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Wednesday, 18 August 2021 16:58

Rivian Could Get $440M Tax Incentive for 2,000-Acre Texas Facility

Written by Maria Merano, Teslarati
Rivian Could Get $440M Tax Incentive for 2,000-Acre Texas Facility Rivian

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Rivian could benefit from a $440 million tax incentive from the City of Fort Worth, TX, if it meets specific requirements.

Rivian’s potential Texas factory promises to deliver at least $5 billion in direct capital investment and more than 7,500 new jobs to the city.
  
Fort Worth’s City Council was scheduled to vote on an economic development agreement with Rivian on Aug. 17. The meeting also included a public hearing and council votes to designate Rivian’s potential factory a tax abatement reinvestment zone. 

 

Local media reported the city council approved a $440 million tax incentive package with Rivian. However, city council records have not been updated and do not reflect the approval yet.

 

According to city records about Rivian’s Texas factory, Fort Worth proposed to enter into an Economic Development Program Agreement (EDPA) with the EV automaker to provide up to 15 annual grants, capped at $440 million. Rivian must comply with specific requirements to qualify for the tax incentives. 

 

There are three investment requirements that Rivian must meet. First, Rivian’s three facilities for vehicle manufacturing, component manufacturing and its development center must be completed by Dec. 31, 2024. Second, Rivian must spend a minimum of $2 billion in construction costs by Dec. 31, 2024, and $1.6 billion of the expenses must go toward hard construction.

 

The last requirement pertains to the minimum taxable appraised value of Rivian’s facilities. The exact wording of the condition is as follows: “On or before Jan. 1, 2025, the company must locate or cause to be located taxable business personal property (BPP) that is new to the city on the project site having a minimum taxable appraised value of $3 billion upon the first assessment.”

 

Besides the investment conditions, Rivian must spend at least 15% of hard and soft construction costs with contractors from a Certified Minority and Women Business Enterprise (M/WBE) company. If Rivian fails to comply with this requirement...


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