Nevada lawmakers have unanimously approved a record $1.3 billion tax breaks and incentives package that will help bring Tesla Motors' forthcoming battery plant to the Silver State.
Gov. Brian Sandoval signed four bills pertaining to the incentives into law Thursday night, soon after the Nevada Legislature approved the total $1.3 billion in tax credits, electricity discounts and other cuts, the Associated Press reported.
"This is some of the most important legislation that's hit this state in perhaps our history," said Sandoval, according to the AP. "We have changed the trajectory of this state, perhaps forever."
Earlier this week, Sandoval ordered the state Legislature into a special session to discuss the Tesla incentives.
The lithium ion battery plant, which Tesla says will cut its battery costs by as much as a third, will bring more than 20,000 construction jobs and other positions to Nevada. The state's economy should grow by around $100 billion in the next two decades, Sandoval said.
Slated to open in 2017, the upcoming Tesla facility will have a workforce of around 6,500.
Arizona, New Mexico, Texas and California were the other states hoping to be named the location for Tesla's "gigafactory" even after CEO Elon Musk said $500 million in subsidies was the starting point for the plant's location. After all the fuss, what did Tesla win in tax breaks and various perks from Nevada?
The break: Tesla won't pay property taxes or payroll taxes for the first decade and no local sales or use taxes for up to 20 years.
The benefit: A cool $1.1 billion in tax breaks, along with another $195 million in approved tax cuts.
The break: Discounts on electricity costs.
The benefit: Coupled with the ending of a $25 million annual subsidy, this measure will save Tesla $125 million over five years.
The break: Defined terms that legalize Tesla's direct-sales model, which has met with opposition in states including Texas.
The benefit: Tesla is completely cleared to sell electric cars at its Nevada dealerships directly to customers.
A couple of caveats: Tesla will have to refund the state if it doesn't spend at least $3.5 billion in Nevada within the next decade. The deal also specifies that half of the factory's 6,000 or so jobs and around 3,000 projected construction jobs go to Nevada residents.
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