KHOU
Tesla is considering building a massive solar manufacturing facility near Needville that the company says could represent a $10.1 billion investment and eventually create nearly 10,000 permanent jobs.
The proposed project is detailed in a public application Tesla submitted through the Texas Comptroller’s Jobs, Energy, Technology and Innovation, or JETI, program.
According to the filing, Tesla is evaluating property near FM 762 and FM 1994 within Lamar Consolidated Independent School District for a facility that would manufacture photovoltaic solar cells and potentially assembled solar modules. Tesla estimates the project would represent an investment of approximately $10.1 billion.
Tesla’s filing says the facility could be commercially operational in the first quarter of 2029.
An economic benefit statement included with the application says Tesla intends to create 9,712 full-time permanent positions at full operations, with an estimated annual payroll of about $1.3 billion. The company also projects about 1,147 temporary construction jobs at peak construction.
John Diamond, a Rice University economics professor and public-finance expert, told KHOU 11 that the projected number of permanent jobs makes the potential project stand out.
“To have something like this with 10,000 permanent jobs is really extraordinary,” Diamond said. “Like there’s very few businesses like that.”
Diamond said the economic impact could extend beyond the facility itself as workers spend their income throughout the surrounding community.
“That spending just goes into the local economy and creates income from other people,” Diamond said.
What is Tesla asking for?
Tesla’s application also lays out tax incentives the company says could play a role in whether it ultimately chooses the Fort Bend County site.
Tesla is requesting an appraised-value limitation from Lamar CISD through the state’s JETI program.
The company is seeking the limitation for 10 years. In its filing, Tesla says property taxes are among the highest operating costs for large capital-intensive developments in Texas and that without incentives, the projected economics of the Texas site would be less favorable than a competing location.
Tesla says it is evaluating another viable site outside Texas and that the Fort Bend County location is “not competitive” with that site without incentive support, including the JETI value limitation and potential tax abatements from local jurisdictions.
“So they just want a break if they’re going to bring all of this,” Diamond said. “And Tesla is saying, you know, we would like a break on our property taxes. Now they’re not asking to pay zero.”
Comptroller: Tesla’s application remains under review
The Texas Comptroller’s Office told KHOU 11 Thursday that Tesla’s JETI application is still under review and has not yet been recommended for an agreement.
Agency spokesperson Kevin Lyons said Tesla submitted its original application for an agreement with Lamar CISD on Aug. 6, followed by supplemental application materials on Aug. 14 and Aug. 20.
“We are currently determining whether our office will recommend the project for a JETI agreement,” Lyons told KHOU 11 in an email.
The Comptroller’s Office also said its own economic impact analysis — which would include the gross tax benefit associated with the proposed incentive — has not yet been released. The agency said that information would be included in a recommendation packet if the application is recommended.
What did Fort Bend County approve?
Fort Bend County commissioners took a separate preliminary step Monday connected to the proposed development.
Commissioners voted 4-0, with one abstention, to create a reinvestment zone around the proposed project site.
During the meeting, county officials explained that under state law, the county must establish a reinvestment zone before commissioners can consider a potential property tax abatement within it.
The action did not approve a Tesla tax abatement. Instead, it created the zone the county would need in place before it could consider a potential abatement at a later date.
Tesla has not announced a final location for the facility. Its application says another site outside Texas remains under consideration.
KHOU 11 also reached out to Tesla for comment but had not received a response as of Friday evening.