California Woos Tesla, New Jersey Moves to Amend Sales Ban

June 5 was a big day for Tesla Motors as new legislative action in California and New Jersey opens new options for the automaker.

by / June 6, 2014

California made a bold move June 5 to attract a massive Tesla battery plant also being pursued by Arizona, New Mexico, Nevada, and Texas. The $4 to $5 billion factory that would employ 6,500 workers would be an economic boon to the winning state. New bi-partisan legislation backed by Gov. Jerry Brown would clear regulatory hurdles and provide financial incentives to Tesla should they choose California for their new site.

Tax credits, investment credits, and hiring credits are among the incentives included in the proposed legislation, Senate Bill 1309.

"Whenever the state creates incentives for business, it should be for industries that not only bring good-paying, middle-class jobs but also use clean technology to help curb pollution and improve the health of Californians," State Senator Darrell Steinberg said in a prepared release. "We can hit both these targets of strengthening our economy and fighting climate change with the construction and operation of this manufacturing plant in California."

Though several states are interested in attracting Tesla’s economic presence, the company has also faced several roadblocks, the most recent being a prohibition against Tesla sales in the state of New Jersey. It appears, however, that Tesla may soon be allowed to sell in the Garden State again as the Assembly Consumer Affairs Committee passed a bill on June 5 that will give Tesla the right to resume sales in its two existing New Jersey showrooms and also allow it to open two more.

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