This research report examines a recently adopted property tax exemption for private apartment developers available under Section 303.042(f) of the Texas Local Government Code. While the amendment received little notice when it was adopted, the use of this exemption is rapidly growing and delivering property tax breaks to apartment developers of close to $1 million a year per property on average—or an average of $7,400 a year per income-restricted unit. New construction projects are also eligible for a 100% sales tax exemption on construction materials, resulting in an additional, one-time exemption of $1.3 million on average per new apartment development. The costs of the tax breaks are large, and, on scrutiny, the public benefits are comparatively few.