Reno, Nev., won Tesla’s new $5 billion Gigafactory, doling out a reported $1.25 billion in incentives to seal the deal. “The Gigafactory will mean nearly $100 billion in economic impact over the next 20 years,” Governor Brian Sandoval said in his announcement Thursday.
The company’s decision comes after a five-state competition, which included Texas, Arizona, New Mexico, and Tesla’s home state, California. The factory, a joint venture with the Panasonic Corporation, will not produce Tesla cars, but rather the lithium-ion battery packs that power electric vehicles.
The eye-popping package is more than double the $500 million Tesla CEO Elon Musk had initially named as his target for incentives, and one of the largest ever provided to a single company. The details, according to USA Today, include:$725 million in sales tax abatements over 20 years, which is equal to about 80 percent of the total sales tax revenue state government receives in a year. $332 million in real and personal property tax abatements over 10 years — an amount equaling two and a half times the amount of property tax revenue Washoe County receives in a year. $195 million in transferable tax ... Read more