AUSTIN, Texas – The Travis County Commissioner’s Court has voted to approve a tax rebate incentive for electric car company Tesla for a potential manufacturing plant on the city’s southeast side.
What You Need To Know
- Pandemic-related economic concerns were a factor
- Company would pay property taxes up front
- Could bring millions of dollars to the region
It was approved in a 4-to-1 vote with Commissioner Margaret Gomez abstaining on Tuesday.
The Chapter 28 performance agreement would require Tesla to pay all property taxes upfront, but upon review of performance agreement terms the company will be refunded a percentage of its tax bill.
According to the terms of the agreement, it’s estimated that Tesla could potentially pay the county $8.8 million during the first 10 years if it ultimately builds the $1.1 million plant that would manufacture pickup trucks.
The terms of the proposal show that the economic impact of the coronavirus pandemic on the county was a factor in the decision.
The proposal states: “The additional investment from Tesla’s construction and operation of a Gigafactory, as well as the creation of thousands of construction jobs in the near-term and 5,000 ongoing jobs in the mid-term, will help the community weather the recession [caused by the pandemic]. If Tesla’s siting in Travis County attracts additional companies to the region, the impact of that additional investment and jobs will further buoy the local economy as well as further diversify it.”
It's estimated that the factory would immediately bring thousands of construction jobs to the area and as part of the now-approved proposal, those workers would make $15 an hour at minimum.
Once construction is over, Tesla would commit to creating at least 5,000 jobs, also with minimum pay at $15 an hour. At least half of those new permanent jobs would be filled by Travis County residents.
If Tesla does build the plant but doesn’t meet the terms of the agreement, any rebates it was supposed to receive would be reduced.