Nevada's $1.2 billion deal for Tesla Gigafactory lets EV company sell direct

Now that the Nevada deal for the Tesla Motors Gigafactory has the governor's signature, we've got more details on the automaker's $1.2-billion benefits package. As originally reported, this is the broad breakdown:

• $725 million for a 20-year 100 percent sales tax abatement
• $332 million for a 10-year 100 percent property tax abatement
• $120 million in transferable tax credits
• $75 million in transferable tax credits worth $12,500 per job times 6,000 jobs).
• $27 million for a 10-year, 100 percent modified business tax abatement
• $8 million in discounted electricity rates for eight years

New reports say that one way that state legislators freed up some money ($125 million) was by ending a long-standing tax break for insurance companies. Legislators also eliminated some tax credits for movie companies to give the money ($70 million) to Tesla. One surprising side benefit for Tesla is the ability to sell its EVs directly to customers in Nevada. The state hasn't been a big player in the EV dealer fight issue, but now the company's right to sell cars there is secure.

What does Nevada get out of the deal? Well, a lot of publicity, for starters, but also a big new employer. The state is also requiring that at least half of all the workers at the $5 billion Gigafactory be from Nevada, but there is a way for Tesla to get waivers around this if needed.

Add that all up and you get what state Assemblyman Ira Hansen called, "arguably the biggest thing that has happened in Nevada since at least the Hoover Dam." Not everyone is so positive. A Las Vegas schoolteacher told the Nevada Appeal, "I think it is kind of ironic that a renewable energy, a green energy car company we are courting to come to our state, that one of the things we are giving them is free energy."

You can watch a video of the September 4th Tesla/Nevada announcement and read the governor's press release about signing the bill below.

News Source: Reno Gazette-Journal, Nevada Appeal, Reuters, Automotive News - sub. req.

Image Credit: Cathleen Allison / AP