Travis County commissioners approve Tesla tax breaks

Talk 1370 Newsroom
July 14, 2020 - 5:48 pm

Justin Sullivan/Getty Images


AUSTIN ( -- Travis County commissioners on Tuesday gave the green light to a tax incentives package for electric vehicle maker Tesla.

The incentive deal amounts to approximately $14 million over 10 years in exchange for a minimum of a $1.1 billion investment and 5,000 jobs. The Gigafactory, as it's called, would be located on a 2,100 acre tract at State Highway 130 and Harold Green Road in southeastern Travis County.

It's the second incentives package for the Tesla project, after Del Valle ISD officials gave their approval to a deal worth approximately $47 million last week.

READ: Travis County-Tesla Performance Agreement

Based on the initial $1.1 billion investment, Travis County stands to gain a net of $8.8 million over the first 10 years of the deal.

The county's deal offers incentives for additional investment on Tesla's part. Under the terms of the agreement, Tesla will receive a 70% rebate on the operations & maintenance taxes generated by the first $1.1 billion invested into the project. Additional investment up to $2 billion will see a 75% rebate, and anything over the $2 billion threshold will see an 80% rebate.

The deal also calls for Tesla to pay a minimum wage of $15/hour to workers, beginning with construction of the factory and once the factory is operational, with at least 50% of the ongoing employees required to be Travis County residents.

Tesla has not yet fully committed to building in Austin; the company has also been considering Tulsa, Okla. as a site for the factory.

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