Nevada state officials have approved estimated tax incentives of $9.2 million in favor of Hyperloop Technologies Inc. The Los Angeles based tech giant has been competing to build a transportation platform which will shoot pods through miles of enclosed pneumatic tubes.

Hyperloop has been considering for a 2-mile test track in north of Las Vegas. It intends to spend more than $121 million on the project. Decision over the spending is likely to be finalized during the coming weeks, according to a report published in VEGAS INC.

The Economic Development Board of Nevada has reviewed an application on Friday received from Hyperloop Technologies. The tech giant intends to build its safety, Test and Development Loop at Apex Industrial Park. The project has been forecast to bring 89 more jobs and is building a smaller test track there, reports CBS Local.

Apex Industrial Park is also the home of another electric car maker Faraday Future. The approved incentives involve reducing the sales tax rate from 8% to 2% applicable on $121 million capital investment, according to a report published in Reno Gazette Journal.

The hyperloop idea comes from a idea floated by Tesla CEO Elon Musk who defines the pods as a mix between a Concord supersonic passenger jet, a rail gun and an air hockey table. The frictionless, high speed pods are believed to be capable of transporting people and goods while offering safer and more efficient alternative to trains and other vehicles.

Hyperloop has been in negotiations with NV Energy and the Southern Nevada Water Authority to ensure availability of utilities. The company has been finalizing contracts and closing agreements, informs Brian Gaumer, director of test and development at Hyperloop Technologies. However, Gaumer has failed to predict alternate test driving track venue, the company has been considering for.

The project has picked Apex as the site because of its topography as well as cost-competitive environment. Due to lack of connected utilities, Apex has reportedly struggled to attract development. However, Elon Musk's project has been working actively in handling those issues, cites Gaumer.

The full scale track will be used mainly for technology development. Meanwhile, Steve Hill, the state's chief economic development official, has applauded the cooperation among different parties, including the city, utilities and the Bureau of Land Management.

Hyperloop Technologies Inc. has chosen Apex Industrial Park for developing test and full tracks considering its topography and cost competitive environment. To allure Hyperloop in finalizing the spending of $121 million, the Nevada state government has waved the tech giant's $9.2 million sales tax. The project is expected to bring a revolution in transportation technology.