Subsidy Tracker Individual Entry
electric-car battery factory
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...
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.