Bastrop County approves SpaceX incentive nomination amid concerns

BASTROP COUNTY, Texas (KXAN) -- Bastrop County leaders approved a key step Tuesday that allows SpaceX to move forward in seeking tax incentives tied to a major expansion.

Bastrop County Commissioners unanimously voted Tuesday to nominate SpaceX's "Bastrop Kit Production Expansion" project as an Enterprise Project under the Texas Enterprise Zone Program.

SpaceX plans to invest $855 million to upgrade and expand its existing Bastrop facility, according to SpaceX senior manager Damien Barrera.

"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," Barrera said. "The real impact we believe of this investment is in the job creation."

County leaders echoed that message, saying it could contribute to economic growth in the area.

"It's a state program that they're entitled to -- if they create the jobs they're saying," said Precinct 2 Commissioner Clara Beckett. "So that's why I'm supporting that. We need jobs for our youth."

Some residents and advocacy groups criticized the move, raising concerns about potential subsidies.

Linda Curtis, executive director of the League of Independent Voters of Texas and a Bastrop County resident, questioned whether a company led by billionaire Elon Musk should receive incentives.

"The public does not understand why we need to subsidize the richest man in the world," Curtis said.

Curtis also raised concerns about the broader impact on small businesses and cost of living.

"That's what people are objecting to -- oh, he gets subsidies [if] my mom-and-pop stores is about to go out of business -- do I get any help? No," Curtis said. "And it ultimately winds up in the cost of living in a place."

County Judge Gregory Klaus emphasized that Tuesday's vote does not mean SpaceX is receiving incentives at this stage.

"We haven't given them anything," Klaus said. "SpaceX has not asked for anything... they've got to go through our permit and planning department just like everybody else."

The nomination now moves to the State of Texas, where officials will determine whether SpaceX qualifies for incentives under the Enterprise Zone Program.