Tesla Tax Break
December 20, 2013 by staff
Tesla Tax Break, This is going to drive the Tesla-haters crazy. The luxury electric-car maker is getting a huge new tax break from California, SFGate reports. The state will let it off the hook for sales and use taxes on some $415 million in new equipment it’s purchasing in order to expand production of the Model S at its Bay Area factory. That amounts to a $34.7 million tax break to produce more of a vehicle whose sticker price starts above $70,000.
Will Oremus is a Slate staff writer. Email him at will.oremus@slate.com or follow him on Twitter.
Tax breaks for the rich! Corporate giveaways! The working people forced to pay for tech titans’ fancy rides!
Well, sort of. But as SFGate’s David R. Baker explains:
California is one of the few states to tax the purchase of manufacturing equipment, a policy that California business associations have spent years trying to change. But the state does grant exemptions for clean-tech companies as a way to encourage the industry’s growth. The exemptions are issued by the California Alternative Energy and Advanced Transportation Financing Authority, chaired by State Treasurer Bill Lockyer.
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