The Austin City Council is putting a controversial proposal regarding tax incentives for new businesses on hold until further notice.

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KVUE's Shelton Green reports.

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Two years ago members of Austin Interfaith, a political non-profit representing 30 churches and 50,000 members approached Austin City Council candidates with a proposal for new businesses coming to Austin who receive tax incentives from the city.

Austin Interfaith wants new businesses to pay at least $18 an hour in order to take advantage of tax incentives offered by the city of Austin.  The group is also wants new businesses getting tax incentives to include healthcare benefits for all employees, career tracks as to avoid dead-end jobs and a strategy to hire locally.

"We received a commitment from all the council members and the mayor to honor this commitment of 18-dollars an hour for any company that receives a tax break from the city. I believe they have not reached a consensus on it", said Gina Hinojosa with Austin Interfaith.

Hinojosa says the current living wage in Austin is between $22 and $26 an hour, but the group is sticking with $18 an hour because that's the agreement made with the council two years ago.

"If we're going to be putting our tax money into supporting or subsidizing jobs, private sector jobs, then they need to be paid jobs that pay a living wage", added Hinojosa.

Laura Morrison, an Austin City Council member approached by Austin Interfaith told KVUE that the proposal is in a holding pattern of sorts because the council hasn't been able to reach an agreement on the issue.

"There's an open discussion about what the living wage is. It's not such a simple question, because fundamentally, conceptually, a living wage is something that pays you enough to live and satisfy your basic needs in the city of Austin", said Morrison.

While the debate over incentive packages for new businesses continues others in the community question the impact on future business to Austin.

"All the clients that the Chamber of Commerce is working with I think that sends the wrong message. It particularly paints the city as an anti-business environment and it's going to make it very tough I think in the future to bring new companies to Austin", said Angelos Angelou, an Austin economist.

Austin Interfaith is still working on the proposal with Austin City Council members and the Mayor however it's unclear as to when an agreement if any will be reached.