Giving lawmakers and the Legislative Counsel Bureau less than 24 hours to pull things together, Gov. Brian Sandoval late Tuesday issued a proclamation calling a special Legislative session to give Faraday Future tax breaks similar to those granted Tesla.
The proclamation was issued at 8:40 p.m. Tuesday calling lawmakers into special session at 5 p.m. Wednesday.
The proclamation, as in the case of Tesla just over one year ago, doesn’t allow for other issues — such as loosening restrictions on school vouchers — on the agenda. It is focused on the Faraday deal worked out over the past 10 months by the Governor’s Office of Economic Development.
If approved by lawmakers, the deal will bring a $1 billion auto manufacturing plant to Apex, the industrial complex at the edge of North Las Vegas.
Faraday Future, funded by a Chinese billionaire, intends to build a plant that will produce electric cars sophisticated enough to compete with Tesla’s Type S. But the company has actually not yet produced a single vehicle.
GOED officials say it will generate some $85 billion for the Southern Nevada economy over the next 20 years.
The special session is needed because Faraday’s investment to get $215 million in tax credits and incentives, is far less than the $5 billion commitment by Tesla and Panasonic in Northern Nevada.
That means, for example, the $3.5 billion threshold approved for Tesla to receive incentives and tax breaks, must be lowered to $1 billion for Faraday.
Faraday would get, under terms of the proclamation, most of the same benefits Tesla got but on a smaller scale. That includes tax abatements, transferable tax credits and other incentives as well as infrastructure improvements at the Apex site worth a projected $120 million. At least some of that cost will apparently be covered by “the issuance of securities” by the state. No details were available on where that bonding authority would come from.
The proclamation calls for clawbacks to reclaim any tax breaks if the company doesn’t perform and protect the state.
The bills to make the deal happen were reportedly still being finalized by the governor’s administration and the Legislative Counsel.
Lawmakers are expected to get their first look at the bills Wednesday night then take up the task of vetting and voting on them Thursday.