The Lamar Consolidated Independent School District (Lamar CISD) board voted unanimously on Tuesday night to approve a tax break for Tesla’s proposed $10 billion solar cell factory in Fort Bend County. The vote sends the project’s application to the state’s Jobs, Energy, Technology and Innovation program (JETI), where Texas Gov. Greg Abbott’s office must still sign off.
The new project, named Project Crystal Sun, would be built on more than a thousand acres of land owned by the district in the southeastern part of the county. Work is expected to begin in 2026, with the finish date set for 2028.
The Deal: Half Off Taxes For Two Decades
Under the proposed arrangement, Tesla’s tax bill would be cut in half from 2029 through 2038. In exchange, the company’s projected tax revenue would anchor the project in the southeastern portion of the county.
Texas makes certain property eligible for maintenance-and-operations taxes, according to the Comptroller’s office estimates Tesla would receive an estimated $115.2 million tax benefit over 20 years under the proposed tax limitation. Lamar CISD would tax half the value of the company’.
The district tax revenue from the project stands at roughly $268.3 million without the tax break. Once the tax break is applied, that number falls to $153 million.
Board Votes And The Superintendent’s Promise
Jacci Hotzel, who serves as School Board President, supported the measure, pointing to the economic benefits it would bring 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.”
Superintendent Roosevelt Nivens said the district is not losing money.
“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.”
Gregory Buchanan, the chief financial officer for Lamar Consolidated Independent School District, said the arrangement would bring in roughly $89 million in income over 16 years. He explained that the proceeds would help the district reduce its outstanding bond debt.
“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.
The board also voted 7-0 in favor of a 0.6% lower property tax rate of $1.1390 per $100 valuation.
Tesla’s Site Search And Job Claims
A number of Tesla representatives were present at the public hearing in Rosenberg, with engineer Evan Young among them. Board member Jon Welch questioned whether Tesla might substitute the proposed job positions with robots instead. Young replied that the facility will use automation to improve quality, but there is no plan to put jobs at risk due to advanced automations.
Young did not answer questions on light pollution. Instead he spoke on roads and water use, stating that the firm would put in place a major wastewater facility to keep the amount of water drawn down to the site.
David Dennison of Kroll, the financial advisory firm representing Tesla’s business interests, said the company is currently analyzing two sites for the project — one in Texas and another undisclosed location. 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.
According to the presentation by Kroll, the $1.3 billion in annual pay for the positions Dennison mentioned will become possible once the facility is fully operational. Tesla’s JETI application points to an estimated project completion date in 2028.
Public Comments From Parents
Not everyone agreed. Lamar CISD parent Daniel Saffron spoke in opposition, calling the project “a wolf in sheep’s clothing” and saying the school district is signing its rights away with this agreement.
“[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 relocated from the Galleria area in Houston to Fort Bend County, where she said the proposed facility sits near Brazos Bend State Park in Needville. She has expressed worries about how the project could affect the nearby environment.
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.”
What Comes Next
The comptroller’s office recommended approving Tesla’s JETI application nearly two weeks ago. School officials were required to decide within 30 days whether to enter into the proposed JETI agreement, as required under state law.
The state’s final decision remains pending.
| Stage | Status |
|---|---|
| Lamar CISD board vote | Unanimous approval |
| Comptroller recommendation | Approved |
| State JETI approval | Pending |
| Construction start | Projected 2026 |
| Completion date | Projected 2028 |
Every voice in the room agreed on the vote. The comptroller put forward a recommendation for the application. The governor’s office is where the final decision rests. Two sites are being weighed by Tesla. Both sides of the issue have already been heard by the community.
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