On Thursday afternoon in Carson City, Nevada, Gov. Brian Sandoval called a press conference to discuss a “major economic development” with CEO of Tesla Motors Elon Musk in attendance. As expected, the Governor and Musk announced that Tesla would be joining with Panasonic to build a 10 million-square-foot battery factory outside of Reno, Nevada.

Several states—Texas, Arizona, New Mexico, California, and of course, Nevada—were in hot competition to get Tesla to grant them its forthcoming Gigafactory. The giant complex will cost $5 billion to build and will employ 6,500 people when fully operational. So what did Nevada offer the electric car maker to persuade it to bring its business to Reno?

Primarily, a tax incentive package that will amount to $1.2 billion in tax breaks over the next 20 years. The Reno Gazette Journal says the plan is “unprecedented in size and scope for the state of Nevada and is one of the largest in the country.” Tesla had said earlier that it was looking for at least $500 million in tax incentives from the state it chose to build its factory in—Nevada's deal comes to more than double what Tesla was hoping to get.

The Reno Gazette Journal Shows that over 50 percent of those tax breaks will come from a 20-year sales tax abatement plan, and another 26 percent will come from a 10-year property tax abatement plan. “If the deal is approved by the Nevada Legislature, Tesla will operate in the state essentially tax free for 10 years,” the Reno Gazette Journal writes.

In addition, Nevada promised to give Tesla $27 million in payroll tax abatements over 10 years, as well as $8 million in electricity rate discounts over eight years. Nevada was seen as a frontrunner before Tesla chose the location for its new factory because of its relatively abundant solar, wind, and geothermal energy. Sandoval also asked the Nevada legislature to pass a law specifying that Tesla could sell cars in the state through the manufacturer's storefront, rather than relegating Telsa's storefronts to “galleries” because of dealership lobbies, as has happened in other states like Texas, Arizona, and New Jersey.

For that money, Nevada and the Reno area will be getting an awful lot, or so Sandoval claimed in today's press conference. “The Gigafactory will mean nearly $100 billion in economic impact over the next 20 years,” he told the crowd.

"To put that into perspective, that is more than 3 percent of the state's GDP. It is more than 20 percent of the region's economic output," Hill said.

Sandoval said the construction of the factory would create 3,000 immediate construction jobs, and, after the construction is complete, it will potentially employ “6,500 people with an average wage in excess of $25 an hour and excellent benefits.” Eventually, the presence of the Gigafactory would create 16,000 new jobs indirectly, Sandoval told the crowd.

Nevada also said it's willing to buy the right of way for USA Parkway, a 4-lane highway between Interstate 80 and Route 50 that would intersect the industrial park where Tesla's Gigafactory would be located. This will cost the state $43 million. In exchange, Tesla agreed to contribute $7.5 million a year for five years beginning in 2018 to local K-12 and Higher Education school systems, according to the Reno Gazette Journal.

There is some serious skepticism in the Nevada state legislature about this tax break deal—the amount of tax breaks that Tesla will receive from Nevada over 20 years (which comes to $720 million) will amount to about 80 percent of what the entire state of Nevada receives in a year. Still, Sandoval told the crowd that there's no way for Nevada to lose on the deal. “This plan will result in more than $80 in economic impact for every $1 Nevada spends,” he told the audience.