It’s been a few months since Elon Musk got his dream company city, and Starbase is proving to be a great fit for the rocket billionaire.
The Starbase City Commission nominated two SpaceX projects for the Texas Enterprise Zone tax-break program, offering the company a whopping $7.5 million tax refund, according to local news outlet ValleyCentral.com. The company town, comprised mostly of SpaceX employees, voted during a public hearing Wednesday for the Starship building factory, Gigabyte, as well as the rocket’s launchpad infrastructure.
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According to the Texas Governor’s Office, Texas Enterprise Zones provide economic incentives through tax refunds to companies, intended to encourage private investment and job opportunities in “economically distressed” parts of the state. To qualify for tax refunds, companies need to be nominated by the local communities where they are located.
According to the program, if a company spends at least $250 million and creates at least 500 new job opportunities, it is eligible for the “Triple Jumbo Project” designation and can receive $3.75 million in tax refunds.
SpaceX’s first qualifying project is a massive production facility for its Starship and Super Heavy boosters. The company plans to invest $506 million to build GigaBay, with the goal of producing 1,000 Starship rockets per year at the facility.
SpaceX also plans to expand launch infrastructure to support its next-generation Starship rocket and its increased launch cadence. According to the company, the Starship Infrastructure Expansion Project is expected to create 500 new jobs at Starbase, with 25% of the new positions to be filled by local residents. SpaceX intends to reinvest its tax refunds into Starship operations and infrastructure.
“Between the first project and this project, we’re adding over 1,000 jobs over the period of about a year,” Damian Barrera, SpaceX’s tax manager, said during the public hearing, according to Valley Central. “So that’s something we’re very excited about.”
Musk first floated the idea of turning Starbase into its own city in 2021, a longtime dream that could empower SpaceX to build more facilities and transform the surrounding landscape. In May, the SpaceX CEO got his wish when residents voted in favor of turning Starbase into their own city. The town covers approximately 1.6 square miles (4.1 square kilometers) and is home to approximately 500 nearby residents, the majority of whom are SpaceX employees and contractors.
After the local community votes in favor of SpaceX to cash in on the tax refund, the state will need to approve the nomination before giving the company its money. A maximum of 105 projects are sanctioned across the state every two years.