. We must do more to attract manufacturing and investment to Texas to meet our needs and help stabilize our national supply chain for key goods and services. 

Texas needs to modernize and retool to compete for future projects. A new, transparent and accountable economic development policy is essential to protecting Texas’ position as the nation’s economic powerhouse. This is a top priority for each of our organizations. We look forward to working with you on policy solutions to grow the Texas economy and secure a bright future for the next generation. 


Keith Patridge 


McAllen Economic Development Corporation