The Center of the California Enterprise Zone Information Universe


“Some in Sacramento think the company should just reach deeper in its own pockets…”

In the Silicon Valley/San Jose Business Journal there is a potentially tragic story about Tesla Motors, Inc. They are interested in building a new $100 million, 300 employee factory in the Central Valley, but the offers from Arizona and North Carolina are “far more enticing — roughly $15 million at the front end — than anything the state of California has come up with.”

North Carolina and Arizona have offered deals that would allow Tesla to cut more than $15 million from the startup costs for the new plant.California can offer $20 million in tax credits per year on certain machinery, says Janet Houston, spokesperson for the California Department of Housing and Community Development. In addition, the state has offered tax credits of up to $30,000 on each employee, if Tesla locates in an Enterprise Zone of which there are several in the Central Valley. What Tesla is asking for would come closer to $80,000 per employee, an unlikely proposition.

“Given the state’s structural deficit, the governor has focused his efforts on balancing the budget without raising taxes and expanding health care for uninsured children,” says Mr. Ng.

Because the company is based in Silicon Valley, has support from some wealthy technology investors and makes an expensive product, some in Sacramento think the company should just reach deeper in its own pockets to find that $15 million.

That last line is especially precious.

Leave a Reply

You must be logged in to post a comment.

Follow maxshenker on Twitter

Receive By Email

Enter your email address and receive the EZ Policy Blog by email.

RSS

Categories