The Nevada Policy Research Institute has issued what amounts to a retraction of its claim the Tesla deal is unconstitutional.
The conservative political group originally charged the state constitution bars politicians from giving tax dollars to private companies.
But in a statement issued late Friday, NPRI President Andy Matthew said the abatements and tax credits described by the Governor when the deal was announced don’t include direct subsidies and, therefore, most likely don’t violate the state Constitution.
He said that is different from the subsidy to SolarCity from the Catalyst Fund, which NPRI has filed suit to block.
He said NPRI would reserve final judgment on the constitutionality of the deal until after it sees the proposed legislation this coming week.
That, however, doesn’t mean NPRI is happy with the deal.
“Negotiating a $1.3 billion tax giveaway in secret and then expecting legislators to pass legislation approving the deal within one week is simply not the right way to create laws,” Matthews said. “Calling a special legislative session on a few days notice for the benefit of one company also fosters a system where the politically powerful are even more advantaged over everyone else.”