Nevada lawmakers moving forward with $1.3 billion tax breaks for Tesla image

After we announced yesterday that Nevada lawmakers gathered on Wednesday for a special legislative session to consider tax breaks and other incentives for Tesla Motors worth around $1.3, now the set of bills has been pushed forward.

This is a very important step for the electric car company that plans to build a massive factory in the state. The deal won support in day two of a special session requested by Republican Governor Brian Sandoval, called to implement an agreement for Tesla to build its planned $5 billion lithium-ion battery factory in an industrial park 20 miles east of Reno.

To get the deal, Sandoval promised that tax credits and other incentives would be available for up to 20 years, offer that has to be approved by the legislature. This factory is the key element to Nevada’s efforts to revitalize its economy, which had been affected by the mortgage hardship and by the Great Recession.

Among the bills approved on Thursday in both houses, there is a provision to phase out and eliminate 1970’s era tax credits for insurance companies, which would free up about $125 million over five years starting 2016 for transferable credits to Tesla. The package passed in the senate would also target a program approved last year giving tax credits to the film industry, freeing up about $70 million for Tesla.

By Gabriela Florea