Texas proposes $1.1 billion in tax rebates to gain Tesla’s cybertruck factory

A central Texas county has approved a plan to provide $1.1 billion in tax subsidies to Tesla Inc, if it were to build its vehicle factory in the area.

The development comes in the backdrop of Texas competing with Oklahoma to attract Tesla Inc to build its Y sport utility vehicles and cybertrucks plant, which will give a boost to the local economy as well as create more jobs.

A majority of commissioners in Travis County voted in favor of providing the electric carmaker with a tax rebate worth at least $14.7 million. This brings the total amount of tax rebates to nearly $65 million after the Del Valle school district, which includes the proposed factory site, approved a $50 million incentive earlier last week, on Thursday.

Tesla did not immediately respond to requests for comments.

Tesla only has a single vehicle manufacturing plant in California and aims to build a second plant in the southwestern United States during the third quarter of 2020.

Commissioners in favor of the agreement decided to move forward after a Tesla representative said executives had met with the governor of a rival state. Tesla executives did not name the state.

The city of Tulsa in Oklahoma has campaigned for Tesla to build the plant there.

Tesla has asked Travis County for an 80% rebate on its property taxes for 10 years, worth $14.7 million, as well as a 65% rebate for the next 10 years after that.

Tesla said the factory would create 5,000 jobs, mostly low-skilled. The average annual salary would be roughly $47,000, an income considered low by the county’s health and human services division.

Categories: Creativity, Economy & Finance, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy

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