Tesla among surge of companies rushing to take advantage of Texas’ expiring tax incentive program

The Austin-based electric car company Tesla wants to leverage an expiring state tax incentive program to build what could be the nation’s first plant that produces battery-grade lithium hydroxide, which electric cars require for energy storage purposes. Tesla applied for a tax break under a state program that would enable the company to potentially avoid millions in property taxes to build the projected $375 million plant in Nueces County.

The impending end of Chapter 313 has touched off a rush of applicants, state officials testified at a legislative hearing this week, as the state’s energy and manufacturing companies try to lock in massive property tax breaks before time runs out. Tesla hopes to build the lithium hydroxide refinery amid increasing demand for electric vehicles that has caused the lithium market to surge. Between June 2021 and June 2022, the price of the lightweight metal increased more than sixfold, according toTesla CEO Elon Musk has publicly expressed interest in the lithium market, referring to the processing business of the rare metal as a “license to print money”in July.

“In the case of the investment on this proposed project in Texas, the decision will be based on a number of commercial and financial considerations, including the ability to obtain relief regarding local property taxes,” Tesla’s application said., the tax program could save Tesla about $16.2 million in taxes.

TexasTribune Of all the companies to say no to Tesla is the one because they will probably build it anyway because now Texas is their home and where are the final products will be used but the plant in Austin (probably)

TexasTribune Sigh.

TexasTribune Screw them.

TexasTribune This would be huge. We need more manufacturing in the US economy. If Texas is the direct beneficiary, all the better.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Tesla among surge of companies rushing to take advantage of Texas’ expiring tax incentive programThe Chapter 313 program was eliminated amid concerns about a lack of accountability and...
Source: ExpressNews - 🏆 519. / 51 Read more »

Flying high: Houston company leads businesses into drone-assisted futureProfessional Drone Services was among the first wave of companies offering drone services...
Source: HoustonChron - 🏆 609. / 51 Read more »