Tesla Motors is reportedly getting $1.3 billion in tax incentives to build its Gigafactory in Nevada.
The news follows just a week after the electric car maker chose the Silver State as the site for its new factory, which the company will use to build batteries its electric vehicles, according to The Verge. The money will be given to Tesla over the next 20 years.
Nevada governor Brian Sandoval signed bills on Thursday that tax exceptions over the next 20 years will be worth around $725 million. The deal allows Tesla to save an estimated $300 million on payroll and other taxes for the next 10 years.
Tesla was also made exempt from a law that demands that auto manufacturers have their cars sold through dealers, Bloomberg reported. The law also requires that tax breaks be reduced for filmmakers and insurance companies to do business in Nevada.
"We made history today," Sandoval said.
The batteries made in the Gigafactory will supply 500,000 cars that the Palo Alto, Calif.-based company plans to build. Other states considered for the site include Texas, New Mexico, and Arizona.
Nevada's state demographer estimated that Tesla would be helping the state by bringing in $101.6 million in economic activity over 20 years. Nevada currently has the third-highest unemployment rate in the U.S., Bloomberg reported.
The factory is also expected to help Nevada by providing 6,500 jobs, with an average wage of $25 an hour. The facility is expected to begin operation in 2020.
