ANNOUNCEMENT 11 Sep 2014In September 2014, a US state government announced a targeted tax change.
NUMBER OF INTERVENTIONS
In 2014 the state of Nevada provided subsidies to Tesla Motors Inc. for a motor vehicle assembly plant. Governor Brian Sandoval signed into law on September 11, 2014 a set of four bills that collectively provide a $1.3 billion incentives package for a planned 'Gigafactory' near Reno. Tesla will be exempt from property taxes for up to 10 years and from local sales taxes for up to 20 years, saving the company nearly $1 billion. Another $195 million in tax credits were also approved. The deal also allows electric car manufacturers to sell directly to consumers, bypassing the need for a dealership. The tax incentives are contingent upon Tesla investing $3.5 billion in the state in the next 10 years.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.