The marriage of Tesla Motors and Nevada — pending legislative review — experienced a coronation of sorts today during a press conference at the Nevada Capitol in Carson City.
In announcing the deal, Nevada Republican Gov. Brian Sandoval called it a “monumental announcement that will change Nevada forever and set in motion the creation of thousands of new jobs” and bring billions of dollars into Nevada’s economy.
He said it “emphatically” passes the “Is this good for Nevada?” test. To get the deal, Nevada proposed a $1.25 billion tax incentive over 20 years to Tesla. If the deal is approved by the Nevada Legislature, Tesla will operate in the state essentially tax free for 10 years.
Elon Musk, Tesla Motors CEO, said Nevada didn’t present the biggest incentive of the five states in the running for the company’s gigafactory. He said:
“This is not just about the incentives,”
In exchange, the company must invest a minimum of $3.5 billion in manufacturing equipment and real property in the state—a threshold that is much lower than the $10 billion state officials expect the company to invest in Nevada over the next two decades.
Steve Hill, executive director of the governor’s office Economic Development, said Tesla must stay with its side of the deal, or lose incentives. He said:
“If they don’t do that, those incentives don’t exist,”
Nevada is a “really get things done state. That was a really important part of the decision.”
Source: Reno Gazette Journal