Exelon, the Fortune 500 company with a 96% stake in the project, has requested the tax break from the county to build the fracked gas export facility in the Rio Grande Valley. The decision was tabled during the August 20 meeting.
In January, the county commissioners laid out the requirements for the granting of a tax abatement application for manufacturers and businesses in the county. Some of the speakers warned the court of potential industrial accidents and explosions that have occurred in other places where the plants have been built and voiced their environmental concerns.
If the court approves Anova's application, this could be the second time Cameron County will have given away a tax abatement to an LNG company. In 2017, the County approved a $373 million tax cut for NextDecade’s proposed Rio Grande LNG project. The Chapter 312 agreement guarantees an unknown number of permanent jobs for people who have lived within a 100-mile radius of the LNG terminal for six months prior to being hired or born within that radius.
If the court approves Anova's application, this could be the second time Cameron County will have given away a tax abatement to an LNG company. In 2017, the County approved a $373 million tax cut for NextDecade’s proposed Rio Grande LNG project. The Chapter 312 agreement guarantees an unknown number of permanent jobs for people who have lived within a 100-mile radius of the LNG terminal for six months prior to being hired or born within that radius.
Annova LNG was also vying for a tax abatement under Chapter 313 from the Point Isabel Independent School District (ISD), which was completely rejected because of local opposition. (A Chapter 313 tax abatement is granted through a school district, but a big difference between a school district’s tax abatement and a county’s abatement is that the State of Texas reimburses the ISD for lost revenue.)
Some speakers said that the billionaire projects did not need the county giving out special consideration for these massive projects because they came her and have nowhere else to go. They also said that the number of permanent jobs did not merit the massive $1.8 billion tax break over 10 years.
Under the guidelines approved by the court, Anova will generate points depending on the number of jobs, the quality of wages, and the timeline that applicants must meet to qualify for the abatements.)
Some speakers said that the billionaire projects did not need the county giving out special consideration for these massive projects because they came her and have nowhere else to go. They also said that the number of permanent jobs did not merit the massive $1.8 billion tax break over 10 years.
Under the guidelines approved by the court, Anova will generate points depending on the number of jobs, the quality of wages, and the timeline that applicants must meet to qualify for the abatements.)