Texas House Bill HB 4920

Texas 2025 - 89th Regular

• Filed: 3/13/25

Caption

Relating to the comptroller's report on the effect of certain tax provisions.

Summary

HB 4920 would require the Texas Comptroller, before each regular legislative session, to submit a report identifying domestic private entities that receive a state tax credit, exemption, or discount if those entities have, within the prior two years, created jobs outside the United States that are suitable to be performed in the United States and thereby reduced or avoided comparable domestic employment. The report must list the affected entities and describe the relevant tax provisions. The required report would also include an analysis of each special tax provision, an estimate of the state revenue lost because of it, the total number of jobs created abroad, the total wages tied to those jobs, and the specific dollar amount of tax reduction each entity received since the last report. The bill expressly overrides confidentiality protections that would otherwise apply under state law for this reporting purpose.

Impact

The bill would add a new reporting requirement to Chapter 403 of the Government Code, expanding the Comptroller’s duties to collect and disclose information about certain tax benefits tied to offshore job creation. It would affect domestic private entities receiving state tax preferences and would require disclosure of information that may otherwise be confidential under the Tax Code, including information protected by Sections 111.006 and 151.027. The act would take effect September 1, 2025, if enacted.

Sentiment

No committee transcript or recorded vote information is available, so there is no direct evidence of support or opposition from debate or floor action. Based on the bill text and caption, the measure appears to be framed as a transparency and accountability proposal focused on tax incentives and offshore employment, rather than a broad tax increase or repeal. Its referral to the House Ways & Means Committee indicates it was treated as a tax-policy measure.

Contention

The main point of contention is likely to be the bill’s disclosure mandate, especially the requirement to identify entities and reveal tax reduction amounts even when those details would otherwise be confidential. Supporters would likely view the bill as a transparency tool to assess whether state tax preferences are encouraging job losses in Texas, while opponents may argue it burdens businesses, exposes sensitive tax information, and could discourage companies from participating in state incentive programs. The bill also raises policy questions about how to define jobs suitable for performance in the United States and how directly offshore hiring should be linked to state tax benefits.