The Nevada Governor's Office of Economic Development (GOED) has approved a more than $330-million-dollar tax abatement package for the new Tesla expansion.

GOED’s projections seem to show how Tesla will generate some economic “buzz” in the state.

Tesla has pledged to make a $3.6 billion capital investment at its current site in Storey County.

It's also required to create 3,000 jobs at an average hourly wage of $33.49.

Construction activity could result in a one-time economic impact of $2.8 billion over the next six years.

The Tesla expansion could create an annual economic impact estimated at $2.2 billion... or $38 billion over the next 20 years.

The 3,000 team members Tesla will employ will generate $209 million in annual wages by 2030.

Even after the abatement, here are the projections for revenue coming into Nevada:

  • The Tesla expansion project could generate $2.8 million in annual property tax revenues.
  • $11.2 million in gross average annual sales taxes,
  • $1.1 million in average annual business license taxes on utilities,
  • And, $2.1 million in gross average annual modified business taxes over 20 years.

In total, this will result in an estimated $685 million in net state and local revenues over the next 20 years.

"It is kind of a watershed moment, I think, for Northern Nevada as a whole. I think for Northern Nevada specifically to use as a launch pad to become on the cutting edge of the EV industry is huge,” said GOED Executive Director Tom Burns.

NDOT, Storey County, Virginia City and other agencies spoke about how the project will affect them.

The biggest concern is how will the influx of thousands of new workers and their families impact infrastructure.

“In terms of Storey County, has some concerns with their infrastructure, and this economic windfall will help with those hierarchical infrastructure issue. In my opinion as the Governor of the State of Nevada, there's is very beneficial across the board, both in economic development and the quality of life for every Nevadan,” said Governor Joe Lombardo.

GOED projects that the expansion will create an estimated 9,275 construction jobs and 5,858 additional indirect and induced jobs through 2027.

“This will be the model moving forward for the continued diversification of the state's economy, but we cannot lose sight of Mister Aguilar's comments on transportation, education, affordable housing.  That all a part of the economic package,” said Governor Joe Lombardo.

Another challenge is the I-80 Corridor.

NDOT Deputy Director Cole Mortensen says the I-80 Corridor already faces peak capacity during rush hour.

And to accommodate the tens of thousands of new commuters, it's going to be a massive multi-year, multi-phase road project for the state.

"Our study kind of has the project broken down to four phases that are anywhere between 60 million dollars to a 120 million dollars, and that would be delivering the project every 2 to 3 years. Now with that in mind we've also seen unprecedented inflation which mean that our numbers are going to grow bigger the longer it takes us to deliver the project,” said NDOT Deputy Director Cole Mortensen.

Tesla has pledged to build a new childcare facility near the giga factory where parents will drop off their kids and vehicles, and take shuttles back to work.