Nevada to provide tax breaks for Tesla Motors "giga factory"
12 Sep 2014
Nevada governor Brian Sandoval signed a package of bills yesterday to provide $1.3-billion in tax breaks and other incentives for Tesla Motors, further confirming the deal for the electric car company to build a massive factory in the state, Reuters reported.
During the signing in ceremony late yesterday, Sandoval said the agreement had "changed the trajectory of our state forever", shortly after the four bills received a unanimous go ahead from both legislative chambers.
"Nevada has announced to the world - not to the country, but to the world - that we are ready to lead," Sandoval said, to applause.
The major portion of the deal received support on day two of a special session called by Sandoval to implement an agreement under which Tesla would locate its planned $5 billion lithium-ion battery factory in an industrial park 20 miles east of Reno along Interstate 80.
The location of the factory in Nevada was decided by entrepreneur Elon Musk, after he conducted negotiations with several states, including Texas, Arizona, New Mexico and the company's home state of California (See: Tesla selects Nevada for battery plant).
Sandoval promised tax credits and other incentives for up to 20 years to clinch the Tesla deal.
Sandoval said Nevada ''made history today,'' as he signed into law the four bills that will bring the Tesla Motors battery plant to Northern Nevada, nevadaappeal.com reported.
''We've perhaps changed the trajectory of the state,'' he said as legislators crowded his office in the Capitol as well the office of Steve Hill, director of the Governor's Office of Economic Development.
According to Sandoval, he, his staff and Hill's staff had been working on the deal with Tesla since last October.
Senator Harry Reid, Democrat – Nevada said he commended the leadership of assembly speaker Marilyn Kirkpatrick and senate majority leader Mo Denis as they ensured this crossed the finish line.
He added, the next phase of Nevada's innovative energy future had begun.
Hill, referring to the deal said it was ''a transformative package'' for the state, adding it was ''an exceptional opportunity.''
''Its impact extends beyond what can be measured in an economic impact model,'' he said.
