Hunt County adopts stricter tax-abatement rules, bars incentives for data centers and similar projects

The Hunt County Commissioners Court on Tuesday adopted updated tax-abatement guidelines that sharply limit incentives for projects the court said consume large amounts of power, including data centers, battery-energy storage, solar and wind farms and cryptocurrency mining.

The change, approved after debate during the May 12 meeting, adds a section that prohibits abatements for certain high-consumption or high-risk industries and establishes a maximum abatement of 50% per year for up to 10 years where abatements remain allowable. Commissioner Gary (speaker 2) moved to approve the updated policy; a second and a voice vote carried the motion.

Why it matters: Commissioners said they want to avoid offering tax incentives to projects they believe could impose infrastructure, safety and long-term fiscal costs on the county. The new policy formalizes the court’s prior, informal stance of generally declining incentives for projects the county views as not providing sufficient local benefit.

Commissioner Gary also updated the court on a petition and accompanying resolution the court previously authorized to send to the state. He told the court the county collected and validated 3,730 Hunt County signatures in about two weeks (232 pages). "That was outstanding," Gary said, praising volunteers who gathered signatures door-to-door, at churches and at other locations. He asked the court if there were any objections to submitting the finalized petition and noted staff redacted out-of-county names before submission.

County staff and consultants framed the policy change as part of a broader set of tools: the court is exploring whether it can require permitting-level verifications that a project has filed for or received necessary ERCOT (Electric Reliability Council of Texas) approvals and utility commitments before final county approvals. The court asked its attorneys to review whether the county can require applicants to validate ERCOT filings or other powercommitment documents as part of a permitting or predevelopment process.

What the policy says and does not do: The updated guidelines apply prospectively; the document’s language, as read in court, was intended to prevent future abatements to the named industries but not to retroactively void existing, properly executed incentive agreements. Commissioner 7 and others asked for legal clarity on that point; staff said existing, in-place TIRZ/TIRS or other abatements already in effect would not be voided by the new policy.

Votes at a glance (select items from the May 12 consent and action calendar): • Motion to adopt updated tax-abatement guidelines — moved by Commissioner Gary (speaker 2), seconded by speaker 6; approved by voice vote. • Motion to submit updated petition/resolution to the state (data centers) — informational update; no further action required at meeting (petition ready to submit after redactions confirmed). • Several routine right-of-way and utility permits (County Roads 1015, 1071/1070, 2314, 3308) — approved by voice votes. • Road upgrade of County Road 1023 from dirt to rock (approx. 3,698 feet) — approved to provide bypass during FM 816 bridge replacement. • Multiple plats and replats, and a one-time family-division frontage variance — approved.

Limitation and next steps: County officials asked attorneys to draft any required ordinance language or permitting procedures needed to operationalize verification of ERCOT approvals and to complete a formal budget request for resources (inspectors, vehicles, training, and software) needed to implement and enforce the county’s adopted fire code and any new permitting tasks. County staff said a budget proposal tied to fire-code operations and inspection staffing will be developed for consideration in the upcoming budget cycle.

Court reaction and public comment: Resident Marsha Kuykendall, who addressed the court during public testimony, said she was disappointed with the format of an outside "town hall" and asked for a true presentation-plus-Q&A format at a future event; Commissioner Gary said he would pass that feedback to the developer/operator.

The court moved forward with the adopted guidelines and other routine approvals; the petition and the tax-abatement policy are expected to be submitted and implemented in the coming days and months, with further legal and staff work to follow.