The Robstown Independent School District reportedly granted a taxable value restriction pursuant to Chapter 313 of the Texas Tax Code for Tesla‘s proposed $365 million lithium refinery in Texas, as per Teslarati.
How would the tax abatements aid Tesla’s project?
The approved incentives would reduce Tesla’s land value tax liability to Robstown Independent School District to $20 million for its first ten years of operation. Notably, it is expected to commence by 2025.
That said, this tax abatement may spare Tesla $16.2 million in property taxes during that period, based on an Austin Business Journal analysis.
Objective
Tesla aims to construct the facility in Robstown, Texas, to refine, process, and produce battery materials for the automaker’s supply chain. That said, the battery plant will produce enough battery-grade lithium hydroxide for Tesla vehicles and big battery systems at the company’s production plants.
Tesla’s other property tax incentives application in Texas
The Commissioners conducted a community meeting in Nueces Country to discuss Tesla’s potential to get tax abatements under Chapter 312 of the Texas Tax Code. In accordance with this regulation, a property owner who makes improvements to their property is eligible for a temporary tax reduction.
Tesla representatives, including Senior Global Director Rohan Patel, argued that the automaker would manufacture li-ion batteries in a very sustainable process. That said, the operation at the proposed facility would require less water consumption compared to other factories.
“For this facility, the needs are fairly small, compared to an industrial facility, many industrial facilities that exist here, so what we’ve been told from the water authority, now I don’t have the facts and figures of what exactly is needed, but we’re happy to get that to you.”
Senior Global Director Rohan Patel
Tesla is undoubtedly striving to expand its battery business as it aims to secure critical supplies for its electric vehicles. With proper negotiations, the automaker would build one of the world’s greatest lithium refineries in Texas.
