Fort Bend County has added new economic incentives as Tesla works to choose a final site for its new manufacturing facility.
The proposed $10.1 billion capital project, also referred to as Project Crystal Sun, could bring a solar cell manufacturing facility to a portion of a 3,057-acre site at FM 1994 and FM 762 within Lamar Consolidated ISD’s boundaries, Community Impact reported.
What you need to know
At an Oct. 22 meeting, Fort Bend County commissioners approved a series of economic incentives that would make the county a more favorable choice than the company’s other option that has not been publicly revealed.
Fort Bend County commissioners previously approved a reinvestment zone near FM 762 and FM 1994 at an Aug. 24 meeting.
The details
The county economic incentive items passed in 4-0 votes, with interim County Judge Daniel Wong abstaining due to his company’s work with Tesla.
The approved incentives include:
A tax abatement, which allows Tesla to avoid paying additional taxes as the property value grows
A grant agreement, in which the county pays back a portion of the taxes paid by Tesla
Participation in the foreign trade zone program, which can provide tax exemption on imports
The commissioners also approved a True Up PILOT agreement requiring Tesla to make annual payments to ensure the company is paying the correct amount of taxes.
What they’re saying
“I am thrilled that the package we put together will not result in a property tax loss for our general fund and will also result in millions of dollars of additional revenue for our local school districts," Commissioner Dexter McCoy said in an Oct. 22 news release. "This is a win for our residents and community partners.”
Zooming out
If approved, Project Crystal Sun could add over $100 billion in gross domestic product to Texas in the next 30 years, according to an Oct. 8 commissioners court workshop.
The project is also expected to:
Create approximately 9,700 direct jobs
Employ residents closer to home
Indirectly support local businesses
Also of note
The approval comes after the Lamar CISD board of trustees approved its portion of the company’s Texas Jobs, Energy, Technology and Innovation, or JETI, Act application, which is a program that attracts companies making significant investments to the state by limiting their school district maintenance and operation tax rate for 10 years, Community Impact previously reported.
The proposed JETI package is now awaiting approval from Gov. Greg Abbott.
Looking ahead
If the Fort Bend County site is selected, the facility would start operations in the first quarter of 2029, according to Lamar CISD’s website.
