Texas Economic Development Act And The Industries That Benef
13 Jan 2021
In July, the electric carmaker Tesla inked a deal with Travis County to build a $1.1 billion factory called Giga Texas in the community of Del Valle near Austin. The factory, slated to build electric SUVs and car batteries as well as the company’s new “Cybertruck,” is expected to bring about 5,000 new jobs to the Austin area (PDF) by the end of 2023, many of them relatively well-paid positions not requiring a college degree.
Tesla also said it would invest at least $100.9 million in the site in 2020 and nearly $1.1 billion within five years, providing a continuing benefit for construction companies and other vendors in the area.
As with all modern deals of this nature, local officials agreed to provide significant tax incentives in return.
The largest of these was a 10-year agreement estimated at $46.4 million provided by Del Valle Independent School District (ISD), authorized by a Texas law commonly known as Chapter 313.