The Ellis County Commissioners Court unanimously adopted a new set of tax-abatement guidelines on Oct. 28, 2025, raising the minimum investment required for a county-level abatement and adding screening provisions for large electricity-using projects such as data centers.

Under the new policy approved by the court, a new project must commit at least $50,000,000 in real or business personal property to be eligible for a county abatement; existing projects seeking additional incentive treatment must show at least $25,000,000 in new investment. The county may offer abatements of up to 50% where those thresholds are met.

The change, presented by county staff at a public hearing, responds to a surge in requests for abatements and aims to narrow the field of proposals that require detailed court review. "We have four times as many requests right now as we've had in the last 15 years," a county staff member said during the discussion. The guideline package also incorporated a requirement that data-center applicants demonstrate a firm commitment from an electric provider before the court will consider an abatement for such facilities.

John Knight, director of economic development for the City of Red Oak, told the court that abatements have been critical to attracting major projects to the county and asked that the court preserve flexibility for projects that bring very large investments. "If somebody has a billion dollars they want to invest, we want to fast-track and make that happen," Knight said, urging the court to consider high-investment carve-outs that are industry-agnostic.

Kyle Kennetetter, with Midlothian Economic Development, described abatements as a standard tool used by cities and counties to compete for projects and urged the court to balance stricter thresholds with practical tools for economic development. "Whatever ends up in that policy will be key to help us to even compete," Kennetetter said.

County staff said the policy takes the county's comparatively low tax rate into account. The new guidelines note Ellis County's 2025 county tax rate of 27.3992 cents per $100 of valuation and compare the county's total local tax burden with peers after factoring in hospital districts and community college rates. Staff also pointed to recent state law changes: Senate Bill 6 requires entities seeking large electric loads to post a bond or letter of credit (discussed during the hearing as approximately $6.5 million) as an additional screening mechanism for tire-kicker proposals.

Commissioners discussed the balance between protecting existing taxpayers and staying competitive for high-value projects. Commissioner Randy Stinson said he wanted more time to review certain compliance numbers from past abatements; Commissioner Butler and others emphasized the need for a workable, enforceable guideline so the court can vet proposals without being overwhelmed by speculative inquiries. The court agreed to collect additional compliance and fiscal-impact data, but after discussion voted to adopt the guidelines at the same meeting.

The motion to adopt was made and seconded on the record; the court voted unanimously to approve the new tax-abatement guidelines.

The court also noted that the guidelines are a policy under Texas Tax Code chapter 312 and are not binding: the court retained the authority to approve abatements that fall outside the guidelines in specific cases.

The court instructed staff to publish the approved guidelines and to provide follow-up analyses to the commissioners at a subsequent meeting, including historical compliance and revenue impact information for prior abatements.

(Ending) The adopted guidelines take effect as county policy; commissioners said they expect to revisit implementation details and annual compliance reporting as projects proceed.