Houston-area board backs tax break for Tesla's $10B project

A Houston-area school district unanimously approved a tax break for Tesla's proposed multibillion-dollar facility Tuesday. 

This video created with the assistance of AI.

Lamar Consolidated Independent School District (CISD) approved a tax break for Project Crystal Sun- Tesla's proposed $10.1 billion solar cell advanced manufacturing facility. The project-potentially slated for a portion of roughly 3,000 acres in southeastern Fort Bend County-would generate nearly 10,000 full-time jobs by 2033.

"It is a competitive site selection decision," David Denison, an advisor to Tesla for the Jobs Energy Technology and Innovation (JETI) application, said at the meeting. "They're analyzing two locations right now, one in Texas and one outside of Texas, and they have a responsibility and a duty to make sure that they site the facility where it will be most successful and will be constructed and operated at the lowest cost." 

After an hour-long public hearing, board members voted unanimously to approve a proposed tax agreement that would halve Tesla's taxable property value from 2029 through 2038. The project is expected to generate about $153 million in Lamar CISD taxes over 20 years. 

"There is a delta between the other site and this site and we believe that JETI could get close to leveling the playing field," Denison said. 

RELATED: Grimes County residents push back on SpaceX megaproject plan

What would be built?

The application anticipates Project Crystal Sun could become commercially operational by the first quarter of 2029. 

Plans detail industrial buildings, production lines, supporting utility infrastructure, warehousing for raw materials and finished products and related site improvements, according to the Lamar CISD website . The facility would manufacture photovoltaic solar cells and assemble them into solar modules, also known as solar panels.

The JETI application details the creation of 1,147 temporary construction jobs, 9,712 permanent full-time jobs by 2033, with an estimated annual payroll of $1.3 billion.

Tesla's employment projections anticipate construction activity during 2026-2028, followed by permanent hiring beginning in 2029," the Lamar CISD website reads.

RELATED: Elon Musk promises Tesla will 'flood Austin' with steering-wheel-free Cybercabs

Residents speak out: 'Vote no' vs. 'Please support this project'

During the public hearing, several residents expressed opposition to the project , raising concerns about pollution, traffic and more.

"I'm here tonight to urge you to vote no on granting a state JETI tax abatement for Tesla's Project Crystal Sun," Daniel Saffron, a Greatwood resident, said. "They plan to run heavy chemical processes…while pulling heavily from our water tables and putting massive demands on our power grid. Who's going to pay for the fallout? We are."

Jennifer Rodriguez, who said she moved to Fort Bend County roughly a year ago from the Galleria, shared similar environmental concerns.

"Converting thousands of acres of open land into an industrial hub risks altering local wildlife movement," Rodriguez said. "Number two, massive infrastructure strain on local roads. This massive industrial corridor will severely increase gridlock and compromise the safety of our district's school bus routes and daily commutes for local families."

Other speakers raised concerns about the disproportionate strain on public resources, the fast-tracked approval process, a lack of information, potential job losses as technology advances and the project's compatibility with the school district's mission.

A few residents spoke in favor of the project, highlighting its potential benefits.

Jim Rice, reading an open letter from former Lamar CISD Superintendent Thomas Randall, said the project could be "one of the largest economic development investments in our nation's history."

Another long-time Fort Bend County resident, Jim Russ, urged board members to support the initiative.

"I wanted to come here tonight to show my support," Russ said. "Not only for the jobs it's going to create…but the economic impact that it will make to the community and the value that it will bring into a region that…continues to need that value as it continues to grow. I encourage you all to please support this project."

What happens next?

Denison said the school board's approval allows Tesla's application to move forward with the state.

The Texas Comptroller's Office has recommended approval. The application will now go to Gov. Greg Abbott's office for final consideration.

Tesla is still evaluating sites and has not officially selected Fort Bend County.

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This article originally published at Houston-area board backs tax break for Tesla's $10B project .