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 Though legislators have always understood the need to promote economic development, prior to 1979 there were few statutory vehicles that facilitated such efforts. Business leaders expressed this concern to the Texas Legislature and asked for authorization to create an entity that could encourage the development of new local commerce.
In 1989, the Texas Legislature amended the Development Corporation Act by adding Section 4A, which allowed the creation of a new type of development corporation. The proceeds of the Section 4A sales tax were dedicated by statute to economic development projects to promote new and expanded industrial and manufacturing activities.
Brownsville 4A Economic Development Tax:
After the passage of the 4A Economic Development Sales Tax in 1992 came the subsequent funding of the Greater Brownsville Incentives Corporation (GBIC). Ten years later, the 4A was split into a 4A and 4B, going from half-cent sales tax to each receiving a quarter-cent sales tax. The latter is used for “quality of life” projects, such as educational endeavors, parks and museums.
From 1992 until today, GBIC has had $12 million in operating expenditures and $37 million in project expenditures.
Project Expenditures:
 Since 1992, of the $37.1 million spent on projects, 46 agreements have been funded for companies (some companies have had more than one agreement) which accounted for $18.8 million or 50.6% of total project expenditures. Other project expenditures included $7.5 million (20.16%) to UTB/TSC for buildings, $5 million (13.60%) to the City of Brownsville, $4.3 million (11.69%) for quality of life projects, and $1.1 million (3.01%) to industrial park studies, building purchases, etc. A shortlist of entities on the receiving end of the expenditures include:
| Company |
Incentives |
| AmFELS |
$1.5 million |
| Carling Technologies |
$129,000 |
| Convergys |
$1.7 million |
| Trico I |
$638,000 |
| Trico II |
$258,000 |
| Sunrise Mall Commons |
$1.1 million |
Project Expenditures:
To create and attract new permanent, full-time jobs, as well as retaining or improving existing jobs through industrial, commercial and/or other business development projects, 4A Sales Tax revenues must be budgeted as and used for agreed upon Project Expenditure Categories. Project expenditures will account for 68% of total 4A tax revenues received and will cover the following four categories:
- Company Incentive Projects (32% of revenues) – providing Job Creation Incentives for qualifying companies
- Targeted Infrastructure Projects (14% of revenue) – infrastructure projects allowable under 4A
- Large Project Reserve (13% of revenues) – establish a reserve account for larger projects
- Community Job Based Projects (9% of revenues) – support local initiatives that have a job creation component
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