Tesla, Nevada agree on finalized gigafactory incentive agreement

RENO — State officials have agreed to a final incentive agreement for a $5 billion lithium-ion battery plant being built in Nevada by Tesla Motors.

The $1.3 billion agreement allows the electric car company to apply for refunds for certain local tax payments, the Reno Gazette Journal reported.

The Nevada Governor’s Office of Economic Development says the company’s first refund application covers sales and use taxes paid from Oct. 17 to Dec. 17.

Company spending on the project is expanding, reaching 28 percent growth from the first to the second quarter.

One of the state’s stipulations in the agreement says Tesla must employ at least half its construction workers from Nevada. About 73 percent of the workers hired at the site so far have been in-state residents.

More non-construction jobs are being added, tripling from the first to second quarter to reach 36 employees.

Qualified employees were paid a total of $1.4 million in the second quarter.

Tesla has invested $183 million in the plant, and the company expects to employ 6,500 people upon the facility’s completion.

The company recently purchased over 1,900 acres of land near the Tahoe Reno Industrial Center. Tesla Motors spokeswoman Alexis Georgeson says the purchase gives the company the opportunity to grow.


Use the comment form below to begin a discussion about this content.

Sign in to comment