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Nevada governor enacts Tesla tax break package

By WTOP Staff

SCOTT SONNER
Associated Press

CARSON CITY, Nev. (AP) — Calling it one of the most important pieces of legislation in Nevada history, Gov. Brian Sandoval signed into law Thursday night an unprecedented package of incentives to seal a deal to bring Tesla Motors’ $5 billion battery factory to the Silver State.

The “gigafactory” is expected to bring more than 20,000 jobs and $100 billion to Nevada’s economy over the next 20 years. It will be the biggest lithium battery factory in the world and is critical to the electric car-maker’s plans to begin mass marketing a more affordable line of the vehicles within three years.

One lawmaker said it was the most important development in Nevada since the construction of the Hoover Dam southeast of Las Vegas during the Great Depression

“It doesn’t get any bigger than this,” Sandoval said as he put his signature to four bills shortly after the state Legislature unanimously approved the package that includes tax credits and other incentives worth up to $1.3 billion.

“This is some of the most important legislation that’s hit this state in perhaps our history,” the Republican governor said. “We have changed the trajectory of this state, perhaps forever.”

Flanked by legislative leaders and dozens of lawmakers, Sandoval presented a Nevada license plate with “TESLA” to Diarmuid O’Connell, Tesla’s vice president for business development who helped pick the site at an industrial park along Interstate 80 about 15 miles east of Sparks.

“We are really excited to get going on this project,” O’Connell said, which will bring prices down for batteries to power its upcoming line of cars with a price tag less than $40,000. “It means so much for our mission, which is to catalyze sustainable transportation by creating a mass market for electric vehicles.”

Under the biggest piece of the package providing up to $1.1 billion in tax abatements, California-based Tesla would pay no property taxes or payroll taxes for up to 10 years and no local sales or use taxes for up to 20 years. Another $195 million in tax credits were also approved.

Tesla will have to give some or all of the money back if it fails to spend $3.5 billion in the state within 10 years. The agreement also mandates half the jobs go to Nevada residents, at both the factory expected to employ 6,000-plus and among the 3,000 projected construction jobs.

“This really is the definition of the rising tide lifting all boats,” said Steve Hill, director of the Governor’s Office of Economic Development. “It wasn’t that long ago we were suffering through one of the worst recessions in Nevada history with 14.5 percent unemployment.”

Sandoval also signed three other bills that made up the package, one discounting electricity for Tesla and another ending a $25 million annual subsidy — $125 million over five years — for insurance companies to help pay for Tesla’s tax credits.

The final one makes it clear it is legal for Tesla to sell the cars it manufactures at dealerships it owns in Nevada. That had been a sticking point in Texas, which along with California, Arizona and New Mexico had competed with Nevada for the plant.

All four bills passed on votes of 21-0 in the Senate and 39-0 in the Assembly.

Some of the public comment questioned why such a big company needs such a big handout from taxpayers.

“I think it is kind of ironic that a renewable energy, a green energy car company we are courting to come to our state, that one of the things we are giving them is free energy,” said Angie Sullivan, a Las Vegas schoolteacher.

“Nobody pays my electric bill,” she said. “I think they are taking advantage of my state when we have limited funds.”

Earlier Thursday, several Senate Democrats objected to Sandoval’s plan to cut all but $10 million from an $80 million program the last Legislature approved providing tax credits to the motion picture industry. That $70 million combined with the $125 million from the home insurance office credit would offset a total of $195 million in Tesla tax credits.

“I think it sets a dangerous precedent when we passed the program in the Legislature and then in just seven months, we just wipe it out,” said Sen. Pat Spearman, D-North Las Vegas. “What if another shiny object comes along?”

But in the end, no one voted against the measure.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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