Austin ISD is considering a proposal from NXP Semiconductors that would give the chipmaking company tax incentives to expand its Austin facilities.

The proposed agreement was presented to AISD trustees at a May 10 board meeting. Under state law Chapter 313, public school districts in Texas may offer tax incentives for companies that invest in their communities. In exchange, companies pay the school districts to subsidize their portion of property tax revenue.

The agreement, dubbed Project Gateway, would allow AISD to keep about $67 million out of state recapture payments—locally collected property tax revenue that property-rich districts, such as AISD, pay to the state that is then distributed to property-poor districts.

Currently, AISD anticipates paying about $846 million in recapture for the 2022-23 school year, according to the district’s Media Relations Manager Cristina Nguyen. AISD’s recapture payment is the largest out of all districts in the state—more than Houston, Plano and Midland, the next three highest-paying districts, combined.

NXP already has two facilities in Austin, including its U.S. headquarters. The company is considering a $2.6 billion expansion that would create about 800 new, high-paying jobs, NXP representatives said at the May 10 meeting. The agreement may also provide potential benefits to AISD students, such as internships and STEM, or science, technology, engineering and math, learning opportunities.

There are no downsides for school districts to approve the tax breaks, and keeping funds out of recapture does not affect payments to districts in need, NXP representatives said.

The proposal was only discussed at the May 10 meeting. The board will reconvene in the future to decide whether to move forward with the tax break.