Nevada Governor Signs Incentive Bills For $1B Faraday Future Project

Nevada Governor Brian Sandoval has signed into law four bills which the Nevada Legislature passed quickly in a Special Session to secure and facilitate the proposed $1 billion Faraday Future electric vehicle manufacturing facility at the Apex Industrial Park in North Las Vegas, NV.

Nevada State Capitol

Nevada State Capitol (photo -Amadscientist/wikimedia)

On Dec 10, Gov. Sandoval, Nevada Governor’s Office of Economic Development Director Steve Hill and Faraday Future Vice President of Global Manufacturing Dag Reckhorn announced the Apex Industrial Park has been selected as the official site for the company’s $1 billion North American production facility.

The project involves a more than $1 billion initial investment on the site within the first 10 years, with the creation of 4,500 direct jobs on-site and approximately 9,000 indirect jobs, for a total of 13,500 jobs.

At peak, the project will generate construction employment for more than 3,000 construction and installation workers. The direct economic impact generated by the project will be $55 billion over 20 years, and the indirect economic impact will be approximately $30 billion over 20 years, for a total impact of $85 billion (see full economic impact report).

After the company announced the selection of North Las Vegas for this project, Gov. Sandoval called a two-day Special Session of the Nevada Legislature to approve the $335 million package of incentives.

The four bills taken up by the Legislature (AB1, SB1, SB2 and SB3) and passed late Friday authorize $215 million in Nevada economic development tax incentives for the project, along with $120 million in infrastructure spending to facilitate the construction and operations of the Faraday Future electric vehicle plant and other future projects at the Apex Industrial Park.

Assembly Bill 1 is a jobs training bill that requires, among other things, that the Nevada Office of Economic Development develop and implement one or more programs to provide customized workforce development services to new and existing businesses in the State.

Senate Bill 1 is the main tax incentive package, providing for, among other things, the issuance of transferable tax credits and the partial abatement of certain taxes for the project, and authorizing the governing body of a city or county to grant abatement of certain permitting and licensing fees imposed or charged by the city or county.

Senate Bills 2 and 3 are related to the provision and management of water for the desert land of the Apex Industrial Park where the project will be located.

Specifically, SB2 authorizes the State Engineer to expedite action on an application for a permit relating to water rights in an area in which a qualified project is located, upon the receipt of notice from the Executive Director of the Office of Economic Development that the qualified project is an economic development priority of the State and that expedited action is necessary.

SB3 amends the Las Vegas Valley Water District Act to designate the District and the Southern Nevada Water Authority as the exclusive providers of water service for the Garnet Valley Ground Water Basin in Clark County, NV.

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