Nevada to provide Tesla $300M in tax breaks

Tesla may receive over

$300 million in tax abatements over the next two decades for a massive new expansion of its northern Nevada facility, the product of a 2014 deal for when the company first came to the area on the promise of new jobs and major investments in the area.

The long-awaited sum — kept quiet for a month due to a nondisclosure agreement with state officials — will be voted on Thursday by the Nevada Governor’s Office of Economic Development. Tesla projects it will bring in 3,000 jobs at an average rate of $33.49 per hour and invest $3.6 billion into the economy. It will cover health insurance for 91% of its employees, per its application.

Many have attributed Tesla’s presence in northern Nevada to both economic diversification and fast-rising housing costs.

Combined with both its

2014 investment and project expansion where the company received over $1 billion in tax breaks, Tesla is set for over $10 billion in capital investments in northern Nevada between 2014 and 2028, which economic development board director Tom Burns called “ground zero for the energy transition” in a Monday release. The company projected over $750 million in direct and indirect tax revenue from the proposed tax breaks and those approved in 2014.

“On behalf of Tesla and its 7,000+ Nevada team members, we are grateful to you and your team for your partnership on this critical project,” Chris Reilly, Tesla’s director of workforce and recruiting, wrote to Burns on Thursday.

The company could also be reimbursed for upwards of $80 million in sales and use taxes over two decades, which is not part of the $330 million in already-abated taxes.