Tesla Motors will get tax credits that will allow it to expand its production of electric cars and create 1,400 jobs in California, State Treasurer Bill Lockyer announced.

The agreement with the California Alternative Energy and Advanced Transportation Financing Authority will help Tesla avoid paying close to 30 million in sales tax. Existing law exempts the authority from paying the sales tax on equipment used to manufacturer advanced transportation products. Under a policy adopted in June 2008, the authority can pass through that tax break to qualifying zero emission vehicle manufacturers.

There is still no word yet on whether Tesla will choose Long Beach or Downey as the site for a new assembly plant. Tesla spokesman Ricardo Reyes said Wednesday that the tax credit agreement helps accelerate production, but he said site selection is a separate issue and that no decision has been made.

• Read the full Long Beach Press-Telegram story.