Fort Bend County commissioners in Texas approved a package of tax incentives on Thursday for Tesla's proposed $10.1 billion solar cell factory near Needville, clearing one of the last local hurdles before the company chooses a site. Each of the four agreements passed by a 4 to 0 vote.
According to agenda notes from the Fort Bend Commissioners Court meeting, the measures included a property tax abatement within Reinvestment Zone No. 34 and a Chapter 381 economic development agreement. Commissioners also approved a foreign trade zone non-objection paired with payments in lieu of certain taxes, along with a separate agreement to "true up" those payments.
The initiative, known internally at Tesla as "Project Crystal Sun," would produce solar cells and finished modules on about 3,000 acres near FM 762 and FM 1994, south of the Brazos River. Tesla's filing under the state's JETI Act, first reported by Teslarati in August, divides the investment into $1.5 billion for real property and $8.6 billion for equipment. It projects 9,712 permanent jobs by 2033 and targets commercial operations in the first quarter of 2029. The plant would cover the full production chain, from ingot and wafer manufacturing through cell testing.
The vote does not secure the location. Tesla has told the Texas Comptroller that it is still considering other sites. In September, site selection adviser David Dennison told Lamar Consolidated ISD trustees that the contest had narrowed to Fort Bend and one out-of-state competitor offering a "very compelling package," the Houston Chronicle reported. Tesla hopes to make its decision before the end of 2026, and the incentives still require approval from the Comptroller and the Governor's office.
Local bodies have now completed nearly all the steps within their authority. Commissioners created the reinvestment zone at an August 24 special meeting, where Interim County Judge Daniel Wong formally recused himself because his engineering firm had previously worked with Tesla. On September 15, Lamar CISD trustees voted 7 to 0 to advance a JETI agreement that would tax Tesla's qualifying property at 50 percent of its value for maintenance and operations from 2029 through 2038.
The proposed plant fits with a goal Elon Musk laid out on Tesla's Q4 2025 earnings call in January. He said the company would "work toward getting 100 GW a year of solar cell production, integrating across the entire supply chain from raw materials all the way to finished solar panels." In March, Tesla was reported to be negotiating a $2.9 billion purchase of Chinese solar manufacturing equipment destined for Texas.
Tesla already has a significant presence in the Houston area through its Megafactory in Brookshire, where production of Megapack 3 has begun. The company said on its Q3 call that its Megapack supply for 2027 is nearly sold out. On Thursday, Musk wrote on X that Tesla is "increasing production of Megapacks as much as possible" as demand from data centers rises.
