Nevada lawmakers gathered on Wednesday for a special legislative session to consider tax breaks and other incentives worth around $1.3 billion to finalize a deal discussed between Governor Brian Sandoval and Tesla Motors Inc. as to build a major battery factory in the state.
Sandoval, authorizing the special session, said that the factory would give Nevada the chance to attract new types of business, and also to provide jobs, innovation and new technology.
Mo Denis, Senate Majority Leader, said that one bill dealing only with tax abatements will be introduced in the Senate. The lower chamber was also to consider other three bills that involve reduced utility rates, letting Tesla sell its cars directly to the public, eliminating or reducing tax exemptions for other industries to help pay for the Tesla deal.
The governor and his economic team stated that the package of measures would bring $100 billion in economic benefits for the state throughout a 20 year period.
Under Sandoval’s proposal, the auto brand will get sales tax exemptions worth $725 million through June 2034 and save more than $300 million in payroll and other taxes through 2024. Tesla would also receive $75 million in tax credits for up to 6,000 jobs created and $120 million in tax credits for meeting state investment thresholds of $3.5 billion.
By Gabriela Florea