Tesla is asking the Governor’s Office for Economic Development to approve $412 million in additional tax abatements and reimbursements for expanding their Northern Nevada gigafactory.
The electric car company’s request comes with a requirement of $3.5 billion in capital investments, as well a promise to invest in housing, transportation and child care for their employees.
The size of the package, which was not previously known, became public with the publishing of the car company’s tax abatement application Monday morning — three days in advance of a GOED meeting where a board of three elected officials and six appointed private-sector business people are expected to vote on the incentive package.
The estimated $412 million package is split across three taxes; $330 million is directly abated:
MBT and property taxes are both abated at 100%. The sales tax abatement sets for Tesla a reduced rate of 5.35% — essentially abating the prevailing county sales tax rate but not the state’s local schools support tax.
Additionally, $81.4 million in sales tax over 20 years would be reimbursable through an “economic diversification district” program setup by the 2014 legislation authorizing the original Tesla abatement package.
If approved, the tax package will constitute the third largest assistance package in Nevada’s history,...
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