Del Valle ISD Approves Tesla Economic Inducements Package

AUSTIN, TX — The Del Valle ISD board of trustees on Thursday approved an economic incentives agreement valued at $46.4 million to automaker Tesla, which seeks to build a plant in the southeastern portion of the county.

Trustees approved the tax abatements package during their livestreamed 6:30 p.m. meeting, agreeing to cap the taxable value of the planned factory at $80 million. Tesla would save nearly $50 million over ten years as part of the agreement. The trustees' vote approving the financial inducements was 7-1.

Owned by billionaire Elon Musk, the company envisions building a so-called "gigafactory on 2,100 acres straddling the State Highway 130 toll road within the school district's taxing jurisdiction. The plant would encompass between 4 million and 5 million square feet of space, according to an application submitted to the Texas Comptroller of Public Accounts — a copy of which previously was obtained by Patch.

Related stories:

• Is Tesla Relocating To Texas?
• Elon Musk Switches Twitter Bio Location To Austin, Sparking Buzz
• Texas Roofers Wanted For Tesla 'Solar Roof' Installation: Report
• Travis County Commissioners To Discuss Potential Tesla Deal
• Tesla Could Bring Gigafactory To Austin: Report

The automaker would churn out its Tesla Cybertruck electric vehicle and Model Y models at the envisioned plant.

Despite the tax abatements, the district would still reap a $776,000 annual payment throughout the 10-year term of the incentives agreement. To further sweeten the pot, Tesla has said it would provide internships and educational opportunities for Del Valle ISD students as part of the agreement.

In trying to land the plant — an economic development plum, particularly amid an economy stagnated by the coronavirus — the Travis County Commissioners Court plan to offer their own set of financial incentives to the automaker. Potential action toward that goal could occur as early as July 14 when the body convenes next.