Fort Bend County commissioners have approved a tax incentive package meant to bring a Tesla solar power manufacturing plant to the Houston suburb, with job and wage requirements attached, Houston Public Media reported Friday.
The four commissioners voted for the four-part agreement on Thursday, Oct. 22. Interim County Judge Daniel Wong abstained, citing business ties between his engineering firm and Tesla, according to the report.
What Tesla would get
The project, called Project Crystal Sun, would sit on more than 1,000 acres in the southeastern part of the county, inside Lamar Consolidated ISD.
County documents cited by the station show Tesla could receive a full abatement of property taxes on the plant itself for 10 years, followed by rebate grants covering 90% to 100% of eligible taxes, with the incentives stretching 30 to 35 years in total.
The company would still owe property tax on the land and would guarantee the county at least $2 million a year toward public services and administrative costs.
The Lamar CISD board approved its own agreement in September that halves Tesla's school tax bill from 2029 through 2038, the station reported.
What Tesla would owe
In return, the company would have to reach 8,700-plus workers once the site is fully running. The hiring targets climb over the first years of operation, from 2,500 employees in the first year to 7,500 in the third, and the tax benefits would be extended if Tesla keeps at least 12,000 workers for two straight years.
Qualifying jobs must pay at least $100,000 and be permanent and full time, whether workers are employed by Tesla or a contractor; interns, independent contractors and construction workers do not count.
Not a done deal
Tesla representatives told commissioners earlier this month that the company has not picked between Fort Bend and another location it has not named. Application documents point to construction starting this year and finishing in 2028, and the governor must give final approval before the plant could open in 2029, according to the report.
Commissioner Dexter McCoy said in a statement that the package would not cost the county's general fund any property tax revenue and would add millions of dollars for local school districts. Everyone who signed up to speak at Thursday's meeting supported the project.
Jeremy Heath of the Fort Bend Regional Partnership told the court that homes alone do not generate enough taxable value to cover the cost of serving them, and that commercial development shifts some of that load off homeowners.
Sources
houstonpublicmedia.org
