• 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 » Tesla in line for $330 million in tax breaks for multibillion-dollar Gigafactory expansion

Tesla in line for $330 million in tax breaks for multibillion-dollar Gigafactory expansion

March 2, 2023 by Pauline Lee

by Sean Golonka, The Nevada Independent, February 27, 2023

Tesla’s planned multi-billion dollar expansion of its Nevada Gigafactory could see the electric car manufacturer receive more than $300 million in state tax abatements over the next 20 years, according to the company’s abatement application released Monday.

If approved, the abatement application would mean $330 million in new tax breaks for the company — on top of the more than $1 billion in abatements Nevada officials approved for the company in 2014 as it planned its first multibillion-dollar capital investment at the Tahoe-Reno Industrial Center in Storey County, east of Reno.

The expansion would push Tesla’s total capital investment in the region to nearly $10 billion from 2014 to 2028 and create thousands of new jobs, according to the company’s application. Tesla officials added that it could also create more than $766 million in new tax revenue for the state and local governments over the next 20 years.

Those details emerged Monday, just three days ahead of a meeting of the Governor’s Office of Economic Development (GOED) board, where Gov. Joe Lombardo and eight other board members will vote to approve the new abatement deal for Tesla. Their plans to proceed come despite calls frome some Democratic lawmakers to delay approval of the deal by one month to allow more time for public consideration.

Though Lombardo touted Tesla’s expansion during his State of the State address in January, details of the abatement deal were not released until Monday as part of a nondisclosure agreement allowed under state law.

Unlike the 2014 deal, the pending abatement application would not involve transferable tax credits, which are credits that can be transferred or sold to other taxpayers. Tesla was granted $195 million in transferable tax credits in the 2014 deal, which depleted all transferable tax credits allowed to be issued under the 2014 law.

But the other abatements — including 100 percent reductions in the Modified Business Tax (which employers pay on the wages they pay employees) and property taxes over the next decade, plus a reduction in the sales and use tax from 7.6 percent to 5.35 percent over the next 20 years — would be applied to the company’s expansion, under provisions adopted for the company through the same 2014 law.

On top of $330 million in abated taxes, the company projects it could also be reimbursed for more than $81 million in sales and use taxes over the course of 20 years through its status as an “economic diversification district” — a legal term created as part of the 2014 deal with Tesla.

Tesla says it plans to employ at least 3,000 new employees with an average wage of $33.49 per hour, and plans to cover 91 percent of health insurance costs for its employees.

If the deal is approved, the company expects to break ground in May and complete its expansion in May 2026, with new facilities that could “produce batteries for an estimated 1.5 million vehicles per year and … up to 50,000 trucks per year” at “the first high-volume electric semi truck manufacturing facility in the country.”

With the company set to reach 10,000 Nevada Gigafactory employees following the expansion, Tesla’s abatement application also references the company’s intention to invest in the Northern Nevada economy, including plans to help open the first child care facility at the Tahoe-Reno Industrial Center and also work “with leading local developers on agreements to accelerate hundreds of incremental workforce housing units across the northern Nevada region.”

The proposal also notes that the company is not requesting “any modifications” to the 2014 deal, and when abatements from that deal expire next year, the company “will be paying in excess of $50 million per year in annual taxes toward state and local governments going [f]orward.”

Tesla chose to expand in Northern Nevada over Austin, Texas and multiple locations in California, according to its application.

Filed Under: Business Tagged With: Governor's Office of Economic Development (GOED), Nevada Gigafactory, Tahoe Reno Industrial Center, 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.