Tesla is considering a 10 billion USD investment in a solar manufacturing facility in Fort Bend County, Texas, known as Project Crystal Sun. The proposed plant would handle the full production cycle, from silicon ingots to finished modules, with commercial operations targeted for the first quarter of 2029.
Fort Bend County commissioners have approved four tax incentive agreements that could provide Tesla with up to 35 years of tax relief. These measures include a 10-year property tax abatement on production equipment, followed by a 20-year period where 90% of paid taxes are returned as grants. The agreement duration could extend to 35 years if Tesla meets specific employment targets.
To qualify for these incentives, Tesla must begin construction by June 30, 2027, and initiate commercial production by December 31, 2030. The company is required to invest 10 billion USD by the end of 2031 or two years after production begins. Additionally, Tesla aims to create 9,712 jobs with an average hourly wage of 55 USD.
The agreements include a guaranteed minimum payment to the county of 2 million USD annually. While the deal covers production equipment, land and buildings remain fully taxable. Tesla has not yet made a final commitment to build the plant in Texas, using the incentives as part of its site selection process.
