Nevada offers Tesla up to $1.3B for battery plant

[Omaha Steve]

Source: AP-Excite

By SCOTT SONNER and JUSTIN PRITCHARD

CARSON CITY, Nev. (AP) — Gov. Brian Sandoval announced Thursday that Nevada won a high-stakes battle with four other states for Tesla Motors' coveted battery factory, but the win comes with a hefty price tag — up to $1.3 billion in tax breaks and other incentives over 20 years that state lawmakers still must approve.

Sandoval revealed terms of the deal he negotiated with the electric car maker at a ceremony on the Capitol steps attended by Elon Musk, CEO of California-based Tesla. Musk confirmed the search was over for a home for his $5 billion lithium battery "gigafatory," which the company hopes will bring it closer to mass production of a more affordable electric car.

The Republican governor called it a "monumental announcement that will change Nevada forever," creating more than 22,000 jobs and pumping $100 billion into the state's economy over the next 20 years. He didn't mention the total value of the incentive package in his remarks but emphasized that every $1 Nevada invests in the effort will bring $80 back to the economy.

"Even the most skeptical economist would conclude that this is a strong return (on investment) for us," he said about the deal that already has drawn outside criticism from both the left and the right that the tax breaks are too generous. So far, it has not encountered significant opposition from state lawmakers who must approve the incentives.

FULL story at link.



FILE - This Aug. 1, 2014 file photo shows security guards at the gate to the site Tahoe Reno Industrial Center about 15 miles east of Reno, Nevada. Tesla Motors has selected the site in Nevada for a massive, $5 billion factory that it will build to pump out batteries for a new generation of electric cars, a person familiar with the company's plans said Wednesday, Sept. 3, 2014. (AP Photo/Scott Sonner, File)


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