Nevada offered $1.25 billion in tax breaks to win Tesla
The tax incentive package assembled by Gov. Brian Sandoval to woo Tesla’s “Gigafactory” battery plant is unprecedented in size and scope for the state of Nevada and is one of the largest in the country.
The overall value to Tesla is estimated to be $1.25 billion over 20 years—a figure that is more than double the $500 million package CEO Elon Musk said would be required to draw the company.
If the deal is approved by the Nevada Legislature, Tesla will operate in the state essentially tax free for 10 years.
Economic development officials anticipate the factory—a three-story behemoth with 15 million square feet of manufacturing space—will generate a $100 billion economic impact over 20 years.
The factory would employ a projected 6,500 people by 2020 when it’s at full production with an average wage about $25 an hour. Indirect jobs created could reach 22,000—a number equivalent to 2% of the state’s entire work force and 11% of the region’s workforce.
If approved by the Legislature, the tax incentive package would be the 10th largest in the country, according to data compiled by Good Jobs First.
Source: Usatoday
