In an earlier post, I thought it was going to be a bad decision to bring a green energy project to Nevada, especially if they ask for government money. In most industries, I probably would have no problem with companies receiving some kind of help, but with green energy, they have a horrible track record when it comes to fulfilling promises.
Well, it didn't take long before our government started promising money to the green energy company that wants to build a plant down by Laughlin.
From the LVRJ: Incentives offered to a Chinese company to build a solar panel manufacturing plant in Southern Nevada would depend on the number of employees hired, their average wage and the company's capital investment in the project, a state development official said Tuesday.
ENN Mojave Energy Corp., a subsidiary of ENN Group, would be eligible for a reduction in property taxes, sales and use taxes and modified business taxes, said Ken Pierson, deputy director of the Nevada Commission on Economic Development.
He gave no estimate on the total amount of tax abatements, which would be determined by the state commission. It's all based on assessed values and taxes, Pierson said.
The Clark County Commission approved a plan Tuesday to start the appraisal process for the sale of 5,400 acres south of Laughlin, off the Needles Highway.
Some questions: The assets of the company is about $6 Billion and the project is going to cost $6billion. I'm not a financial expert, but if they don't have the assets to cover the project, how will they get financing?
Then the company is going to get reduced property taxes, sales and use taxes and modified business taxes- so how is this fair to other businesses, especially American businesses. Why should the Chinese company get the tax breaks and others don't?
Further, will the liberals complain about the tax breaks like they complain about the gambling and mining taxes? Or will they let the company slide because it is a "green"company.
The more I hear about this deal, the more I am convinced that this deal will suck for Clark County, especially if Harry Reid is behind this.
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