Texas Enterprise Fund report focuses on money recouped from deals gone bad

Incentive deals that had roles in luring big-name companies like Apple Inc. to Austin and Toyota Motor Corp. to Plano have generated the bulk of publicity in recent years for a top state economic development tool: the Texas Enterprise Fund. But the outcomes of deals that ultimately flopped are being touted as equally strong selling points for the fund, at a time when proponents, including Gov. Greg Abbott, are advocating for more taxpayer money for it. A new report to the state Legislature from Abbott’s economic development office, which oversees the fund, points out that about $36 million has been returned to the state over the past two years because of so-called “clawback” provisions after companies failed to deliver on commitments, or because of amendments to and terminations of old deals. During roughly the same period, the fund awarded about $61 million in incentives for new economic development projects, which are projected to create a combined 16,600 jobs. Austin American Statesman

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Author: Matthew Randle