The state of Texas and the city of Austin will pay dearly after landing the new Tesla truck plant, a plant that will cost the two governments more than $1 billion a year in tax breaks.
When Tesla, Inc. made its splashy announcement last month that it will build a $1.1 billion Cybertruck factory in Austin, the electric vehicle maker’s decision was celebrated as a once-in-a-generation opportunity for the region.
Tesla, which picked Austin after seriously considering a site in Tulsa, Oklahoma is expected to create 5,000 jobs in Central Texas and strengthen the state’s position in the automotive industry.
But Texans will pay a hefty price for the gains reported the San Antonio Express-News.
Under Chapter 313, a little-known provision of the Texas tax code, taxpayers will pay millions of dollars annually over the next 10 years to Tesla, which has a market value of more than $200 billion, as part of the package of public giveaways the manufacturer will receive. By 2022, the tax breaks will cost Texas more than $1 billion a year.
Source: San Antonio Express-News