The Nevada Governor’s Office of Economic Development board approved the application of $330 million in tax abatement for Tesla’s electric truck factory facility.
Tax Abatements’ Condition
The tax incentives and tax abatement granted to Tesla include personal and property taxes for the expansion and development of the Gigafactory in Nevada.
In exchange for the granted tax abatement, Tesla has to invest $ 3.6 million in the 10-year run for the Gigafactory expansion and development. The expansion is expected to produce 100 gigawatt-hour for the company’s 4680 cells with enough capacity to produce large output of as much as 1.5 million batteries for light-duty vehicles.
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Incentives Granted to Tesla
Back in 2014, during the creation of the first Gigafactory in the state of Nevada, the Tesla company was also granted $1.3 billion worth of tax abatement as support of the start-up of Tesla in Nevada.
The tax abatement granted to Tesla company is composed of personal and property tax, sales tax, and modified business tax. The Tesla company is granted a tax break on its personal and real property tax for 10-year time. In a span of 20 years of operation and production, the sales tax of the company will be reduced to 5.35%. This will be a big help for the company since it will be venturing worth of $2 billion on equipment for the Gigafactory expansion. On Tesla’s business tax, they will be granted a 100% tax subsidy in a span of 10 years.