ANNOUNCEMENT 04 Sep 2014In September 2014, a US state government announced a targeted tax change.
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Tesla Motors, Press Release:
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.