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. 10 — Electric vehicle startup Faraday Future has selected North Las Vegas, Nev., as the site of its $1 billion factory expected to begin production as early as 2017, the company announced, but the deal hinges on an special session expected to start Dec. 16.
Gov. Brian Sandoval (R) announced at a Dec. 10 press conference that an anticipated 4,500 jobs would be coming to southern Nevada as a result of the California-based company's commitment. The number of direct and indirect jobs created by the state's agreement with the company exceeds 13,000.
The deal now hinges on the Legislature's approving a tax incentive package for the company during the special session, expected to run at least through Dec. 18.
Steve Hill, executive director of the Governor's Office of Economic Development, told the press conference that tax incentives total about $215 million, while an additional $120 million is pegged for infrastructure projects.
The deal calls for 100 percent abatement of sales and use taxes over 15 years, 75 percent abatement on real property taxes for 10 years, 75 percent abatement of personal property taxes for 10 years and 75 percent abatement of the modified business tax for 10 years.
It also proposes a transferable tax credit of $9,500 per permanent full-time job, up to 4,000 jobs. The average wage per job must be $22 an hour to qualify.
The electric vehicle startup is backed by Chinese billionaire Jia Yueting. Faraday's first global manufacturing site would be a 3 million-square-foot facility on approximately 900 acres, Dag Reckhorn, Faraday's vice president of manufacturing, told the gathering.
The move places Faraday in the same state as rival Tesla Motors Inc. Tesla in late 2014 gained $1.3 billion in tax incentives from the state to locate a massive battery manufacturing operation outside Reno in northern Nevada (178 DTR H-1, 9/15/14).
To contact the reporter on this story: William H. Carlile in Phoenix at firstname.lastname@example.org
To contact the editor responsible for this story: Ryan Tuck at email@example.com
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)