Tax Break in California Has Tesla (TSLA) Seeing 'Green'
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While Tesla (Nasdaq: TSLA) is still fighting a battle in Ohio, another state appears to be embracing the electric vehicle (EV) automaker..
The San Francisco Chronicle said that California will be floating $34.7 million worth of tax breaks Tesla's way to increase the company's production capacity in the state.
Specifically, California will give Tesla a break on sales and use taxes for up to $415 million worth of equipment. The equipment will help Tesla to double Model S output at its Fremont, Ca., facility while also enabling the company to assemble more powertrains for customers like Toyota and Daimler.
While California does generally tax purchases of manufacturing equipment, the state does make an exemption for clean technology companies as a way to promote growth within the segment.
Tesla's prior exemption -- on equipment up to $612 million -- helped build the facility that launched its Model S sedan.
California won't be missing out on much, either. SFGate noted that the state will receive a net benefit of $24.4 million on the exemption on future tax revenue.
Shares of Tesla are down about 3.8 percent.
The San Francisco Chronicle said that California will be floating $34.7 million worth of tax breaks Tesla's way to increase the company's production capacity in the state.
Specifically, California will give Tesla a break on sales and use taxes for up to $415 million worth of equipment. The equipment will help Tesla to double Model S output at its Fremont, Ca., facility while also enabling the company to assemble more powertrains for customers like Toyota and Daimler.
While California does generally tax purchases of manufacturing equipment, the state does make an exemption for clean technology companies as a way to promote growth within the segment.
Tesla's prior exemption -- on equipment up to $612 million -- helped build the facility that launched its Model S sedan.
California won't be missing out on much, either. SFGate noted that the state will receive a net benefit of $24.4 million on the exemption on future tax revenue.
Shares of Tesla are down about 3.8 percent.
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