Thursday, 28 August 2014
Last updated 2 hours ago
Nov 2 2009 | 9:20am ET
California’s Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) will provide electric car maker Tesla Motors with tax incentives to expand its production of cars in the state.
CAEATFA is exempt from paying the sales tax on equipment used to manufacturer advanced transportation products and can pass that tax break on to makers of zero emissions vehicles (ZEVs).
Under the terms of its agreement with Tesla, CAEATFA will assume title of $320 million worth of manufacturing equipment purchased by Tesla directly from vendors. CAEATFA will not pay the sales tax on the transaction. When the transactions are completed, CAEATFA will transfer title of the equipment to Tesla. The end result of the arrangement: Tesla will not have to pay the sales tax, saving the company slightly more than 9% of the $320 million total cost of equipment purchases.
The equipment purchases will be used for three purposes. First and primarily, Tesla will use $238 million to establish a production facility for its Model S sedan. No location has yet been determined but potential locations include Long Beach and Downey, CA. Tesla will also spend $59 million to upgrade its Palo Alto powertrain production facility and $5 million to expand current Roadster assembly at its Menlo Park facility. It will use $18 million on other unbudgeted equipment purchases.
Several ZEV technologies can take advantage of California’s tax incentive including, fuel cell electric vehicles, battery electric vehicles, plug-in hybrid electric vehicles, hydrogen internal combustion engines, advanced technology partial zero emission vehicles and neighborhood electric vehicles.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...