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Nevada Offers Tesla Up to $1.3B for Battery Plant

2:10

Tesla Motors would get tax breaks and other incentives worth up to $1.3 billion over 20 years to bring its battery factory to Nevada under a package Gov. Brian Sandoval negotiated with the electric car maker. Tesla wants to build the massive “gigafactory” at an industrial park near the Reno suburb of Sparks. Sandoval announced terms of the deal Thursday at a news conference attended by Tesla CEO Elon Musk. The governor will call a special legislative session as early as Wednesday for lawmakers to approve the package. The ultimate cost 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.

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—The Associated Press