2020-06-21

Tesla wants a tax break of $68 M to locate its Cybertruck giga factory close to Austin

Article Edited by | Jhon N |

Image:-tesla

Tesla is seeking a property tax reduction of up to $68 million from a Texas school district to build a factory which will be used to produce Model Y crossovers for the East Coast market and its upcoming Cybertruck pickup. The Del Valle School District application located in Travis County, southeast of Austin

The application to the Del Valle School District in southeast Austin's Travis County was made public by the Texas comptroller's office on Thursday and was first reported by the Austin Statesman. One of several potential incentives deals aimed at attracting the automaker to the state is the property tax abatement proposal, which the school district has agreed to consider. Travis County commissioners also weigh a possible package of incentives which has yet to be made public. And if there is any guide to the process of approving Tesla's factories in Nevada and New York, there is also a likelihood of State incentives. Other beneficial rewards Texas could offer Tesla, such as allowing the automaker to sell directly to consumers, a method that is banned in the State.

According to the application Tesla does not yet own the land. The company does have an option to purchase the land, CEO Elon Musk wrote in a tweet on Thursday correcting a report that the company had already purchased the property.

The timing of the application, which comes just a few months after Musk tweeted that Tesla was scouting locations for a so-called "Cybertruck Gigafactory," illustrates the pressure the firm is exerting and the speed at which the deal is coming together. If approved, Tesla said the construction will commence in the third quarter of 2020.

. Tesla looked at Nashville and was there in conversations with officials. In May, Tesla informed Nashville officials that the city for its gigafactory location is out of the running.

That leaves Tulsa, Oklahoma to lock in a factory that could employ thousands of workers as the remaining dark horse in the race. And while many believe Texas is the sure winner, Oklahoma continues to push forwards.

"Tulsa is to attract Tesla's giga-factory in the final run. We have put together a compelling, well-balanced and, more importantly, a responsible performance-based incentive package to attract Tesla to Oklahoma, "said Sean Kouplen, Secretary of Commerce and Development for Workforce Oklahoma in an emailed statement. "Our offer includes not only the standard incentive package submitted to companies interested in locating in Oklahoma but also financial commitments to improve local infrastructure and invest in our workforce, expanding educational programs within our academic institutions to ensure that Tesla has a pipeline of qualified recruitment workers."

In his statement, Kouplen argued that the central location of Oklahoma, its pro-business stance and the Automotive Engineer Workforce Tax Credit would make Tesla the right choice for the state.

"We are aware that we can attract engineers to Tulsa. We've actually already shared thousands of resumes from qualified candidates who would move to Oklahoma for a Tesla job with Tesla, "Kouplen stated. "The State, Tulsa and our partners in the community have come together to demonstrate that Tesla would be a welcome addition to our state. It was best expressed by Tulsa Mayor GT Bynum when he said, "Tulsa is a city that does not stifle entrepreneurs – we revere them!