On the first day of pre‑filing for the 90th Texas Legislature, State Representative Vince Perez (District 77, El Paso County) filed a package of 15 bills targeting the tax incentives granted to Meta Platforms for its data‑center complex in Northeast El Paso. Five of those measures focus directly on ending the long‑standing agreement that gives the company a massive property‑tax break and a state sales‑tax exemption.
Key provisions of the proposed legislation
House Bill 729 would require any new phase of the data‑center project to be voted on by the El Paso commissioners court or city council before a tax break is applied. The bill caps any tax exemption at ten years and bars Meta from adding phases, land, or extending deadlines without public approval. Perez emphasized that the bill does not cancel any work already underway.
House Bill 851 seeks to eliminate the state sales‑tax exemption on servers and electricity used by data centers. Perez explained that because the city sales tax follows the state exemption, ending the state break would allow El Paso to collect sales tax on those purchases.
House Bill 732 would close what Perez calls “the rest of the menu,” removing property‑tax abatements, city and county cash grants, tax‑increment financing, Enterprise Zone benefits, and any funding from the Texas Enterprise Fund for data‑center projects.
House Bill 734 requires local governments to file full data‑center agreements with the state, with no redacted sections, to increase transparency.
House Bill 730 addresses a related utility issue. El Paso Electric has asked state regulators to approve a natural‑gas plant to serve the Meta facility, a project estimated at $551.8 million. Perez’s bill would prevent regulators from shifting the cost of that plant onto other customers unless they can demonstrate a clear benefit and confirm that residential bills will not increase.
Rationale and reaction
“Data centers have reaped billions in tax breaks from state and local governments while ordinary Texans struggle to get by,” Rep. Perez said in a statement. He framed the bills as a defense of family‑focused taxpayers and a restoration of fairness in the tax system.
The agreements in question were approved by the City and County of El Paso in December 2023, granting Meta an 80 percent property‑tax rebate for each phase of the data‑center for 25 years, plus a ten‑year sales‑tax abatement and fifteen years of rebates. Critics argue that the deal gives a private corporation a competitive advantage at the expense of local revenue.
Meta has not responded to requests for comment from KVIA. Local officials and business leaders who support the original deal have not been quoted in the source, but the legislation reflects a growing sentiment among Texas lawmakers to scrutinize large corporate incentives.
Impact on the community
If enacted, the bills would significantly reduce the fiscal advantages Meta currently enjoys, potentially increasing tax revenue for the City of El Paso and its county. The measures also aim to ensure that any future data‑center expansions undergo public oversight, aligning with the community’s interest in transparent government and responsible use of taxpayer dollars.
Rep. Perez serves on the House Ways and Means Committee and the Higher Education Committee, positioning him to influence both fiscal policy and workforce development related to technology infrastructure.
ABC‑7 reached out to Meta for comment; no response was received at the time of publication.
Original reporting: El Paso News (HLL/CB) — read the source article.