Dive Brief:

• The state of Nevada has approved a $1.3 billion package of tax breaks for Tesla Motors as part of a deal to entice the electric car company to construct its "Gigafactory" in the state.
• Nevada Governor Brian Sandoval signed the package of legislation on September 11, paving the way for the $5 billion lithium ion battery factory to be constructed about 20 miles outside Reno.
• The largest of the tax breaks, worth more than $700 million, makes Tesla exempt from the state sales tax for the next two decades.

Dive Insight:

Nevada is still struggling to recover from the nation's recession and mortgage crisis, but the deal struck last week could help create jobs for thousands of Nevada residents. According to Reuters, Sandoval's office estimated the lithium-ion factory will be about 5 million square feet and create more than 25,000 jobs between construction, factory workers and indirect impact.

Tesla had considered building the factory in other states, including Texas, California, Arizona and New Mexico. But in Nevada, the company will also be saving another $300 million in payroll taxes over the next decade. As part of the deal, state legislators agreed to purchase right of way to construct a road to improve access to the facility from other regions.