What is the time frame for the total exemption granted under the Texas Economic Development Act?

The Texas Economic Development Act, officially known as Chapter 313 of the Texas Tax Code, provides property tax exemptions to eligible businesses that invest in qualifying projects. The total exemption period granted under this act is typically set at 7 years. This duration is designed to encourage businesses to invest in new facilities and create jobs within the state, ultimately contributing to local economic growth. The 7-year exemption allows businesses a significant period in which they can take advantage of reduced tax liabilities while simultaneously fostering development and employment opportunities in Texas.

Choosing this time frame aligns with the Act's intention to spur economic development, making it an effective incentive for businesses that meet the qualifying criteria. Other durations listed in the options are either shorter or longer than what the Act provides, thus not correctly reflecting the specifics of the program.