Friday, September 5, 2014

Tesla Gigafactory coming to Reno, Nevada with $1.2 billion in tax incentives

Filed under: EV/Plug-in, Manufacturing/Plants, Tesla Motors, Legislation and Policy

Tesla gigafactory aerial render

You want details on the Gigafactory? You got 'em. At least the preliminary ones. At an event with Nevada Governor Brian Sandoval this afternoon, Tesla Motors announced that its first Gigafactory will be built outside Reno. As was leaked yesterday and confirmed by unnamed state officials today, the plant will be where Tesla will make a big statement not only about EVs but also the power of Nevada to further that particular fight.

The incentive package is worth $1.2 billion over 20 years.

Tesla CEO Elon Musk, speaking in Carson City, said that Nevada did not offer the biggest incentive package, but that, "This is not just about the incentives. [Nevada is a] really get things done state. That was a really important part of the decision," according to the Reno Gazette-Journal. That said, the incentive package is still more than twice what Musk originally said would be needed. The state worked out a deal with the automaker that will be wordh $1.2 billion over 20 years and should basically let Tesla operate tax-free for ten years, the RGJ reports. ​That will not surprise some people.

The RGJ breaks down the numbers this way:
  • $725 million for a 20-year 100 percent sales tax abatement
  • $332 million for a 10-year 100 percent property tax abatement
  • $120 million in transferable tax credits
  • $75 million in transferable tax credits worth $12,500 per job times 6,000 jobs).
  • $27 million for a 10-year, 100 percent modified business tax abatement
  • $8 million in discounted electricity rates for eight years
The Gigafactory is Tesla's answer to the question of how it will be able to make a $35,000 EV that will be able to over 200 miles on a charge. Tesla CEO Elon Musk has said that a 30-percent decrease in cost for the batteries is "probably conservative at this point." The Reno Gigafactory could be in operation by late 2016. Tesla is partnering with Panasonic on the plant. The governor thanked Senator Harry Reid, who he said played an important role.

Whether the Reno announcement is the first of many remains to be seen. For now, the other states that wanted the plant, like California and Arizona, remain hopeful. Tesla's official statement and a short local news report on yesterday's rumors are available below.

Continue reading Tesla Gigafactory coming to Reno, Nevada with $1.2 billion in tax incentives

Tesla Gigafactory coming to Reno, Nevada with $1.2 billion in tax incentives originally appeared on Autoblog Green on Thu, 04 Sep 2014 19:50:00 EST. Please see our terms for use of feeds.

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