Report: Tesla Awarded $1.3 Billion Tax Break for Nevada Gigafactory

Nevada is welcoming Tesla with open arms. The state’s legislature unanimously approved a measure to give Tesla as much as $1.3 billion in tax breaks as a part of the deal to build the electric automaker’s so-called Gigafactory in Reno.

According to Bloomberg¸ the proposed bills were passed and signed into law in a matter of minutes. The law will allow Tesla to escape state sales taxes for 20 years, while property and business taxes won’t be required for a period of 10 years.

Tesla’s decision to build its lithium-ion battery manufacturing plant in Nevada is expected to bring 6500 jobs paying at least $25 an hour, and should generate $101.6 billion in revenue over the next 20 years, Bloomberg reports.

Panasonic has committed to help build the factory as well as the required equipment and machinery, as part of a plan that will allow the Japanese electronic s and battery pack manufacturer to occupy roughly half of the proposed plant space. Tesla plans to build battery packs for up to 500,000 cars annually at the Reno facility, which is slated to begin production in 2020. The new factory is said to be key to Tesla’s launch of the lower-price Model 3 electric sedan.

An additional piece of legislation gives Tesla full latitude to exercise its direct-to-consumer sales model. Tesla will be exempted from a separate law requiring dealers to be sold through dealerships. The exemption avoids what could have been a huge headache for Tesla, which has faced backlash from governments and dealer lobbies in numerous states. Missouri, New Jersey, New York, and Ohio have already attempted to ban Tesla’s direct sales model, while outright bans are already in effect in Arizona, Colorado, Texas, and Virginia.