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Electric car manufacturer Tesla will receive less of a tax rebate than initially expected from Travis County due to “partial noncompliance” with the performance-based agreement.
Since 2020, the county has promised Tesla millions in tax incentives to build Giga Texas—a 10-million-square-foot electric car manufacturing plant near Del Valle. At an April 7 meeting, the Travis County Commissioners Court voted to withhold 9% of funds allocated for 2020-22 after receiving “incomplete documentation” from Colorado River Project, a subsidiary company of Tesla, County Judge Andy Brown said.
"We have to continue to demand accountability in future compliance conversations," Commissioner Ann Howard said.
The overview: Under the agreement, Tesla would receive a 70% rebate on its maintenance and operations property taxes for the first $1.09 billion invested through Giga Texas. To receive these rebates, the company was required to create at least 5,001 new full-time jobs—50% of which must be filled by Travis County residents—among other requirements.
Tesla was projected to receive a $14.65 million rebate over 10 years, according to 2020 county estimates.
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