Automaker Tesla is seeking significant tax break as it considers Texas plant

Automaker Tesla is seeking a property tax break of $68 million from Del Valle School District located in Travis County, Southeast of Austin. Tesla has planned to set up a factory to produce Model Y crossovers for the East Coast Market and also for its Cybertruck pickup. The Texas School District is considering the proposal to attract the automaker to the state.

The application to Del Valle Independent School District was made public by the Texas comptroller’s office on Thursday. Travis County commissioners may also give several other incentives to Tesla.

However, the announcement for this has not been made yet. Texas could offer Tesla to sell directly to the customers which were not allowed earlier. It has been considered as a beneficial reward which Texas is offering.

Automaker Tesla is seeking significant tax break as it considers Texas plant
Automaker Tesla is seeking significant tax break as it considers Texas plant

The application was filed by the Colorado River Project LLC, which is a new subsidiary of Tesla. Tesla can receive a property tax abatement of up to $68 million for 10 years. Tesla is expected to employ 5000 workers by setting up the factory. The automaker may start building the factory in the latter half of this year in an area of 4 to 5 million-square-foot.

This could be the most important economic progress in Central Texas History if the incentives deals are approved and Tesla agreed to set up the factory in Travis County. The proposed deal of Tesla incentives with the Texas school district has been called as Chapter 313.

Chapter 313 of the Texas Tax Code permits school districts to grant property tax abatements for the economic progress projects. The abatement given by the school districts is recovered by the state which pays them the amount of property tax break they gave in the agreement.

Tesla mentioned in the application that it is also considering the Travis County sites and sites in Oklahoma. The Texas County site is spread over an area of 2100 acres in Austin Green Development at Texas 130 and Harold Green Road near Austin- Bergstrom International Airport.

Tesla said, “To continue to meet increased demand and provide new products, an additional manufacturing facility is required in the United States.” Tesla further added, “ The current focus is on Oklahoma and Texas as potential locations for the new facility.


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