Samsung, a multinational electronics company, has reportedly submitted paperwork to officials in Texas, in request of a billion dollars in tax incentives. This document has been submitted with an aim to make Austin the future hub for its new chip factory worth $17 billion.

As per the documents filed in January, Samsung revealed plans to provide 1,800 permanent job opportunities in the factory over the first 10 years of its launch, with over $66k as the average starting salary. In order to reach this target, the company has requested a 100% payment break to Travis County for 20 years, which will account for savings of approximately $718 million, as well as a 50% break on the taxes paid to Austin for 5 years, with an estimated range of $87 million. Furthermore, it expects the state to subsidize the payment of property taxes to the school district.

Samsung holds a strong belief that the new project is highly competitive, with the appraised value limitation as a determining factor due to the high tax rates of operating in the region. The company is likely to locate the new facility in Korea, New York, or Arizona if it fails to obtain the appraised value limitation award.

Following the anticipated outcome of the factory development in Austin, it is planning to expand the existing chip-making plant as well, which was established in the region in 1997. This plant presently employs over 10,000 people. For the record, the company also has bought 257.7-acre of land near the existing facility.

Samsung is reportedly overestimating the incentives it could receive from the city, since electric car company Tesla received approximate tax rebates of only $60 million from the school district and county, despite the differences in costs, salaries, and employment numbers. The electronics company is, however, believed to have used the billion-dollar tax incentives figure as an opening for negotiation.

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https://www.theverge.com/2021/3/3/22311825/samsung-texas-austin-chip-factory-expansion-choice-jobs-tax-incentives