Tesla has officially obtained unanimous approval for a $330 million tax abatement package for the new expansion at its Nevada facility. The company made a surprise announcement last month that it would be expanding Giga Nevada.
The Nevada Governor’s Office of Economic Development (GOED) granted Tesla the tax break as the EV maker commits to a $3.6 billion investment in its existing site in Storey County. The pledge also includes at least 3,000 jobs with an average hourly pay of $33.49.
Tesla will also build a childcare facility near the site where parents can drop off their kids and vehicles before riding shuttles to work.
The board promised to release details of the tax break this month. It estimates that the expansion construction can generate a one-time economic impact of $2.8 billion over the next six years, an annual impact of $2.2 billion, and $38 billion over the next 20 years.
The 3,000-member workforce generated by the expansion will generate $209 million in annual wages by the end of the decade.
Nevada is poised to reap economic benefits after the abatement runs its course. The Tesla expansion will generate $2.8 million in property taxes annually, $11.2 million in gross average annual sales taxes, $1.1 million in average annual business license taxes on utilities, and $2.1 million in gross average annual modified business taxes over 20 years.
All these are in addition to indirect impacts on the local and state economy.
“It is kind of a watershed moment, I think, for Northern Nevada as a whole. I think for Northern Nevada specifically to use as a launch pad to become on the cutting edge of the EV industry is huge,” said GOED Executive Director Tom Burns.
The expansion will add two new manufacturing facilities for the Semi truck and 4680 cell production.