The automaker Toyota has submitted paperwork that signals a potential expansion near its existing San Antonio manufacturing campus. The plan, known internally as Project Orca, would install a new full vehicle assembly line and represents a roughly $2 billion capital commitment. The company has asked state authorities for tax and incentive support under the Jobs, Energy, Technology and Innovation Act, and the proposal lays out a multi-year construction and hiring schedule.
Officials filing the application stated the new assembly line must be located close to an existing Toyota facility, and Toyota has provided confidential site-selection materials to state reviewers. While specifics about the exact parcel remain private, the proposal includes details on projected employment, tax treatment, and the timeline needed to meet production targets.
Project scope and timeline
The submission to the Texas Comptroller indicates construction for Project Orca would span several years, with work planned to occur between 2026 and 2030. Toyota estimates an initial disbursement of funds in early project phases and anticipates the new line reaching full operational capability by 2030. Under the plan, production would ramp in phases tied to hiring milestones and equipment installation.
Hiring targets and capacity
Toyota projects the creation of approximately 2,000 jobs at the new assembly line. The company’s scheduled hires are broken out across three years: about 320 workers in 2028, roughly 1,440 workers in 2029 and another 240 workers in 2030. These figures are central to the incentive request and to local workforce planning, as the firm has emphasized proximity to current operations to enable efficient staffing and supplier coordination.
Financial incentives and tax treatment
To support the expansion, Toyota applied for a package of state and local incentives, including a request under the Jobs, Energy, Technology and Innovation Act. The company’s filing requests a 10-year tax incentive that would reduce maintenance and operations (M&O) tax valuations during the incentive period if certain investment and job thresholds are met. In Bexar County, the thresholds require at least $200 million of investment and more than 75 jobs—benchmarks the proposal exceeds by a wide margin.
Projected tax trajectory
The application shows estimated M&O taxes during the incentive window and beyond. During the ten-year incentive term, M&O taxes would be set at 25% of full value, with increases tied to on-site machinery and equipment early in the term. Reported projections indicate those taxes would stabilize at about $645,019 annually through the end of the incentive period and then rise to more than $2.5 million per year once incentives expire.
Relationship to existing investments and site constraints
This proposed assembly line would sit alongside other recent Toyota investments in the region. Separately, Toyota is building a new rear axle facility — a $531 million project sometimes referred to in filings — consisting of a roughly 500,000-square-foot plant expected to open later this year and ramp up production in 2027. Toyota emphasized that Project Orca must be co-located or near an existing Toyota site and must have access to adequate transportation and utility infrastructure.
Strategic rationale
In public statements, Toyota describes its guiding principle as “build where we sell and buy where we build,” underlining a strategy to align production with customer demand and supplier networks. The company noted it routinely reviews its manufacturing footprint to remain competitive in North America and declined to provide additional commentary beyond the filing.
Approval process and local response
The Texas Comptroller’s Office reviewed Toyota’s application and recommended approval of the proposed incentives, concluding that the company’s future tax contributions would offset the short-term revenue reductions. The recommendation now moves to Governor Greg Abbott, who has a 30-day window to act, followed by a separate 30-day period for Southwest Independent School District approval. If no incentive agreement is executed within one year, the application would lapse.
Southwest ISD has publicly stated support for the application and plans to host a public meeting to discuss community impacts. District officials highlighted potential positive effects on the South Side of San Antonio and on local employment opportunities.
Next steps
Toyota must pay an application fee to the school district as part of the process and await formal sign-offs from state and local entities. Meanwhile, site-selection negotiations remain confidential, and Toyota has not named a specific parcel for the assembly line. The outcome will determine whether the automaker proceeds with the multi-year buildout that could reshape manufacturing activity in the region.
