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Thread · June 3, 2026

Grimes County Approves 100% Property Tax Abatement and PILOT Deal for Terafab

SpaceX secured a 35-year 100% property tax abatement for the $55B Terafab project in exchange for fixed annual PILOT payments of ~$20M plus upfront fees, framed as essential to remain competitive given high equipment costs. County leaders called it a 'generational change' while projecting net revenue gains of 25%+ from direct payments and indirect economic activity.

Key facts

  • 4-1 vote approves tax increment reinvestment zone and full abatement
  • SpaceX commits to $10M upfront + $20M/year (~$710M total) in lieu of taxes
  • Projected to become Grimes County's largest revenue source despite abatement
  • Opposition focused on transparency, resource strain, and rural character
SpaceX secured tax incentives on Wednesday for its proposed Terafab chip manufacturing project in Grimes County, Texas, despite fierce opposition from residents
— Reuters

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