Hutto might be joining neighboring Taylor in hosting a new resident in the global technological landscape.
On March 31, the Hutto ISD board of trustees vote to accept an application from Applied Materials for a Texas Tax Code Chapter 313 Agreement pursuant to the Texas Economic Development Act.
“On behalf of the board of trustees, we welcome the opportunity to engage with Applied Materials and the possibilities of their significant investment in our community and our schools,” said Superintendent Celina Estrada Thomas.
Applied Materials is based in Santa Clara, California, but also has a manufacturing center in Austin. The corporation produces materials and offers services to companies in the semiconductor chip industry. Semiconductor chips go into electric circuits found in many modern electronics.
“Beyond the investment, we look forward to the fruitful partnerships that can arise from their presence,” said Thomas. “The availability of quality jobs, careers, and educational partnerships provide promising futures for every sector of the Hutto labor force.
The proposed tax limitation agreement is a planned semiconductor project within Hutto ISD’s boundaries. The project has a proposed total investment of $2.4 billion.
If the comptroller certifies the application and the board approves an agreement, the taxable value of the project would be limited to $80 million for the school district’s maintenance and operations (M&O) portion of its tax rate for 10 years. The business would pay the full amount of property taxes for the interest and sinking (I&S and debt service) portion of the school district’s tax rate.
Under the Texas Economic Development Act, a qualified business agrees to build or install property and create jobs in exchange for a 10-year limitation on the value of taxable property. The acceptance of the application starts the process for the submission of a proposed Chapter 313 Agreement, which will be presented to the board of trustees at a later board meeting. Generally, a proposed agreement is presented to the board within 150 days from the date the Texas Comptroller determines that the application filed is complete. Within that time frame, the Texas Comptroller will review the application and certify that the project meets statutory requirements and the state benefits of the proposed project outweigh the benefits to the applicant.
The district has hired its own legal counsel and financial consultants to analyze the potential benefits of the project on the district.
“We are excited and energized by this announcement,” said Thomas. “We welcome a new generation of Applied Materials Hippos.”
The new company could make east Williamson County a hub in the chip industry with Samsung Austin Semiconductor planning to break ground on a new semiconductor plant later this year. Samsung plans to invest $17 billion and build a semiconductor manufacturing plant on six million square feet in Taylor. The plant is expected to create 2,585 new jobs, with 785 indirect jobs and 1,800 direct employment positions at the facility.
Ahead of last week’s announcement, writer Travis E. Poling reported in the April edition of the East Wilco Insider publication Hutto stands to benefit from additional economic development related to Samsung and had two unnamed technology companies that combined were looking to build more than 600 acres of a 1,400-acre “megasite” set aside for large development off U.S. 79.
