But will Nevada actually pay $1.4 billion out of its treasury? My understanding is that most of that is tax abatements; Tesla agreed to locate a huge industrial

But will Nevada actually pay $1.4 billion out of its treasury? My understanding is that most of that is tax abatements; Tesla agreed to locate a huge industrial plant in that state in exchange for 20 years of no property, sales, and payroll taxes. What Nevada gets in return is 6,500 permanent jobs, $43 million paid to a local school district, a highway rerouted, and massive ripple effects of all that industrial activity. For example, the Reno airport is about to become very busy, as will local grocery stores, restaurants, motels, hardware stores, lumber supply stores, etc. It's not as though Nevada would have been $1.4 billion richer if Tesla had not located a plant there. This notion however is widely expressed on the internet and suggests that people do not understand what a tax break means.