Tesla Motors and the California Alternative Energy and Advanced Transportation Financing Authority have reached a deal to give the company tax credits that will allow it to expand its production of electric cars and create 1,400 jobs in California, State Treasurer Bill Lockyer announced today.
"By helping Tesla stay and expand in California, this agreement will create valuable jobs for our battered economy," Lockyer said in an e-mailed statement. "And it will bring the added bonus of benefiting our environment. (Zero emission vehicles) are efficient and clean, and a critical weapon in our fight against climate change."
There is still no word yet on whether Tesla will choose Long Beach or Downey as the site for a new assembly plant. Tesla spokesman Ricardo Reyes said the tax credit agreement helps accelerate production, but he said site selection is a separate issue and that no decision has been made.
Existing law exempts the authority from paying the sales tax on equipment used to manufacturer advanced transportation products. Under a policy adopted in June of 2008, it can pass through that tax break to qualifying zero emission vehicle manufacturers.
Under the terms of the agreement, the authority will assume title of $320 million worth of manufacturing equipment purchased by Tesla directly from vendors. The authority won't pay the sales tax on the transaction and will transfer title of the equipment to Tesla, saving the company the sales tax costs.
Paul Eakins reports on Long Beach City Hall, and local and regional
politics. A newcomer to the Press-
Kris Hanson reports on the Ports of Long Beach and Los Angeles,
covering environmental issues, economic triumphs and
pitfalls and trade trends of America’s largest port.
He also writes a weekly column “On The Waterfront”,
appearing Tuesdays, and also produces an occassional video
and column titled “On The Job,” which follows the hard-working
men and women who keep Southern California’s economy humming.
Karen Robes Meeks came to work for the Press-
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