11:45 a.m. Tesla update: NV Assembly approves two bills as talks continue
CARSON CITY, Nev. — The Nevada Assembly approved Assembly Bill 1 and AB 3 unanimously during the 28th Special Session of the Nevada Legislature on Thursday.
The bills are half of the package of legislation designed to implement the $1.3 billion deal to bring Tesla Motor’s gigafactory to Storey County.
AB 1, worth anywhere from $3.8 million to $6.8 million, approves energy discount rates for Telsa.
Tony Sanchez of NV Energy and Paul Townsend of the governor’s office of energy told lawmakers Wednesday that translates to just $1.84 a year in added energy costs for residential customers in Sierra Pacific Power’s service area.
AB3 would take away from a small number of insurance companies a tax credit for locating their businesses in Nevada and giving it instead to Tesla.
Taxation Director Chris Nielsen testified Wednesday that credit costs the state about $30 million a year and has been in place for more than 40 years. He said in 2012, for example, that benefit was split among just a dozen insurance companies.
The so-called gigafactory has been touted as employing 6,500 workers at salaries averaging more than $25 an hour and generating up to 16,000 other jobs in the communities surrounding Storey County’s Tahoe Reno Industrial Center 15 miles east of Reno.
The Nevada Assembly and Senate are expected to work into the night.