A guard stops a vehicle at the security checkpoint to enter the site at the Tahoe Reno Industrial Center 15 miles east of Sparks, Nev., on Sept. 4, 2014. Tesla Motors Inc. plans to build a 6,500 worker “gigafactory” to mass produce cheaper lithium batteries for its next line of more-affordable electric cars.CARSON CITY, Nev. – Nevada Gov. Brian Sandoval asked state legislators on Thursday to approve tax breaks and other incentives worth up to $1.3 billion over 20 years to bring Tesla Motors’ battery factory to the state.
Tesla wants to build the massive factory at an industrial park near the Reno suburb of Sparks – as long as lawmakers agree to the package Sandoval negotiated with the electric car maker.
Sandoval announced terms of the deal Thursday at a Capitol news conference attended by Elon Musk, CEO of California-based Tesla. The governor will call a special legislative session as early as Wednesday to approve the package.
The ultimate cost of the package to taxpayers depends on how much economic activity the factory generates. On the low end, it could be worth $865 million, according to Steve Hill, executive director of Sandoval’s Office of Economic Development.
Hill projected the factory would generate $100 billion for Nevada’s economy and directly or indirectly create 22,000 new jobs over two decades. That includes an estimated 6,500 permanent jobs at the factory and a peak of 3,000 construction jobs leading up to the opening of the $5 billion plant in 2017.