Tesla keeps raking in tax credits though its jobs and capital investments are falling short of projections

Inside Tesla gigafactory.

Inside Tesla gigafactory.

Nevada keeps handing out money to Tesla Motors even though it is not coming close to living up to projections made when the Legislature in 2014 agreed to $1.3 billion in tax breaks and credits in return for the company building a $5 billion, 10 million-square-foot factory battery factory near Sparks.

This week the Governor’s Office of Economic Development agreed to provide Tesla with $8 million in transferable tax credits, bringing the firm’s tax credits to more than $35 million so far, even though the company has created only 331 jobs so far, well under the projected 1,700 jobs, according to a 2014 analysis of the project by Applied Economics.

The factory’s capital investment is also falling short — with only $600 million invested so far, compared to a projected $2 billion.

Since the company has almost no tax liability in Nevada the tax credits can to sold, presumably at a discount, to companies who owe taxes. Previously, Tesla has sold $20 million in tax credits to MGM. The certificate for the $8 million specifies it is to be applied to gaming licensing fees.

The projections provided lawmakers in 2014 forecast the plant would have 4,700 workers in 2017 and 6,500 in 2018. It also estimated an economic impact of over $100 billion over the next 20 years.

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18 comments on “Tesla keeps raking in tax credits though its jobs and capital investments are falling short of projections

  1. Reblogged this on Nevada Sheepherders and commented:
    Tesla has not only been ripping off Nevada, they are ripping off the country. Nevada lawmakers have unwisely in now three cases put the people of Nevada second in a scam of promises that are not fulfilled.

  2. Steve says:

    Things are only going to get worse for so called “green” energy companies.

    US oil companies are figuring out how to sell shale oil to Asia now. BP is the first with others following along closely.
    OPEC no longer controls the price of oil, we do. OPEC is dead.

    http://www.reuters.com/article/us-usa-oil-asia-bp-exclusive-idUSKBN13W0EW

  3. Barbara says:

    Has there ever been a governor whose actions have caused more harm to Nevada than Gov. Sandoval? Of course, the legislature also has to take it’s share of the blame. Is any other news source reporting on this fiasco?

  4. Rincon says:

    “OPEC no longer controls the price of oil, we do. OPEC is dead.” Maybe and maybe not. “Fracked wells are short-lived, with a well’s output typically declining from more than 1,000 barrels a day to 100 barrels in just a few years.” “The IEA report projects that U.S. domestic oil supplies, dominated by fracking, will begin to decline by 2020.” “Earlier this year the U.S. Energy Information Agency (EIA) also forecast a plateau in U.S. oil production after 2020.” http://news.nationalgeographic.com/news/2014/12/141219-fracking-oil-supply-price-reserves-profits-environment/

  5. iShrug says:

    Panasonic holding an info session for Gigafactory jobs on Sunday. 12 hour shifts, day and night.

  6. Steve says:

    Rincon, that is from 2 years ago.
    You really think things don’t change, huh…..they keep finding more and more.

    http://www.eia.gov/naturalgas/crudeoilreserves/

    And you are ignoring the effects of Natural Gas….
    http://www.eia.gov/tools/faqs/faq.cfm?id=58&t=8

  7. Rincon says:

    There appears to be lots of natural gas. Unfortunately, we have already long ago substituted natural gas for oil where it’s feasible. Of course, we will continue to find more reserves of oil, but as had occurred before fracking, it will become more expensive, giving OPEC the advantage once again. Although we can argue about how long this may take, we should agree that it is inevitable because the resource is finite.

  8. Steve says:

    Really……
    So nothing will ever be invented with natural gas…..

    You sound like the guys who claimed buggy whips would be used forever because no one will choose those noisy, smoky horseless carriages!

  9. Rincon says:

    You said OPEC is dead. As I write this, OPEC has agreed to cut production by 2%, which has already raised the price of crude. Nobody knows whether OPEC will be able to accomplish raising the price of oil long term, including you. If natural gas is such a good substitute, then explain why we’re not seeing many of those vehicles on the road.

  10. Steve says:

    Crude is currently near $51bbl this is far to little to support their economies. And after the “agreement” was announced…it quickly became apparent the decrease was really no change in production.

    OPEC is dead. They just don’t know it yet. Apparently, you wish them to be kept alive on life support!

  11. Rincon says:

    OPEC was hurting in the late ’80’s and the ’90’s and then oil went over $80 a barrel from August, 2005 until November, 2014, with only a few very short breaks. Whether they can do it again depends on whether other countries embrace fracking as we have – and whether they’re gutsy enough to limit production more while their economies are hurting. They may indeed be dead as you say, but I don’t think anyone can know.

  12. Steve says:

    Nope, our horizontal drilling is enough to keep OPEC on the sidelines for a very long time.
    Even Saudi Arabia has acknowledged this fact and is spending money in a very large scale attempt to diversify their economy and trying to “get off foreign oil” exports!

    See what I did there? HA!

  13. Rincon says:

    1) The Gulf War 2) 9/11 and the war on terror 3) War in Iraq 4) War in Afghanistan. All would not have occurred had we gotten off foreign oil in the ’80’s. Even with our so called fracking revolution, we still get 24% of our oil from foreign countries. And you don’t think we’ll have any more trouble because of our foreign oil habit. Funny man!

  14. Steve says:

    Get off middle east oil in the 80’s……was a fantasy then and remains just as much a fantasy as getting off all oil today.

  15. Rincon says:

    Of course it’s a fantasy. Conservatives would rather go to war than to spend a lot less money avoiding it. Millions for defense, but not one cent for rationality.

  16. Steve says:

    Don’t be rushing out to buy one of those TE$LA battery walls!

    As usual, technology comes along with better answers, adapt! Or die. Nature made the rule, Technology is how we adapt.

    http://www.autoblog.com/2017/03/15/john-goodenough-develops-rapid-charge-battery-made-of-glass/

  17. […] a 2014 special session of the Nevada Legislature the company was handed $1.3 billion of tax credits and abatements for which it would qualify if it met certain hiring and capital investment goals. […]

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