Texas – Samsung is proposing a taxpayer-subsidized incentives package that could be worth more than $1 billion to convince the tech giant to choose Austin as the home for a new $17 billion chip fabrication plant.
For comparison, here’s a look at other significant incentives agreements, both in Texas and elsewhere, in recent years:
Samsung in Austin
As it looks for new incentives dollars, Samsung already has previous incentives deals in place related to its Austin operations. The Manor school district previously approved two Chapter 313 agreements with Samsung for its existing facility here. Those agreements — one created in 2005 and the other 2012 — are ongoing and are providing the tech giant with an estimated $200 million in tax breaks over a 17-year period that ends in 2023.
Tesla in Austin
In July, electric automaker Tesla and its CEO Elon Musk announced that the company had chosen a site in the Austin metro area as the home for its new $1.1 billion assembly facility.
The tech company got some tax breaks to help make the deal happen — potentially worth up to $60 million.
The Del Valle school district approved just over $46 million in property tax breaks for the company over 10 years. Travis County commissioners approved tax breaks for Tesla valued at a minimum of about $14 million over 10 years if the company invests $1.1 billion in the factory. The amount of the tax breaks will grow substantially if Tesla invests more over the 20-year life of the agreement.
Williamson County leaders in 2018 approved incentives for a $1 billion Apple campus in North Austin.
Under the agreement, Apple agreed to spend at least $400 million to buy and develop land in Robinson Ranch over 15 years. To receive the incentives, Apple must create 4,000 full-time equivalent jobs during the 15-year term of the agreement, which will begin the full tax year after the company’s creation of the first 700 jobs.
In return, Williamson County will reimburse Apple 65% of their property taxes for 15 years. How much money Apple will get back is not yet clear since it depends on the appraised value of the land in the next decade-plus. The American-Statesman estimated it could be about $16 million.
