Tesla is still on the hunt for a location to build its Gigafactory, and while California was not on the short list of locations initially, Governor Jerry Brown has still approved potential property tax breaks for the electric car maker.
California has been lobbying hard to land the first Gigafactory. Governor Jerry Brown and a bi-partisan group of law makers for the state have been systematically introducing legislation to cut government red tape and revamp old policies that would make it easier and more cost effective for Tesla to build in California. The most recent evidence of this was unearthed in freshly passed California legislation AB 2389.
On its face, California legislation AB 2389 is a bill that offers the aerospace company Lockheed Martin a $420 million tax credit over 15 years. Yet, buried in the bill and using obscure wording is an allowance of local governments to offer property tax discounts to firms that make electric batteries, reports the L.A. Times. In other words: Tesla build here!
The Tesla Gigafactory is an estimated $5 billion project aimed at producing lithium-ion batteries at peak efficiency while cutting the cost as much as 30%. By 2020 the Gigafactory is speculated to produce more lithium-ion batteries annually than were produced worldwide in 2013. The states of Nevada, Arizona, New Mexico, and Texas were on the short list to be the possible home of the Gigafactory, and thus the recipient of the estimated 6,500 jobs that come with it.
Tesla CEO Elon Musk reluctantly added California to the list, although claiming that chances of California winning the Gigafactory were slim. Perhaps with the passage of this bill, the Golden State’s odds have increased?