After winning the race to bag the world’s largest Gigafactory, it is time for the state authorities to decide tax incentives for Tesla Motors Inc (NASDAQ:TSLA). Nevada announced tax incentives worth $1.3 billion earlier this month with the prospects of over $100 billion in future returns from the state over the next 20 years.
As of now, Casinos are the biggest industry in Nevada with net output of $11.2 billion for the year ended in July. Manufacturing industry comes next with a 4.1 percent contribution towards the GDP of the state. As per the estimates, tax incentives worth $1.3 billion would help the state create 6,500 jobs and get investments worth $101.6 billion from Tesla Motors Inc (NASDAQ:TSLA) over the next 20 years.
According to Robert Lang, University of Nevada,
“This changes the perception of Nevada from just being tourism and real estate. Nevada has been making a disciplined effort to pursue this plant.”
Tesla Motors Inc (NASDAQ:TSLA) is likely to spend over $10 billion in the next 15 years on their plant.
The tax incentives would include no property and business taxes for next 10 years follower by sales tax exemption for the next 20 years. Tesla Motors Inc (NASDAQ:TSLA) would receive 5% in tax credits for its first $1 billion for the plant and 2.8% tax credits upon the investment of next $2.5 billion. The state would offset these costs by reducing filming incentives to $10 million as compared to the current $80 million margin and possible removal of $125 million in tax breaks for people working from home.
The director of Sandoval Economic-Development Office, Steve Hill, expects that the bill will pass without any objection from the houses.
This article has been written by Prakash Pandey and edited by Serkan Unal.