Tesla NDA revealed

Published: Feb. 27, 2023 at 5:00 PM PST
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RENO, Nev. (KOLO) - With an investment of 3.5 billion dollars, Tesla qualifies for the same deal it received 10 years ago during a special Nevada Legislative Session.

It means $330 billion dollars in tax breaks, which include a ten year suspension from property taxes and 20 years in sales taxes. The deal, in the making for a couple of months, was worked out as a non-disclosure agreement between the state, Tesla and Storey County.

That NDA is part of the law created back in 2014 when the first agreement was signed.

“Tesla Two” as some call it, will mean an electric semi-truck factory added on the existing structure. The new agreement comes into play just as Tesla’s property tax abatements set in 2014 are about to expire.

According to Storey County’s Manager, that money, roughly 10-to-15 million dollars, annually will go to infrastructure Storey County has forestalled.

“There are $600,000,000 dollars’ worth of deferred maintenance that has occurred across this county,” says Austin Osborne.

Osborne says while Storey County will be busy working on much needed infrastructure beginning in June 2024 using Tesla property tax money; their community and surrounding counties can look at additional money construction workers and later three thousand new employees will pump into their economy.

Tesla has also said it will help accelerate workforce housing units, and a day care center is planned near the facility.

“I want to know how much is being abated?” said Senator Dina Neal.

Senator Neal made those comments before the Tesla deal was revealed today.

She released a statement late this afternoon saying she wants the Governor’s Board to delay consideration of the deal to allow for the pubic to review the details.

Ten years ago, the Nevada Legislature took all power away from lawmakers to have any input into investment abatement agreements like this one.

“We are allowed to pivot,” said Senator Neal. “We are allowed to say, well, ten years later, maybe not anymore.”

Senator Neal promises to work on more legislative oversight, and transparency around future deals.

We’ll keep you updated.