Micron plans to apply for property tax breaks

Micron Technology, one of the world's largest manufacturers of semiconductor storage and imaging products, is considering spending $160 billion to build a new semiconductor factory in central Texas . The company filed an application with the state comptroller's office for property tax breaks in exchange for a potential new facility near Lockhart, a suburban city about 30 miles (48 kilometers) south of Austin.

According to the application, the project will be constructed in eight phases, with construction commencing in January 2023 . A spokesman for the company declined to comment on its potential investment. But companies such as Micron are rushing to file before the tax break, known as Chapter 313 of the Texas tax code, expires at the end of this year.

"We have not made any final decisions on where, when or how much to expand," Micron spokeswoman Moira Whalen said in an email. "Submitting these applications now allows us to preserve options for future expansion to meet long-term needs."

This year saw a record number of filings under Section 313 of the Texas Tax Code. Another chip maker, Samsung Electronics, has submitted multiple applications to build factories in Austin and Taylor, Texas. However, the company said it has no specific plans to build a factory. 

In its filing, Micron noted that Texas' high property taxes are not good for developers, and that the tax relief would be a determining factor in the company's decision to locate its factories in the state.

"Therefore, without the Tax Code Chapter 313, the economic rate of return for this program would be higher outside of Texas," the filing reads.

Last year, Micron announced that it would spend $150 billion on factories and research and development over the next decade.

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