Your comparing production of something with it's use. There giving incentives to a factory so the equivalent would be subsidizing a refinery which as you might imagine would have little impact on gas usage in a state.
I'd guess it's not really about the batteries, although it is cool. It's about the 6,500 jobs Tesla plans to create. Over the 20 years this tax break runs, that $1.25B is about $9,600 per employee per year. They might make that up in payroll, sales, and property taxes from the employees alone.
>They might make that up in payroll, sales, and property taxes from the employees alone.
I might be wrong, but I think Nevada doesn't have income tax. And property tax is typically paid to local county/city governments.
I think it's still open to debate whether Nevada will really recoup all this money in taxes. Of course there are benefits other than pure tax dollars. This could lead to a convergence of high tech manufacturing in the area.
