Wednesday, Sept. 10, 2014 | 4:10 p.m.
In a new report issued today, the nonprofit Guinn Center for Policy Priorities has six suggestions for Nevada lawmakers considering the $1.3 billion Tesla deal.
- Require Tesla’s transferable tax credits be be sold at their original value and not at a discount. Tesla is set to receive $125 million in tax credits, which it will be able to sell to other Nevada companies. Normally the credits are sold at a discount, saving the purchasing company on its tax bills. This item recommends the state require the credits be sold by Tesla at their full face value.
- Include clawback provisions in the final contract with Tesla. If Tesla doesn’t meet the terms of the contract, the company would be forced to pay back some or all of the tax incentives it receives.
- Include performance-based measures. The deals should include specific hiring and capital investment targets.
- Reduce sales and use tax abatements relative to property tax abatements. Lower the overall amount of abatements in the deal. Lower the amount of abatements to lessen the impact on local and state governments.
- Establish a government commission to monitor the contract and performance targets. Create a commission of citizens, nonprofit groups, tax experts and legislative auditors to monitor and ensure Tesla meets its benchmarks.
- Establish a standing committee between Tesla and the Nevada System of Higher Education to build the workforce pipeline. Establish a committee to design and implement academic and certification programs to train Nevada residents to work at Tesla.
Related: Live coverage Tesla special session