Nevada Schools To Get $37.5 Million Donation From Tesla

JUL 24 2018 BY VANJA KLJAIC 31

The grants are slated to help promote the STEM field within the state, eventually yielding more educated workforce for the electric car company

Tesla Motors, in an effort to help develop STEM talent within the state, will issue an initial grant of $1.5 million to Nevada’s K-12 education system. The donation is the first tranche of a total of $37.5 million grant money that Tesla aims to roll out within the state in the next few years. The announcement was made at a meeting with the Nevada Board of Education last Thursday, signifying another batch of investments into the country’s youth.

The main goal of the grant, according to Nevada Governor Brian Sandoval, is aimed at giving students more access to particular specialized fields of study. These include Science, Technology, Engineering, and Math (STEM). The grant, slated to be released on a quarterly basis, aims to increase the number of available workers in STEM jobs in the state to increase over the coming years.

According to Nevada Gov. Brian Sandoval, Tesla’s grant, which would be released on a quarterly basis, will give students more access to specialized fields of study such as Science, Technology, Engineering, and Math (STEM). In a statement to the Nevada Appeal, Tesla CTO JB Straubel stated that the electric car maker and energy company expects STEM jobs in the state to increase over the coming years.

“The demand for STEM jobs in Nevada will continue to grow dramatically over the next few years,” said Tesla Chief Technical Officer, JB Straubel.

The first batch of recipients – slated to receive the initial $1.5 million – were picked jointly by Tesla, teachers, business leaders, and Nevada government officials. The first round of recipients includes $315,550 to FIRST Nevada and $127,100 to Robotics Education and Competition Foundation. This will allow schools to establish premier robotics programs and give youngsters a premier chance of working in the field from a young age. Additionally, $263,924 will be given to the DRI at UNR as well in order to develop teacher training programs on robotics and STEM.

Tesla Solar Roof

Next, the Envirolution, Inc. is set to receive $262,700. It will allow the institution to develop a STEM program which puts its main focus on energy sustainability, but also on projects that help local Nevada schools and businesses achieve better energy efficiency. For Jobs for Nevada Graduate, an additional $200,000 will be granted to help up with the development of mentoring and employability skills. Sierra Nevada Journeys is set to receive $154,083of the grant, designed to help implement programs that would foster interest in the STEM fields at an early age. Furthermore, the grant will be used to obtain 250 scholarships for students in underserved communities, thus helping qualifying individuals to attend overnight learning programs.

Finally, $76,643 will be granted to Energetics Education who will use it for a pilot Solar Rollers program in Washoe County. Designed to challenge high school students to design, build and race solar-powered, radio-controlled vehicles, the grant will help with parts and materials, helping youngsters dive into this field. Additionally, Washoe and Clark school districts are slated to receive $50,00 each, helping them to expand special assignment roles Career and Technical Education offices.

The entire program is designed to help create more opportunities and finally, more qualified workers for Tesla Motors and other high-tech companies in Nevada. The donations were outlined as early as 2014 as part of the Gigafactory 1’s incentive package. In the filings submitted by Tesla back then, the company pledged to make direct contributions to the state’s K-12 programs, complete with a $1 million grant to help fund advanced battery research at the UNL, but also, as a pledge to support the state’s the veterans.

Source: Teslarati

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31 Comments on "Nevada Schools To Get $37.5 Million Donation From Tesla"

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Tesla sets example for All Tech Companies.
Let’s hope we get some followup.

I mean, on one hand I agree, and applaud them. On the other hand, how much money in incentives did they receive from the state of Nevada (and their taxpayers) to build the factory there? Last I knew it was around $1.3 billion, far more money than they’re giving out here.

But I agree that more of this kind of philanthropy is needed.

The incentives are not money they actually receive from Nevada and its tax payers, but rather a discount on taxes they pay to Nevada.

Directly, yes. Indirectly, all the taxes they receive a discount on is money that has to be collected from other taxpayers. And either way, the savings in property taxes and payroll taxes are very real for Tesla.

Put another way, what Tesla is doing is equivalent to me donating $500 one year to NY state schools if they eliminated my need to pay $18,000 in annual property and income taxes. That’s the same proportion we’re talking about here with Tesla’s 37.5 million donation versus the $1.3 billion in tax savings. I would happily do that, wouldn’t you?

Without the tax incentive to Tesla, the Nevada tax payers would need to collect far more than $1.3Billion from other sources. Tesla would likely not have come to Nevada, the Reno Sparks region would still be an economic trouble area and not a vital, bursting nucleus of economic development.
It is one of the best deals the Nevada taxpayers have ever made.

For every dollar they have promised not to in, they get at least another $100 in extra tax money.

“For every dollar they have promised not to in, they get at least another $100 in extra tax money.”

Please cite your source for this claim. Otherwise it sounds like hyperbole, and I’m guessing it is.

Yes, there are economic benefits to Nevada. Doesn’t change that Tesla’s donation is pennies on the dollar for the incentives they received.

“Please cite your source for this claim.”

How about you do your own homework on this one? It’s not hard to find if you know how to use Google. Here’s a hint: The current Nevada State treasurer is Dan Schwartz.

I’ve cited plenty of sources here. As usual you cite none, except your typical demeaning attitude to make up for your lack of facts.

Can we focus that kids ( therefore, our future) are becoming more prepared to deal with a world far more complex then ever and those “pennies” are going to teach them SCIENCE, TECHNOLOGY, ENGINEERING AND MATHEMATICS financed by the company that preaches “RENEWABLE SOURCES” is a viable way of saving the planet? Call it “a green, hope of an evil” if you may but I see something interesting there! Again, I did not mean offences, this is the way I see things. Thanks for the input @ClarksonCote, I honestlty appreciate your detailed examination of the situation!

That is indeed a good way to see how the deal goes: there is more than “money” at stake, here.

Nevada made the trade for Jobs.
They got those jobs, maybe 100 years of jobs, in a rapidly expanding factory.

So, no, Nevada knew what they were doing, those jobs could have been in California.

And remember economics: “The Velocity of Money”.
When you get paid, you buy food, pay rent, pay for entertainment, pay your insurance bill, pay your utility bills: Secondary and Tertiary jobs. Hate to say it but, someone in Nevada Knows Economics.

Edit: Nevada also knows Tesla is a magnet company, it attracts suppliers to the state too, and they also have a “Velocity of Money” effect.

Indirectly, Tesla could have gone elsewhere, and Nevada wouldn’t have gotten any taxes from them at all.

While it certainly can be argued whether giving such huge tax breaks to a company is fair, calling it “money that has to be collected from other taxpayers” makes little sense — unless the factory somehow incurred more costs on Nevada than it brings in in taxes…

“unless the factory somehow incurred more costs on Nevada than it brings in in taxes…”

Where’s the data to suggest it’s bringing in more/anything for taxes? If they have no property taxes to pay and no payroll taxes to pay, where are the other taxes coming from? They certainly have had Nevada add significant infrastructure to support the factory, which comes at a cost.

In any case, I made my point. I’m not trying to troll, it’s just a small/trivial donation relative to the benefits they received.

In other news, in the last month my (Central New York) employer has gone from having zero people with Teslas to two people with Model 3’s. We now have 7 Volts, 2 Primes, 2 Focus Electrics, 1 Pacifica, 1 Leaf, and 2 Fusion Energis, in addition to the 2 new Model 3s. We had an i3 too, but that guy retired. Very exciting to see the charging stations so utilized and Teslas finally making a showing at them! 🙂

Tax breaks do not mean there are no taxes at all. Don’t know the proportions from memory; but I have a vague recollection that someone did the maths, and IIRC the tax breaks are only a fraction of the total taxes they are / will be paying…

On to of it all We get to have more electric cars at Necada? That’s something cool, @ClarksonCote!

“…what Tesla is doing is equivalent to me donating $500 one year to NY state schools if they eliminated… $18,000 in annual property and income taxes.”

No, it’s not even remotely the same. You personally are not going to create thousands of new jobs in the area; jobs which will bring lots of new income to the area, and in the long run generate far more tax revenue for Nevada than the amount of tax deferment the State is giving Tesla. Jobs which will also create a lot of secondary economic activity, such as construction for building new houses in the area, and retail stores and services to serve all the new residents.

There have been States which have made pretty stupid deals to attract new businesses to their region. Contrariwise, this is a pretty smart deal from Nevada’s standpoint. Tesla doesn’t get any money directly from the State, and Tesla has to meet very specific milestones to get the tax deferment over a period of years. If Tesla doesn’t achieve the milestones, it doesn’t get the deferments.

IMHO the deal Nevada did with Tesla should stand as a model for all such deals between States and “job creators”.

The new jobs from Tesla were going to be created either way, the only question is whether or not they would’ve been created in Nevada. In aggregate these kinds of tax deals across Tesla, Amazon, and other companies shift more burden over to the individual taxpayer. It’s been studied to death.

https://www.citylab.com/life/2017/03/business-tax-incentives-waste/518754/

“A 2002 study of some 350 companies that received incentives found a negative effect on their ability to create jobs. Companies that received incentives expanded more slowly than others, and the overall effect of incentives was a reduction of 10.5 jobs per establishment.”

The tax break helps Nevada with this particular company (maybe, if Tesla didn’t end up going there anyway), but hurts the US (and Nevada) population overall in aggregate, because all these companies are getting massive tax breaks, and the budgets need to be shored up somewhere, which falls to the individual taxpayer.

We need a lot of tax reform.

If philanthropy is needed for essential education, the system is broken.

Not needed for essential education, but needed from companies in general. Corporate America used to be far more generous to communities around the country, but as business have scaled to the national level, that kind of local giving has decreased rather substantially.

If they got $1.3 billion, then won’t be giving $37.5 million grant to schools. Tesla can get all the money from the market.
BTW, Tesla has identified the short seller who gave so much false news. Actually he has invested so much in the oil industry.
That rogue’s name is Larry Fossi.
https://electrek.co/2018/07/24/tesla-troll-short-doxxed-oil-industry-musk-calls-boss/

It wasn’t Tesla who outed him. Also, he was only *one* of the prominent short trolls… Enough others left 🙁

“…how much money in incentives did they receive from the state of Nevada (and their taxpayers) to build the factory there? Last I knew it was around $1.3 billion…”

Last I read, not one penny of taxpayer money went to Tesla. What Tesla got was tax deferments, a small portion of which are transferable… which means Tesla can sell those to other companies for income. The latter is the only way that Tesla is going to get income from the deal.

So far as I know, the only way in which State funds are being spent to benefit Tesla is in public infrastructure improvements, such as building roads to link the local highway to Gigafactory 1. Are you really going to complain about that? Isn’t building roads to support new commercial and industrial areas one of the things which States, counties and municipalities are supposed to do with tax money?

Tax burdens effectively shift to individual tax payers when businesses get huge breaks, so indirectly, yes, individuals pay for it, lest money grows on trees.

And roads/infrastructure, yes I will bring that up when they’re built to serve a single outlying business. You can look on Google Maps and see the “USA Parkway” road (Route 439) that was under construction, to explicitly go to the Gigafactory. That’s a 12 mile long four-lane highway that was driven (no pun intended) by a single business.

https://www.teslarati.com/tesla-gov-sandoval-usa-parkway-ribbon-cutting-ceremony-near-gigafactory/

“The transportation corridor known locally as ‘Infinity Highway’ will provide Tesla’s Gigafactory with two access points for shipping and logistics, but more importantly reduce congestion for the thousands of employees traveling to the world’s largest building each day.”

Not to mention transmission lines, sewer, etc.

have you counted the jobs created? hint: >1

That is over 20 years and far less than what TESLA and the economy is spawns will generate.

Because sure as X, Repubs underfund education.
Because we have no right to an education. — MAGA.

Hate to wake you up but it’s been underfunded for decades now… and both parties helped.

According to Nevada Gov. Brian Sandoval, Tesla’s grant, which would be released on a quarterly basis”

Starting Q1 of 2019? =)

Just to make sure Q3 and Q4 are totally profitable first. Then again, I am sure it gets to write off the donation.

Still a great thing! Keep it up Tesla!

Good initiative. Students should also be taught about global warming, evolution of humans, revolution of electric vehicles and so on.
Japan and Korea are getting cooked right now. Hope the Japanese will put down their nationalism and start buying the Tesla’s electric vehicles.

Is that the latest pic of gigafactory, looks like the outer structure is complete.

I see the same pic in google images as well.

“…looks like the outer structure is complete.”

Looks like, but appearances can be deceiving. Here’s an older photo with an outline of the planned eventual finished size; extrapolate a bit and you’ll see the size of the current Gigafactory 1 is still far smaller than the intended final size.

https://i2.wp.com/electrek.co/wp-content/uploads/sites/3/2016/07/side-notes-2.jpg

Are you saying the red outline is the eventual finished site, or the gray octagonal outline? I think it’s the latter right? Man, that’s gonna be a big place.