Nevada Governor Brian Sandoval and Elon Musk, CEO of Tesla Motors, announced on Sept. 4 that Nevada has been selected as the official site for the Tesla Gigafactory.
“Tesla will build the world’s largest and most advanced battery factory in Nevada which means nearly $100 billion in economic impact to the Silver State over the next twenty years,” said Sandoval.
The plant, plans for which were announced in July with Panasonic, will produce lithium-ion batteries for Tesla's cars. Tesla will run operations while its Japanese partner will make battery cells destined for the plant and invest in equipment and machinery.
In order to secure this deal Nevada offered a number of incentives. Tesla will receive up to an 100% tax abatement for the next 20 years for all sales tax, and up to a 100% tax abatement for the next 10 years for all real property tax, personal property tax and modified business tax.
Tesla would also receive a transferable tax credit of 5% of the first $1 billion it invests in the state, and of 2.8% for the next $2.5 billion.
The state said Tesla would also make a direct $37.5-million contribution to Nevada K-12 education, beginning in August 2018, and provide the University of Nevada Las Vegas with $1 million for advance battery research.
And what does the state get for this investment? Over 20 years the “total fiscal impact” is estimated at $1.9-billion. This would include $430 million in state revenue, $950 million in local revenue and $500 million in K-12 education revenue.
“The Gigafactory is an important step in advancing the cause of sustainable transportation and will enable the mass production of compelling electric vehicles for decades to come,” said Musk.