Reply to post: Re: How well are those companies going to keep doing after the subsidy flood dries up?

Elon Musk's $4.9bn taxpayer windfall revealed

Eric Olson

Re: How well are those companies going to keep doing after the subsidy flood dries up?

No, they won't "cotton on." This is SOP and some of these subsidies, credits, or incentives have been around for decades. It's not just the solar industry. Grimy, unsexy factories frequently get this treatment, as they provide jobs, and that's manna from the gods for politicians who are at a loss as to how to actually do anything besides campaign for their next term.

Texas alone gives away or forgoes around $20 billion in taxes each year, mostly through exempting a company from sales and property taxes, or refunding any sales taxes paid in a year. So while the EV credit might disappear after a while, assuming the 200K vehicle limit isn't increased, the Gigafactory tax exemption is slated to continue for a decade or more, by which point Tesla could be building more factories in other states, getting bigger and better exemptions.

This is just the way the country is run.

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