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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).
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