For over 50 years, Bloomberg Tax’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...
By William H. Carlile
Dec. 21 — The Nevada Legislature wrapped a special session by passing a tax incentive package that will bring electric vehicle startup Faraday Future and a $1 billion factory to North Las Vegas.
Gov. Brian Sandoval (R) is expected to sign the bills.
The Dec. 19 vote, which came a day later than expected, followed Faraday's Dec. 10 announcement that it planned to build the electric carmaking facility in Nevada (238 DTR H-1, 12/11/15).
Sandoval called the Nevada Legislature into special session late Dec. 16 to approve an economic package of tax abatements and tax credits. He urged lawmakers to pass the proposed package for the $1 billion assembly plant, calling it an “extraordinary occasion” for the state to have such an economic opportunity.
The Faraday deal included $175 million in tax abatements, plus $38 million in transferable tax credits.
However, the proposal became bogged down when opponents in the Legislature claimed the measure made critical changes to long-standing Nevada water law. Infrastructure, including water delivery to the plant and the nearby area, is a component of the incentives package, and opponents charged that this wasn't the appropriate forum to upend 150 years of water law.
To contact the reporter on this story: William H. Carlile in Phoenix at email@example.com
To contact the editor responsible for this story: Ryan Tuck at firstname.lastname@example.org
Notify me when updates are available (No standing order will be created).
Put me on standing order
Notify me when new releases are available (no standing order will be created)