Houston City Council approved changes to the city’s tax abatement ordinance, requiring companies seeking certain property tax exemptions to meet stronger labor standards, including higher wages, health insurance benefits, workers' compensation and stronger worker protections.
Explained: Houston uses tax abatements to incentivize businesses to come to and invest in the city and hire locally by offering a reduction in property taxes for a specified period. In return, businesses must meet the applicable requirements for employee wages, health benefits and other worker protections. Council member Alejandra Salinas proposed the ordinance.
Part of the ordinance includes preventing contractors with a recent history of violating Occupational Safety and Health Administration (OSHA) rules or committing wage theft from participating in projects related to the tax abatement.
Also of note: Since 2004, the city has approved only 21 tax abatements, the most recent in December 2025. According to the ordinance, the changes will apply only to future grants.