SpaceX has won a 100% property tax abatement from Grimes County, Texas, for its proposed, massive $55 billion Terafab semiconductor chip manufacturing facility. According to a local news outlet, KBTX, Grimes County commissioners voted 4-1 on Wednesday, June 4th, to approve both a reinvestment zone designation and the tax abatement, which will fully exempt SpaceX from property taxes tied to the project in exchange for a regular payment instead.
In exchange for the tax exemption, SpaceX will instead remit a lump sum of $10 million to the county, followed by $20 million annually for 35 years. The vote — centered on a three-part proposal for the SpaceX Terafab facility, consisting of an obligation framework for jobs and infrastructure, a Tax Increment Reinvestment Zone designation, and a 35-year PILOT tax abatement agreement — followed a hearing that drew in more than 100 residents to the Grimes County courthouse.
