California dangles another $15 million carrot to Tesla (FORTUNE)
Gov. Brown proposed issuing dozens of tax credits to encourage companies to stay—and expand—in the state
News By : Kate Nixon
Tesla Motors, the luxury all-electric automaker that operates a number of factories and offices throughout California, could receive another $15 million tax credit under a proposal by Gov. Jerry Brown’s business and economic development agency GO-Biz.
The California Competes Tax Credit Committee will consider GO-Biz’s proposal to give tax credits totaling $49.5 million to 63 businesses including online video game developer Riot Games, pharmaceutical developer Ajinomoto Althea Inc., and footwear and apparel designer Sketchers, among others.
The vast majority of companies are on tap to receive tax credits valued under $1 million. Palo Alto-based Tesla Motors TSLA -2.07% stands to snag tax credits five times higher than those allotted to the next largest recipient. The catch? The companies must expand in California and hire more than 4,400 workers by 2019. The $15 million tax credit agreement would allow Tesla to offset taxes to grow its operations in California, purchase property, and buy equipment for manufacturing as well as research and development. Under the tax credit agreement, Tesla must pay workers a cumulative average salary of $55,000 and maintain those milestones for at least three years.