The Governor’s Office of Economic Development (GEOD) in Nevada has unanimously approved a $330 million tax abatement over 20 years for Tesla, allowing the automaker to continue investing in the state.
Tesla already has plans to spend another $3.6 billion in Nevada as it adds two new factories to its complex, which will manufacture both the Tesla Semi and new 4680 battery cells. The abatement package provides a 100 percent reduction in property taxes and Modified Business tax for a decade, and a 20-year reduction in the Sales and Use Tax rate, effectively dropping it from 7.6 percent down to 5.35 percent.
Governor Joe Lombardo sees this move as a win, stating “this is very beneficial across the board, both in economic development and to build out the quality of life for every Nevadan.”
See also: Tesla Set to Receive $360 Million Tax Break for Giga Nevada Expansion
Tesla’s investment in Nevada is expected to create more than 9,000 jobs for Nevadans, with the company committed to continuing its investment in K-12 robotics programs as well as higher education courses involved with manufacturing. Despite the tax abatement, the GEOD estimates that the automaker will still pay some $766 million in taxes over the same 20-year period.
Tesla executive Rohan Patel explained, “The reason why we want to locate even more diversified investment in Nevada is not primarily because of an investment package or because of an incentive package, it’s in fact because our team really loves being in Nevada. We like the state. We like the workforce. We like the things that you guys have built here.”
Tesla’s investment in the new factories will include one dedicated to the first production facility specifically for the Tesla Semi, and the other will expand the automaker’s ability to create its proprietary 4680 battery cells with the goal of supplying some 1.5 million vehicles each year. Overall, this investment is expected to benefit both the government and Tesla, while providing a boost to the state’s economy and creating numerous job opportunities.
