Chapter 380 of
the Local Government Code authorizes municipalities to offer incentives
designed to promote economic development such as commercial and retail
projects. Specifically, it provides for offering loans and grants of city funds
or services at little or no cost to promote state and local economic
development and to stimulate business and commercial activity.
In May 2021,
the 87th Texas Legislature passed House Bill 2404, which went into effect Sept.
1, 2021, and required the Texas Comptroller of Public Accounts to create and
make accessible an online database for local governments to report their
economic development agreements authorized by either Chapter 380 or Chapter 381
of the Local Government Code.