Nevada governor signs Tesla factory incentives into law

FOX5 Vegas - KVVU

Nevada Gov. Brian Sandoval (R) signed into law a package of incentives for Tesla Motors Inc. to build a $5 billion car battery factory in the state.

The incentives are worth $1.3 billion for Tesla’s “gigafactory,” but the state expects it to bring in more than 20,000 jobs and $100 billion to the state’s economy over 20 years, The Associated Press reported.

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The legislature passed the bills unanimously earlier Thursday.

“It doesn't get any bigger than this,” Sandoval said at the Thursday signing ceremony, according to AP.

“This is some of the most important legislation that's hit this state in perhaps our history,” he said. “We have changed the trajectory of this state, perhaps forever.”

The plant will be the largest lithium battery factory in the world.

The bulk of the package, worth up to $1.1 billion, is tax abatements, allowing Tesla to avoid paying property and payroll taxes for the factory for 20 years. The company was given another $195 million in tax credits, AP said.

Three other bills were also signed, allowing Tesla to buy cheaper electricity in the state, rolling back an insurance subsidy to pay for Tesla’s tax incentives and allowing Tesla to sell cars directly to Nevada consumers.

Tesla must meet certain job-creation goals and give half of the jobs to Nevadans. If not, it must pay the incentives back.

Tesla chose Nevada for its battery factory last month after multiple states courted the company with possible incentives.