Nevada Set to Give Tesla Motors Huge Tax Deal

Nevada Set to Give Tesla Motors Huge Tax Deal; More Americans Are Renouncing Citizenship Due to Tax Rules; Investing for Growth

Nevada Set to Give Tesla Motors Huge Tax Deal

By Alan Olsen

One of the world’s most popular new car companies continues to make waves as it works to not only redefine how cars are made and run, but also change the way cars are sold. The latest move by Tesla Motors is not only a huge move for the car company but also a financial boon for the state of Nevada.

Battery Factory = Tax Break

That’s because Nevada recently won the rights to Tesla’s future gigafactory. The car company plans to build the world’s largest lithium-ion battery factory in Reno, NV. The Silver State won Tesla over thanks in large part due to a $1.3 billion tax break over 20 years. It also means that Tesla will essentially operate tax-free for the first 10 years of the deal. In exchange, Tesla has to invest a minimum of $3.5 billion in real property and manufacturing equipment in Nevada.

Better than Expected Deal

The deal seems like a bargain for Tesla, as CEO Elon Musk had said it would take $500 million for a state to attract the company. However, although Nevada won the rights to the factory some wonder whether it gave up too much. According to reports, some state officials had expected the Tesla Motors to invest as much as $10 billion into the state in exchange for the tax break.

Economic Boost

However, with several other states apparently in the running for the factory, Nevada pulled the trigger on the deal. Plus, those who created the tax package argue that the benefits outweigh the negatives. Those officials argue that the size and scope of the factory should justify the tax break package. For starters, economic development officials believe that the factory, which is expected to have more than five million square feet of working space, will create a $100 billion economic impact for Nevada over the first 20 years.

More Jobs

The positives don’t stop there for Nevada, as the factory is also expected to create 6,500 jobs with an average pay of about $25 an hour. Plus, some economic officials believe that as many as 22,000 more indirect jobs could be created thanks to the new factory. That is equal to 2 percent of the state’s entire workforce. It appears that even though the state may be giving Tesla a huge tax break, it will make up for it in revenue the factory will create for the state.

Bountiful Tax Breaks

Speaking of those tax breaks, here is a closer look at the benefits Tesla Motors will receive.

  • $725 million in sales tax abatements over a 20-year time period.
  • $332 million in personal and real property abatements for 10 years.
  • $195 million in transferable tax credits. Plus, other companies will be able to buy these credits from Tesla and thus reduce their own state tax liabilities.
  • $27 million tax abatements for payroll for 10 years.
  • $8 million for eight years for electricity discounts.

Easier to Sell Cars

There is one other incentive for Tesla, as Nevada is expected to make it legal for the company to sell cars directly to consumers from a manufacturer’s store instead of through a franchise agreement. If you add it all up it appears that the deal could definitely be a win-win for both the car company and the state of Nevada. It was all made possible because Nevada was willing to ease up on corporate taxes.

We hope you found this article about “Nevada Set to Give Tesla Motors Huge Tax Deal” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page  or our website at  Unfortunately, we no longer give advice to other tax professionals gratis.

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Alan Olsen, CPA

Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.


Alan L. Olsen, CPA, Wikipedia Bio is a proud sponsor of The American Dreams Show.



The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:

Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…

Untitled_Artwork copy 4 (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

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