Texas City is considering to offer South Korea based consumer electronics manufacturer Samsung Electronics Co Ltd. (KRX: 005930) large property tax breaks if the tech giant chooses a location in the state to set up a $17 billion chip plant.
Samsung is considering one of the two locations in Texas to build the plant, Austin, Texas is competing with the city of Taylor to win the plant site. The company said that it’s also considering other potential sites in New York and Arizona.
This mega chip production facility is expected to create new employment opportunities to 1,800 people. The other potential sites are yet to reveal planned tax breaks.
According to the proposed resolution on Taylor City’s website, the land to be used by Samsung is set to be offered a grant equivalent to 92.5% of assessed property tax for 10 years, 90% of the following 10 years and 85% for the next 10 years after that.
Additional offers include 92.5% tax waiver on new property built on site for 10 years plus a repayment of development review costs.
The Taylor site is located about 25 miles from Austin and it will sit on 1,187.5 acres (4.81 square kilometers) which is much bigger than the Austin site.