In exchange for the projected tax revenue that’ll come from the proposed Tesla facility anchored in the southeastern portion of the county, the company’s tax bill would be cut in half from 2029 through 2038, according to the application.
The Lamar Consolidated Independent School District (Lamar CISD) board voted unanimously in favor to approve a tax break for Tesla’s proposed $10 billion Tesla solar power manufacturing facility in Fort Bend County on Tuesday night.
With the school board’s approval, the company’s application with the state’s Jobs, Energy, Technology and Innovation program (JETI) will move forward for approval from Texas Gov. Greg Abbott’s office. Project application documents from the company suggest a construction start date in 2026 and completion date in 2028.
School Board President Jacci Hotzel said she voted in favor because of the economic impact coming to the district.
“I really look forward to our students benefitting from this,” Hotzel said. “I hope this is the beginning of a beautiful, lifetime partnership.”
Tesla officials are eyeing over a thousand acres of district-owned property in the Houston-area suburb’s. It would be located in the southeastern part of the county. The new facility would be called Project Crystal Sun.
In exchange for the projected tax revenue that’ll come from the proposed Tesla facility anchored in the southeastern portion of the county, the company’s tax bill would be cut in half from 2029 through 2038, according to the application.
The proposed facility would manufacture solar cells and panels that convert sunlight into electricity, according to documents submitted to the comptroller’s office. The products would be used in large-scale solar farms, commercial buildings and residential solar installations.
Lamar CISD would tax half the value of the company’s eligible property for its maintenance-and-operations taxes. The Texas Comptroller’s office estimates Tesla would receive an estimated $115.2 million tax benefit over 20 years under the proposed tax limitation. The project is estimated to generate about $153 million in Lamar CISD taxes with the tax break, compared to $268.3 million without it.
Nearly two weeks ago, the comptroller’s office recommended approving Tesla’s JETI application. Hotzel said school officials were required to decide within 30 days whether to enter into the proposed JETI agreement, as required under state law.
Superintendent Roosevelt Nivens said the school district isn’t losing money with this project.
“I want to make sure that we’re clear to say that the state is going to make us whole in our imminent tax rate,” Nivens said. “So if we do lose $15 million dollars, the State of Texas is going to give that back to us.”
Lamar CISD Chief Financial Officer Gregory Buchanan said the deal would allow the district to gain an estimated $89 million in revenue over 16 years, which, he said, would allow them to pay down debt on their bonds.
“A project like this would definitely be looked favorably on by our creditors to continue our AAA [bond] ratings and our credit ratings,” Buchanan said.
At the board meeting, members also voted 7-0 in favor of a 0.6% lower property tax rate of $1.1390 per $100 valuation.
Tesla representatives weigh-in
Multiple Tesla representatives were at the public hearing in Rosenberg, including engineer Evan Young, who said while the facility will demand a large number of people and will employ automation to enhance quality, there’s no plan to jeopardize the jobs based on the advanced automations. Young’s comment came after board member Jon Welch asked Tesla representatives if the proposed job positions being offered by Tesla might be taken over by robots.
When asked about how the project would impact light pollution for surrounding communities, Young didn’t have a response, but did respond to comments on roads and water usage.
“We’ll be implementing a significant wastewater facility to minimize water to the facility,” he said.
David Dennison works for Kroll, the financial advisory firm representing Tesla’s business interests. He said Tesla is currently analyzing two sites for this project, one in Texas and another location undisclosed during the meeting. He said the “massive investment” would bring almost 10,000 full time jobs, and create around $1.3 billion in direct compensation for the community.
“[Tesla] has a responsibility and a duty to make sure that they cite the facility where it will be most successful and be constructed and operated at lowest cost,” Dennison said.
The $1.3 billion in annual pay for the jobs Dennison referred to would be attainable when the facility is fully open, according to the presentation by Kroll. Tesla’s JETI application shows a suggests an estimated project completion date in 2028.
Parents speak out
Lamar CISD parent Daniel Saffron was one of a handful of public speakers in opposition to the measure and called the project “a wolf in sheep’s clothing” in which the school district is signing its rights away with this agreement, when tax payers, he said, would be the ones footing the bill down the line.
“[Tesla] wants to come here. Make no tax abatement if this is such a great land for you,” he said. “You guys have billions and billions of dollars.”
Jennifer Rodriguez was one of the parents concerned about how the facility will impact the surrounding environment. Rodriguez moved from Houston’s Galleria area to Fort Bend County and said the proposed facility is not far from Brazos Bend State Park in Needville.
Mary Barnes was another concerned parent.
“While I see economic reasons to support the project,” Barnes said, “I do see some potential risks and burdens on the tax payers of Fort Bend County in helping build up infrastructure and support energy production for Project Crystal Sun.”
The majority of the public speakers were in favor of the financial partnership within the county, including Keri Schmidt, Fort Bend Regional Partnership president.
“An investment of approximately $10 billion would transform our economic future and create new career pathways for Lamar CISD students whether they pursue a university degree, technical training or enter the workforce directly,” Schmidt said.
The proposed Tesla site is near schools that also serve students with a range of economic and educational needs. In 2024–25, nearly half of students at Manford Williams Elementary were considered economically disadvantaged, according to data from the Texas Education Agency. At Reading Junior High, about 29% of students were economically disadvantaged.
The site is also within a diverse part of Lamar CISD, where nearby campuses serve students from several racial and ethnic groups. At Manford Williams Elementary, about one-third of students are Hispanic or Latino, while Black and Asian students account for roughly another 28% and 19%, respectively, according to TEA data.
Commissioners approve reinvestment zone
Fort Bend County Commissioners unanimously approved establishing a new economic reinvestment zone where the project could be located during an Aug. 24 special meeting.
The reinvestment zone will encompass over 3,000 acres of land where development and residential neighborhoods are planned near FM 762 and FM 1994 in the southeastern part of the county.
Interim County Judge Daniel Wong recused himself from the vote due to a conflict of interest involving his personal business, Tolunay-Wong Engineers, Inc. which has worked on several projects with Tesla, according to the engineering firm’s website.
Board Vice President George Arroyos called the vote “huge.”
“[Commissioners] overcame the biggest impasse in history to meet on this particular issue, and all four commissioners voted in favor of establishing a reinvestment zone,” he said.
The proposed site in Fort Bend County would add to a growing portfolio of Elon Musk-related companies in Texas. Austin is home to Tesla’s vehicle assembly site, as well as other energy-storage related sites, according to documents submitted to the Comptroller’s office. Tesla and SpaceX are also building a massive $16.8 billion semiconductor chip manufacturing facility in Grimes County, located about 70 miles northwest of Houston.
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