Recent consideration of an amended agreement between Taylor and Samsung Austin Semiconductor affirms the company’s goal to have the equipment it needs to start operations next year, officials said. The Tax Increment Financing Zone No. 2 board met in a special-called meeting Thursday just before the regular City Council session.
The session related to Samsung’s incentives package is a follow-up to action taken earlier this year by the council when the elected representatives considered amended agreements with the South Korean company, officials said.
A TIRZ is an economicdevelopment tool in which property taxes generated by development are “plowed back” into the venture to promote infrastructure and community improvements.
The agreement, which city staffers said is needed to adhere to state tax codes, follows a months-long effort to curtail city expenses for plan reviews and inspections and to bring additional revenue into the general fund.
To that end, city officials wrote, the two organizations came to an agreement “... that further strengthens our partnership for our mutual benefit and the benefit of Taylor residents.”
As part of that agreement, the city placed a cap on the city’s obligation to reimburse Samsung for expenses related to plan reviews and inspections.
The second benefit was a guarantee that Samsung will begin bringing in equipment to start manufacturing chips by the end of next year.
See SAMSUNG • page 2 To that end, the amendment calls for reimbursements not to exceed $9 million if the company meets the equipment threshold and $5 million if Samsung does not meet the level agreed upon.
According to city documents, the “equipment threshold” means Samsung has installed and commissioned equipment and completed a safety level 2 inspection in connection with the project, with projected costs of $2 billion by Dec. 31, 2026.
The action also included removal of Linde Gas to the taxabatement agreement.
Linde Gas is a global industrial gases and engineering company formed from the merger of Linde AG and Praxair in 2018. The measure achieves compliance with Chapter 311 of the Texas Tax Code overseeing TIRZ development.
In related city communications, officials offered something of a primer for residents on the use of tax incentives to lure commercial development – including Samsung, which posted revenue of some $220.7 billion last year, an increase of 16.2 percent in 2023.
City Hall noted Samsung already has benefited the community, donating $1.19 million in funds in 2022 to various organizations – including $250,000 each to the Taylor Independent School District, Shepherd’s Heart food pantry and thrift, Bluebonnet Trails and the Boys & Girls Club of Eastern Williamson County.
According to representatives, Samsung also donated $1.3 million to Taylor organizations in 2023, the lion’s share going to a new career and technical education wing at Taylor High School.
Moreover, city officials noted, Samsung has established a yearly summer internship program with Taylor High students.
