Tesla nets massive Nevada tax breaks for electric vehicle factory expansions
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The State of Nevada awarded Tesla more than $330 million in tax breaks for the electric vehicle manufacturer’s plans to expand its vehicle battery facility and semi-truck plant.
In a press release on Thursday, Nevada Gov. Joe Lombardo’s Office of Economic Development announced it had approved a $330,250,366 abatement for Tesla, Inc.
The announcement comes as Tesla has pledged to make a $3.6 billion investment at its Storey County facility and create 3,000 jobs at an average hourly rate of $33.49.
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“Tesla has far exceeded every promise they made going back to 2014,” Lombardo said. “To date, they have invested $6.2 billion in Nevada, built a 5.4 million square foot Gigafactory which provided 17,000 local construction jobs and created more than 11,000 highly paid permanent jobs.”
The release said Tesla has plans to add 4 million square feet between two new factories.
One of the factories will manufacture 100-gigawatt-hour battery cells and have the capacity to make batteries for 1.5 million light duty trucks per year.
The other factory will manufacture fully electric semi-trucks with a range of 500 miles.
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According to the press release, 9,275 construction jobs and 5,858 additional jobs will be created because of the projects for the next four years.
The expansion also could bring in $2.2 billion per year, or $38 billion over the next 20 years, and the 3,000 people Tesla will employ at the factories once up and running will generate $209 million in annual wages by 2030.
On top of that, Tesla should generate an estimated $21.8 million in gross average annual property tax revenues and $11.2 million in gross average annual sales taxes.
In total, the establishment of the factories is estimated to pull in $685 million in net state and local revenues over the next 20 years, the press release said.
“Since the inception of [Governor’s Office of Economic Development,] the main goal has been to diversify Nevada’s economy,” Tom Burns, GOED Executive Director said. “The Nevada-Tesla partnership cemented a new economic sector in Nevada for the manufacturing of electric vehicle battery packs and drive units, and energy storage products. Tesla’s Gigafactory propelled Nevada’s manufacturing industry, establishing lithium-ion batteries as the state’s eighth largest export both nationally and internationally.”
Tesla also had an abatement agreement in 2014. Because of that agreement, Tesla will begin paying at least $53 million in real and personal property taxes and business taxes for the Gigafactory starting on July 1, 2024.