Request for Additional State Aid for Ad Valorem Tax Credit
Texas Education Agency (TEA)
Purpose: To provide additional state aid to school districts that have value limitation
agreements pursuant to the provisions of the Texas Economic Development Act (TEDA).
Authority for data collection: Texas Education Code (TEC), §42.2515, Additional State Aid for
Ad Valorem Tax Credits Under Texas Economic Development Act.
Planned use of data: Data will be used for the computation of additional state aid to which a
school district may be entitled pursuant to the TEC, §42.2515, to offset the ad valorem tax credit
granted by the school district to a business entity under the provisions of the TEDA as
authorized by the Tax Code, Chapter 313.
Instructions to school districts:
Eligibility: Only a school district for which the governing body has approved an application by a
qualified business entity for a tax credit that meets all the requirements pursuant to the
provisions of the TEDA is eligible to complete this form and receive additional state aid under
the TEC, §42.2515. Qualifying business entities are eligible to receive a tax credit for a portion
of the maintenance and operations (M&O) taxes paid to school districts on property subject to a
qualified value limitation agreement during the qualifying period. The credit, subject to certain
limitations, is either paid or credited to the ad valorem taxes owed by the business entity over a
seven-year period in accordance with the Tax Code, §313.104(2)(A). The seven-year period
begins with the tax year after the board approves the tax credit application. Any remaining credit
may be applied to taxes in the tax credit settle-up period, in accordance with the Tax Code,
Funding available: School districts are eligible to receive additional state aid in the amount of
the ad valorem tax credits granted to qualified business entities. School districts may receive
additional state aid for each of the school years associated with the tax years in