County Proposes PILOT Payment Plan for Solar Farm

Young County commissioners unveiled a proposed tax abatement structure for the $265-million Tapaderos Solar Farm, introducing a Payment in Lieu of Taxes (PILOT) plan that amounts to roughly a 20-percent county tax abatement on the controversial project.

The proposal was revealed after commissioners met in executive session on Dec. 8 with the county’s consultant, then returned to open court to present the plan to residents.

Opponents of the project have criticized both the substance of the proposal and the process used to advance it. Rancher Tommy Donnell argued that the abatement removes approximately $3 million in potential tax revenue from the table and that negotiations with the developer have not been as transparent as they could have been.

County Judge Win Graham said in a Facebook post on Dec. 13 that commissioners followed legal requirements and worked to secure stronger financial protections for the county than are typical in similar solar projects across Texas.

“The abatement agreement negotiated by the court with Titus will generate $12.2 million in revenue for Young County over the first 10 years of the project—a 64% premium over the amount in Titus’s application,” he wrote. “This $12.5 million includes an annual PILOT (Payment in Lieu of Taxes) of $1.14 million, $300,000 in contributions split among our [volunteer fire departments] and the Sheriff ’s Office, $430,000 in estimated sales tax revenue collected in Young County, and $30,000 in document execution fees.”

The agreement also includes “numerous performance-based covenants and protections that would not be available to the County otherwise,” he said.

The Commissioners secured a 75foot natural vegetation buffer between the property line and the solar farm with an additional buffer for any equipment located within 500 feet of a business or residence, he said. The contract requires that all sales tax incurred by the project be declared in and paid to Young County. “Without this clause, the developer would be free to pay their sales taxes at their places of purchase or import rather than in Young County,” he said.

Commissioners voted to begin the process of designating a reinvestment zone designation and a formal tax abatement agreement with Titus Low Carbon Ventures (LCV), the developer of the Tapaderos Solar Farm. A public hearing on the reinvestment zone designation was scheduled for Jan. 25, 2026, followed by a vote, with a final vote on the tax abatement agreement set for the Jan. 26, 2026, Commissioners Court meeting.

Judge Graham said copies of the draft tax abatement agreement were distributed to everyone in attendance at the December meeting and filed with the county clerk as a public record.

Without an abatement, Judge Graham said the project would likely generate about $7.3 million in county tax revenue over its first 10 years. He noted that similar projects in Bosque and Lamar counties were assessed at lower values per installed megawatt than what the Tapaderos agreement would effectively establish. Judge Graham also said Young County’s proposed PILOT payment of $2,439 per megawatt exceeds those negotiated in Jack and Wilbarger counties.

“If this PILOT payment had been included in the recently approved budget, our tax rate could have been lowered by almost 7.5 cents,” Judge Graham wrote.

Opponents of the project have repeatedly told commissioners they oppose any tax abatement for solar or data center developments, arguing that large-scale industrial projects threaten the county’s agricultural base, water resources, and rural quality of life.

Commissioners have said they are trying to balance those concerns with the county’s long-term financial needs, noting that Young County has limited options to expand its tax base without raising property taxes.

Jeff Ferguson, president of Titus, said the company plans to begin construction on the Tapaderos Project near Eliasville sometime in 2027 after it completes the regulatory process required by the Texas Public Utility Commission. If all goes as expected, the plant will begin operating in 2028, he said.