Carson City, Nevada – Tesla Motors will build its massive $5 billion electric vehicle battery plant, dubbed the Gigafactory, near Reno, the company and the state’s governor have announced.
“Tesla will build the world’s largest and most advanced battery factory in Nevada which means nearly one hundred billion dollars in economic impact to the Silver State over the next twenty years. I am grateful that (Tesla Chairman and CEO) Elon Musk and Tesla saw the promise in Nevada,” stated Governor Brian Sandoval.
Nevada offered between $870 million and $1.3 billion in tax credits and abatements for the project, depending on the final value of the finished plant. A detailed breakdown of those incentives:
- Up to $75 million in job creation tax credits
- Up to $120 million in tax credits related to building investments
- Tax-free status on sales taxes for 20 years
- Tax-free status on property taxes for 10 years
- Tax-free status on personal property taxes for 10 years
- Tax-free status on modified business taxes for 10 years
The big variable will be the tax abatements, which could cost the state $675 million on the low end up to $1.1 billion on the high end.
“I would like to recognize the leadership of Governor Sandoval and the Nevada Legislature for partnering with Tesla to bring the Gigafactory to the state. The Gigafactory is an important step in advancing the cause of sustainable transportation and will enable the mass production of compelling electric vehicles for decades to come. Together with Panasonic and other partners, we look forward to realizing the full potential of this project,” Musk said.
To justify its incentives, Nevada is estimating that the new plant will generate a $5 billion investment ($1 billion in structures, $4 billion in equipment), generate 6,500 direct jobs paying more than $25 per hour, and generate more than $100 billion in increased economic activity over the next 20 years.
The state estimates that it will garner $1.9 billion in increased taxes, over the 20 years, after incentives, because of increased economic activity related to the plant.
Source: Tesla, Nevada Governor’s Office of Economic Development.