Tesla one step closer to Austin 'Gigafactory' as Del Valle ISD OKs tax incentive deal

The Del Valle ISD school board approved an economic incentives agreement with Tesla, which has proposed to build a $1.1 billion Gigafactory in Southeast Travis County, at a meeting on July 9.

Under the 10-year deal, Tesla will pay property taxes on only 20% of the factory's assessed value—a savings of around $50 million—to the school district. In exchange, the electric carmaker has promised 5,000 new jobs, most of which are middle-skill positions that do not require a college degree, and a fleet of workforce development programs.

Construction could begin as soon as this fall, according to Tesla's application for the incentives agreement.

Tesla is also negotiating a separate economic incentives agreement with Travis County, whose Commissioners Court is scheduled to vote on whether to approve the terms this Tuesday.

A Tesla representative said June 23 that Austin is at the top of its list but that economic incentives are required "to make the economics of a factory work."

Tulsa is also courting Tesla and hopes to be home to its next factory, which will produce its latest model, the Cybertruck pickup, as well as a mid-size SUV called the Model Y.