Tesla’s $10.1B Texas solar gigafactory clears key tax hurdle

A Houston-area school board approved a 10-year property tax limitation for Tesla's Project Crystal Sun, a vertically integrated solar cell and module manufacturing facility.

Tesla’s proposed $10.1 billion solar cell and module manufacturing facility in Texas has cleared a major local regulatory hurdle following a unanimous vote by a Houston-area school board.

The board of trustees for the Lamar Consolidated Independent School District (Lamar CISD) voted 7-0 to approve a property tax incentive agreement for the clean energy project. Code-named Project Crystal Sun, the application outlines a 3,050-acre factory site near Richmond in Fort Bend County.

The agreement provides a 10-year property tax limitation on the taxable value of eligible property for school district maintenance and operations purposes from 2029 through 2038, addressing a key site-selection requirement Tesla outlined in its filings.

Public documents filed with the state confirm a $10.1 billion total capital commitment, which includes $1.5 billion in real property alongside $8.6 billion in manufacturing equipment and personal property. Tesla projects that the plant will create 9,712 permanent full-time positions once fully operational, along with 1,147 peak construction jobs.

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