NVIDIA CEO Jensen Huang speaks on how AI infrastructure and AI factories that generate intelligence at scale are powering a new industrial revolution. The chip-producer secured at least $23 million in incentives from Irving to support its operations and any future expansion.
Manuel Balce Ceneta/AP
Nvidia, the most valuable company in the world, secured at least $23 million in incentives from Irving earlier this month as the chipmaking giant aims to produce supercomputers domestically.
Irving City Council approved the incentives and tax breaks for ten years. City leaders also lent support for a foreign trade designation for Nvidia’s facility. A price tag for the incentive package was not provided during public meetings or in associated city documents. Officials provided The Dallas Morning News with the projections Thursday.
Article continues below this ad
City officials estimate the value of the tax rebate at least $23 million over the next decade. Additional breaks will be provided based on any increase in the taxable value of the company’s equipment and property at 1101 Valley View Lane.
The total taxable value of its Irving holdings are $782.5 million, according to estimates of city officials and the Dallas Central Appraisal District.
Attempts to contact Nvidia were not returned before publication. The chip giant also agreed to pay the city a sum each year if the site is designated a foreign trade zone.
Make Dallas News a preferred source so your search results prioritize writing by actual people, not AI.
Add Preferred Source
Driven by its pivotal position in the world AI hardware, Nvidia’s market capitalization hovers around $5 trillion — rivaling tech giants Apple and Google parent company Alphabet. Irving’s move underscores the role Dallas-Fort Worth plays in the AI boom.
Article continues below this ad
“Working alongside our partners at the City of Irving, we were glad to be able to activate our economic development tools to ensure companies like NVIDIA and Mellanox maintain and increase their significant presence in our community for years to come. We are so pleased they will continue to call Irving home,” Beth Bowman, president and CEO of the Irving Economic Development Partnership, said in a statement.
Under the terms of the deal, Nvidia will receive a 100% rebate on any increase in value above its current $782.5 million. Irving will collect $2.3 million from the company — either in the form of taxes or a combination of taxes and a direct payment, city officials said.
At its current rate, Nvidia is expected to pay just over $4.6 million in city taxes. Irving would keep $2.3 million, and the remaining amount would be returned to Nvidia.
Article continues below this ad
The direct payment would come if the site is designated as a foreign trade zone. Irving leaders argued the payment in lieu of tax agreement had to be approved to ensure the city would be paid.
Inventory held for export and certain imported inventory would be exempt from ad valorem taxes. The designation also provides Nvidia with some tariff protections.
Nvidia must meet certain requirements to receive the incentive. The company must extend its lease by Dec. 31, 2027, and occupy the property for the next 10 years. Nvidia must maintain property with a minimum taxable value of $782.47 million for at least a decade.
The agreement could be extended for two additional five-year terms if both parties agree. If Nvidia fails to meet the terms of the deal, the company is required to repay all incentives received over the past two years plus interest.
Article continues below this ad
The legislation creates an 8.3-acre tax abatement reinvestment zone, but the incentive package only applies to Nvidia’s holdings.
Portions of the incentive packages were discussed by Irving City Council members during executive sessions earlier this year.
People look at Nvidia products during the Computex 2025 exhibition in Taipei, Taiwan.
ChiangYing-ying/AP
The incentive package is inline with others provided to larger corporations in North Texas. Plano approved a $20 million grant and lengthy tax rebate for AT&T. The telecom giant plans to build a multibillion-dollar headquarters on 54 acres in the northern suburb.
Article continues below this ad
Nvidia gained an Irving presence following its $7 billion acquisition of Mellanox Technologies, a producer of high-speed adapters, switches and software, in 2020.
By signing up, you agree to our Terms Of Use and acknowledge that your information will be used as described in our Privacy Policy.
Multiple tenants call 1101 Valley View Lane home, including Mark Cuban’s Cost Plug Drugs Co., according to Dallas County tax records. The land is owned by Bal Business Interiors TX Owner LP.
Nvidia announced plans last year to build factories that would produce its supercomputers entirely in the United States, including in Texas.
Article continues below this ad
Nvidia partner Winstron, a Taiwan-based electronic manufacturer, selected two sites near Alliance Airport in Fort Worth to build new manufacturing facilities. Fort Worth officials approved a $30 million tax abatement agreement for the facility.