"It's a win-win situation. It's gonna be beneficial to the city, said Milpitas Mayor Carmen Montano. The facility, dubbed a Last Mile Hub, will serve as a space for sale and pick up of the vehicles, and host inspections, leases and vehicle service."
"In March 2025, Milpitas City Council approved an eight-year agreement to attract the car company to the city, where the company would receive a tax rebate in exchange for locating in Milpitas. For the first three years, Rivian would get a 35% rebate on its sales taxes, which would go up to 50% in the following years."
"The city could gain more than $19 million in revenue over the eight-year contract. Though Rivian has performed stronger than its peers, the EV market has faced headwinds with the federal government's rollback of tax credits for EVs and weakening of efficiency standards."
Rivian, an electric vehicle manufacturer founded in 2009, opened a Last Mile Hub facility in Milpitas on Yosemite Drive near Highway 680. The hub serves as a sales, pickup, inspection, lease, and service center for Rivian's electric trucks and SUVs priced at $70,000 or more. In March 2025, Milpitas City Council approved an eight-year tax incentive agreement offering Rivian a 35% sales tax rebate for the first three years, increasing to 50% thereafter. The facility creates at least 25 jobs and generates projected revenue exceeding $19 million over the contract period. This arrangement addresses Milpitas's growing budget deficit while supporting Rivian's expansion in the Bay Area, where similar facilities operate in San Francisco and San Jose.
Read at www.mercurynews.com
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