Fort Bend County Commissioners approved an economic incentive package on Thursday for a proposed Tesla solar power manufacturing facility anchored in the southeastern portion of the county. If Fort Bend is picked by the trillion-dollar-valued company headed by Elon Musk, the project could bring substantial job and wage creation for the county.
All four county commissioners approved the four-part Tesla agreement Oct. 22. Interim County Judge Daniel Wong abstained because his engineering firm has business ties with Tesla.
"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 a statement. "This is a win for our residents and community partners."
Tesla officials are eyeing over 1,000 acres of property in the Houston-area suburb. The new facility would be located in the southeastern part of the county and called Project Crystal Sun.
If Tesla moves forward with the project in Fort Bend County, it could receive a 100% property tax abatement on the facility itself, followed by property tax rebate grants covering 90% to 100% of eligible taxes. The incentives could span a total of 30 to 35 years, according to county documents. Tesla is still responsible for paying property taxes on the underlying land throughout the 10-year tax break period, according to the agreement.
The proposed project location for the Tesla facility is located in the jurisdiction of Lamar CISD and Fort Bend County. Tesla also guarantees the county at least $2 million a year to help pay for public services and administrative costs.
In exchange for the tax break from the county, Tesla must meet several conditions, including substantial job creation, wage and headcount commitments. At minimum, the company must hire 8,700-plus employees by the time the site is fully operational. Project application documents from the company suggest a construction start date in 2026 and completion date in 2028.
But the hiring thresholds are tiered over the first four years according to the agreement, ranging from hiring 2,500 employees during the first year of commercial operations to hiring 7,500 employees in the third year. If Tesla hires at least 12,000 employees for two consecutive years, its tax benefits get extended.
Wage thresholds were also part of the tax break agreement. Workers would be required to make a minimum $100,000 salary. Strict criteria of what an employee means are outlined in the agreement —they must be permanent, full-time employees and may be directly employed by Tesla or a contracted provider. Interns, independent contractors and workers engaged in construction or pre-operational work are excluded.
Tesla representatives told the commissioners court in early October that the company is still deciding between Fort Bend County or another undisclosed location. Texas Gov. Greg Abbott must give final approval before the facility could open in 2029.
Those who signed up to speak during the public comment portion of the court meeting on Thursday all spoke in favor of the project, including Jeremy Heath, a director of business development with the Fort Bend Regional Partnership that serves as the county's chamber of commerce.
Heath said attracting commercial properties to the area would benefit taxpayers.
"The average taxable value of an individual residential property simply does not cover the cost to service the property," Heath said. "The only responsible way to shift some of that tax burden away from residential property owners is to attract commercial properties which carry higher valuation for improvement and fixed assets and generate significantly higher tax bills per square foot."
The agreement with the county builds upon another approved tax break with the school district where the facility would be built, Lamar Consolidated ISD. In September, school board members approved cutting Tesla’s tax bill in half from 2029 through 2038.
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