Tesla Could Receive $65 Million in Tax Breaks for Cybertruck Factory in Texas
Everyone wants a piece of Tesla. The electric car company's stock is soaring and the American brand is still looking for a place to build its Cybertruck factory. Missouri recently made headlines with a $1 billion package for a proposed Cybertruck factory, but it's not the only place that's waving money around to attract Tesla CEO Elon Musk. According to Reuters, a central Texas county that includes Austin approved a plan to provide the automaker with nearly $65 million in tax rebates.
Texas Counties Approve Tax Rebates
According to the outlet, commissioners in Travis County voted in favor to provide Tesla with a tax rebate worth approximately $14.7 million if the automaker builds its Cybertruck factory in the area. The Del Valle school district also approved a $50 million incentive, bringing the tax rebates up to a total of $65 million.
Reuters claims that Tesla asked Travis County for an 80 percent rebate on its property taxes for 10 years. That would be worth $14.7 million. The automaker also asked for a 65 percent rebate for the next 10 years after that. For the money, Tesla would construct its Cybertruck factory in the area that would bring 5,000 new jobs, the majority of which would be low-skill ones. The average annual salary is expected to be approximately $47,000, which, as the outlet points out, would be considered low for the county.
Texas is just another state that's fighting for Tesla's business. Tulsa, Oklahoma and Joplin, Missouri are two other proposed locations for the automaker's factory. We've also heard rumors about a possible facility in Nashville, Tennessee. When it comes to outright money, Joplin takes the lead with a $1 billion package.
Why Tesla Needs Another Factory
Tesla's in desperate need for another facility. Currently, the electric automaker only has one manufacturing plant in America, which is in California. The new facility will act as the primary location for Cybertruck manufacturing and will also be used for a little bit of Model Y production for the East Coast.
According to The Verge, Tesla is apparently looking into a 2,100-acre site near the Austin-Bergstrom International Airport. The automaker has an option where it can purchase the land outright for $5 million. The outlet claims Tesla would spend $1.1 billion to erect a 4 to 5 million square foot factory.
Tesla, according to the report, will also put 10 percent of the county's tax rebate back into the local Texas community. "Tesla consistently emphasized their desire to invest in the community, especially as it related to job training and workforce development (to include Houston-Tillotson University and Del Valle schools), public transportation, and affordable housing," wrote the county commissioners in the agenda for the meeting. "Travis County had as its goal creating a long-term philanthropic partnership with Tesla, not just a transactional agreement to be reviewed once a year.
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