Tesla has been gobbling up state-backed economic development incentives in Nevada, including the entire Northern Nevada allocation for an electric rate rider program.

Under the Economic Development Electric Rate Rider program, NV Energy had 50 MW to allocate, according to a report to the Nevada legislature from the Public Utilities Commission of Nevada. The 50 MW was split evenly between the utility’s northern and southern Nevada territories.

In northern Nevada, the entire 25 MW went to Tesla, whose 5.4 million square-foot gigafactory is near Reno. In southern Nevada, 1 MW was allocated through the program to Xtreme Manufacturing, which makes heavy equipment for construction.

A business accepted for the rate rider program receives a discount off the base tariff energy rate portion of its electric bill. Discounts provided through the program totaled $9.45 million as of the date of the PUCN report.

The PUCN voted 3-0 on Monday to approve the report.

Gigafactory Incentives

The rate rider is just one economic development incentive that the state of Nevada has granted to Tesla. Since 2015, Tesla (NASDAQ:TSLA) has received $410 million in tax abatements in Nevada related to the Nevada gigafactory, according to an October report from the Governor’s Office of Economic Development (GOED).

The tax breaks were for real and personal property tax, modified business tax, and sales tax on construction equipment and materials. The abatements last for 10 to 20 years.

In addition, Tesla received $195 million in transferable tax credits.

The tax abatements and credits were allowed through Senate Bill 1 from the legislature’s September 2014 special session. The bill authorized tax breaks for projects with a capital investment of at least $3.5 billion within 10 years.

Tesla is the only company that has qualified for tax abatements under the legislation, the Nevada Current reported.

Tesla said it has invested $6.2 billion in Nevada since 2014.

More tax incentives for Tesla may be on the way.

The electric vehicle manufacturer announced last month plans for a $3.6 billion investment in Gigafactory Nevada, including a new battery factory and its first high-volume manufacturing facility for electric semi-trucks. (See Tesla to Invest $3.6B in Nev. Truck, Battery Factories.)

The GOED is scheduled to discuss potential tax breaks for Tesla’s new investment on March 2; it will release details of the proposal later this month.

Rate Rider Revived

Nevada’s Economic Development Electric Rate Rider program expired in 2017. But the state legislature revived the program in 2021 through Senate Bill 448. It now runs through 2024.

A business accepted for the program receives an electric rate discount of up to 30% in the third and fourth year of the contract; up to 20% in years five through eight; and up to 10% in years nine and 10. There’s no discount in the first two years.

In addition to Tesla and Xtreme Manufacturing, GOED approved two other businesses for the electric rate rider. Those approvals hadn’t yet been filed with PUCN.

In March, the GOED board approved a 5 MW allocation for Haas Automation for its planned factory in Clark County. Another 5 MW allocation was approved in June for Ball Metal Beverage Container Corp. for a Clark County factory.