Subsidy Tracker Individual Entry

Company: 
Tesla Motors
Parent Company: 
Tesla Motors
Subsidy Source: 
multiple
Location: 
Nevada
County: 
Storey
Project Description: 

electric-car battery factory

Year: 
2014
Major Industry of Parent: 
motor vehicles
Subsidy Value: 
$1,287,000,000
Program Name: 
multiple
Awarding Agency: 
multiple
Type of Subsidy: 
MEGADEAL
Number of Jobs or Training Slots: 
6,500
Wage Data: 
$25 per hour and full benefit package
Wage Data Type: 
average wage
Capital Investment: 
$10,000,000,000
Source of Data: 

The estimated value and the breakdown of the subsidy package as well as jobs and investment data were based on the "Summary of Terms and Proposed Legislation" posted on the Nevada Economic Development site on September 4th, 2014; available at: http://www.diversifynevada.com/news/news-articles/nevada-selected-as-off.... The tax abatements values were taken from: Anjeanette Damon, "Inside Nevada's $1.25 billion Tesla tax deal," Reno Gazette-Journal, September 5, 2014; available at: http://www.rgj.com/story/news/2014/09/04/nevada-strikes-billion-tax-brea...

Notes: 

Nevada has offered Tesla, an electric car producer, a subsidy package worth estimated $1.3 billion over several years. The package includes 100 percent abatements of sales taxes ($725 million saving over 20 years), real and personal property taxes ($332 million over 10 years), and modified business taxes ($27 million over 10 years). In addition, the subsidy package includes transferable tax credits: a tax credit of $12,500 per job for up to 6,000 jobs ($75 million saving for the company); a tax credit of 5 percent of the first $1 billion investment ($50 million); and a tax credit of 2.8 percent of the next $2.5 billion investment ($70 million). In addition, Tesla will receive cheaper electricity rates for eight years, which will save the company an estimated $8 million. Nevada will spend $43 million to buy the right of way for USA Parkway for the Tahoe Reno Industrial Center, where the Tesla facility will be located (the amount is not included in the total). The state will also change its laws to allow Tesla to sell its cars directly to consumers, rather than through car dealers. Jobs are projected full-time permanent jobs at the facility. Investment is total projected investment (the company has committed to invest $5 billion within first 3 to 5 years and another $5 billion during the following 10 years). However, to receive the subsidies, Tesla must invest $3.5 billion. Overlaps with main Subsidy Tracker data: none.

Source Notes: 
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