Nevada Legislature Deliberates Tesla Tax Package In Special Session
Last week, Tesla and Nevada governor Brian Sandoval jointly announced the automaker would be bringing its Gigafactory to Reno. Now, it’s up to both houses of the state’s legislature to pull it all together with a $1.3 billion tax break.
Reuters reports the Nevada Legislature gathered in Carson City for a special session at noon Wednesday to hammer the details of the package, which Sandoval believes will spur $100 billion worth of economic benefits for his state during the next two decades at an investment payoff of 80:1.
The package would provide the following for Tesla in exchange for hosting the Gigafactory:
- $725 million in tax exemptions through 2034
- $300 million in various tax savings through 2024
- $120 million in tax credits for meeting the state’s investment threshold of $3.5 billion
- $75 million in tax credits for up to 6,000 jobs created
- Reduced utility rates
In turn, Tesla will invest over $37 million into Nevada’s education systems during the next five years, and will bring a total of 25,500 jobs to the state, from construction to indirect employment.
As of this writing, both houses are set to return for a second day of deliberation Thursday morning. Until then, this is the tax break bill as established during Wednesday’s session.
Now, if only there was enough sense amongst the NV electorate to recognize that "if giving company A deal N encourages them to come, extending the deal to companies B,C,D,E,.... would........" As it stands now, there are no systemic benefits. Only encouragement to spend more time in front of cameras engaged in self promotion, and politician promoting; in place of focusing on useful work.
When Arlington TX gave Jerry Jones $300 million dollars to attract the new Cowboys stadium, the only real winners were Jones and the teams who play. Then they spend another $300 million on infrastructure - the I30 bridges project and renovating other roads to bring people to and from parking. The argument is always the same, that the city will make it up in tax revenue down the road, but the details are always fuzzy. Reno is a sh*t hole so good luck to Nevada, I hope it brings meaningful, good full time jobs to the state but someone is going to get the bill for the infrastructure improvements needed and they already have so many electronic slot machines that you can walk from machine to machine across the state without touching the ground.
Every yard, church parking lot and the Walmart across the street offers parking, everyone tries to cash in. I would go if they paid me.
I don't like these sorts of deals, but I do think there's a big difference between NOT taking taxes and actually subsidizing a business with cash. The example was something like a property tax credit. If it's vacant land that the state of Nevada wasn't going to get much of anything anyway for it terms of taxes, it seems to me to be a painless incentive to offer a business. Something is better than nothing. My problem still with all of it though is the lack of fairness, the people with the best lobbyists win, not the best business idea or product. So the American Dream basically becomes who has the inside tract with the current bureaucrat in power. The guy that owns a business and creates jobs but isn't flashy gets hosed with taxes to make up for the sexy new electric car company. And Elon Musk/Tesla/Solar City empire really is built on the backs of corporate welfare and taxpayers. If any of his enterprises had to stand on their own two feet, they'd be dead in the water.