IMPLEMENTATION LEVEL

Subnational

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 04 Sep 2014 | Removal date: open ended
Still in force

Tax or social insurance relief

Tesla Motors and the state of Nevada announced on September 4, 2014 a deal by which the firm will build a $5 billion 'gigafactory' in the state for the production of batteries used in electric vehicles. The overall value of the incentive package offered Tesla, according to press accounts, is estimated at $1.25 billion over a 20-year period.
The batteries in question are potentially tradeable internationally.
According to the Reno Gazette-Journal, the deal will allow Tesla to operate virtually tax free in Nevada for the first 10 years. About half of the package, valued at $725 million, comes in the form of a 20-year, 100 percent sales tax abatement. Tesla would also receive a 10-year, 100 percent property tax abatement that is estimated to be worth $332 million, as well as $120 million in transferable tax credits.
 
For its part, Tesla agreed to invest $3.5 billion in manufacturing equipment and other property in Nevada.

 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

464 Accumulators, primary cells & primary batteries; parts
8506 Primary cells and primary batteries.
850610 Manganese dioxide
850640 Silver oxide
850650 Lithium
850660 Airzinc
850680 Other primary cells and primary batteries
850690 Parts

Please report this page in case you detect an inaccuracy in its content.