In 2013, Tesla began searching for locations to build its new Gigafactory 1, a lithium-ion battery and electric vehicle assembly factory. The company looked at numerous locations and it came down to five U.S. states competing to attract Tesla by offering tax incentives, cash grants, and other enticements. In the end, Tesla chose Nevada and broke ground in 2014 near Reno. The factory cost $5 billion to construct and opened its doors in 2016.
According to the electric car manufacturer, Nevada was the best choice for several reasons, including a $1.25 billion incentive package made up of tax credits and job creation plans; the promise of quick development and no stalled building permits; direct sales ability; Union Pacific rail access; and close proximity to Tesla’s Freemont, California factory.
This major decision confirmed the fact that Nevada is an excellent place to do business. With a low cost of living, lots of cheap real estate, attractive tax breaks, speedy development, innovative energy options and an abundance of startups, Nevada is clearly business-friendly and promotes a strong culture of entrepreneurship.
Low Cost of Living
When compared to other states, Nevada has a very reasonable cost of living and relatively cheap land. Doing business in an affordable state enables organizations to attract and retain key talent. And competitive salaries combined with affordable rent equates to successful recruitment of professionals from major hubs, such as New York City, San Francisco, and Boston.
Numerous Tax Breaks
The state of Nevada has no income, capital gains, corporate income or corporate capital gains tax. In addition, there are low property taxes, numerous tax abatements, no franchise taxes, and a minimal employer payroll tax. And business owners don’t need to be residents of Nevada.
Because Nevada’s government is committed to promoting the state’s strong business culture, they simplify and incentivize the tax code.
The state government believes that environmental and regulatory agencies should not get in the way of business. Consequently, it is very easy to move quickly with development plans without getting stalled by regulations, reviews and permits.
This speed of development is further enhanced by the government’s interest in stimulating the economy and decreasing the state’s over-dependence on gambling and tourism.
Innovative Energy Technology
Nevada offers many clean energy resources and is leading the way when it comes to clean energy projects, such as solar, wind and geothermal. Additionally, the state has increased manufacturing of energy storage, clean energy and green transportation.
Healthy Startup Climate
Due to Nevada’s culture of entrepreneurship, it has attracted many new startups. “We’ve recently been compared to the Silicon Valley,” said Cammy Evans, PR director at Sierra Virtual. “People are choosing smaller businesses and startups to work with because of a more personalized experience.”
Well-known for gambling and tourism, Nevada also offers a great deal for entrepreneurs looking to develop and grow a successful business.