Tesla submits application with Del Valle ISD for ‘Gigifactory,’ $68M in tax incentives proposed

DEL VALLE, Texas (KXAN) — Tesla is looking to build a 4 million to 5 million square-foot manufacturing plant in the Austin area, and it would like to build on land within the Del Valle Independent School District with more than $68 million in tax incentives, an application with the Texas Comptroller’s office says.

Tesla, owned by billionaire tech magnate Elon Musk, wants to put an electric vehicle manufacturing facility — a Gigifactory — at the intersection of State Highway 130 and Harold Green Road on about 2,100 acres, according to the application. The property is currently home to a concrete batch plant owned and operated by Martin Marietta.

Musk has repeatedly expressed interest in putting a plant in Texas. He has Tesla plants in California, Nevada and New York. The proposed plant would build the next version of Tesla’s Model Y electric car.

The plant would create an estimated 5,000 jobs, according to Tesla’s Section 313 tax limitation application with the school district, and wages would be around $74,000 per year.

If approved by the school district, construction on the facility could start in the third quarter of this year. Tesla said it has to come to an agreement or else it will build somewhere else. Tesla paid Del Valle ISD $150,000 on May 21 to file the application.

“Since school taxes are the largest component of local property taxes, the Section 313 tax limitation is especially critical to create a level playing field between Texas and other states vying for this project,” a letter from Tesla in its application reads. “Therefore, obtaining the 313 limitation is a determining factor in the decision whether to locate the project in Texas.”

The property tax incentives would be spread out over 10 years.

The United Auto Workers union, and Texas AFL-CIO president Rick Levy, don’t want Tesla to come to town, though.

They wrote a letter to Travis County Commissioners saying Tesla relies heavily on taxpayer subsides, yet falls short on its commitments.