Tesla’s $5 billion Gigafactory will be worth nearly $100 billion to Nevada over 20 years, according to the state’s Governor Brian Sandoval and Tesla Motors CEO Elon Musk, who announced plans to build the lithium-ion battery plant in the northern part of the state in the Tahoe Reno Industrial Center. In return, Nevada is expected to allow Tesla billions of dollars in tax breaks.
“Under the terms of the proposed deal, according to Nevada documents, Tesla would receive up to a 100% tax abatement for the next 20 years for all sales tax, and up to a 100% tax abatement for the next 10 years for all real property tax, personal property tax and modified business tax.
Tesla would also receive a transferable tax credit of 5% of the first $1 billion it invests in the state, and of 2.8% for the next $2.5 billion.”
Techonomy reported in July that Tesla and Panasonic claimed the Gigafactory will produce cells, modules, and packs for Tesla’s electric vehicles and for the stationary storage market in order to “enable a continuous reduction in the cost of long-range battery packs in parallel with manufacturing at the volumes required to enable Tesla to meet its goal of advancing mass market electric vehicles.” At the time, California, Arizona, New Mexico, and Texas were also vying to host the plant, which is expected to create 6,500 jobs.
In a press conference last week, Sandoval called Musk and Tesla “21st century pioneers, fueled with innovation and desire, are emboldened by the promise of Nevada to change the world.”
Musk called Nevada a real “get things done” state and the factory “an important step in advancing the cause of sustainable transportation and will enable the mass production of compelling electric vehicles for decades to come.”