Nevada Approves Tax Breaks For Tesla

After three long days of special legislative sessions, the Nevada government finally approved the $1.3 billion bundle of tax breaks and other incentives needed to bring the Tesla Gigafactory to the state.

During a signing ceremony, Nevada Governor Brian Sandoval said that the deal “changed the trajectory of our state forever,” and that “We made history today.”

Of the $1.3 billion total, $725 million worth comes from sales tax exemptions for 20 years, and another $300 million worth of payroll and other taxes for 10 years.

As mentioned previously, the state also included a provision allowing Tesla to sell its cars directly to customers, something that proved troublesome for other states during their bid process.

“This is arguably the biggest thing that has happened in Nevada since at least the Hoover Dam,” said Assemblyman Ira Hansen, a republican from Sparks of the Gigafactory agreement.

SEE ALSO: Nevada Lawmakers Pulling All-Nighters Debating Tesla Tax Breaks

Other interesting details of the deal include $43 million to build a road connecting I-80 and U.S. 50, to ease access to the site, and that “at least have of all workers hired by Tesla be Nevada residents, although it allows for waivers.”

The 5 million-square-foot plant, which Tesla claims will be the largest lithium-ion battery factory in the world, is estimated to cost $5 billion to build.

“We’re looking forward to getting going,” said Diarmuid O’Connell, Tesla vice president of business development.

AN