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Nevada, Tesla Reach Agreement On Tax Breaks For A Battery Plant Near Reno

nvidia.corporation / Flickr
 

nvidia.corporation / Flickr

Nevada Governor Brian Sandoval says he and Tesla Motors CEO Elon Musk have reached an agreement on tax incentives to build the largest battery plant in the world east of Reno.

Nevada state officials say the $5 billion factory would add $100 billion to the Nevada economy over 20 years.

The state is offering tax incentives and exempting Tesla from sales, property, and business taxes for at least 20 years.

Sandoval says the incentives and tax breaks will be worth it to bring jobs to Nevada.

“We knew that this was an opportunity that we had to fight for, we took this chance because like Tesla and like Elon Musk we are determined to moving our country and our global economy forward," he says.

Sandoval says for every dollar the state gives in incentives, it will get a $80-return. The Nevada legislature is expected to be called into special session next week to consider the tax incentives.

Meanwhile, a California economist says it’s no surprise that Tesla Motor Company has chosen Nevada instead of the Golden state as the site of an electric car battery manufacturing plant. 

Nevada’s governor says the factory will change the state forever. He says the plant will create about 6,500 jobs and will add four perfect to the state’s GDP.

“Nevada is a completely logical choice," says Levy, who is with the Center for Continuing Study of the California Economy. He says land is cheaper and more ample in Nevada.

“California is a high cost location for a manufacturing operation that needs low land and labor cost, and has concerns about the availability of housing for its employees.”

Levy says California is suitable for very high-tech manufacturing.

Governor Jerry Brown and state lawmakers tried to lure Tesla with a package of tax incentives but they say Tesla demands were unreasonable.