Inside Nevada’s $1.3 Billion Gamble on Tesla

In June of 2014, Texas Governor Rick Perry pulled into Sacramento behind the wheel of a Tesla Model S. Unseasonably dressed in a black jacket, Perry was in California for fundraising, but nonetheless took time to address reporters in front of a local hotel. He told them that he enjoyed driving a Tesla, the Los Angeles Times wrote, and would happily make one addition: “A made-in-Texas bumper sticker.”

Tesla had been shopping for a site to place its Gigafactory, promising to create thousands of jobs wherever the massive battery plant landed. But the company, and CEO Elon Musk, wouldn’t go just anywhere. Tesla bargained its way through lucrative deals, asking local governments for millions in tax incentives to grease the company’s wheels.

Nevada ultimately won the factory deal, but at a cost that has proven controversial: The state offered an incentives package that was the largest in Nevada history and became one of the 15 largest nationally. Over the next 20 years, Tesla could take in nearly $1.3 billion in tax benefits for building its Gigafactory in Nevada, according to projections from the state, as hires are made for the factory locally and from around the country. Assuming Tesla meets its obligations under the deal, it will spend 20 years free from sales tax and 10 years free from property tax, while it receives millions of dollars more in tax credits.

Read the rest of this post on the original site »

This article originally appeared on Recode.net.

Will you support Vox’s explanatory journalism?

We'll be honest: advertising alone isn't enough for Vox, or most newsrooms, to do the amount of high-quality journalism that the world needs and keep it free. We count on contributor support in order to produce nuanced, clear, and optimistic journalism. We don't have a paywall or ask our readers to subscribe in order to see our content, so instead, we’re coming to you this #GivingTuesday to ask you to make an investment in our future. If you’ve read an explainer this year that helped you to see an issue more clearly, got the answer to a long-time question, or just plain learned something, then we hope you’ll consider making a contribution of $20 or whatever you can today.

One-Time Monthly Annual

$5/month

$10/month

$25/month

$50/month

Other

$

Yes, I'll give $5/month

Yes, I'll give $5/month

We accept credit card, Apple Pay, and Google Pay. You can also contribute via