Tesla surprised almost everyone last month with a huge announcement that they will be spending $3.5 billion to expand Giga Nevada and add two new manufacturing areas for the Semi and their 4680 battery cells. The expansion also came with a number of significant tax breaks, the details of which were revealed on Monday.
According to the details of the non-disclosure agreement (NDA) signed by Tesla, Storey County and the Nevada government and unsealed yesterday, Tesla was granted a total of $330 million in tax breaks over a twenty year period.
One of the tax breaks will be for the factory’s property taxes, which Tesla will not have to pay for a period of 10 years. Tesla will also not have to pay the Modified Business Tax, a tax employers pay on wages paid to employees. In addition Tesla will also pay reduced sales taxes for 20 years.
When combined with the tax breaks it received in 2014 to first build Giga Nevada, Tesla has received over $1 billion in tax abatements in the state.
For their part, Tesla plans to spend over $10 billion in Nevada through 2028, adding 11,000 well paying jobs in the state. This new expansion is set to add another 3,000 jobs at an average pay of $33.94 per hour, 91% of which will have their health insurance covered by the company.
While the details are now known, it is not final as the Nevada Governor’s Office of Economic Development will vote to approve the deal on Thursday, March 2. Senators, including Senator Dina Neal, have asked for the vote to be delayed so that the public can review the full details of the plan and provide comments.
“As I said last week, allowing only three days for the public to review what we now know to be $330 million in corporate tax breaks and abatements is insufficient. There is little to no opportunity to explore how this deal may affect housing supply, public schools, public safety, and other vital government services in the region,” Senator Neal said in a press release. (via Associated Press)
Storey County commissioners have requested from Governor Joe Lombardo and economic development board director Tom Burns that county officials attend and participate in Thursday’s meeting.