Brazoria County discusses new JEDI project process with Dow Chemical Company

The Brazosport Independent School District (BISD) Board convened on July 14, 2025, to discuss significant changes to tax incentive agreements under the new JEDI program, which could have lasting implications for the community. The meeting highlighted a proposed project by Dow Chemical Company, which plans to invest approximately $2.7 billion in a carbon capture manufacturing facility in the area.

One of the key points of discussion was the transition from the previous Chapter 313 agreements to the new JEDI framework. The JEDI program aims to streamline the process for companies seeking tax incentives while ensuring that school districts are not financially harmed. Under this new structure, the incentive period remains at ten years, but the school district will no longer receive indemnity or supplemental payments from companies, which were a feature of the previous agreements. Instead, partnerships for internships and job training can be developed without direct financial exchanges tied to the tax incentives.

The board was informed that the JEDI program prohibits job waivers, requiring companies to create a minimum of 50 jobs and invest at least $100 million to qualify. This is a notable increase from previous requirements, which had varied significantly. The project is also expected to be located within a designated opportunity zone, allowing for a reduced tax rate of 25% of the appraised value during the incentive period.

Financial projections indicate that the Dow project could generate significant taxable value for the district, estimated at $1.45 billion at its peak. However, concerns were raised by board members and community members about the potential for companies to seek further tax breaks after the initial agreement period ends. A local resident expressed skepticism about the effectiveness of such agreements, citing past instances where promised job creation did not materialize.

The board is currently within a 30-day window to decide on entering into a JEDI agreement with Dow, with a deadline approaching on July 15. If approved, the agreement would require the governor's office to sign off on the terms, further emphasizing the state's involvement in local economic development decisions.

As the board deliberates, the outcomes of this meeting could shape the future of economic development in Brazosport, balancing the need for job creation and investment with the financial interests of local taxpayers. The community's response will be crucial as the board weighs the potential benefits against the risks of long-term tax incentives.