The state of California just approved a $34.7-million tax break for electric car manufacturer Tesla Motors to expand the company’s production capability by another 35,000 additional units per year.
As a result, Tesla will be exempt from paying sales and use taxes on its planned purchase of $415 million in new manufacturing equipment, which California estimates will result in a $24-million economic boon to the state’s economy.
The California Alternative Energy and Advanced Transportation Financing Authority was the state panel that authorized the tax break. The panel is chaired by California state Treasurer Treasurer Bill Lockyer.
“I’m pleased we could take this action to encourage Tesla to expand its electric vehicle production in California, which will create green jobs and improve our air quality,” Lockyer said in the Los Angeles Times Thursday.
Tesla manufacturers its cars in Fremont and Palo Alto, and sells half of all its units in the state of California alone. The company expects to sell 21,000 cars by the end of 2013.