Thread by @NateMJensen

Samsung renewables applied for a 10 year incentive for a solar farm through Texas #Chapter313 program. I love investments in renewable energy, but this program is terrible. (1/11)

First of all, this program largely incentivizes petrochemical investments in the state. So it isn't a renewable energy program. It money for energy. In Texas. One of the most energy rich states in the country. (2/11)

This solar facility will get millions in tax abatements for 1 job. One. They got the ok (a waiver) to only create 1 job. So the are fine to get their incentive. (3/11)

In their application they say there will be 250 construction jobs in the first two years. But wait, the application says that somehow it will create over 1,000 more jobs indirectly. This seems wild. What multiplier are you using? And why? They only have to create 1 job. (4/11)

This program has a 25 year test, where the total amount of incentives given has to be less than the taxes generated over 25 years. So if you get $10 million in tax abatements in the first 10 years, you have to raise $10 million in taxes over 25 years. Sound easy? (5/11)

On their first try their math didn't work out. Solar depreciates too quickly. If you look at the bottom, they will get $13 million in incentives, but only generate $9 million in taxes. The "No" means they failed the test. No incentive. But... (6/11)

The economic development consultants have a trick. What it we also count all of the workers wages. You know, the 1 worker. Plus the construction workers. Plus the over 1,000 mystery indirect workers. Any guesses? (7/11)

With some creative accounting, this solar project can pass the 25 year test. It will get $13.15 million in incentives. And with enough mystery jobs it will generate $13.2 million in tax revenues. Wow, that worked out almost perfectly. (8/11)

Wait, they have another project by Samsung, in another school district. How many mystery jobs do they create? 697 of them are enough to pass the test. (9/11)
assets.comptroller.texas.gov/ch313/1516/151…

A small number of consultants work on these projects. And you can find lots of solar projects that all used different numbers. These consultants also work with petrochemical companies. This isn't about solar. It's about working the system. (10/11)
comptroller.texas.gov/economy/local/…

Chapter 313 is a classic example of an incentive program where companies game the system. Everyone knows it. I can see it be skimming a document for 5 minutes. Everyone is in on it. And it might be renewed for another 10 years without any evaluation or reforms. (11/11)