Tesla tax credit will go to new jobs

Tesla Motors is anticipating a massive tax credit that would go towards job creation, according to a report by the Los Angeles Times. The Palo Alto, California-based electronic car company earned a recommendation to receive $15 million in tax credits planned in the latest disbursement of a California economic development program.

The newspaper reports that the state's GO-Biz California Competes tax credit committee will vote on June 18 how to distribute $49.5 million in credits. Tesla is expected to receive the largest payout, more than 30 percent of the total pool.

Tesla spokesman Ricardo Reyes said that Tesla has been a major contributor to California's economy, accounting for $50 million in state tax revenue in 2014.

"This award reflects our commitment to create even more jobs and investment in the state," Reyes said to the Los Angeles Times.

The auto company would receive the full amount of tax credit by creating 4,426 new positions by 2019, good news for manufacturing recruiters in the area. The new jobs will have an average salary of at least $55,000, with the minimum for a new employee at $35,000.

More room to grow
Anticipating the tax credit, Tesla already made many of the new hires. The company now has more than 9,000 workers in California. According to Reyes, it is now  the largest manufacturing employer in the state.

The GO-Biz program evaluates applications on a variety of factors, including total jobs created, investment into the state, average wage and economic impact. Those companies who receive the credit are exempt from paying state income taxes in the amount awarded.

The influx of new employees is a major reason why Tesla is expanding. The company recently purchased a 500,000 square foot facility just blocks from an existing factory in Fremont, California, according to Forbes, one of several new properties the company has acquired.