Tesla has won a $15 million tax break from the State of California, says a report from the LA Times. With this money, the EV maker is looking to add more than 4,000 jobs to its Bay Area factories and plants, which would be enough to make it the largest manufacturing employer in the state.
Tax breaks in return for more jobs
Tesla is one of the 60 companies selected by the California Governor’s Office of Business and Economic Development to be a part of an almost $50 million tax break package. Other than Tesla, several other Los Angeles-based companies also got funds from the $49.8 million tax award package. The committee signed the funds for 63 companies, which will create as many as 11,340 jobs and generate over $3.4 billion in investments across California.
The latest rebate from California focuses on creating more jobs, and the companies will be able to draw specific award amounts once they create jobs. The Palo Alto-based company will be able to withdraw the full amount after creating 4,426 positions by 2019. The jobs created should have a minimum annual salary of $35,000 and an average salary of at least $55,000.
In the year 2019, Tesla will be able to get $10.5 million after most of its hiring. The company informed officials that it has already made most of the hires. According to Tesla, the state has taken a base of 6,500 jobs, but that number is outdated, given that the company already has more than 9,000 workers in California. Ricardo Reyes, a spokesperson at Tesla, said the company has become the largest employer in the state.
Tesla proficient in getting tax benefits
The EV manufacturer and its chief Elon Musk are constantly finding ways to get funds from local, state and federal sources to grow their business. Only recently, the LA Times analyzed the subsidies of the three companies that Musk runs, Tesla, SolarCity and Space X, concluding that they received combined commitments of $4.9 billion in government support. This amount demonstrates Musk’s strategy of growing high-risk, high-tech companies with public money. Out of the total funds, Tesla has been allocated almost half.
Also the figure given by the Times included various government incentives, such as grants, tax breaks, factory construction, discounted loans and environmental credits, which can be sold by Tesla. Further, it is inclusive of tax credits and rebates given to solar panel and electric car customers.