Incentive brief · Texas

Texas — what’s on the ground.

The biggest active queue. New SB 6 rulemaking. A $1 billion annual subsidy program. A comptroller actively auditing large projects.

2025 DC subsidy outlay: $1B+
ERCOT large-load queue: 226 GW
PUCT rulemaking: 16 TAC §25.194 (58481)

The context

ERCOT, Oncor, CenterPoint, AEP Texas

Texas ships the most new data center capacity in the country and runs the largest active interconnection queue. The combination of SB 6 (implementing large-load interconnection standards under the PUCT), the ERCOT Batch Study framework, and a Comptroller that audits large incentive awards makes Texas the state with the most sophisticated predevelopment process — and the one where a single week of delay costs the most.

2025 DC subsidy outlay: $1B+
ERCOT large-load queue: 226 GW
PUCT rulemaking: 16 TAC §25.194 (58481)
Ch. 313 replacement min: $200M capex

Live pressure

What’s actively moving in Texas.

PUCT 58481 draft §25.194 comment round — Apr 17, 2026
ERCOT Batch Study framework filed for Feb 20, 2026 Open Meeting
Comptroller Ch. 313 replacement program active with $200M minimum investment thresholds
Generic load tariff modifications at Oncor, CenterPoint, AEP Texas, and Entergy Texas in parallel filings

Programs

The incentives we ship against.

Every active Texas program that affects data center economics. Thresholds, benefits, clawback exposure, and the practical notes our analysts rely on.

Ch. 313 replacement (Texas Jobs, Energy, Technology, and Innovation Act)

School property tax limitation agreement

Threshold: $200M investment (typical), 25-50 qualifying jobs, application to local ISD
Benefit: Limits the school district maintenance & operations portion of property tax to an appraised value cap for 10 years
Clawback exposure: Yes — failure to meet investment or job commitments triggers repayment plus interest
Cliffcenter notes: The program replacing Ch. 313 launched in 2024 with a similar but stricter structure. Most Texas DC deals run through it. We monitor the Comptroller's award database and rejection patterns.

Texas Enterprise Zone Program

State sales tax refund

Threshold: $40K capital investment, 5+ new permanent jobs in enterprise zone
Benefit: $2,500–$7,500 per job, depending on project level
Clawback exposure: Partial — job commitments must be maintained
Cliffcenter notes: Useful for secondary incentive stacking, especially when local property tax abatement combines with it.

Local property tax abatement (Ch. 312)

Local tax abatement

Threshold: Negotiated with city/county
Benefit: Up to 100% abatement of local property tax for up to 10 years
Clawback exposure: Per agreement
Cliffcenter notes: Texas cities and counties have wide latitude on Ch. 312 deals. We help structure the request and model the downstream rollback risk.

Data Center Equipment Sales Tax Exemption

Sales/use tax exemption

Threshold: $200M capex + 20 jobs, certified by Comptroller
Benefit: State + local sales tax exemption on qualifying data center hardware, software, and cooling equipment
Clawback exposure: Yes — certification can be revoked if thresholds are not met
Cliffcenter notes: Comptroller certification is a multi-month process with a formal application package we pre-populate.

Playbook

How we run a filing in this state.

Run SB 6 eligibility first

Interconnection eligibility under the new §25.194 rule is a gating condition for most Texas sites. We screen the load profile and self-curtailment commitments before the incentive stack is finalized.

Approach the ISD early

Ch. 313 replacement approvals start with the local ISD board. We produce the local fiscal impact memo, the school board presentation, and the Comptroller application package from the same workspace.

Layer Ch. 312 with Ch. 313

Local Ch. 312 property tax abatements can stack on top of state-level Ch. 313 replacement agreements, but the interaction is non-trivial. We model the combined net-present-value.

Watch the Comptroller audit patterns

Awards over $500M are audited selectively. Our compliance calendar matches the Comptroller's typical audit cadence so our customers never get caught short.

Authority and limits

Where the authority lives — and where it doesn’t.

Texas incentive awards are heavily decentralized — ISDs, cities, and counties each play a role — which creates stacking opportunities but also compliance complexity. The Comptroller's office maintains a public award database and audits selectively.

Warnings

Two risks we surface at kickoff.

SB 6 is actively being written

Filings today are provisional until the draft rule finalizes. We handle the downstream re-file risk as part of the engagement, but customers should expect interim updates.

School district fiscal pressure

Some Texas ISDs face fiscal pressure that makes Ch. 313 replacement boards more cautious. We track the board votes publicly and flag districts with recent rejections.

Other states

We publish a brief for every state we serve.

VirginiaNorthern Virginia, Loudoun, Prince William, Henrico GeorgiaGeorgia Power, Southern Company territory ArizonaSRP, APS, TEP territory OhioAEP Ohio, FirstEnergy, Duke Ohio territory TennesseeTVA territory — Memphis, Nashville, Chattanooga, Knoxville IowaMidAmerican, Alliant, ITC Midwest — MISO territory CaliforniaCAISO territory — PG&E, SCE, SDG&E, LADWP, municipal systems PennsylvaniaPJM territory — PPL, PECO, Duquesne, West Penn Power WashingtonBPA territory — Puget Sound Energy, Avista, Seattle City Light

Texas brief

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