The Houston City Council on Wednesday approved a tax break for Valero’s Houston refinery that will set the stage for an $800 million expansion at the facility. Via the Houston Chronicle, the refinery will be considered outside the city boundaries for tax purposes, allowing Valero to pay less in fees than it would if it remained in the city.
Approximately 160 acres of the site will transition to an industrial district. The remaining 29 acres are located more than 2,500 feet from the Houston Ship Channel and must remain in the city limits under state law. The Chronicle estimates that the city will give Valero a $5.5 million property tax discount on its existing facilities as an incentive to build new facilities.
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