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Facility may pursue $3.75M in state tax refunds
Commissioners last week cleared the way for SpaceX to seek designation tied to a proposed $855 million expansion of its Bastrop Starlink facility, opening the floor for familiar debates surrounding incentives and environmental concerns.
County officials approved an enterprise project nomination related to the company’s growing Starlink manufacturing operation May 26. The approval allows SpaceX to pursue a triple jumbo enterprise project designation through the Texas Enterprise Zone Program for the expansion and up to $3.75 million in state sales tax refunds.
With the designation, the program’s highest level, the expansion would bring increased manufacturing capacity, warehouse space and production infrastructure. SpaceX officials said the company looks to produce 10 million Starlink kits annually by the end of 2026 and add hundreds of jobs with average salaries exceeding $75,000.
“This keeps Bastrop and Texas at the center of our Starlink program, and we plan to move all Starlink kit production here to Bastrop County,” said Damian Barrera, tax department senior manager at SpaceX. “The real impact, we believe, of this investment is in job creation.”
Barrera said SpaceX already employs 1,590 workers at the Bastrop facility and has surpassed the 500-job threshold required for the designation during the first five months of 2026. The satellite and space exploration company is currently hiring 100 to 150 employees for positions including technicians, operators, engineers and support staff.
Under the enterprise zone terms, according to Barrera, 35% of new jobs are required to be filled by residents of economically disadvantaged areas.
“The majority of the jobs will be entry level, producing very great jobs of high technical quality work for the local workforce,” he said.
The nomination drew voices in favor and criticism from residents during public comment, with opponents questioning the potential impacts of ramping industrial growth.
Kathryn Hammer urged commissioners to delay similar projects until more environmental analysis is completed.
“Growth cannot come at the expense of our community,” she said. “Fixing environmental and infrastructure damage after the fact will be far more costly than implementing common sense regulations now.”
Supporters of the project argued the expansion would bring jobs and long-term tax revenue to the county.
“SpaceX is projected to pay more than $10 million to Bastrop Independent School District within the first year,” resident Lauren Underwood said. “That’s a pretty good deal if they’re only getting a $3 million tax payment.”
Kamil Cook, an organizer with Public Citizen, said residents across Texas are questioning large-scale technology and industrial projects. Cook asked whether a company associated with what could become one of the largest public offerings in history should receive any form of public incentive.
“Elon Musk says he’s going to be paying for it, but we’re going to be paying a lot more,” Cook said. “If they’re going to invest almost $900 million in capital, why not invest a few million more?”
County officials emphasized SpaceX has not requested or received county property tax abatements.
Commissioner Clara Beckett said counties have limited authority over commercial development under Texas law and often use incentive negotiations as one of the few available tools.
“It’s a state program … they’re entitled to it if they create the jobs they’re saying,” Beckett said. “That’s why I’m supporting it, we need jobs for our youth.”
Beckett said Bastrop County is joining neighboring counties in urging state lawmakers to grant local governments greater oversight authority over commercial development projects.
“In the last three sessions of the legislature, there hasn’t been a lot of movement,” she said. “We’re there fighting for your voice.”
