Commissioners discuss tax abatement for solar project

The Young County Commissioners discussed a tax abatement for the Tapaderos Solar project from Titus Low Carbon Ventures (LCV) which will be located approximately nine miles west of Eliasville.

The project is a 300 megawatt solar power facility with 200 megawatts of battery energy storage with an estimated investment of approximately $264.4 million. The landowners accepted a lease agreement with the company for the purpose of constructing and operating the project.

“The proposed improvements include road, solar photovoltaic modules, foundations, electrical collection systems, permanent meteorological towers, power transformers and inverters, a collection substation to permit the interconnection and transmission of electricity generated by the project, and an operation and maintenance building,” the application states.

A 10-year abatement was requested by the company which would begin after the commercial operation date which is estimated for the fourth quarter of 2028.

Taxing jurisdictions that will receive the benefit from an increase in ad valorem tax base due to the project development will be Young County, Woodson ISD and the Graham Regional Medical Center Hospital District.

The project has an estimated life expectancy of 40-50 years. Construction of the renewable energy solar project is anticipated to begin in the fourth quarter of 2027 and take 12 months.

An abatement is the full or partial exemption of taxes of certain property in a reinvestment zone designated by the county for economic development purposes.

Within the application the company stated it was requesting a reinvestment zone designation.

In order to be eligible for a designation as a reinvestment zone and receive a tax abatement, the planned improvement must be expected to have an increase in positive net economic benefit to their county of at least $10 million over the life of the abatement.

“The impact on local business in the area will be significantly positive. From the construction materials such as steel/metal, rebar, concrete materials and supplies, electrical supplies, local equipment and vehicle rentals, hotels for specialized tradesmen, and the restaurants and retail that support hundreds of workers during the construction will be positively impacted by the expenditures,” the application states. “The proposed projects also have the potential to attract new businesses to the area.”

The creation of new jobs will also factor into the county granting an abatement. The project must also not be expected to transfer employment from one area of Young County to another.

The company will require 150 temporary full-time construction employees during the peak of the construction phase. One permanent full-time employee will be employed to maintain and service the solar panel panels, underground electrical connections, substation and other infrastructure associated with the sage and reliable operation of the project.

The project will utilize approximately 1,400 of the 2,200 acres leased, with other areas serving as a buffer area for the project. 

Concerns were raised by community members about the fire response in the area as well as the environmental impact of the project in the area.

The county met Monday, Feb. 24 and made no decision on whether or not they were in favor of an abatement but will explore the option with their law firm Allison, Bass & McGee. The commissioners are also waiting on the results of the environmental study from the company which is currently underway.