Tesla Gets Huge Tax Breaks in Nevada for Electric Vehicle Factory Expansions

The State of Nevada has granted Tesla more than $330 million in tax breaks for the electric vehicle maker’s plans to expand its battery and semi-truck facilities.

In a press release Thursday, Nevada Gov. Joe Lombardo’s Office of Economic Development announced it has approved a $330,250,366 reduction for Tesla, Inc.

The announcement comes as Tesla has pledged to invest $3.6 billion in its Storey County facility and create 3,000 jobs with an average hourly wage of $33.49.

TESLA’S AMBITION FOR GROWTH COMES WITH A PRICE OF $175 BILLION

“Tesla has far exceeded every promise it has made since 2014,” Lombardo said. “To date, they have invested $6.2 billion in Nevada, built a 5.4 million square foot Gigafactory that has provided 17,000 local construction jobs and created more than 11,000 high-paying permanent jobs.”

The announcement said Tesla has plans to add 4 million square feet between two new factories.

One of the plants will manufacture 100 gigawatt-h batteries and have the capacity to produce batteries for 1.5 million light trucks per year.

Tesla cars park at the construction site of the new Tesla Gigafactory for electric cars in Gruenheide near Berlin, Germany, Friday, March 18, 2022. (AP Photo/Michael Sohn)

The other plant will build fully electric pickup trucks with a range of 500 miles.

KEITH FITZ-GERALD: BETTING AGAINST ELON MUSK IS LIKE BETTING STEVE JOBS

According to the press release, 9,275 construction jobs and 5,858 additional jobs will be created due to the projects over the next four years.

The expansion could also bring in $2.2 billion a year, or $38 billion over the next 20 years, and the 3,000 people Tesla will employ at the factories once they’re up and running will bring in $209 million in annual wages by 2030.

In addition, Tesla is expected to generate approximately $21.8 million in gross average annual property tax revenue and $11.2 million in gross average annual sales tax revenue.

In total, establishing the plants is estimated to generate $685 million in net state and local revenue over the next 20 years, the news release said.

“Since the inception of the (Governor’s Office of Economic Development), the main goal has been to diversify Nevada’s economy,” said Tom Burns, GOED Executive Director. “The Nevada-Tesla partnership has established a new economic sector in Nevada for manufacturing electric vehicle battery packs and powertrains and energy storage products. Tesla’s Gigafactory has boosted Nevada’s manufacturing industry, establishing lithium-ion batteries as its eighth largest export state both nationally and internationally”.

CLICK HERE TO GET THE FOX BUSINESS APP

Tesla also had an abatement agreement in 2014. Because of that agreement, Tesla will begin paying at least $53 million in real and personal property and business taxes for the Gigafactory starting July 1, 2024.