The County Approved Four Agreements 4-0 on October 22. Tesla Contemplates a $10.1 Billion Investment and Up to 9,712 Jobs, but Has Not Yet Chosen Where to Build the Plant.
Updated October 26, 2026.
Fort Bend County approved on October 22 four tax incentive agreements in an effort to attract a Tesla solar manufacturing plant, valued at approximately $10.1 billion. The benefits could extend up to 35 years if the company meets certain investment, employment, and operating conditions.
The County Commissioners Court approved the agreements with four votes in favor and none against. The county’s interim judge, Daniel Wong, abstained due to a business relationship with Tesla, according to ABC13.
The decision allows Fort Bend to continue competing for Project Crystal Sun, a solar cell and module factory proposed on land near FM 762 and FM 1994, south of Rosenberg. However, Tesla has not yet confirmed that it will build the plant in Fort Bend County and is keeping another site outside Texas under consideration.
The Tax Incentives Could Last Up to 35 Years
The approved agreements establish different ways to reduce the local taxes Tesla would pay on eligible machinery, equipment, and inventory.
During the first 10 years of the project, the county would grant a 100% exemption of its taxes on eligible machinery and equipment used in the plant, under an agreement authorized by Chapter 312 of the Texas Tax Code.
After that period, an economic development agreement under Chapter 381 would allow Tesla to pay the taxes due on that equipment and receive from the county an annual refund equal to 90% for another 20 years, provided it satisfied the established conditions.
The package also contemplates a tax treatment for eligible inventory through a foreign-trade zone and payments in lieu of taxes agreements. The mechanisms applicable to inventory are different from the exemption on machinery and equipment.
The refund period could be extended from 20 to 25 years if Tesla achieves an average of at least 12,000 employees for two consecutive years within the first decade of operation. Under that condition, the first five years of the refund period would have a benefit equal to 100% of the eligible equipment taxes.
Thus, the primary incentives on machinery and equipment would total 30 years in the regular scenario and up to 35 years with the employment-conditioned extension.
Tesla Would Continue Paying Taxes on Land and Buildings
The approved benefits do not represent a blanket exemption from all property taxes. The land, buildings, and other assets that do not qualify for the machinery and equipment incentive would remain subject to the applicable taxes.
In addition, one of the agreements includes a supplementary payment mechanism so that Fort Bend County would receive at least $2 million per year during the applicable period, taking into account certain real estate taxes, the county’s share of retained revenue, and payments related to the foreign-trade zone.
The county has not provided a final figure for the total value of the incentives over decades. The amount would depend on the assessed value of eligible property, the plant’s operation, and compliance with the conditions.
Item 25 of Fort Bend County’s October 22 agenda identifies the four agreements: property tax exemption, economic incentives, participation in a foreign-trade zone, and county supplementary payments.
The Proposal Contemplates 9,712 Jobs and a $10.116 Billion Investment
Project Crystal Sun projects a total investment of approximately $10.116 billion, of which about $1.5 billion would be real estate and facilities and about $8.6 billion would be manufacturing machinery and equipment.
The proposal contemplates up to 9,712 permanent full-time jobs once the plant reaches its projected capacity. The original timeline anticipated that this workforce would be in place by 2033, if operations begin as planned.
During construction, Tesla estimates up to 1,147 temporary workers at the peak of activity. The facility would manufacture components for photovoltaic systems: it is not a solar farm dedicated to generating electricity for the grid.
The county agreements set employment and compensation targets to maintain the incentives. During the tax refund period, Tesla would need to demonstrate at least 90% of the 9,712 employment target and an average annual compensation equivalent to $55 per hour, calculated under contractual rules that include wages and certain benefits.
The $55 figure is an average compensation target to verify the agreement; it does not represent a guaranteed salary for each position.
The 12,000 workers required to obtain five additional years of incentives constitute a higher target than the initially projected 9,712 workforce. None of these figures correspond to vacancies currently open.
The Agreements Set June 2027 as the Deadline to Begin Construction
To retain the fiscal benefits, Tesla would have to begin construction no later than June 30, 2027 and begin regular commercial production of solar cells before December 31, 2030, in accordance with the contract terms.
The schedule allows for certain extensions related to force majeure, delays in electrical connection, or other causes provided for in the agreement.
Tesla’s original proposal envisioned starting commercial operations in the first quarter of 2029. That date is the company’s projection; December 2030 is the contractual deadline set in the incentives agreement, subject to the applicable exceptions.
The company still must decide where to locate the investment. Carlos Guzmán, the county’s director of economic development, told ABC13 that Fort Bend needed to approve the package to remain a competitive option compared to other sites.
Lamar CISD Also Participates in the Incentive Process
The county’s approval follows a prior decision by Lamar Consolidated Independent School District. On September 15, the district’s Board of Trustees approved moving forward with a school incentive agreement under the state law Texas Jobs, Energy, Technology and Innovation Act (JETI).
The program contemplates a temporary limitation on the taxable value of certain properties for the maintenance and operations component of school taxes. This is a mechanism different from the incentives now approved by Fort Bend County.
The file J0050 remains identified in the state JETI program request registry. The school district’s decision and the county agreements do not substitute for the corresponding state authorizations nor do they constitute a building permit.
Area Neighbors Raise Concerns About Traffic and Development
The site considered for the plant is located near FM 762 and FM 1994, in the southern part of Fort Bend County. In August, the county created Reinvestment Zone No. 34, comprising about 3,057 acres, to evaluate economic development tools in the area.
The tax agreements describe a proposed facility on a portion of about 1,732 acres within that reinvestment area. The size of the tax zone and the land identified for the factory do not represent the same measurement.
During public discussions, some residents expressed concerns about traffic, infrastructure, wildlife, and the changes that an industrial facility of this magnitude could bring near their homes. Other participants highlighted the investment and anticipated job opportunities.
The approval of incentives does not resolve these concerns nor replace the assessments and permits that may be required before construction.
The Final Tesla Decision Remains Pending
Fort Bend County has already approved the local agreements to attract Project Crystal Sun, but Tesla has not announced the final site selection, the start of construction, or a hiring schedule.
If the company chooses Fort Bend, the agreements set commitments of investment, employment, and operation that the county can review through compliance mechanisms. The figures of 9,712 jobs, a $10.116 billion investment, and up to 35 years of incentives remain contingent on the project’s development and compliance with its requirements.
