Menu

Nevada assembles $1.25 billion incentive package to woo Tesla Gigafactory

Nevada assembles $1.25 billion incentive package to woo Tesla Gigafactory

Jake Dean

You can look at a new Tesla at the electric carmaker’s NorthPark Center gallery, but you can’t buy one there.

Nevada put together a $1.25 billion tax incentive package to woo Tesla's Gigafactory battery plant, according to the Reno Gazette-Journal[1].

The 20-year package is more than double the $500 million sought by Tesla CEO Elon Musk[2] to draw the plant that's predicted to revolutionize the electric car industry, the newspaper reported.

If the deal is approved by the Nevada Legislature, Tesla will essentially operate in the state tax free for 10 years. In exchange, the company must invest a minimum of $3.5 billion in manufacturing equipment and real property in the state over the next two decades.

At a news conference Thursday, Nevada Gov. Brian Sandoval[3] predicted the plant will have an economic impact of $100 billion during that 20-year period.

Sandoval[4] said the plant will create 3,000 immediate construction jobs for Nevada workers and will employ 6,500 new workers with an average wage in excess of $25 an hour with benefits. It will mean another 16,000 indirect jobs for a total 22,500 jobs created.

“We have reached an agreement ..., subject to legislative approval and review, that will enable Tesla to build the world’s largest and most advanced battery plant right here in the Silver State,” the governor said.

Sandoval[5] is expected to call a special session of the state's Legislature to vote on the incentive package as early as next week.

Musk later told reporters that Nevada was it, and that the company would stop looking[6] for a second location for a factory.

Texas, one of five states vying for the economic development prize, had reportedly assembled an $800 million incentive package.

Paul O'Donnell is editor-in-chief of the Dallas Business Journal. Subscribe to our email newsletters.[7]

References

  1. ^ according to the Reno Gazette-Journal (www.rgj.com)
  2. ^ Elon Musk (feeds.bizjournals.com)
  3. ^ Brian Sandoval (feeds.bizjournals.com)
  4. ^ Sandoval (feeds.bizjournals.com)
  5. ^ Sandoval (feeds.bizjournals.com)
  6. ^ that the company would stop looking (www.dailyfinance.com)
  7. ^ Subscribe to our email newsletters. (www.bizjournals.com)
  8. ^ Subscribe the Energy Inc. newsletter (www.bizjournals.com)
More in this category: « Pennsylvania falls from 7th to 38th in state entrepreneurial rankings National housing finance experts head to Austin for conference »
back to top