• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Blog Home
  • Topics
    • Keystone Press Releases
    • Politics and Government
    • Legislation
    • Nevada News
    • Tourism & Gaming
    • Rural Nevada
    • Business
    • Opinion
  • Membership
  • Contact Us
  • About Keystone Nevada

Keystone Nevada Korner

Welcome to The Keystone Korner The Official Blog of Keystone Nevada

Home » State OKs $330M in Tesla tax breaks

State OKs $330M in Tesla tax breaks

March 2, 2023 by Taylor R. Avery

CARSON CITY — Tesla is set to receive $330 million in tax abatements over the next 20 years after members of a state workforce development board approved the electric carmaker’s proposal Thursday morning.

Under the deal approved unanimously by members of the Governor’s Office of Economic Development board, Tesla will be exempt from paying payroll and property taxes for the next 10 years and would pay reduced sales taxes for the next 20 years.

Gov. Joe Lombardo, who chairs the board, praised the deal: “Hopefully this will be the model moving forward for the continued diversification of the state’s economy,” he said.

The board, which consists of Lombardo, Lt. Gov. Stavros Anthony, Secretary of State Cisco Aguilar and six people from the private sector, first received Tesla’s tax abatement application on Monday. The details of the package were previously kept confidential by a nondisclosure agreement between the state and the carmaker.

The new tax abatements follow Tesla’s announcement earlier this year that it plans to invest an estimated $3.6 billion to expand its operations in Northern Nevada, which includes the 5.4-million-square-foot Gigafactory in Storey County.

The investment, which will include a new electric semi-truck manufacturing facility, is expected to create 3,000 jobs.

Tesla will also be eligible for an additional $81.4 million in tax reimbursements over the next two decades as part of a potential agreement with Storey County.

Storey County Manager Austin Osborne said during the hearing the Gigafactory has brought “countless” benefits to the region.

“Success of this partnership is evident by the rapid development and ongoing success of Tesla’s first Gigafactory at McCarran, Storey County, Nevada,” he said. “We’re asked if Storey County can meet these challenges of building another Gigafactory and our response is: This is what we do. We did it once.”

The project is also estimated to create more than 9,000 construction jobs and 5,800 additional indirect jobs through 2027, according to a release from the state. The investment is estimated to create $685 in state and local revenues over the next 20 years.

But the continued investment in Nevada isn’t just about the state’s tax breaks for the electric carmaker, said Tesla Senior Global Director of Public Policy Rohan Patel.

“The reason why we want to locate even more and diversify investment in Nevada is not primarily because of an investment package or because of an incentive package,” Patel said to GOED members. “It’s in fact because our team really loves being in Nevada. We like the state. We like the workforce.”

Representatives from Tesla said the company is committed to “directly accelerating hundreds of additional workforce housing units,” an item they said would be reported on annually. Representatives also said they had found a provider who has committed to opening a childcare facility at the industrial park near Tesla’s property. The location will be able to support 200 families and will be open seven days a week to support shift schedules, the Tesla spokesperson said.

The company first received tax abatements from the state in 2014. Then-Gov. Brian Sandoval signed a bill that approved nearly $1.3 billion in tax incentives over 20 years, abatements that have benefited Tesla more than $140 million.

Bob Fulkerson, a former director of Progressive Leadership Alliance of Nevada and lifetime resident of Reno, slammed the board for approving the tax abatements.

“The public has been shut out of these proceedings, given us three days to look at this package and then you all get together and vote on a pro forma way,” Fulkerson said during in the public comment portion of the meeting following the vote. “I think it’s a sham frankly. If this is a model for economic development — to give away our tax dollars to billionaires who don’t need it — I think that’s a bad model.”

Fulkerson complained that the state and the city had no plan to deal with the additional workers that the expanded factory would bring. He was the only person present who spoke in opposition to the package’s approval.

Contact Taylor R. Avery at [email protected]. Follow @travery98 on Twitter.

This post was originally published here

Filed Under: Business, Politics and Government, Tesla Tagged With: Business, Energy, mc-news, Nevada, News, Politics and Government, Tesla

Primary Sidebar

Connect with Us

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
Bootleg Bistro
Bootleg Bistro Ad
SLLC_Keystone_Blog-Ad_300x500_10%-Off-Repairs_05.19.21
CIOServices Ad 300x500-100
BRH Keystone Ad JPEG
Willow_Manor
Keystone Corporation Nevada

News Topics

  • Keystone Press Releases
  • Politics and Government
  • Legislation
  • Nevada News
  • Tourism & Gaming
  • Rural Nevada
  • Business
  • Opinion

Rural Nevada

30 new projects in Pahrump: Arby’s, Chipotle, Midas Muffler, 3 convenient stores & more

March 29, 2023 By Courtney Holland

By Robin Hebrock, Pahrump Valley Times, March 28, 2023 Business is booming in the Pahrump Valley, with dozens of new companies looking to bring … [Read More...] about 30 new projects in Pahrump: Arby’s, Chipotle, Midas Muffler, 3 convenient stores & more

UPS and AVK America plan to expand in Douglas County

March 19, 2023 By Courtney Holland

Staff Reports for The Record Courier, March 17, 2023 United Parcel Service plans to build a new 168,000 square foot building in Douglas County, … [Read More...] about UPS and AVK America plan to expand in Douglas County

Redwood Materials gets $2 billion federal loan for mega battery facility near Reno

February 12, 2023 By Pauline Lee

by Jason Hidalgo, Reno Gazette-Journal, February 9, 2023 Redwood Materials just secured a commitment from the federal government for a $2 billion … [Read More...] about Redwood Materials gets $2 billion federal loan for mega battery facility near Reno

LETTER: Voting by conscience or from pocketbook?

January 31, 2023 By vrobison

Not everyone enjoys or is interested in politics, but given the number of retirees in the Moapa and Virgin Valleys, I would imagine there is … [Read More...] about LETTER: Voting by conscience or from pocketbook?

Opinion

OPINION: NEVADA VIEWS: Government over the taxpayers

March 26, 2023 By Courtney Holland

By Robert Fellner, The Las Vegas Review Journal, March 25, 2023 The legislative proposal to raise Nevadans’ property taxes highlights why … [Read More...] about OPINION: NEVADA VIEWS: Government over the taxpayers

Hypocrite Biden blocks mineral mining his clean-energy goals require

March 24, 2023 By Pauline Lee

by Carrie Sheffield, New York Post, March 22, 2023 President Joe Biden claims he wants America to lead in “clean energy” production, but he’s again … [Read More...] about Hypocrite Biden blocks mineral mining his clean-energy goals require

OPINION: The ‘Green Amendment’ is well-intended — but that’s not enough

March 19, 2023 By Courtney Holland

By David Colborne, The Nevada Independent, March 19th, 2023 Supporters of AJR3, also known as the “Green Amendment,” want to protect Nevada’s … [Read More...] about OPINION: The ‘Green Amendment’ is well-intended — but that’s not enough

Tags

Adam Laxalt am post Build Back Better Business Business Columns Casinos & Gaming Catherine Cortez Masto Clark County Clark County School District Conventions COVID Department of Employment Training and Rehabilitation (DETR) Editorials Education employment Gov. Joe Lombardo Gov. Steve Sisolak Governor's Office of Economic Development (GOED) Housing inflation Inside Gaming Joe Lombardo las vegas Local Local Las Vegas Local Nevada lvcva mc-business mc-local mc-news mc-opinion mc-sports Nevada News NPRI Opinion Opinion Columns PAID Politics and Government Real Estate Insider Roe v. Wade Sports The Strip tourism Victor Joecks

Footer

Copyright © 2023 · Keystone Corporation - All Rights Reserved · Log in
Privacy Policy
By accessing this site, you are agreeing to our Terms of Use

The views, opinions and conclusions expressed by the authors of any article or post on the Keystone Korner are those of the author and do not necessarily reflect the opinions of Keystone Corporation or its officers and board members. Moreover, any reference to a person, party, product or entity does not constitute an endorsement or recommendation by Keystone Corporation or its officers and board members.