Mexico's northern state of Nuevo Leon approved $153 million in incentives for Tesla as the carmaker prepares to build a factory, the state government said in a statement on Thursday.

The incentives, worth 2.627 billion pesos ($152.86 million) and approved by a state economic development council, include a reduction in Tesla's payroll tax.

The automaker in March announced plans for a new factory in Nuevo Leon without providing a timeline for construction.

The state government on Thursday said the total amount of the incentives equals about 3.37% of Tesla's total investment in the state.

The incentives are intended to create basic infrastructure and new roads to boost development in the area where the factory will be built west of the state capital Monterrey.

The Nuevo Leon government has estimated it will cost more than $5 billion but Tesla has yet to share a price tag.

Earlier this week, the state government said that Tesla has received land-use permits for the factory from Mexico's federal environment ministry, totaling 261 hectares (645 acres).