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Taylor ISD approves Samsung, Linde Chapter 313 applications

Chapter 313 incentives allow Texas school districts to limit the taxable value of a property for a portion of school taxes.

AUSTIN, Texas — Taylor ISD has approved Chapter 313 applications for both Samsung and Linde.

The Austin Business Journal reports that during a Dec. 5 special meeting of Taylor ISD's board, trustees approved nine applications for Samsung Electronic Co. Ltd.'s potential $167.6 billion expansion and a single application for a $271 million project from Linde Inc.

According to the ABJ, while there is still no guarantee the factories will be built, the application approval is a significant step for both Samsung and Linde, "setting them up to potentially save millions or even billions of dollars on property taxes" through the Chapter 313 program, which is set to expire at the end of 2022. The incentives allow Texas school districts to limit the taxable value of a property for a portion of school taxes, with a cap of $10 million to $100 million for up to a decade, according to the ABJ.

Samsung Austin Semiconductor LLC is proposing to build nine additional fabs in Taylor, in addition to the $17 billion chipmaking facility that is already under construction. The ABJ reports the additional fabs could create 8,200 jobs with a capital investment of at least $167.6 billion, with one plant coming online every year between 2034 and 2042.

Samsung has also submitted Chapter 313 applications to Manor ISD to build two additional fabs at its site in North Austin. The projects, according to ABJ, have a proposed capital investment of $24.5 million and 1,800 jobs. Manor ISD is set to discuss the applications on Monday.

The ABJ reports that if Samsung is ultimately approved for all of the incentives agreements and the projects proceed as described, the company could save nearly $4.8 billion on its property taxes over the course of the agreements.

Meanwhile, Linde has proposed investing $271 million in the facility and creating at least 10 jobs on land at the Samsung site, according to the ABJ. Construction would start in 2026, and operations would commence by the end of the following year. The ABJ reports that Linde is seeking to place an $80 million cap on the value of the land for maintenance and operations school taxes.

If it is approved for the incentives and the project proceeds as described, Linde could save about $11.1 million on property taxes over the course of the agreement, according to the ABJ.

Samsung sent KVUE the following statement regarding the Chapter 313 application approval:

"Samsung is pleased with Taylor ISD's passage of the proposed Chapter 313 applications, as Samsung is constantly exploring various opportunities to strengthen our leadership in the foundry industry 

Having already initiated a $17 billion investment in Taylor, Samsung's vision is to continuously enhance its ability to provide U.S. companies and markets with advanced semiconductor technologies needed to stimulate growth and fuel innovation for the future

However, no final decisions have been made; these agreements are for potential, long-term planning purposes only 

Samsung looks forward to our partnership with Taylor ISD, and building on an already strong 26-year track record of semiconductor manufacturing in Central Texas."

To learn more, read the ABJ's full report.

Boomtown is KVUE's series covering the explosive growth in Central Texas. For more Boomtown stories, head to KVUE.com/Boomtown.

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