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Tesla could get more than $60 million in tax breaks to build factory in Travis County
(wolterke/Adobe)

A proposal would give Tesla up to a $68 million tax break to locate its next factory in Austin.

Del Valle ISD is considering an economic incentives deal with Tesla that could save the electric carmaker nearly $70 million on property taxes for a proposed assembly plant.


Tesla's application to the school district—which was made public by the Texas Comptroller's office today—proposes building a 4 million- to 5 million-square-foot facility in Southeast Travis County that would ultimately create 5,000 jobs with an average annual salary of around $47,000.

The factory would be located at the intersection of SH 130 and Harold Green Road.

In a statement sent to Austonia, Charisse Bodisch, senior vice president of economic development for the Austin Chamber, said: "The potential location being explored is an underutilized site that is in clear need of revitalization, and it would be a perfect for for an environmentally focused organization like Tesla."

If approved, construction on the "Gigafactory" would begin this fall and operations would start up in late 2021.

Tesla applied for an incentives deal under the state tax code chapter 313, which allows school districts to offer a 10-year cap on taxable property value to companies to promote new development and job creation.

Tesla requested an appraised value cap of $80 million for the proposed project.

In its application, the company estimates that, without the cap, the taxable value of the property would be at least five times greater—ranging from $432 million in 2022 to $773 million in 2025.

At a property tax rate of 1.31%, per the application, Tesla would pay $78,591,442 in property taxes to the school district over 10 years for the actual value of the site. However, with the cap of $80 million in place, the company would pay $10,480,000 over the same time period—for a total estimated savings of $68,111,442.

"Tesla is looking forward to establishing a strong working relationship with Del Valle ISD and the greater Austin community," Mark Olson—the company's senior director of U.S. Tax—wrote in a May 26 letter to Del Valle ISD Superintendent Dr. Annette Tielle.

The Travis County Commissioners Court is also considering a separate incentives deal, but the terms have not yet been made public. Its members will receive presentations from county staff and Tesla representatives on the proposed agreement next week.

"The Court encourages the public to provide input on Tuesday when it takes up the item," Travis County Public Information Officer Hector Nieto said in an emailed statement. "It is the Court's intention to not take any action on the item."

Earlier this week, union representatives urged commissioners to reconsider such a deal given Tesla's "track record of collecting public subsidies from several states but not delivering on their promises."

The proposal names SH 130 and Harold Green Road as the potential location of the plant.

This story has been updated to correct the average salary of the proposed new jobs.

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Tito's releases (not so?) ugly sweater line for the holidays, profits to charity

Tito's Handmade Vodka

Show your love for Tito's and for the community this year with a wide selection of not that ugly, uglyish, ugly, uglier, and ugliest holiday sweaters.

There's lots choose from, and plenty of accessories like scarves and socks, plus gear for your dog, too.

All of the items can be purchased online or at the Love, Tito’s Retail Store in Austin, TX. 100% of all net proceeds from online or in-store purchases go to one of the nonprofits we’ve teamed up with.

Click here to see the entire collection in the Tito's store.

Mac and Cheese Fest and Free Art Exhibit
Waterloo Greenway, Good Vibrations Installation


🗓 All weekend

🎨 Creek Show Art Exhibit

Check out this highly anticipated art exhibition with illuminated art along Waller Creek. Tickets are free and the event includes food vendors, dazzling lights, live music, and hands-on activities

All weekend 6 p.m - 10 p.m | 📍Waterloo Park

✨ Mozart's Light Show

This iconic holiday tradition lights up for the first time this holiday season starting this weekend! Reserve your spot for an enchanting light and sound performance, delicious hot cocoa, sweet treats, and some overall fun with your friends or family. The show runs till January 6th.

6 p.m and 9 p.m | 📍Mozart's Coffee Roasters - 3825 Lake Austin Blvd, Austin, TX 78703

🗓 Saturday

🥊 Kickboxing in the Park

This fitness event is free and open to the public. Get your morning started right with a "Fitness in the park" class for kickboxing! The class will be led by certified instructors and is a great way to get a cardio workout in while also honing your self-defense skills.

10 a.m - 11 a.m | 📍 Metz Park

🛍 The Front Market

Support local LBGTQ+ and female artists at this outdoor market with over 150 vendors. Get your holiday shopping out of the way at this event, with vendors for food trucks, handmade goods, raffles, hands on workshops and activities, and more.

11 a.m - 5 p.m | 📍Ani's Day and Night - 7107 E Riverside Drive, Austin, TX 78741

🗓 Sunday

🧀 Mac and Cheese Fest

Did someone say cheese?! If you're like me and always willing to get your hands on a bowl of mac and cheese, then this event is for you. Check out the Mac and Cheese festival happening this weekend to decide which vendor has. the best mac and cheese for yourself, and enjoy the bar with creative cocktails while you're at it. Tickets start at $45.

11 a.m - 3 p.m | 📍Lantana Place - 7415 Southwest Parkway