REPORT: Tesla gets creative $28 million tax incentive in California
While not every state offers as big a rebate on the Tesla Roadster as Colorado does, there is a federal tax credit of $7,500 available to people who buy the electric sports car. Drivers aren't the only ones that various governments want to help in getting electric vehicles on the road. Tesla Motors itself will benefit from a favorable bit of tax massaging by state of California Treasurer Bill Lockyer.
We've know for a while that Tesla wants to open a new plant in the U.S. to build the Model S and, while Albuquerque was in the running, California has always been more likely. The state certainly has made it a point to offer up tax incentives. The latest offer is to waive the sales tax on EV manufacturing equipment worth about $320 million. Instead of buying the tools directly, Tesla will have the California Alternative Energy and Advanced Transportation Financing Authority, a state entity that was formed almost 30 years ago and doesn't need to pay sales tax on equipment used to make advanced vehicles, hold the deeds for a short while and then give them to Tesla. This creative move will apparently save Tesla almost $29 million dollars, and makes us wish we could do something the next time we need to buy more blogging equipment.
[Source: San Francisco Gate, Reuters]
Reader Comments (Page 1 of 1)
Boyprodigy1 10:13AM (10/29/2009)
California certainly appreciates (more than the rest of the nation) keeping the best technological manufacturing jobs on their turf...
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User 3:52AM (10/30/2009)
The Silicon Valley, located near Stanford University and UC Berkeley, is more than just a location at which technology-based companies exist; it is a hub of innovation, knowledge and social awareness. It usually has nothing to do with politics or with California's state government wanting to hold on, it has to do with local culture. Come to Silicon Valley and see for yourself. :) There are a lot of inspirational and meaningful things to do.
Serge 10:14AM (10/29/2009)
Old news: the Governator promised no tax on manufacturing equipment a year and a half ago http://www.gov.ca.gov/index.php?/press-release/10038/
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Beester 11:25AM (10/29/2009)
If taxes weren't so damned high in the first place then all these 'incentives' wouldn't be needed. But we all know taxes are used as much to influence behavior as the are to raise revenue which is on my opinion complete BS.
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polo 2:32PM (10/29/2009)
Corporate taxes are already much lower. These incentives are just to keep them from jumping to another state now or in the future.
wt 11:28AM (10/30/2009)
Tax breaks have always been used to "influence behavior" - you deduct business expenses on your tax return, don't you?
States competing for a relocating company business is capitalism at its finest.
Nixon 3:29PM (10/29/2009)
Tax incentives for companies to operate or build factories in states are so common place it isn't even funny. Tax incentives for locating operations or headquarters in a state are the norm, not the exception.
Every car maker making cars in the United States has a tax incentive deal in place with their states.
Another *yawn* non-story, presented in shock-and-horror tabloid style.
Wake me up when there is something newsworthy here.
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chris.c.f.curtis 4:20PM (10/29/2009)
This is exactly the what America needs to be doing with tax breaks, especially in these times. First of all, the incentive in Colorado for people to buy more cars is something the economy desperately needs. Secondly, Tesla Motors will hopefully be able to create or keep jobs because of the tax break they are getting. If Tesla could open a plant here in the United States, that would be great news for everybody, especially in job-hungry California. Furthermore, this is exactly the sort of investment in green industry that America needs to start making if it wants to go in the right direction. California definitely has its issues, but this is one of the smarter moves it has made in a while.
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Dan Mosqueda 9:09AM (10/30/2009)
Any sign of Tesla using the NUMMI plant?
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Patrick P 2:07PM (10/30/2009)
NUMMI is the only car manufacturing plant in CA. Their employees have been well trained with the current innovations in manufacturing? If Tesla needs a manufacturing plant, then NUMMI would be ideal place to start.