A.B. 226
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ASSEMBLY BILL NO. 226–ASSEMBLYMEMBER MOSCA
PREFILED FEBRUARY 3, 2025
____________
Referred to Committee on Revenue
SUMMARY—Revises provisions relating to economic
development. (BDR 32-690)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Yes.
~
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to taxation; requiring applicants for certain
transferable tax credits and certain tax abatements to
agree to community benefits plan prescribing the
requirements for a community benefits plan; authorizing
the Office of Economic Development to investigate the
recipient of certain transferable tax credits and certain tax
abatements for compliance with a community benefits
plan; requiring the recipient of certain transferable tax
credits and certain tax abatements to repay the amount of
the credits and abatements if the recipient is not in
substantial compliance with the community benefits plan;
and providing other matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law authorizes the Office of Economic Development to approve 1
transferable tax credits and abatements or partial abatements of certain property 2
taxes, business taxes and sales and use taxes for certain businesses in certain 3
circumstances. The Office is prohibited from approving an application for such 4
credits or abatements unless the applicant satisfies certain criteria and has entered 5
into an agreement with the Office establishing certain terms for the abatement. 6
(NRS 231.1555, 274.310, 274.320, 274.330, 360.750, 360.753, 360.754, 360.759, 7
360.889, 360.945) Sections 1-4, 6, 8 and 12-15 of this bill require such an 8
agreement between the Office and an applicant for transferable tax credits or a tax 9
abatement to incorporate a community benefits plan addressing actions that the 10
applicant agrees to take to benefit the vitality of the local community and improve 11
the social and economic well-being of members of the local community. Sections 12
1-3, 5, 7, 9 and 12-15 of this bill: (1) authorize the Office to investigate whether 13
the recipient of an abatement or partial abatement is complying with the terms of 14
the community benefits plan; and (2) require a recipient to repay the amount of the 15
abatement or partial abatement, plus interest, if the Executive Director of the Office 16
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determines that the recipient has not substantially complied with the terms of the 17
community benefits plan. Sections 10 and 11 of this bill make conforming changes 18
to update references to provisions renumbered by section 2. Section 16 of this bill 19
makes the requirements of this relating to community benefits plans only if an 20
applicant for certain transferable tax credits or certain abatements submits an 21
application on or after July 1, 2025. 22
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 360.750 is hereby amended to read as follows: 1
360.750 1. A person who intends to locate or expand a 2
business in this State may apply to the Office of Economic 3
Development pursuant to this section for a partial abatement of one 4
or more of the taxes imposed on the: 5
(a) New business pursuant to chapter 361, 363B or 374 of NRS. 6
(b) Expanded business pursuant to chapter 361 or 363B of NRS 7
or a partial abatement of the local sales and use taxes imposed on 8
the expanded business. As used in this paragraph, “local sales and 9
use taxes” means the taxes imposed on the gross receipts of any 10
retailer from the sale of tangible personal property sold at retail, or 11
stored, used or otherwise consumed, in the political subdivision in 12
which the business is to be located or expanded, except the taxes 13
imposed by the Sales and Use Tax Act and the Local School 14
Support Tax Law. 15
2. The Office of Economic Development shall approve an 16
application for a partial abatement pursuant to this section if the 17
Office makes the following determinations: 18
(a) The business offers primary jobs and is consistent with: 19
(1) The State Plan for Economic Development developed by 20
the Executive Director of the Office of Economic Development 21
pursuant to subsection 2 of NRS 231.053; and 22
(2) Any guidelines adopted by the Executive Director of the 23
Office to implement the State Plan for Economic Development. 24
(b) Not later than 1 year after the date on which the application 25
was received by the Office, the applicant has executed an agreement 26
with the Office which must: 27
(1) Comply with the requirements of NRS 360.755; 28
(2) State the date on which the abatement becomes effective, 29
as agreed to by the applicant and the Office, which must not be 30
earlier than the date on which the Office received the application 31
and not later than 1 year after the date on which the Office approves 32
the application; 33
(3) State that the business will, after the date on which the 34
abatement becomes effective, continue in operation in this State for 35
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a period specified by the Office, which must be at least 5 years, and 1
will continue to meet the eligibility requirements set forth in this 2
subsection; 3
(4) State that the business will offer primary jobs; [and] 4
(5) Incorporate a community benefits plan, which must: 5
(I) Include a brief description of the environmental, 6
economic and social effects that the applicant anticipates the 7
location or expansion of the business will have on the local 8
community that immediately surrounds the location of the 9
business; 10
(II) State that the business will proactively undertake 11
actions, beyond those incidental to the regular activities of the 12
business, to increase the vitality of the local community and 13
improve the social and economic well-being of the members of 14
that community; 15
(III) Detail the specific actions described in sub-16
subparagraph (II) that the business agrees to undertake during 17
the period of the agreement entered into pursuant to this 18
paragraph, which may include, without limitation, partnering with 19
community-based charitable or educational organizations, 20
sponsoring educational or vocational activities, participating in 21
philanthropic endeavors meant to specifically aid the local 22
community and the members of that community and establishing 23
other programs to improve the well-being of the local community 24
and the members of that community; and 25
(IV) Include such other provisions as the Office may 26
require; and 27
(6) Bind the successors in interest of the business for the 28
specified period. 29
(c) The business is registered pursuant to the laws of this State 30
or the applicant commits to obtain a valid business license and all 31
other permits required by the county, city or town in which the 32
business operates. 33
(d) Except as otherwise provided in subsection 4, 5 or 6, the 34
average hourly wage that will be paid by the business to its new 35
employees in this State is at least 100 percent of the average 36
statewide hourly wage as established by the Employment Security 37
Division of the Department of Employment, Training and 38
Rehabilitation on July 1 of each fiscal year. 39
(e) The business will, by the eighth calendar quarter following 40
the calendar quarter in which the abatement becomes effective, offer 41
a health insurance plan for all employees that includes an option for 42
health insurance coverage for dependents of the employees, and the 43
health care benefits the business offers to its employees in this State 44
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will meet the minimum requirements for health care benefits 1
established by the Office. 2
(f) Except as otherwise provided in this subsection and NRS 3
361.0687, if the business is a new business in a county whose 4
population is 100,000 or more or a city whose population is 60,000 5
or more, the business meets at least one of the following 6
requirements: 7
(1) The business will have 50 or more full-time employees 8
on the payroll of the business by the eighth calendar quarter 9
following the calendar quarter in which the abatement becomes 10
effective who will be employed at the location of the business in 11
that county or city until at least the date which is 5 years after the 12
date on which the abatement becomes effective. 13
(2) Establishing the business will require the business to 14
make, not later than the date which is 2 years after the date on which 15
the abatement becomes effective, a capital investment of at least 16
$1,000,000 in this State in capital assets that will be retained at the 17
location of the business in that county or city until at least the date 18
which is 5 years after the date on which the abatement becomes 19
effective. 20
(g) Except as otherwise provided in NRS 361.0687, if the 21
business is a new business in a county whose population is less than 22
100,000, in an area of a county whose population is 100,000 or more 23
that is located within the geographic boundaries of an area that is 24
designated as rural by the United States Department of Agriculture 25
and at least 20 miles outside of the geographic boundaries of an area 26
designated as urban by the United States Department of Agriculture, 27
or in a city whose population is less than 60,000, the business meets 28
at least one of the following requirements: 29
(1) The business will have 10 or more full-time employees 30
on the payroll of the business by the eighth calendar quarter 31
following the calendar quarter in which the abatement becomes 32
effective who will be employed at the location of the business in 33
that county or city until at least the date which is 5 years after the 34
date on which the abatement becomes effective. 35
(2) Establishing the business will require the business to 36
make, not later than the date which is 2 years after the date on which 37
the abatement becomes effective, a capital investment of at least 38
$250,000 in this State in capital assets that will be retained at the 39
location of the business in that county or city until at least the date 40
which is 5 years after the date on which the abatement becomes 41
effective. 42
(h) If the business is an existing business, the business meets at 43
least one of the following requirements: 44
(1) For a business in: 45
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(I) Except as otherwise provided in sub-subparagraph (II), 1
a county whose population is 100,000 or more or a city whose 2
population is 60,000 or more, the business will, by the eighth 3
calendar quarter following the calendar quarter in which the 4
abatement becomes effective, increase the number of employees on 5
its payroll in that county or city by 10 percent more than it 6
employed in the fiscal year immediately preceding the fiscal year in 7
which the abatement becomes effective or by twenty-five 8
employees, whichever is greater, who will be employed at the 9
location of the business in that county or city until at least the date 10
which is 5 years after the date on which the abatement becomes 11
effective; or 12
(II) A county whose population is less than 100,000, an 13
area of a county whose population is 100,000 or more that is located 14
within the geographic boundaries of an area that is designated as 15
rural by the United States Department of Agriculture and at least 20 16
miles outside of the geographic boundaries of an area designated as 17
urban by the United States Department of Agriculture, or a city 18
whose population is less than 60,000, the business will, by the 19
eighth calendar quarter following the calendar quarter in which the 20
abatement becomes effective, increase the number of employees on 21
its payroll in that county or city by 10 percent more than it 22
employed in the fiscal year immediately preceding the fiscal year in 23
which the abatement becomes effective or by six employees, 24
whichever is greater, who will be employed at the location of the 25
business in that county or city until at least the date which is 5 years 26
after the date on which the abatement becomes effective. 27
(2) The business will expand by making a capital investment 28
in this State, not later than the date which is 2 years after the date on 29
which the abatement becomes effective, in an amount equal to at 30
least 20 percent of the value of the tangible property possessed by 31
the business in the fiscal year immediately preceding the fiscal year 32
in which the abatement becomes effective, and the capital 33
investment will be in capital assets that will be retained at the 34
location of the business in that county or city until at least the date 35
which is 5 years after the date on which the abatement becomes 36
effective. The determination of the value of the tangible property 37
possessed by the business in the immediately preceding fiscal year 38
must be made by the: 39
(I) County assessor of the county in which the business 40
will expand, if the business is locally assessed; or 41
(II) Department, if the business is centrally assessed. 42
(i) The applicant has provided in the application an estimate of 43
the total number of new employees which the business anticipates 44
hiring in this State by the eighth calendar quarter following the 45
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calendar quarter in which the abatement becomes effective if the 1
Office approves the application. 2
(j) Except as otherwise provided in subsection 3, if the business 3
will have at least 50 full-time employees on the payroll of the 4
business by the eighth calendar quarter following the calendar 5
quarter in which the abatement becomes effective, the business, by 6
the earlier of the eighth calendar quarter following the calendar 7
quarter in which the abatement becomes effective or the date on 8
which the business has at least 50 full-time employees on the payroll 9
of the business, has a policy for paid family and medical leave and 10
agrees that all employees who have been employed by the business 11
for at least 1 year will be eligible for at least 12 weeks of paid 12
family and medical leave at a rate of at least 55 percent of the 13
regular wage of the employee. The business will agree in writing 14
that if the Office approves the application, the business will not: 15
(1) Prohibit, interfere with or otherwise discourage an 16
employee from taking paid family and medical leave: 17
(I) For any reason authorized pursuant to the Family and 18
Medical Leave Act of 1993, 29 U.S.C. §§ 2601 et seq. 19
(II) To care for any adult child, sibling or domestic 20
partner of the employee. 21
(2) Discriminate, discipline or discharge an employee for 22
taking paid family and medical leave: 23
(I) For any reason authorized pursuant to the Family and 24
Medical Leave Act of 1993, 29 U.S.C. §§ 2601 et seq. 25
(II) To care for any adult child, sibling or domestic 26
partner of the employee. 27
(3) Prohibit, interfere with or otherwise discourage an 28
employee or other person from bringing a proceeding or testifying 29
in a proceeding against the business for a violation of the policy for 30
paid family and medical leave that is required pursuant to this 31
paragraph. 32
3. For purposes of paragraph (j) of subsection 2, the Office of 33
Economic Development shall determine that a business meets the 34
requirements of that paragraph if the business has a policy for paid 35
family and medical leave for employees on the payroll of the 36
business outside of this State that meets or exceeds the requirements 37
for a policy for paid family and medical leave pursuant to that 38
paragraph and the business agrees in writing that its employees on 39
the payroll in this State are eligible for paid family and medical 40
leave under such policy. 41
4. Notwithstanding the provisions of subsection 2, the Office 42
of Economic Development: 43
(a) Shall not consider an application for a partial abatement 44
pursuant to this section unless the Office has requested a letter of 45
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acknowledgment of the request for the abatement from any affected 1
county, school district, city or town. 2
(b) Shall consider the level of health care benefits provided by 3
the business to its employees, the policy of paid family and medical 4
leave provided by the business to its employees, the projected 5
economic impact of the business and the projected tax revenue of 6
the business after deducting projected revenue from the abated 7
taxes. 8
(c) May, if the Office determines that such action is necessary: 9
(1) Approve an application for a partial abatement pursuant 10
to this section by a business that does not meet the requirements set 11
forth in paragraph (f), (g) or (h) of subsection 2; 12
(2) Make any of the requirements set forth in paragraphs (d) 13
to (h), inclusive, of subsection 2 more stringent; or 14
(3) Add additional requirements that a business must meet to 15
qualify for a partial abatement pursuant to this section. 16
5. Notwithstanding any other provision of law, the Office of 17
Economic Development shall not approve an application for a 18
partial abatement pursuant to this section if: 19
(a) The applicant intends to locate or expand in a county in 20
which the rate of unemployment is 7 percent or more and the 21
average hourly wage that will be paid by the applicant to its new 22
employees in this State is less than 70 percent of the average 23
statewide hourly wage, as established by the Employment Security 24
Division of the Department of Employment, Training and 25
Rehabilitation on July 1 of each fiscal year. 26
(b) The applicant intends to locate or expand in a county in 27
which the rate of unemployment is less than 7 percent and the 28
average hourly wage that will be paid by the applicant to its new 29
employees in this State is less than 85 percent of the average 30
statewide hourly wage, as established by the Employment Security 31
Division of the Department of Employment, Training and 32
Rehabilitation on July 1 of each fiscal year. 33
(c) The applicant intends to locate in a county but has already 34
received a partial abatement pursuant to this section for locating that 35
business in that county. 36
(d) The applicant intends to expand in a county but has already 37
received a partial abatement pursuant to this section for expanding 38
that business in that county. 39
(e) The applicant has changed the name or identity of the 40
business to evade the provisions of paragraph (c) or (d). 41
6. Notwithstanding any other provision of law, if the Office of 42
Economic Development approves an application for a partial 43
abatement pursuant to this section, in determining the types of taxes 44
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imposed on a new or expanded business for which the partial 1
abatement will be approved and the amount of the partial abatement: 2
(a) If the new or expanded business is located in a county in 3
which the rate of unemployment is 7 percent or more and the 4
average hourly wage that will be paid by the business to its new 5
employees in this State is less than 85 percent of the average 6
statewide hourly wage, as established by the Employment Security 7
Division of the Department of Employment, Training and 8
Rehabilitation on July 1 of each fiscal year, the Office shall not: 9
(1) Approve an abatement of the taxes imposed pursuant to 10
chapter 361 of NRS which exceeds 25 percent of the taxes on 11
personal property payable by the business each year. 12
(2) Approve an abatement of the taxes imposed pursuant to 13
chapter 363B of NRS which exceeds 25 percent of the amount of 14
tax otherwise due pursuant to NRS 363B.110. 15
(b) If the new or expanded business is located in a county in 16
which the rate of unemployment is less than 7 percent and the 17
average hourly wage that will be paid by the business to its new 18
employees in this State is less than 100 percent of the average 19
statewide hourly wage, as established by the Employment Security 20
Division of the Department of Employment, Training and 21
Rehabilitation on July 1 of each fiscal year, the Office shall not: 22
(1) Approve an abatement of the taxes imposed pursuant to 23
chapter 361 of NRS which exceeds 25 percent of the taxes on 24
personal property payable by the business each year. 25
(2) Approve an abatement of the taxes imposed pursuant to 26
chapter 363B of NRS which exceeds 25 percent of the amount of 27
tax otherwise due pursuant to NRS 363B.110. 28
7. If the Office of Economic Development approves an 29
application for a partial abatement pursuant to this section, the 30
Office shall immediately forward a certificate of eligibility for the 31
abatement to: 32
(a) The Department; 33
(b) The Nevada Tax Commission; and 34
(c) If the partial abatement is from the property tax imposed 35
pursuant to chapter 361 of NRS, the county treasurer. 36
8. An applicant for a partial abatement pursuant to this section 37
or an existing business whose partial abatement is in effect shall, 38
upon the request of the Executive Director of the Office of 39
Economic Development, furnish the Executive Director with copies 40
of all records necessary to verify that the applicant or business 41
meets the requirements of subsection 2 [.] , including, without 42
limitation, that the business is complying with the terms of the 43
community benefits plan. 44
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9. If an applicant for a partial abatement pursuant to this 1
section fails to execute the agreement described in paragraph (b) of 2
subsection 2 within 1 year after the date on which the application 3
was received by the Office, the applicant shall not be approved for a 4
partial abatement pursuant to this section unless the applicant 5
submits a new application. 6
10. If a business whose partial abatement has been approved 7
pursuant to this section and is in effect ceases: 8
(a) To meet the requirements set forth in subsection 2; or 9
(b) Operation before the time specified in the agreement 10
described in paragraph (b) of subsection 2, 11
the business shall repay to the Department or, if the partial 12
abatement was from the property tax imposed pursuant to chapter 13
361 of NRS, to the county treasurer, the amount of the partial 14
abatement that was allowed pursuant to this section before the 15
failure of the business to comply unless the Nevada Tax 16
Commission determines that the business has substantially complied 17
with the requirements of this section. Except as otherwise provided 18
in NRS 360.232 and 360.320, the business shall, in addition to the 19
amount of the partial abatement required to be paid pursuant to this 20
subsection, pay interest on the amount due at the rate most recently 21
established pursuant to NRS 99.040 for each month, or portion 22
thereof, from the last day of the month following the period for 23
which the payment would have been made had the partial abatement 24
not been approved until the date of payment of the tax. 25
11. The Office of Economic Development may investigate a 26
business whose partial abatement has been approved pursuant to 27
this section to determine whether the business is in substantial 28
compliance with the terms of the community benefits plan 29
described in subparagraph (5) of paragraph (b) of subsection 2. If 30
the Executive Director of the Office determines, based on an 31
investigation conducted pursuant to this subsection, that a 32
business has failed to substantially comply with the terms of the 33
community benefits plan, the business shall repay to the 34
Department or, if the partial abatement was from the property tax 35
imposed pursuant to chapter 361 of NRS, to the county treasurer, 36
the amount of the partial abatement that was allowed pursuant to 37
this section. Except as otherwise provided in NRS 360.232 and 38
360.320, the business shall, in addition to the amount of the 39
partial abatement required to be paid pursuant to this subsection, 40
pay interest on the amount due at the rate most recently 41
established pursuant to NRS 99.040 for each month, or portion 42
thereof, from the last day of the month following the period for 43
which the payment would have been made had the partial 44
abatement not been approved until the date of payment of the tax. 45
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12. A county treasurer: 1
(a) Shall deposit any money that he or she receives pursuant to 2
subsection 10 in one or more of the funds established by a local 3
government of the county pursuant to NRS 354.6113 or 354.6115; 4
and 5
(b) May use the money deposited pursuant to paragraph (a) only 6
for the purposes authorized by NRS 354.6113 and 354.6115. 7
[12.] 13. The Office of Economic Development may adopt 8
such regulations as the Office of Economic Development 9
determines to be necessary to carry out the provisions of this section 10
and NRS 360.755. 11
[13.] 14. The Nevada Tax Commission: 12
(a) Shall adopt regulations regarding: 13
(1) The capital investment that a new business must make to 14
meet the requirement set forth in paragraph (f) or (g) of subsection 15
2; and 16
(2) Any security that a business is required to post to qualify 17
for a partial abatement pursuant to this section. 18
(b) May adopt such other regulations as the Nevada Tax 19
Commission determines to be necessary to carry out the provisions 20
of this section and NRS 360.755. 21
[14.] 15. An applicant for a partial abatement pursuant to this 22
section who is aggrieved by a final decision of the Office of 23
Economic Development may petition for judicial review in the 24
manner provided in chapter 233B of NRS. 25
[15.] 16. For the purposes of this section, an employee is a 26
“full-time employee” if he or she is in a permanent position of 27
employment and works an average of 30 hours per week during the 28
applicable period set forth in subsection 2. 29
Sec. 2. NRS 360.753 is hereby amended to read as follows: 30
360.753 1. An owner of a business or a person who intends 31
to locate or expand a business in this State may apply to the Office 32
of Economic Development pursuant to this section for a partial 33
abatement of one or more of: 34
(a) The personal property taxes imposed on an aircraft and the 35
personal property used to own, operate, manufacture, service, 36
maintain, test, repair, overhaul or assemble an aircraft or any 37
component of an aircraft; and 38
(b) The local sales and use taxes imposed on the purchase of 39
tangible personal property used to operate, manufacture, service, 40
maintain, test, repair, overhaul or assemble an aircraft or any 41
component of an aircraft. 42
2. Notwithstanding the provisions of any law to the contrary 43
and except as otherwise provided in subsections 3 and 4, the Office 44
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of Economic Development shall approve an application for a partial 1
abatement if the Office makes the following determinations: 2
(a) Not later than 1 year after the date on which the application 3
was received by the Office, the applicant has executed an agreement 4
with the Office which: 5
(1) Complies with the requirements of NRS 360.755; 6
(2) States the date on which the abatement becomes 7
effective, as agreed to by the applicant and the Office, which must 8
not be earlier than the date on which the Office received the 9
application and not later than 1 year after the date on which the 10
Office approves the application; 11
(3) States that the business will, after the date on which a 12
certificate of eligibility for the partial abatement is issued pursuant 13
to subsection 5, continue in operation in this State for a period 14
specified by the Office, which must be not less than 5 years, and 15
will continue to meet the eligibility requirements set forth in this 16
subsection; [and] 17
(4) Incorporates a community benefits plan, which must: 18
(I) Include a brief description of the environmental, 19
economic and social effects that the applicant anticipates the 20
location or expansion of the business will have on the local 21
community that immediately surrounds the location of the 22
business; 23
(II) State that the business will proactively undertake 24
actions, beyond those incidental to the regular activities of the 25
business, to increase the vitality of the local community and 26
improve the social and economic well-being of the members of 27
that community; 28
(III) Detail the specific actions described in sub-29
subparagraph (II) that the business agrees to undertake during 30
the period of the agreement entered into pursuant to this 31
paragraph, which may include, without limitation, partnering with 32
community-based charitable or educational organizations, 33
sponsoring educational or vocational activities, participating in 34
philanthropic endeavors meant to specifically aid the local 35
community and the members of that community and establishing 36
other programs to improve the well-being of the local community 37
and the members of that community; and 38
(IV) Include such other provisions as the Office may 39
require; and 40
(5) Binds any successor in interest of the applicant for the 41
specified period; 42
(b) The business is registered pursuant to the laws of this State 43
or the applicant commits to obtaining a valid business license and all 44
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other permits required by the county, city or town in which the 1
business operates; 2
(c) The business owns, operates, manufactures, services, 3
maintains, tests, repairs, overhauls or assembles an aircraft or any 4
component of an aircraft; 5
(d) The average hourly wage that will be paid by the business to 6
its employees in this State during the period of partial abatement is 7
not less than 100 percent of the average statewide hourly wage as 8
established by the Employment Security Division of the Department 9
of Employment, Training and Rehabilitation on July 1 of each fiscal 10
year; 11
(e) The business will, by the eighth calendar quarter following 12
the calendar quarter in which the abatement becomes effective, offer 13
a health insurance plan for all employees that includes an option for 14
health insurance coverage for dependents of the employees, and the 15
health care benefits the business offers to its employees in this State 16
will meet the minimum requirements for health care benefits 17
established by the Office; 18
(f) If the business is: 19
(1) A new business, that it will have five or more full-time 20
employees on the payroll of the business within 1 year after 21
receiving its certificate of eligibility for a partial abatement; or 22
(2) An existing business, that it will increase its number of 23
full-time employees on the payroll of the business in this State by 3 24
percent or three employees, whichever is greater, within 1 year after 25
receiving its certificate of eligibility for a partial abatement; 26
(g) The business meets at least one of the following 27
requirements: 28
(1) The business will make a new capital investment of at 29
least $250,000 in this State within 1 year after receiving its 30
certificate of eligibility for a partial abatement; 31
(2) The business will maintain and possess in this State 32
tangible personal property having a value of not less than 33
$5,000,000 during the period of partial abatement; 34
(3) The business develops, refines or owns a patent or other 35
intellectual property, or has been issued a type certificate by the 36
Federal Aviation Administration pursuant to 14 C.F.R. Part 21; and 37
(h) If the application is for the partial abatement of the taxes 38
imposed by the Local School Support Tax Law, the application has 39
been approved by a vote of at least two-thirds of the members of the 40
Board of Economic Development created by NRS 231.033. 41
3. The Office of Economic Development: 42
(a) Shall approve or deny an application submitted pursuant to 43
this section and notify the applicant of its decision not later than 45 44
days after receiving the application. 45
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(b) Must not: 1
(1) Consider an application for a partial abatement unless the 2
Office has requested a letter of acknowledgment of the request for 3
the partial abatement from any affected county, school district, city 4
or town and has complied with the requirements of NRS 360.757; or 5
(2) Approve a partial abatement for any applicant for a 6
period of more than 10 years. 7
4. The Office of Economic Development must not approve a 8
partial abatement of personal property taxes for a business whose 9
physical property is collectively valued and centrally assessed 10
pursuant to NRS 361.320 and 361.3205. 11
5. If the Office of Economic Development approves an 12
application for a partial abatement pursuant to this section, the 13
Office shall immediately forward a certificate of eligibility for the 14
partial abatement to: 15
(a) The Department; 16
(b) The Nevada Tax Commission; and 17
(c) If the partial abatement is from personal property taxes, the 18
appropriate county treasurer. 19
6. An applicant for a partial abatement pursuant to this section 20
or an existing business whose partial abatement is in effect shall, 21
upon the request of the Executive Director of the Office of 22
Economic Development, furnish the Executive Director with copies 23
of all records necessary to verify that the applicant or business 24
meets the requirements of subsection 2 [.] including, without 25
limitation, that the business is complying with the terms of the 26
community benefits plan. 27
7. If an applicant for a partial abatement pursuant to this 28
section fails to execute the agreement described in paragraph (a) of 29
subsection 2 within 1 year after the date on which the application 30
was received by the Office, the applicant shall not be approved for a 31
partial abatement pursuant to this section unless the applicant 32
submits a new application. 33
8. If a business whose partial abatement has been approved 34
pursuant to this section and whose partial abatement is in effect 35
ceases: 36
(a) To meet the requirements set forth in subsection 2; or 37
(b) Operation before the time specified in the agreement 38
described in paragraph (a) of subsection 2, 39
the business shall repay to the Department or, if the partial 40
abatement was from personal property taxes, to the appropriate 41
county treasurer, the amount of the partial abatement that was 42
allowed pursuant to this section before the failure of the business to 43
comply unless the Nevada Tax Commission determines that the 44
business has substantially complied with the requirements of this 45
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section. Except as otherwise provided in NRS 360.232 and 360.320, 1
the business shall, in addition to the amount of the partial abatement 2
required to be repaid pursuant to this subsection, pay interest on the 3
amount due at the rate most recently established pursuant to NRS 4
99.040 for each month, or portion thereof, from the last day of the 5
month following the period for which the payment would have been 6
made had the partial abatement not been approved until the date of 7
payment of the tax. 8
9. The Office of Economic Development may investigate a 9
business whose partial abatement has been approved pursuant to 10
this section to determine whether the business is in substantial 11
compliance with the terms of the community benefits plan 12
described in subparagraph (4) of paragraph (a) of subsection 2. If 13
the Executive Director of the Office determines, based on an 14
investigation conducted pursuant to this subsection, that a 15
business has failed to substantially comply with the terms of the 16
community benefits plan, the business shall repay to the 17
Department or, if the partial abatement was from the property tax 18
imposed pursuant to chapter 361 of NRS, to the county treasurer, 19
the amount of the partial abatement that was allowed pursuant to 20
this section. Except as otherwise provided in NRS 360.232 and 21
360.320, the business shall, in addition to the amount of the 22
partial abatement required to be paid pursuant to this subsection, 23
pay interest on the amount due at the rate most recently 24
established pursuant to NRS 99.040 for each month, or portion 25
thereof, from the last day of the month following the period for 26
which the payment would have been made had the partial 27
abatement not been approved until the date of payment of the tax. 28
10. The Office of Economic Development may adopt such 29
regulations as the Office determines to be necessary to carry out the 30
provisions of this section. 31
[10.] 11. The Nevada Tax Commission may adopt such 32
regulations as the Commission determines are necessary to carry out 33
the provisions of this section. 34
[11.] 12. An applicant for a partial abatement who is aggrieved 35
by a final decision of the Office of Economic Development may 36
petition a court of competent jurisdiction to review the decision in 37
the manner provided in chapter 233B of NRS. 38
[12.] 13. As used in this section: 39
(a) “Aircraft” means any fixed-wing, rotary-wing or unmanned 40
aerial vehicle. 41
(b) “Component of an aircraft” means any: 42
(1) Element that makes up the physical structure of an 43
aircraft, or is affixed thereto; 44
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(2) Mechanical, electrical or other system of an aircraft, 1
including, without limitation, any component thereof; and 2
(3) Raw material or processed material, part, machinery, 3
tool, chemical, gas or equipment used to operate, manufacture, 4
service, maintain, test, repair, overhaul or assemble an aircraft or 5
component of an aircraft. 6
(c) “Full-time employee” means a person who is in a permanent 7
position of employment and works an average of 30 hours per week 8
during the applicable period set forth in subparagraph (3) of 9
paragraph (a) of subsection 2. 10
(d) “Local sales and use taxes” means any taxes imposed on the 11
gross receipts of any retailer from the sale of tangible personal 12
property sold at retail, or stored, used or otherwise consumed, in any 13
political subdivision of this State, except the taxes imposed by the 14
Sales and Use Tax Act. 15
(e) “Personal property taxes” means any taxes levied on 16
personal property by the State or a local government pursuant to 17
chapter 361 of NRS. 18
Sec. 3. NRS 360.754 is hereby amended to read as follows: 19
360.754 1. A person who intends to locate or expand a data 20
center in this State may apply to the Office of Economic 21
Development pursuant to this section for a partial abatement of one 22
or more of the taxes imposed on the new or expanded data center 23
pursuant to chapter 361 or 374 of NRS. 24
2. The Office of Economic Development shall approve an 25
application for a partial abatement pursuant to this section if the 26
Office makes the following determinations: 27
(a) The application is consistent with the State Plan for 28
Economic Development developed by the Executive Director of the 29
Office of Economic Development pursuant to subsection 2 of NRS 30
231.053 and any guidelines adopted by the Executive Director of the 31
Office to implement the State Plan for Economic Development. 32
(b) Not later than 1 year after the date on which the application 33
was received by the Office, the applicant has executed an agreement 34
with the Office of Economic Development which must: 35
(1) Comply with the requirements of NRS 360.755; 36
(2) State the date on which the abatement becomes effective, 37
as agreed to by the applicant and the Office of Economic 38
Development, which must not be earlier than the date on which the 39
Office received the application and not later than 1 year after the 40
date on which the Office approves the application; 41
(3) State that the data center will, after the date on which the 42
abatement becomes effective, continue in operation in this State for 43
a period specified by the Office of Economic Development, which 44
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must be at least 10 years, and will continue to meet the eligibility 1
requirements set forth in this subsection; [and] 2
(4) Incorporate a community benefits plan, which must: 3
(I) Include a brief description of the environmental, 4
economic and social effects that the applicant anticipates the 5
location or expansion of the data center will have on the local 6
community that immediately surrounds the location of the data 7
center; 8
(II) State that the data center will proactively undertake 9
actions, beyond those incidental to the regular activities of the 10
data center, to increase the vitality of the local community and 11
improve the social and economic well-being of the members of 12
that community; 13
(III) Detail the specific actions described in sub-14
subparagraph (II) that the data center agrees to undertake during 15
the period of the agreement entered into pursuant to this 16
paragraph, which may include, without limitation, partnering with 17
community-based charitable or educational organizations, 18
sponsoring educational or vocational activities, participating in 19
philanthropic endeavors meant to specifically aid the local 20
community and the members of that community and establishing 21
other programs to improve the well-being of the local community 22
and the members of that community; and 23
(IV) Include such other provisions as the Office may 24
require; and 25
(5) Bind the successors in interest of the applicant for the 26
specified period. 27
(c) The applicant is registered pursuant to the laws of this State 28
or the applicant commits to obtain a valid business license and all 29
other permits required by each county, city or town in which the 30
data center operates. 31
(d) If the applicant is seeking a partial abatement for a period of 32
not more than 10 years, the applicant meets the following 33
requirements: 34
(1) The data center will, by not later than the date that is 5 35
years after the date on which the abatement becomes effective, have 36
or have added 10 or more full-time employees who are residents of 37
Nevada and who will be employed at the data center and will 38
continue to employ 10 or more full-time employees who are 39
residents of Nevada at the data center until at least the date which is 40
10 years after the date on which the abatement becomes effective. 41
(2) Establishing or expanding the data center will require the 42
data center or any combination of the data center and one or more 43
colocated businesses to make in each county in this State in which 44
the data center is located, by not later than the date which is 5 years 45
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after the date on which the abatement becomes effective, a 1
cumulative capital investment of at least $25,000,000 in capital 2
assets that will be used or located at the data center. 3
(3) The average hourly wage that will be paid by the data 4
center to its employees in this State is at least 100 percent of the 5
average statewide hourly wage as established by the Employment 6
Security Division of the Department of Employment, Training and 7
Rehabilitation on July 1 of each fiscal year and: 8
(I) The data center will, by not later than the date which is 9
2 years after the date on which the abatement becomes effective, 10
provide a health insurance plan for all employees employed at the 11
data center that includes an option for health insurance coverage for 12
dependents of the employees; and 13
(II) The health care benefits provided to employees 14
employed at the data center will meet the minimum requirements for 15
health care benefits established by the Office of Economic 16
Development by regulation pursuant to subsection [13.] 14. 17
(4) At least 50 percent of the employees engaged in the 18
construction of the data center are residents of Nevada, unless 19
waived by the Executive Director of the Office of Economic 20
Development upon proof satisfactory to the Executive Director of 21
the Office of Economic Development that there is an insufficient 22
number of residents of Nevada available and qualified for such 23
employment. 24
(e) If the applicant is seeking a partial abatement for a period of 25
10 years or more but not more than 20 years, the applicant meets the 26
following requirements: 27
(1) The data center will, by not later than the date that is 5 28
years after the date on which the abatement becomes effective, have 29
or have added 50 or more full-time employees who are residents of 30
Nevada and who will be employed at the data center and will 31
continue to employ 50 or more full-time employees who are 32
residents of Nevada at the data center until at least the date which is 33
20 years after the date on which the abatement becomes effective. 34
(2) Establishing or expanding the data center will require the 35
data center or any combination of the data center and one or more 36
colocated businesses to make in each county in this State in which 37
the data center is located, by not later than the date which is 5 years 38
after the date on which the abatement becomes effective, a 39
cumulative capital investment of at least $100,000,000 in capital 40
assets that will be used or located at the data center. 41
(3) The average hourly wage that will be paid by the data 42
center to its employees in this State is at least 100 percent of the 43
average statewide hourly wage as established by the Employment 44
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Security Division of the Department of Employment, Training and 1
Rehabilitation on July 1 of each fiscal year and: 2
(I) The data center will, by not later than the date which is 3
2 years after the date on which the abatement becomes effective, 4
provide a health insurance plan for all employees employed at the 5
data center that includes an option for health insurance coverage for 6
dependents of the employees; and 7
(II) The health care benefits provided to employees 8
employed at the data center will meet the minimum requirements for 9
health care benefits established by the Office of Economic 10
Development by regulation pursuant to subsection [13.] 14. 11
(4) At least 50 percent of the employees engaged in the 12
construction of the data center are residents of Nevada, unless 13
waived by the Executive Director of the Office of Economic 14
Development upon proof satisfactory to the Executive Director of 15
the Office of Economic Development that there is an insufficient 16
number of residents of Nevada available and qualified for such 17
employment. 18
(f) The applicant has provided in the application an estimate of 19
the total number of new employees which the data center anticipates 20
hiring in this State if the Office of Economic Development approves 21
the application. 22
(g) If the applicant is seeking a partial abatement of the taxes 23
imposed by the Local School Support Tax Law, the application has 24
been approved by a vote of at least two-thirds of the members of the 25
Board of Economic Development created by NRS 231.033. 26
3. Notwithstanding the provisions of subsection 2, the Office 27
of Economic Development: 28
(a) Shall not consider an application for a partial abatement 29
pursuant to this section unless the Office of Economic Development 30
has requested a letter of acknowledgment of the request for the 31
abatement from each affected county, school district, city or town. 32
(b) Shall consider the level of health care benefits provided to 33
employees employed at the data center, the projected economic 34
impact of the data center and the projected tax revenue of the data 35
center after deducting projected revenue from the abated taxes. 36
(c) May, if the Office of Economic Development determines 37
that such action is necessary: 38
(1) Approve an application for a partial abatement pursuant 39
to this section by a data center that does not meet the requirements 40
set forth in paragraph (d) or (e) of subsection 2; 41
(2) Make the requirements set forth in paragraphs (d) and (e) 42
of subsection 2 more stringent; or 43
(3) Add additional requirements that an applicant must meet 44
to qualify for a partial abatement pursuant to this section. 45
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4. If the Office of Economic Development approves an 1
application for a partial abatement pursuant to this section, the 2
Office shall immediately forward a certificate of eligibility for the 3
abatement to: 4
(a) The Department; 5
(b) The Nevada Tax Commission; and 6
(c) If the partial abatement is from the property tax imposed 7
pursuant to chapter 361 of NRS, the county treasurer of each county 8
in which the data center is or will be located. 9
5. If the Office of Economic Development approves an 10
application for a partial abatement pursuant to this section, the 11
Office may also approve a partial abatement of taxes for each 12
colocated business that enters into a contract to use or occupy, for a 13
period of at least 2 years, all or a portion of the new or expanded 14
data center. Each such colocated business shall obtain a state 15
business license issued by the Secretary of State. The percentage 16
amount of a partial abatement approved for a colocated business 17
pursuant to this subsection must not exceed the percentage amount 18
of the partial abatement approved for the data center. The duration 19
of a partial abatement approved for a colocated business pursuant to 20
this subsection must not exceed the duration of the contract or 21
contracts entered into between the colocated business and the data 22
center, including the duration of any contract or contracts extended 23
or renewed by the parties. If a colocated business ceases to meet the 24
requirements set forth in this subsection, the colocated business 25
shall repay the amount of the abatement that was allowed in the 26
same manner in which a data center is required by subsection 8 to 27
repay the Department or a county treasurer. If a data center ceases to 28
meet the requirements of subsection 2 or ceases operation before the 29
time specified in the agreement described in paragraph (b) of 30
subsection 2, any partial abatement approved for a colocated 31
business ceases to be in effect, but the colocated business is not 32
required to repay the amount of the abatement that was allowed 33
before the date on which the abatement ceases to be in effect. A data 34
center shall provide the Executive Director of the Office and the 35
Department with a list of the colocated businesses that are qualified 36
to receive a partial abatement pursuant to this subsection and shall 37
notify the Executive Director within 30 days after any change to the 38
list. The Executive Director shall provide the list and any updates to 39
the list to the Department and the county treasurer of each affected 40
county. 41
6. An applicant for a partial abatement pursuant to this section 42
or a data center whose partial abatement is in effect shall, upon the 43
request of the Executive Director of the Office of Economic 44
Development, furnish the Executive Director with copies of all 45
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records necessary to verify that the applicant or data center meets 1
the requirements of subsection 2 [.] , including, without limitation, 2
that the data center is complying with the terms of the community 3
benefits plan. 4
7. If an applicant for a partial abatement pursuant to this 5
section fails to execute the agreement described in paragraph (b) of 6
subsection 2 within 1 year after the date on which the application 7
was received by the Office, the applicant shall not be approved for a 8
partial abatement pursuant to this section unless the applicant 9
submits a new application. 10
8. If a data center whose partial abatement has been approved 11
pursuant to this section and is in effect ceases: 12
(a) To meet the requirements set forth in subsection 2; or 13
(b) Operation before the time specified in the agreement 14
described in paragraph (b) of subsection 2, 15
the data center shall repay to the Department or, if the partial 16
abatement was from the property tax imposed pursuant to chapter 17
361 of NRS, to the county treasurer, the amount of the partial 18
abatement that was allowed pursuant to this section before the 19
failure of the data center to comply unless the Nevada Tax 20
Commission determines that the data center has substantially 21
complied with the requirements of this section. Except as otherwise 22
provided in NRS 360.232 and 360.320, the data center shall, in 23
addition to the amount of the partial abatement required to be repaid 24
pursuant to this subsection, pay interest on the amount due at the 25
rate most recently established pursuant to NRS 99.040 for each 26
month, or portion thereof, from the last day of the month following 27
the period for which the payment would have been made had the 28
partial abatement not been approved until the date of payment of the 29
tax. 30
9. The Office of Economic Development may investigate a 31
data center whose partial abatement has been approved pursuant 32
to this section to determine whether the data center is in 33
substantial compliance with the terms of the community benefits 34
plan described in subparagraph (4) of paragraph (b) of subsection 35
2. If the Executive Director of the Office determines, based on an 36
investigation conducted pursuant to this subsection, that a data 37
center has failed to substantially comply with the terms of the 38
community benefits plan, the data center shall repay to the 39
Department or, if the partial abatement was from the property tax 40
imposed pursuant to chapter 361 of NRS, to the county treasurer, 41
the amount of the partial abatement that was allowed pursuant to 42
this section. Except as otherwise provided in NRS 360.232 and 43
360.320, the data center shall, in addition to the amount of the 44
partial abatement required to be paid pursuant to this subsection, 45
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- *AB226*
pay interest on the amount due at the rate most recently 1
established pursuant to NRS 99.040 for each month, or portion 2
thereof, from the last day of the month following the period for 3
which the payment would have been made had the partial 4
abatement not been approved until the date of payment of the tax. 5
10. A county treasurer: 6
(a) Shall deposit any money that he or she receives pursuant to 7
subsection 5 or 8 in one or more of the funds established by a local 8
government of the county pursuant to NRS 354.6113 or 354.6115; 9
and 10
(b) May use the money deposited pursuant to paragraph (a) only 11
for the purposes authorized by NRS 354.6113 and 354.6115. 12
[10.] 11. An applicant for a partial abatement pursuant to this 13
section who is aggrieved by a final decision of the Office of 14
Economic Development may petition for judicial review in the 15
manner provided in chapter 233B of NRS. 16
[11.] 12. For an employee to be considered a resident of 17
Nevada for the purposes of this section, a data center must maintain 18
the following documents in the personnel file of the employee: 19
(a) A copy of the current and valid Nevada driver’s license of 20
the employee or a current and valid identification card for the 21
employee issued by the Department of Motor Vehicles; 22
(b) If the employee is a registered owner of one or more motor 23
vehicles in Nevada, a copy of the current motor vehicle registration 24
of at least one of those vehicles; 25
(c) Proof that the employee is a full-time employee; and 26
(d) Proof that the employee is covered by the health insurance 27
plan which the data center is required to provide pursuant to sub-28
subparagraph (I) of subparagraph (3) of paragraph (d) of subsection 29
2 or sub-subparagraph (I) of subparagraph (3) of paragraph (e) of 30
subsection 2. 31
[12.] 13. For the purpose of obtaining from the Executive 32
Director of the Office of Economic Development any waiver of the 33
requirements set forth in subparagraph (4) of paragraph (d) of 34
subsection 2 or subparagraph (4) of paragraph (e) of subsection 2, a 35
data center must submit to the Executive Director of the Office of 36
Economic Development written documentation of the efforts to 37
meet the requirements and documented proof that an insufficient 38
number of Nevada residents is available and qualified for 39
employment. 40
[13.] 14. The Office of Economic Development: 41
(a) Shall adopt regulations relating to the minimum level of 42
health care benefits that a data center must provide to its employees 43
to meet the requirement set forth in paragraph (d) or (e) of 44
subsection 2; 45
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- *AB226*
(b) May adopt such other regulations as the Office determines to 1
be necessary to carry out the provisions of this section; and 2
(c) Shall not approve any application for a partial abatement 3
submitted pursuant to this section which is received on or after 4
January 1, 2036. 5
[14.] 15. The Nevada Tax Commission: 6
(a) Shall adopt regulations regarding: 7
(1) The capital investment necessary to meet the requirement 8
set forth in paragraph (d) or (e) of subsection 2; and 9
(2) Any security that a data center is required to post to 10
qualify for a partial abatement pursuant to this section. 11
(b) May adopt such other regulations as the Nevada Tax 12
Commission determines to be necessary to carry out the provisions 13
of this section. 14
[15.] 16. As used in this section, unless the context otherwise 15
requires: 16
(a) “Colocated business” means a person who enters into a 17
contract with a data center that is qualified to receive an abatement 18
pursuant to this section to use or occupy all or part of the data 19
center. 20
(b) “Data center” means one or more buildings located at one or 21
more physical locations in this State which house a group of 22
networked server computers for the purpose of centralizing the 23
storage, management and dissemination of data and information 24
pertaining to one or more businesses and includes any modular or 25
preassembled components, associated telecommunications and 26
storage systems and, if the data center includes more than one 27
building or physical location, any network or connection between 28
such buildings or physical locations. 29
(c) “Full-time employee” means a person who is in a permanent 30
position of employment and works an average of 30 hours per week 31
during the applicable period set forth in paragraph (d) or (e) of 32
subsection 2. 33
Sec. 4. NRS 360.759 is hereby amended to read as follows: 34
360.759 1. A production company that produces a qualified 35
production in this State in whole or in part may apply to the Office 36
of Economic Development for a certificate of eligibility for 37
transferable tax credits for any qualified direct production 38
expenditures. The transferable tax credits may be applied to: 39
(a) Any tax imposed by chapters 363A and 363B of NRS; 40
(b) The gaming license fees imposed by the provisions of 41
NRS 463.370; 42
(c) Any tax imposed pursuant to chapter 680B of NRS; or 43
(d) Any combination of the fees and taxes described in 44
paragraphs (a), (b) and (c). 45
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2. The Office may approve an application for a certificate of 1
eligibility for transferable tax credits if the Office finds that the 2
production company producing the qualified production qualifies for 3
the transferable tax credits pursuant to subsection 3. If the Office 4
approves the application, the Office shall calculate the estimated 5
amount of the transferable tax credits pursuant to NRS 360.7592, 6
360.7593 and 360.7594. 7
3. To be eligible for transferable tax credits pursuant to this 8
section, a production company must: 9
(a) Submit an application that meets the requirements of 10
subsection 4; 11
(b) Provide proof satisfactory to the Office that the qualified 12
production is in the economic interest of the State; 13
(c) Provide proof satisfactory to the Office that 70 percent or 14
more of the funding for the qualified production has been obtained; 15
(d) Provide proof satisfactory to the Office that at least 60 16
percent of the direct production expenditures for: 17
(1) Preproduction; 18
(2) Production; and 19
(3) If any direct production expenditures for postproduction 20
will be incurred in this State, postproduction, 21
of the qualified production will be incurred in this State as 22
qualified direct production expenditures; 23
(e) Not later than 270 days after the completion of principal 24
photography of the qualified production or, if any direct production 25
expenditures for postproduction will be incurred in this State, not 26
later than 270 days after the completion of postproduction, unless 27
the Office agrees to extend this period by not more than 90 days, 28
provide the Office with an audit of the qualified production that 29
includes an itemized report of qualified direct production 30
expenditures which: 31
(1) Shows that the qualified production incurred qualified 32
direct production expenditures of $500,000 or more; and 33
(2) Is certified by an independent certified public accountant 34
in this State who is approved by the Office; 35
(f) Pay the cost of the audit required by paragraph (e); 36
(g) Enter into an agreement with the Office establishing a 37
community benefits plan, which must: 38
(1) Include a brief description of the environmental, 39
economic and social effects that the applicant anticipates the 40
qualified production will have on the local community; 41
(2) State that the production company will proactively 42
undertake actions, beyond those incidental to the regular activities 43
of the production of the qualified production, to increase the 44
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vitality of the local community and improve the social and 1
economic well-being of the members of that community; 2
(3) Detail the specific actions described in subparagraph 3
(2) that the production company agrees to undertake during the 4
period of the agreement entered into pursuant to this paragraph, 5
which may include, without limitation, partnering with 6
community-based charitable or educational organizations, 7
sponsoring educational or vocational activities, participating in 8
philanthropic endeavors meant to specifically aid the local 9
community and the members of that community and establishing 10
other programs to improve the well-being of the local community 11
and the members of that community; and 12
(4) Include such other provisions as the Office may 13
require; 14
(h) Enter into a written agreement with the Office that requires 15
the production company to include: 16
(1) In the end screen credits of the qualified production, a 17
logo of this State provided by the Office which indicates that the 18
qualified production was filmed or otherwise produced in Nevada; 19
or 20
(2) If the qualified production does not have end screen 21
credits, another acknowledgment in the final version of the qualified 22
production which indicates that the qualified production was filmed 23
or otherwise produced in Nevada; and 24
[(h)] (i) Meet any other requirements prescribed by regulation 25
pursuant to this section. 26
4. An application submitted pursuant to subsection 3 must 27
contain: 28
(a) A script, storyboard or synopsis of the qualified production; 29
(b) The names of the production company, producer, director 30
and proposed cast; 31
(c) An estimated timeline to complete the qualified production; 32
(d) A summary of the budgeted expenditures for the entire 33
production, including projected expenditures to be incurred outside 34
of Nevada; 35
(e) Details regarding the financing of the project, including, 36
without limitation, any information relating to a binding financing 37
commitment, loan application, commitment letter or investment 38
letter; 39
(f) An insurance certificate, binder or quote for general liability 40
insurance of $1,000,000 or more; 41
(g) The business address of the production company; 42
(h) Proof that the qualified production meets any applicable 43
requirements relating to workers’ compensation insurance; 44
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(i) Proof that the production company has secured all licenses 1
and registrations required to do business in each location in this 2
State at which the qualified production will be produced; and 3
(j) Any other information required by regulations adopted by the 4
Office pursuant to subsection 8. 5
5. If the Office approves an application for a certificate of 6
eligibility for transferable tax credits pursuant to this section, the 7
Office shall immediately forward a copy of the certificate of 8
eligibility which identifies the estimated amount of the tax credits 9
available pursuant to NRS 360.7592 to: 10
(a) The applicant; 11
(b) The Department; and 12
(c) The Nevada Gaming Control Board. 13
6. Within 60 business days after receipt of an audit provided by 14
a production company pursuant to paragraph (e) of subsection 3 and 15
any other accountings or other information required by the Office, 16
the Office shall determine whether to certify the audit and make a 17
final determination of whether a certificate of transferable tax 18
credits will be issued. If the Office certifies the audit, determines 19
that all other requirements for the transferable tax credits have been 20
met and determines that a certificate of transferable tax credits will 21
be issued, the Office shall notify the production company that the 22
transferable tax credits will be issued. Within 30 days after the 23
receipt of the notice, the production company shall make an 24
irrevocable declaration of the amount of transferable tax credits that 25
will be applied to each fee or tax set forth in subsection 1, thereby 26
accounting for all of the credits which will be issued. Upon receipt 27
of the declaration, the Office shall issue to the production company 28
a certificate of transferable tax credits in the amount approved by 29
the Office for the fees or taxes included in the declaration of the 30
production company. The production company shall notify the 31
Office upon transferring any of the transferable tax credits. The 32
Office shall notify the Department and the Nevada Gaming Control 33
Board of all transferable tax credits issued, segregated by each fee 34
or tax set forth in subsection 1, and the amount of any transferable 35
tax credits transferred. 36
7. An applicant for transferable tax credits pursuant to this 37
section shall, upon the request of the Executive Director of the 38
Office, furnish the Executive Director with copies of all records 39
necessary to verify that the applicant meets the requirements of 40
subsection 3 [.] , including, without limitation, that the applicant is 41
complying with the terms of the community benefits plan. 42
8. The Office: 43
(a) Shall adopt regulations prescribing: 44
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(1) Any additional requirements to receive transferable tax 1
credits; 2
(2) Any additional qualified expenditures or production costs 3
that may serve as the basis for transferable tax credits pursuant to 4
NRS 360.7591; 5
(3) Any additional information that must be included with an 6
application pursuant to subsection 4; 7
(4) The application review process; 8
(5) Any type of qualified production which, due to obscene 9
or sexually explicit material, is not eligible for transferable tax 10
credits; and 11
(6) The requirements for notice pursuant to NRS 360.7595; 12
and 13
(b) May adopt any other regulations that are necessary to carry 14
out the provisions of NRS 360.758 to 360.7598, inclusive. 15
9. The Nevada Tax Commission and the Nevada Gaming 16
Commission: 17
(a) Shall adopt regulations prescribing the manner in which 18
transferable tax credits will be administered. 19
(b) May adopt any other regulations that are necessary to carry 20
out the provisions of NRS 360.758 to 360.7598, inclusive. 21
Sec. 5. NRS 360.7597 is hereby amended to read as follows: 22
360.7597 1. The Office of Economic Development may 23
investigate a production company that has been issued 24
transferable tax credits pursuant to NRS 360.759 to determine 25
whether the production company is in substantial compliance with 26
the terms of the community benefits plan described in paragraph 27
(g) of subsection 3 of NRS 360.759. If the Executive Director of 28
the Office of Economic Development determines, based on an 29
investigation conducted pursuant to this section, that a production 30
company has failed to substantially comply with the terms of such 31
an agreement, the production company shall repay to the 32
Department or the Nevada Gaming Control Board, as applicable, 33
an amount of money equal to the transferable tax credits issued to 34
the production company. 35
2. A production company that is found to have submitted any 36
false statement, representation or certification in any document 37
submitted for the purpose of obtaining transferable tax credits or 38
who otherwise becomes ineligible for transferable tax credits after 39
receiving the transferable tax credits pursuant to NRS 360.759 shall 40
repay to the Department or the Nevada Gaming Control Board, as 41
applicable, any portion of the transferable tax credits to which the 42
production company is not entitled. 43
[2.] 3. Transferable tax credits purchased in good faith are not 44
subject to forfeiture or repayment by the transferee unless the 45
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transferee submitted fraudulent information in connection with the 1
purchase. 2
Sec. 6. NRS 360.889 is hereby amended to read as follows: 3
360.889 1. On behalf of a project, the lead participant in the 4
project may apply to the Office of Economic Development for: 5
(a) A certificate of eligibility for transferable tax credits which 6
may be applied to: 7
(1) Any tax imposed by chapters 363A and 363B of NRS; 8
(2) The gaming license fees imposed by the provisions of 9
NRS 463.370; 10
(3) Any tax imposed by chapter 680B of NRS; or 11
(4) Any combination of the fees and taxes described in 12
subparagraphs (1), (2) and (3). 13
(b) A partial abatement of property taxes, employer excise taxes 14
or local sales and use taxes, or any combination of any of those 15
taxes. 16
2. For a project to be eligible for the transferable tax credits 17
described in paragraph (a) of subsection 1 and the partial abatement 18
of the taxes described in paragraph (b) of subsection 1, the lead 19
participant in the project must, on behalf of the project: 20
(a) Submit an application that meets the requirements of 21
subsection 5; 22
(b) Provide documentation satisfactory to the Office that 23
approval of the application would promote the economic 24
development of this State and aid the implementation of the State 25
Plan for Economic Development developed by the Executive 26
Director of the Office pursuant to subsection 2 of NRS 231.053; 27
(c) Provide documentation satisfactory to the Office that the 28
participants in the project collectively will make a total new capital 29
investment of at least $1 billion in this State within the 10-year 30
period immediately following approval of the application; 31
(d) Provide documentation satisfactory to the Office that the 32
participants in the project are engaged in a common business 33
purpose or industry; 34
(e) Provide documentation satisfactory to the Office that the 35
place of business of each participant is or will be located within the 36
geographic boundaries of the project site or sites; 37
(f) Provide documentation satisfactory to the Office that each 38
participant in the project is registered pursuant to the laws of this 39
State or commits to obtaining a valid business license and all other 40
permits required by the county, city or town in which the project 41
operates; 42
(g) Provide documentation satisfactory to the Office of the 43
number of employees engaged in the construction of the project; 44
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(h) Provide documentation satisfactory to the Office of the 1
number of qualified employees employed or anticipated to be 2
employed at the project by the participants; 3
(i) Provide documentation satisfactory to the Office that each 4
employer engaged in the construction of the project provides a plan 5
of health insurance and that each employee engaged in the 6
construction of the project is offered coverage under the plan of 7
health insurance provided by his or her employer; 8
(j) Provide documentation satisfactory to the Office that each 9
participant in the project provides a plan of health insurance and that 10
each employee employed at the project by each participant is 11
offered coverage under the plan of health insurance provided by his 12
or her employer; 13
(k) Provide documentation satisfactory to the Office that at least 14
50 percent of the employees engaged in construction of the project 15
and 50 percent of the employees employed at the project are 16
residents of Nevada, unless waived by the Executive Director of the 17
Office upon proof satisfactory to the Executive Director of the 18
Office that there is an insufficient number of Nevada residents 19
available and qualified for such employment; 20
(l) Agree to provide the Office with a full compliance audit of 21
the participants in the project at the end of each fiscal year which: 22
(1) Shows the amount of money invested in this State by 23
each participant in the project; 24
(2) Shows the number of employees engaged in the 25
construction of the project and the number of those employees who 26
are residents of Nevada; 27
(3) Shows the number of employees employed at the project 28
by each participant and the number of those employees who are 29
residents of Nevada; and 30
(4) Is certified by an independent certified public accountant 31
in this State who is approved by the Office; 32
(m) Pay the cost of the audit required by paragraph (l); 33
(n) Enter into an agreement with the Office establishing a 34
community benefits plan, which must: 35
(1) Include a brief description of the environmental, 36
economic and social effects that the applicant anticipates the 37
project will have on the local community that immediately 38
surrounds the location of the project; 39
(2) State that the participants in the project will proactively 40
undertake actions, beyond those incidental to the regular activities 41
of the participants, to increase the vitality of the local community 42
and improve the social and economic well-being of the members of 43
that community; 44
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(3) Detail the specific actions described in subparagraph 1
(2) that the participants in the project agree to undertake during 2
the period of the agreement entered into pursuant to this 3
paragraph, which may include, without limitation, partnering with 4
community-based charitable or educational organizations, 5
sponsoring educational or vocational activities, participating in 6
philanthropic endeavors meant to specifically aid the local 7
community and the members of that community and establishing 8
other programs to improve the well-being of the local community 9
and the members of that community; and 10
(4) Include such other provisions as the Office may 11
require; 12
(o) Enter into an agreement with the governing body of the city 13
or county in which the qualified project is located that: 14
(1) Requires the lead participant to pay the cost of any 15
engineering or design work necessary to determine the cost of 16
infrastructure improvements required to be made by the governing 17
body pursuant to an economic development financing proposal 18
approved pursuant to NRS 360.990; and 19
(2) Requires the lead participant to seek reimbursement for 20
any costs paid by the lead participant pursuant to subparagraph (1) 21
from the proceeds of bonds issued pursuant to NRS 360.991; [and 22
(o)] (p) Meet any other requirements prescribed by the Office. 23
3. In addition to meeting the requirements set forth in 24
subsection 2, for a project located on more than one site in this State 25
to be eligible for the partial abatement of the taxes described in 26
paragraph (b) of subsection 1, the lead participant must, on behalf of 27
the project, submit an application that meets the requirements of 28
subsection 5 on or before June 30, 2019, and provide documentation 29
satisfactory to the Office that: 30
(a) The initial project will have a total of 500 or more full-time 31
employees employed at the site of the initial project and the average 32
hourly wage that will be paid to employees of the initial project in 33
this State is at least 120 percent of the average statewide hourly 34
wage as established by the Employment Security Division of the 35
Department of Employment, Training and Rehabilitation on July 1 36
of each fiscal year; 37
(b) Each participant in the project must be a subsidiary or 38
affiliate of the lead participant; and 39
(c) Each participant offers primary jobs and: 40
(1) Except as otherwise provided in subparagraph (2), 41
satisfies the requirements of paragraph (f) or (g) of subsection 2 of 42
NRS 360.750, regardless of whether the business is a new business 43
or an existing business; and 44
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(2) If a participant owns, operates, manufactures, services, 1
maintains, tests, repairs, overhauls or assembles an aircraft or any 2
component of an aircraft, that the participant satisfies the applicable 3
requirements of paragraph (f) or (g) of subsection 2 of 4
NRS 360.753. 5
If any participant is a data center, as defined in NRS 360.754, any 6
capital investment by that participant must not be counted in 7
determining whether the participants in the project collectively will 8
make a total new capital investment of at least $1 billion in this 9
State within the 10-year period immediately following approval of 10
the application, as required by paragraph (c) of subsection 2. 11
4. In addition to meeting the requirements set forth in 12
subsection 2, a project is eligible for the transferable tax credits 13
described in paragraph (a) of subsection 1 only if the Interim 14
Finance Committee approves a written request for the issuance of 15
the transferable tax credits. Such a request may only be submitted 16
by the Office and only after the Office has approved the application 17
submitted for the project pursuant to subsection 2. The Interim 18
Finance Committee may approve a request submitted pursuant to 19
this subsection only if the Interim Finance Committee determines 20
that approval of the request: 21
(a) Will not impede the ability of the Legislature to carry out its 22
duty to provide for an annual tax sufficient to defray the estimated 23
expenses of the State for each fiscal year as set forth in Article 9, 24
Section 2 of the Nevada Constitution; and 25
(b) Will promote the economic development of this State and 26
aid the implementation of the State Plan for Economic Development 27
developed by the Executive Director of the Office pursuant to 28
subsection 2 of NRS 231.053. 29
5. An application submitted pursuant to subsection 2 must 30
include: 31
(a) A detailed description of the project, including a description 32
of the common purpose or business endeavor in which the 33
participants in the project are engaged; 34
(b) A detailed description of the location of the project, 35
including a precise description of the geographic boundaries of the 36
project site or sites; 37
(c) The name and business address of each participant in the 38
project, which must be an address in this State; 39
(d) A detailed description of the plan by which the participants 40
in the project intend to comply with the requirement that the 41
participants collectively make a total new capital investment of at 42
least $1 billion in this State in the 10-year period immediately 43
following approval of the application; 44
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(e) If the application includes one or more partial abatements, an 1
agreement executed by the Office with the lead participant in the 2
project not later than 1 year after the date on which the application 3
was received by the Office which: 4
(1) Complies with the requirements of NRS 360.755; 5
(2) States the date on which the partial abatement becomes 6
effective, as agreed to by the applicant and the Office, which must 7
not be earlier than the date on which the Office received the 8
application and not later than 1 year after the date on which the 9
Office approves the application; 10
(3) States that the project will, after the date on which a 11
certificate of eligibility for the partial abatement is approved 12
pursuant to NRS 360.893, continue in operation in this State for a 13
period specified by the Office; and 14
(4) Binds successors in interest of the lead participant for the 15
specified period; and 16
(f) Any other information required by the Office. 17
6. For an employee to be considered a resident of Nevada for 18
the purposes of this section, each participant in the project must 19
maintain the following documents in the personnel file of the 20
employee: 21
(a) A copy of the: 22
(1) Current and valid Nevada driver’s license of the 23
employee originally issued by the Department of Motor Vehicles 24
more than 60 days before the hiring of the employee or a current and 25
valid identification card for the employee originally issued by the 26
Department of Motor Vehicles more than 60 days before the hiring 27
of the employee; or 28
(2) If the employee is a veteran of the Armed Forces of the 29
United States, a current and valid Nevada driver’s license of the 30
employee or a current and valid identification card for the employee 31
issued by the Department of Motor Vehicles; 32
(b) If the employee is a registered owner of one or more motor 33
vehicles in Nevada, a copy of the current motor vehicle registration 34
of at least one of those vehicles; 35
(c) Proof that the employee is employed full-time and scheduled 36
to work for an average minimum of 30 hours per week; and 37
(d) Proof that the employee is offered coverage under a plan of 38
health insurance provided by his or her employer. 39
7. For the purpose of obtaining from the Executive Director of 40
the Office any waiver of the requirement set forth in paragraph (k) 41
of subsection 2, the lead participant in the project must submit to the 42
Executive Director of the Office written documentation of the 43
efforts to meet the requirement and documented proof that an 44
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- *AB226*
insufficient number of Nevada residents is available and qualified 1
for employment. 2
8. The Executive Director of the Office shall make available to 3
the public and post on the Internet website of the Office: 4
(a) Any request for a waiver of the requirements set forth in 5
paragraph (k) of subsection 2; and 6
(b) Any approval of such a request for a waiver that is granted 7
by the Executive Director of the Office. 8
9. The Executive Director of the Office shall post a request for 9
a waiver of the requirements set forth in paragraph (k) of subsection 10
2 on the Internet website of the Office within 3 days after receiving 11
the request and shall keep the request posted on the Internet website 12
for not less than 5 days. The Executive Director of the Office shall 13
ensure that the Internet website allows members of the public to post 14
comments regarding the request. 15
10. The Executive Director of the Office shall consider any 16
comments posted on the Internet website concerning any request for 17
a waiver of the requirements set forth in paragraph (k) of subsection 18
2 before making a decision regarding whether to approve the 19
request. If the Executive Director of the Office approves the request 20
for a waiver, the Executive Director of the Office must post the 21
approval on the Internet website of the Office within 3 days and 22
ensure that the Internet website allows members of the public to post 23
comments regarding the approval. 24
11. If an applicant for one or more partial abatements pursuant 25
to this section fails to execute the agreement described in paragraph 26
(e) of subsection 5 within 1 year after the date on which the 27
application was received by the Office, the applicant shall not be 28
approved for a partial abatement pursuant to this section unless the 29
applicant submits a new application. 30
Sec. 7. NRS 360.894 is hereby amended to read as follows: 31
360.894 1. The lead participant in a qualified project shall, 32
upon the request of the Office of Economic Development, furnish 33
the Office with copies of all records necessary to verify that the 34
qualified project meets the eligibility requirements for any 35
transferable tax credits issued pursuant to NRS 360.891 and the 36
partial abatement of any taxes pursuant to NRS 360.893 [.] , 37
including, without limitation, that the participants in the project 38
are complying with the terms of the community benefits plan 39
described in paragraph (n) of subsection 2 of NRS 360.889. 40
2. The Office may investigate a qualified project to determine 41
whether the participants of the project are in substantial 42
compliance with the terms of the community benefits plan 43
described in paragraph (n) of subsection 2 of NRS 360.889. 44
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3. The lead participant shall repay to the Department or the 1
Nevada Gaming Control Board, as applicable, any portion of the 2
transferable tax credits to which the lead participant is not entitled 3
if: 4
(a) The participants in the qualified project collectively fail to 5
make the investment in this State necessary to support the 6
determination by the Executive Director of the Office of Economic 7
Development that the project is a qualified project; 8
(b) The participants in the qualified project collectively fail to 9
employ the number of qualified employees identified in the 10
certificate of eligibility approved for the qualified project; 11
(c) The lead participant submits any false statement, 12
representation or certification in any document submitted for the 13
purpose of obtaining transferable tax credits; [or] 14
(d) The lead participant otherwise becomes ineligible for 15
transferable tax credits after receiving the transferable tax credits 16
pursuant to NRS 360.880 to 360.896, inclusive. 17
[3.] 4. Transferable tax credits purchased in good faith are not 18
subject to forfeiture unless the transferee submitted fraudulent 19
information in connection with the purchase. 20
[4.] 5. Notwithstanding any provision of this chapter or 21
chapter 361 of NRS, if the lead participant in a qualified project for 22
which a partial abatement has been approved pursuant to NRS 23
360.893 and is in effect: 24
(a) Fails to meet the requirements for eligibility pursuant to that 25
section; or 26
(b) Ceases operation before the time specified in the agreement 27
described in paragraph (e) of subsection 5 of NRS 360.889, 28
the lead participant shall repay to the Department or, if the partial 29
abatement is from the property tax imposed by chapter 361 of NRS, 30
to the appropriate county treasurer, the amount of the partial 31
abatement that was allowed to the lead participant pursuant to NRS 32
360.893 before the failure of the lead participant to meet the 33
requirements for eligibility. Except as otherwise provided in NRS 34
360.232 and 360.320, the lead participant shall, in addition to the 35
amount of the partial abatement required to be repaid by the lead 36
participant pursuant to this subsection, pay interest on the amount 37
due from the lead participant at the rate most recently established 38
pursuant to NRS 99.040 for each month, or portion thereof, from the 39
last day of the month following the period for which the payment 40
would have been made had the partial abatement not been approved 41
until the date of payment of the tax. 42
[5.] 6. If the Executive Director of the Office determines, 43
based on an investigation conducted pursuant to subsection 2 that 44
the participants in a project have failed to substantially comply 45
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with the terms of the community benefits plan, the lead participant 1
in the project shall repay to the Department, the Nevada Gaming 2
Control Board or the appropriate county treasurer, as applicable, 3
an amount of money equal to the amount of transferable tax 4
credits issued to the lead participant and the amount of the partial 5
abatement that was allowed to the lead participant pursuant to 6
NRS 360.893. Except as otherwise provided in NRS 360.232 and 7
360.320, the lead participant shall, in addition to the amount of 8
the partial abatement required to be repaid by the lead participant 9
pursuant to this subsection, pay interest on the amount due from 10
the lead participant at the rate most recently established pursuant 11
to NRS 99.040 for each month, or portion thereof, from the last 12
day of the month following the period for which the payment 13
would have been made had the partial abatement not been 14
approved until the date of payment of the tax. 15
7. The Secretary of State may, upon application by the 16
Executive Director of the Office, revoke or suspend the state 17
business license of the lead participant in a qualified project which 18
is required to repay any portion of transferable tax credits pursuant 19
to subsection [2] 3 or the amount of any partial abatement pursuant 20
to subsection [4] 5 or 6 and which the Office determines is not in 21
compliance with the provisions of this section governing repayment. 22
If the state business license of the lead participant in a qualified 23
project is suspended or revoked pursuant to this subsection, the 24
Secretary of State shall provide written notice of the action to the 25
lead participant. The Secretary of State shall not reinstate a state 26
business license suspended pursuant to this subsection or issue a 27
new state business license to the lead participant whose state 28
business license has been revoked pursuant to this subsection unless 29
the Executive Director of the Office provides proof satisfactory 30
to the Secretary of State that the lead participant is in compliance 31
with the requirements of this section governing repayment. 32
Sec. 8. NRS 360.945 is hereby amended to read as follows: 33
360.945 1. On behalf of a project, the lead participant in the 34
project may apply to the Office of Economic Development for: 35
(a) A certificate of eligibility for transferable tax credits which 36
may be applied to: 37
(1) Any tax imposed by chapters 363A and 363B of NRS; 38
(2) The gaming license fees imposed by the provisions of 39
NRS 463.370; 40
(3) Any tax imposed by chapter 680B of NRS; or 41
(4) Any combination of the fees and taxes described in 42
subparagraphs (1), (2) and (3). 43
(b) An abatement of property taxes, employer excise taxes or 44
local sales and use taxes, or any combination of any of those taxes. 45
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2. For a project to be eligible for the transferable tax credits 1
described in paragraph (a) of subsection 1 and abatement of the 2
taxes described in paragraph (b) of subsection 1, the lead participant 3
in the project must, on behalf of the project: 4
(a) Submit an application that meets the requirements of 5
subsection 3; 6
(b) Provide documentation satisfactory to the Office that 7
approval of the application would promote the economic 8
development of this State and aid the implementation of the State 9
Plan for Economic Development developed by the Executive 10
Director of the Office pursuant to subsection 2 of NRS 231.053; 11
(c) Provide documentation satisfactory to the Office that the 12
participants in the project collectively will make a total new capital 13
investment of at least $3.5 billion in this State within the 10-year 14
period immediately following approval of the application; 15
(d) Provide documentation satisfactory to the Office that the 16
participants in the project are engaged in a common business 17
purpose or industry; 18
(e) Provide documentation satisfactory to the Office that the 19
place of business of each participant is or will be located within the 20
geographic boundaries of the project site; 21
(f) Provide documentation satisfactory to the Office that each 22
participant in the project is registered pursuant to the laws of this 23
State or commits to obtaining a valid business license and all other 24
permits required by the county, city or town in which the project 25
operates; 26
(g) Provide documentation satisfactory to the Office of the 27
number of employees engaged in the construction of the project; 28
(h) Provide documentation satisfactory to the Office of the 29
number of qualified employees employed or anticipated to be 30
employed at the project by the participants; 31
(i) Provide documentation satisfactory to the Office that each 32
employer engaged in the construction of the project provides a plan 33
of health insurance and that each employee engaged in the 34
construction of the project is offered coverage under the plan of 35
health insurance provided by his or her employer; 36
(j) Provide documentation satisfactory to the Office that each 37
participant in the project provides a plan of health insurance and that 38
each employee employed at the project by each participant is 39
offered coverage under the plan of health insurance provided by his 40
or her employer; 41
(k) Provide documentation satisfactory to the Office that at least 42
50 percent of the employees engaged in construction of the project 43
and 50 percent of the employees employed at the project are 44
residents of Nevada, unless waived by the Executive Director of the 45
– 36 –
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Office upon proof satisfactory to the Executive Director of the 1
Office that there is an insufficient number of Nevada residents 2
available and qualified for such employment; 3
(l) Agree to provide the Office with a full compliance audit of 4
the participants in the project at the end of each fiscal year which: 5
(1) Shows the amount of money invested in this State by 6
each participant in the project; 7
(2) Shows the number of employees engaged in the 8
construction of the project and the number of those employees who 9
are residents of Nevada; 10
(3) Shows the number of employees employed at the project 11
by each participant and the number of those employees who are 12
residents of Nevada; and 13
(4) Is certified by an independent certified public accountant 14
in this State who is approved by the Office; 15
(m) Pay the cost of the audit required by paragraph (l); 16
(n) Enter into an agreement with the Office establishing a 17
community benefits plan, which must: 18
(1) Include a brief description of the environmental, 19
economic and social effects that the applicant anticipates the 20
project will have on the local community that immediately 21
surrounds the location of the project; 22
(2) State that the participants in the project will proactively 23
undertake actions, beyond those incidental to the regular activities 24
of the participants, to increase the vitality of the local community 25
and improve the social and economic well-being of the members of 26
that community; 27
(3) Detail the specific actions described in subparagraph 28
(2) that the participants in the project agree to undertake during 29
the period of the agreement entered into pursuant to this 30
paragraph, which may include, without limitation, partnering with 31
community-based charitable or educational organizations, 32
sponsoring educational or vocational activities, participating in 33
philanthropic endeavors meant to specifically aid the local 34
community and the members of that community and establishing 35
other programs to improve the well-being of the local community 36
and the members of that community; and 37
(4) Include such other provisions as the Office may 38
require; 39
(o) Enter into an agreement with the governing body of the city 40
or county in which the qualified project is located that: 41
(1) Requires the lead participant to pay the cost of any 42
engineering or design work necessary to determine the cost of 43
infrastructure improvements required to be made by the governing 44
– 37 –
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body pursuant to an economic development financing proposal 1
approved pursuant to NRS 360.990; and 2
(2) Requires the lead participant to seek reimbursement for 3
any costs paid by the lead participant pursuant to subparagraph (1) 4
from the proceeds of bonds of the State of Nevada issued pursuant 5
to NRS 360.991; and 6
[(o)] (p) Meet any other requirements prescribed by the Office. 7
3. An application submitted pursuant to subsection 2 must 8
include: 9
(a) A detailed description of the project, including a description 10
of the common purpose or business endeavor in which the 11
participants in the project are engaged; 12
(b) A detailed description of the location of the project, 13
including a precise description of the geographic boundaries of the 14
project site; 15
(c) The name and business address of each participant in the 16
project, which must be an address in this State; 17
(d) A detailed description of the plan by which the participants 18
in the project intend to comply with the requirement that the 19
participants collectively make a total new capital investment of at 20
least $3.5 billion in this State in the 10-year period immediately 21
following approval of the application; 22
(e) If the application includes one or more abatements, an 23
agreement executed by the Office with the lead participant in the 24
project not later than 1 year after the date on which the application 25
was received by the Office which: 26
(1) Complies with the requirements of NRS 360.755; 27
(2) States that the project will, after the date on which a 28
certificate of eligibility for the abatement is approved pursuant to 29
NRS 360.965, continue in operation in this State for a period 30
specified by the Office; and 31
(3) Binds successors in interest of the lead participant for the 32
specified period; and 33
(f) Any other information required by the Office. 34
4. For an employee to be considered a resident of Nevada for 35
the purposes of this section, each participant in the project must 36
maintain the following documents in the personnel file of the 37
employee: 38
(a) A copy of the current and valid Nevada driver’s license of 39
the employee or a current and valid identification card for the 40
employee issued by the Department of Motor Vehicles; 41
(b) If the employee is a registered owner of one or more motor 42
vehicles in Nevada, a copy of the current motor vehicle registration 43
of at least one of those vehicles; 44
– 38 –
- *AB226*
(c) Proof that the employee is employed full-time and scheduled 1
to work for an average minimum of 30 hours per week; and 2
(d) Proof that the employee is offered coverage under a plan of 3
health insurance provided by his or her employer. 4
5. For the purpose of obtaining from the Executive Director of 5
the Office any waiver of the requirement set forth in paragraph (k) 6
of subsection 2, the lead participant in the project must submit to the 7
Executive Director of the Office written documentation of the 8
efforts to meet the requirement and documented proof that an 9
insufficient number of Nevada residents is available and qualified 10
for employment. 11
6. The Executive Director of the Office shall make available to 12
the public and post on the Internet website for the Office: 13
(a) Any request for a waiver of the requirements set forth in 14
paragraph (k) of subsection 2; and 15
(b) Any approval of such a request for a waiver that is granted 16
by the Executive Director of the Office. 17
7. The Executive Director of the Office shall post a request for 18
a waiver of the requirements set forth in paragraph (k) of subsection 19
2 on the Internet website of the Office within 3 days after receiving 20
the request and shall keep the request posted on the Internet website 21
for not less than 5 days. The Executive Director of the Office shall 22
ensure that the Internet website allows members of the public to post 23
comments regarding the request. 24
8. The Executive Director of the Office shall consider any 25
comments posted on the Internet website concerning any request for 26
a waiver of the requirements set forth in paragraph (k) of subsection 27
2 before making a decision regarding whether to approve the 28
request. If the Executive Director of the Office approves the request 29
for a waiver, the Executive Director of the Office must post the 30
approval on the Internet website of the Office within 3 days and 31
ensure that the Internet website allows members of the public to post 32
comments regarding the approval. 33
9. If an applicant for one or more abatements pursuant to this 34
section fails to execute the agreement described in paragraph (e) of 35
subsection 3 within 1 year after the date on which the application 36
was received by the Office, the applicant shall not be approved for 37
an abatement pursuant to this section unless the applicant submits a 38
new application. 39
Sec. 9. NRS 360.970 is hereby amended to read as follows: 40
360.970 1. The lead participant in a qualified project shall, 41
upon the request of the Office of Economic Development, furnish 42
the Office with copies of all records necessary to verify that the 43
qualified project meets the eligibility requirements for any 44
transferable tax credits issued pursuant to NRS 360.955 and the 45
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abatement of any taxes pursuant to NRS 360.965 [.] , including, 1
without limitation, that the participants in the project are 2
complying with the terms of the community benefits plan. 3
2. The Office may investigate a qualified project to determine 4
whether the participants of the project are in substantial 5
compliance with the terms of the community benefits plan 6
described in paragraph (n) of subsection 2 of NRS 360.889. 7
3. The lead participant shall repay to the Department or the 8
Nevada Gaming Control Board, as applicable, any portion of the 9
transferable tax credits to which the lead participant is not entitled 10
if: 11
(a) The participants in the qualified project collectively fail to 12
make the investment in this State necessary to support the 13
determination by the Executive Director of the Office of Economic 14
Development that the project is a qualified project; 15
(b) The participants in the qualified project collectively fail to 16
employ the number of qualified employees identified in the 17
certificate of eligibility approved for the qualified project; 18
(c) The lead participant submits any false statement, 19
representation or certification in any document submitted for the 20
purpose of obtaining transferable tax credits; [or] 21
(d) The lead participant otherwise becomes ineligible for 22
transferable tax credits after receiving the transferable tax credits 23
pursuant to NRS 360.900 to 360.975, inclusive. 24
[3.] 4. Transferable tax credits purchased in good faith are not 25
subject to forfeiture unless the transferee submitted fraudulent 26
information in connection with the purchase. 27
[4.] 5. Notwithstanding any provision of this chapter or 28
chapter 361 of NRS, if the lead participant in a qualified project for 29
which an abatement has been approved pursuant to NRS 360.965 30
and is in effect: 31
(a) Fails to meet the requirements for eligibility pursuant to that 32
section; or 33
(b) Ceases operation before the time specified in the agreement 34
described in paragraph (e) of subsection 3 of NRS 360.945, 35
the lead participant shall repay to the Department or, if the 36
abatement is from the property tax imposed by chapter 361 of NRS, 37
to the appropriate county treasurer, the amount of the abatement that 38
was allowed to the lead participant pursuant to NRS 360.965 before 39
the failure of the lead participant to meet the requirements for 40
eligibility. Except as otherwise provided in NRS 360.232 and 41
360.320, the lead participant shall, in addition to the amount of the 42
abatement required to be repaid by the lead participant pursuant to 43
this subsection, pay interest on the amount due from the lead 44
participant at the rate most recently established pursuant to 45
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NRS 99.040 for each month, or portion thereof, from the last day of 1
the month following the period for which the payment would have 2
been made had the abatement not been approved until the date of 3
payment of the tax. 4
[5.] 6. If the Executive Director of the Office determines, 5
based on an investigation conducted pursuant to subsection 2 that 6
the participants in a project have failed to substantially comply 7
with the terms of the community benefits plan, the lead participant 8
in the project shall repay to the Department, the Nevada Gaming 9
Control Board or the appropriate county treasurer, as applicable, 10
an amount of money equal to the amount of transferable tax 11
credits issued to the lead participant and the amount of the 12
abatement that was allowed to the lead participant pursuant to 13
NRS 360.965. Except as otherwise provided in NRS 360.232 and 14
360.320, the lead participant shall, in addition to the amount of 15
the abatement required to be repaid by the lead participant 16
pursuant to this subsection, pay interest on the amount due from 17
the lead participant at the rate most recently established pursuant 18
to NRS 99.040 for each month, or portion thereof, from the last 19
day of the month following the period for which the payment 20
would have been made had the abatement not been approved until 21
the date of payment of the tax. 22
7. The Secretary of State may, upon application by the 23
Executive Director of the Office, revoke or suspend the state 24
business license of the lead participant in a qualified project which 25
is required to repay any portion of transferable tax credits pursuant 26
to subsection [2] 3 or the amount of any abatement pursuant to 27
subsection [4] 5 or 6 and which the Office determines is not in 28
compliance with the provisions of this section governing repayment. 29
If the state business license of the lead participant in a qualified 30
project is suspended or revoked pursuant to this subsection, the 31
Secretary of State shall provide written notice of the action to the 32
lead participant. The Secretary of State shall not reinstate a state 33
business license suspended pursuant to this subsection or issue a 34
new state business license to the lead participant whose state 35
business license has been revoked pursuant to this subsection unless 36
the Executive Director of the Office provides proof satisfactory 37
to the Secretary of State that the lead participant is in compliance 38
with the requirements of this section governing repayment. 39
Sec. 10. NRS 372.7261 is hereby amended to read as follows: 40
372.7261 1. In administering the provisions of this chapter: 41
(a) The Department shall calculate the amount of tax imposed 42
on tangible personal property purchased for use in owning, 43
operating, manufacturing, servicing, maintaining, testing, repairing, 44
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overhauling or assembling an aircraft or any component of an 1
aircraft as follows: 2
(1) If the tangible personal property is purchased by a 3
business for use in the performance of a contract, the business is 4
deemed the consumer of the tangible personal property and the sales 5
tax must be paid by the business on the sales price of the tangible 6
personal property to the business. 7
(2) If the tangible personal property is purchased by a 8
business for use in the performance of a contract and the sales tax is 9
not paid because the vendor did not have a valid seller’s permit, or 10
because the resale certificate was properly presented, or for any 11
other reason, the use tax must be imposed based on the sales price of 12
the tangible personal property to the business. 13
(b) Any tangible personal property purchased by a business for 14
use in the performance of a contract is deemed to have been 15
purchased for use in owning, operating, manufacturing, servicing, 16
maintaining, testing, repairing, overhauling or assembling an aircraft 17
or any component of an aircraft. 18
2. As used in this section: 19
(a) “Aircraft” has the meaning ascribed to it in paragraph (a) of 20
subsection [12] 13 of NRS 360.753. 21
(b) “Component of an aircraft” has the meaning ascribed to it in 22
paragraph (b) of subsection [12] 13 of NRS 360.753. 23
(c) “Contract” means any contract for the ownership, operation, 24
manufacture, service, maintenance, testing, repair, overhaul or 25
assembly of an aircraft or any component of an aircraft entered into 26
by a business. 27
Sec. 11. NRS 374.7261 is hereby amended to read as follows: 28
374.7261 1. In administering the provisions of this chapter: 29
(a) The Department shall calculate the amount of tax imposed 30
on tangible personal property purchased for use in owning, 31
operating, manufacturing, servicing, maintaining, testing, repairing, 32
overhauling or assembling an aircraft or any component of an 33
aircraft as follows: 34
(1) If the tangible personal property is purchased by a 35
business for use in the performance of a contract, the business is 36
deemed the consumer of the tangible personal property and the sales 37
tax must be paid by the business on the sales price of the tangible 38
personal property to the business. 39
(2) If the tangible personal property is purchased by a 40
business for use in the performance of a contract and the sales tax is 41
not paid because the vendor did not have a valid seller’s permit, or 42
because the resale certificate was properly presented, or for any 43
other reason, the use tax must be imposed based on the sales price of 44
the tangible personal property to the business. 45
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(b) Any tangible personal property purchased by a business for 1
use in the performance of a contract is deemed to have been 2
purchased for use in owning, operating, manufacturing, servicing, 3
maintaining, testing, repairing, overhauling or assembling an aircraft 4
or any component of an aircraft. 5
2. As used in this section: 6
(a) “Aircraft” has the meaning ascribed to it in paragraph (a) of 7
subsection [12] 13 of NRS 360.753. 8
(b) “Component of an aircraft” has the meaning ascribed to it in 9
paragraph (b) of subsection [12] 13 of NRS 360.753. 10
(c) “Contract” means any contract for the ownership, operation, 11
manufacture, service, maintenance, testing, repair, overhaul or 12
assembly of an aircraft or any component of an aircraft entered into 13
by a business. 14
Sec. 12. NRS 231.1555 is hereby amended to read as follows: 15
231.1555 1. A person who intends to locate or expand a 16
business in this State may apply to the Office for a certificate of 17
eligibility for transferable tax credits which may be applied to: 18
(a) Any tax imposed by chapter 363A or 363B of NRS; 19
(b) The gaming license fee imposed by the provisions of 20
NRS 463.370; 21
(c) Any tax imposed by chapter 680B of NRS; or 22
(d) Any combination of the fees and taxes described in 23
paragraphs (a), (b) and (c). 24
2. After considering any advice and recommendations of the 25
Board, the Executive Director shall establish: 26
(a) Procedures for applying to the Office for a certificate of 27
eligibility for transferable tax credits which must: 28
(1) Include, without limitation, a requirement that the 29
applicant set forth in the application: 30
(I) The proposed use of the transferable tax credits; 31
(II) The plans, projects and programs for which the 32
transferable tax credits will be used; 33
(III) The expected benefits of the issuance of the 34
transferable tax credits; and 35
(IV) A statement of the short-term and long-term impacts 36
of the issuance of the transferable tax credits; and 37
(2) Allow the applicant to revise the application upon the 38
recommendation of the Executive Director. 39
(b) The criteria which a person to whom a certificate of 40
eligibility for transferable tax credits has been issued must satisfy to 41
be issued a certificate of transferable tax credits. In addition to any 42
other criteria established by the Executive Director, to be eligible 43
to be issued transferable tax credits pursuant to this section, the 44
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applicant must enter into an agreement with the Office 1
establishing a community benefits plan, which must: 2
(1) Include a brief description of the environmental, 3
economic and social effects that the applicant anticipates the 4
location or expansion of the business will have on the local 5
community that immediately surrounds the location of the 6
business; 7
(2) State that the business will proactively undertake 8
actions, beyond those incidental to the regular activities of the 9
business, to increase the vitality of the local community and 10
improve the social and economic well-being of the members of 11
that community; 12
(3) Detail the specific actions described in subparagraph 13
(2) that the business agrees to undertake during the period of the 14
agreement entered into pursuant to this paragraph, which may 15
include, without limitation, partnering with community-based 16
charitable or educational organizations, sponsoring educational 17
or vocational activities, participating in philanthropic endeavors 18
meant to specifically aid the local community and the members of 19
that community and establishing other programs to improve the 20
well-being of the local community and the members of that 21
community; and 22
(4) Include such other provisions as the Office may 23
require; and 24
3. After receipt of an application pursuant to this section, the 25
Executive Director shall review and evaluate the application and 26
determine whether the approval of the application would promote 27
the economic development of this State and aid the implementation 28
of the State Plan for Economic Development developed by the 29
Executive Director pursuant to subsection 2 of NRS 231.053. 30
4. If the applicant is requesting transferable tax credits in an 31
amount of $100,000 or less, the Executive Director may approve the 32
application, subject to the provisions of subsection 6, if the 33
Executive Director determines that approving the application will 34
promote the economic development of this State and aid the 35
implementation of the State Plan for Economic Development. 36
5. If the applicant is requesting transferable tax credits in an 37
amount greater than $100,000, the Executive Director shall submit 38
the application and the Executive Director’s review and evaluation 39
of the application pursuant to subsection 3 to the Board, and the 40
Board may approve the application, subject to the provisions of 41
subsection 6, if the Board determines that approving the application 42
will promote the economic development of this State and aid the 43
implementation of the State Plan for Economic Development. 44
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6. The Executive Director or the Board shall not approve any 1
application for transferable tax credits for: 2
(a) A period of more than 5 fiscal years; 3
(b) Fiscal Year 2015-2016; or 4
(c) Any fiscal year if the approval of the application would 5
cause the total amount of transferable tax credits issued pursuant to 6
this section to exceed: 7
(1) For Fiscal Year 2016-2017, $1,000,000. 8
(2) For Fiscal Year 2017-2018, $2,000,000. 9
(3) For Fiscal Year 2018-2019, $2,000,000. 10
(4) For Fiscal Year 2019-2020, $3,000,000. 11
(5) For a fiscal year beginning on or after July 1, 2020, 12
$5,000,000. 13
7. If the Executive Director or the Board approves an 14
application and issues a certificate of eligibility for transferable tax 15
credits, the Office shall immediately forward a copy of the 16
certificate of eligibility which identifies the estimated amount of the 17
tax credits available pursuant to this section to: 18
(a) The applicant; 19
(b) The Department of Taxation; and 20
(c) The Nevada Gaming Control Board. 21
8. Within 14 days after the Office determines that a person to 22
whom a certificate of eligibility for transferable tax credits has been 23
issued satisfies the criteria established by the Executive Director 24
pursuant to subsection 2, the Office shall notify the person that 25
transferable tax credits will be issued. Within 30 days after the 26
receipt of the notice, the person shall make an irrevocable 27
declaration of the amount of transferable tax credits that will be 28
applied to each fee or tax set forth in paragraphs (a), (b) and (c) of 29
subsection 1, thereby accounting for all of the credits which will be 30
issued. Upon receipt of the declaration, the Office shall issue to the 31
person a certificate of transferable tax credits in the amount 32
approved by the Executive Director or the Board, as applicable, for 33
the fees or taxes included in the declaration. The Office shall notify 34
the Department of Taxation and the Nevada Gaming Control Board 35
of all transferable tax credits issued, segregated by each fee or tax 36
set forth in paragraphs (a), (b) and (c) of subsection 1, and the 37
amount of any transferable tax credits transferred. 38
9. The Office may investigate a business that is issued 39
transferable tax credits pursuant to this section to determine 40
whether the business is in substantial compliance with the terms of 41
the community benefits plan described in paragraph (b) of 42
subsection 2. If the Executive Director determines, based on an 43
investigation conducted pursuant to this section, that a business 44
has failed to substantially comply with the terms of such an 45
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agreement, the business shall repay to the Department or the 1
Nevada Gaming Control Board, as applicable, an amount of 2
money equal to amount of transferable tax credits issued to the 3
business pursuant to this section. 4
Sec. 13. NRS 274.310 is hereby amended to read as follows: 5
274.310 1. A person who intends to locate a business in this 6
State within: 7
(a) A historically underutilized business zone, as defined in 15 8
U.S.C. § 632; 9
(b) A redevelopment area created pursuant to chapter 279 of 10
NRS; 11
(c) An area eligible for a community development block grant 12
pursuant to 24 C.F.R. Part 570; or 13
(d) An enterprise community established pursuant to 24 C.F.R. 14
Part 597, 15
may submit a request to the governing body of the county, city or 16
town in which the business would operate for an endorsement of an 17
application by the person to the Office of Economic Development 18
for a partial abatement of one or more of the taxes imposed pursuant 19
to chapter 361 of NRS or the local sales and use taxes. The 20
governing body of the county, city or town shall provide notice of 21
the request to the board of trustees of the school district in which the 22
business would operate. The notice must set forth the date, time and 23
location of the hearing at which the governing body will consider 24
whether to endorse the application. As used in this subsection, 25
“local sales and use taxes” means the taxes imposed on the gross 26
receipts of any retailer from the sale of tangible personal property 27
sold at retail, or stored, used or otherwise consumed, in the political 28
subdivision in which the business is located, except the taxes 29
imposed by the Sales and Use Tax Act and the Local School 30
Support Tax Law. 31
2. The governing body of a county, city or town shall develop 32
procedures for: 33
(a) Evaluating whether such an abatement would be beneficial 34
for the economic development of the county, city or town. 35
(b) Issuing a certificate of endorsement for an application for 36
such an abatement that is found to be beneficial for the economic 37
development of the county, city or town. 38
3. A person whose application has been endorsed by the 39
governing body of the county, city or town, as applicable, pursuant 40
to this section may submit the application to the Office of Economic 41
Development. The Office shall approve the application if the Office 42
makes the following determinations: 43
(a) The business is consistent with: 44
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(1) The State Plan for Economic Development developed by 1
the Administrator pursuant to subsection 2 of NRS 231.053; and 2
(2) Any guidelines adopted by the Administrator to 3
implement the State Plan for Economic Development. 4
(b) Not later than 1 year after the date on which the application 5
was received by the Office, the applicant has executed an agreement 6
with the Office which : [states:] 7
(1) [The] States the date on which the abatement becomes 8
effective, as agreed to by the applicant and the Office, which must 9
not be earlier than the date on which the Office received the 10
application and not later than 1 year after the date on which the 11
Office approves the application; [and] 12
(2) [That] States that the business will, after the date on 13
which the abatement becomes effective: 14
(I) Commence operation and continue in operation in the 15
historically underutilized business zone, as defined in 15 U.S.C. § 16
632, redevelopment area created pursuant to chapter 279 of NRS, 17
area eligible for a community development block grant pursuant to 18
24 C.F.R. Part 570 or enterprise community established pursuant to 19
24 C.F.R. Part 597 for a period specified by the Office, which must 20
be at least 5 years; [and] 21
(II) Continue to meet the eligibility requirements set forth 22
in this subsection [.] ; and 23
(3) Incorporates a community benefits plan, which must: 24
(I) Include a brief description of the environmental, 25
economic and social effects that the applicant anticipates the 26
location of the business will have on the local community that 27
immediately surrounds the location of the business; 28
(II) State that the business will proactively undertake 29
actions, beyond those incidental to the regular activities of the 30
business, to increase the vitality of the local community and 31
improve the social and economic well-being of the members of 32
that community; 33
(III) Detail the specific actions described in sub-34
subparagraph (II) that the business agrees to undertake during 35
the duration of the agreement entered into pursuant to this 36
paragraph, which may include, without limitation, partnering with 37
community-based charitable or educational organizations, 38
sponsoring educational or vocational activities, participating in 39
philanthropic endeavors meant to specifically aid the local 40
community and the members of that community and establishing 41
other programs to improve the well-being of the local community 42
and the members of the community; and 43
(IV) Include such other provisions as the Office may 44
require. 45
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The agreement must bind successors in interest of the business 1
for the specified period. 2
(c) The business is registered pursuant to the laws of this State 3
or the applicant commits to obtain a valid business license and all 4
other permits required by the county, city or town in which the 5
business will operate. 6
(d) The applicant invested or commits to invest a minimum of 7
$500,000 in capital assets that will be retained at the location of the 8
business in the historically underutilized business zone, as defined 9
in 15 U.S.C. § 632, redevelopment area created pursuant to chapter 10
279 of NRS, area eligible for a community development block grant 11
pursuant to 24 C.F.R. Part 570 or enterprise community established 12
pursuant to 24 C.F.R. Part 597 until at least the date which is 5 years 13
after the date on which the abatement becomes effective. 14
4. If the Office of Economic Development approves an 15
application for a partial abatement, the Office shall immediately 16
forward a certificate of eligibility for the abatement to: 17
(a) The Department of Taxation; 18
(b) The Nevada Tax Commission; and 19
(c) If the partial abatement is from the property tax imposed 20
pursuant to chapter 361 of NRS, the county treasurer of the county 21
in which the business will be located. 22
5. If the Office of Economic Development approves an 23
application for a partial abatement pursuant to this section: 24
(a) The partial abatement must be for a duration of not less than 25
1 year but not more than 5 years. 26
(b) If the abatement is from the property tax imposed pursuant 27
to chapter 361 of NRS, the partial abatement must not exceed 75 28
percent of the taxes on personal property payable by a business each 29
year pursuant to that chapter. 30
6. If an applicant for a partial abatement pursuant to this 31
section fails to execute the agreement described in paragraph (b) of 32
subsection 3 within 1 year after the date on which the application 33
was received by the Office, the applicant shall not be approved for a 34
partial abatement pursuant to this section unless the applicant 35
submits a new request pursuant to subsection 1. 36
7. If a business whose partial abatement has been approved 37
pursuant to this section and is in effect ceases: 38
(a) To meet the eligibility requirements for the partial 39
abatement; or 40
(b) Operation before the time specified in the agreement 41
described in paragraph (b) of subsection 3, 42
the business shall repay to the Department of Taxation or, if the 43
partial abatement was from the property tax imposed pursuant to 44
chapter 361 of NRS, to the county treasurer, the amount of the 45
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partial abatement that was allowed pursuant to this section before 1
the failure of the business to comply unless the Nevada Tax 2
Commission determines that the business has substantially complied 3
with the requirements of this section. Except as otherwise provided 4
in NRS 360.232 and 360.320, the business shall, in addition to the 5
amount of the partial abatement required to be paid pursuant to this 6
subsection, pay interest on the amount due at the rate most recently 7
established pursuant to NRS 99.040 for each month, or portion 8
thereof, from the last day of the month following the period for 9
which the payment would have been made had the partial abatement 10
not been approved until the date of payment of the tax. 11
8. The Office of Economic Development may investigate a 12
business whose partial abatement is approved pursuant to this 13
section to determine whether the business is in substantial 14
compliance with the terms of the community benefits plan 15
described in subparagraph (3) of paragraph (b) of subsection 3. If 16
the Executive Director of the Office determines, based on an 17
investigation conducted pursuant to this subsection, that a 18
business has failed to substantially comply with the terms of such 19
an agreement, the business shall repay to the Department of 20
Taxation or, if the partial abatement was from the property tax 21
imposed pursuant to chapter 361 of NRS, to the county treasurer, 22
the amount of the partial abatement that was allowed pursuant to 23
this section. Except as otherwise provided in NRS 360.232 and 24
360.320, the business shall, in addition to the amount of the 25
partial abatement required to be paid pursuant to this subsection, 26
pay interest on the amount due at the rate most recently 27
established pursuant to NRS 99.040 for each month, or portion 28
thereof, from the last day of the month following the period for 29
which the payment would have been made had the partial 30
abatement not been approved until the date of payment of the tax. 31
9. The Office of Economic Development may adopt such 32
regulations as the Office determines to be necessary or advisable to 33
carry out the provisions of this section. 34
[9.] 10. An applicant for an abatement who is aggrieved by a 35
final decision of the Office of Economic Development may petition 36
for judicial review in the manner provided in chapter 233B of NRS. 37
Sec. 14. NRS 274.320 is hereby amended to read as follows: 38
274.320 1. A person who intends to expand a business in this 39
State within: 40
(a) A historically underutilized business zone, as defined in 15 41
U.S.C. § 632; 42
(b) A redevelopment area created pursuant to chapter 279 of 43
NRS; 44
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(c) An area eligible for a community development block grant 1
pursuant to 24 C.F.R. Part 570; or 2
(d) An enterprise community established pursuant to 24 C.F.R. 3
Part 597, 4
may submit a request to the governing body of the county, city or 5
town in which the business operates for an endorsement of an 6
application by the person to the Office of Economic Development 7
for a partial abatement of the local sales and use taxes imposed on 8
capital equipment. The governing body of the county, city or town 9
shall provide notice of the request to the board of trustees of the 10
school district in which the business operates. The notice must set 11
forth the date, time and location of the hearing at which the 12
governing body will consider whether to endorse the application. As 13
used in this subsection, “local sales and use taxes” means the taxes 14
imposed on the gross receipts of any retailer from the sale of 15
tangible personal property sold at retail, or stored, used or otherwise 16
consumed, in the political subdivision in which the business is 17
located, except the taxes imposed by the Sales and Use Tax Act and 18
the Local School Support Tax Law. 19
2. The governing body of a county, city or town shall develop 20
procedures for: 21
(a) Evaluating whether such an abatement would be beneficial 22
for the economic development of the county, city or town. 23
(b) Issuing a certificate of endorsement for an application for 24
such an abatement that is found to be beneficial for the economic 25
development of the county, city or town. 26
3. A person whose application has been endorsed by the 27
governing body of the county, city or town, as applicable, pursuant 28
to this section may submit the application to the Office of Economic 29
Development. The Office shall approve the application if the Office 30
makes the following determinations: 31
(a) The business is consistent with: 32
(1) The State Plan for Economic Development developed by 33
the Administrator pursuant to subsection 2 of NRS 231.053; and 34
(2) Any guidelines adopted by the Administrator to 35
implement the State Plan for Economic Development. 36
(b) Not later than 1 year after the date on which the application 37
was received by the Office, the applicant has executed an agreement 38
with the Office which : [states:] 39
(1) [The] States the date on which the abatement becomes 40
effective, as agreed to by the applicant and the Office, which must 41
not be earlier than the date on which the Office received the 42
application and not later than 1 year after the date on which the 43
Office approves the application; [and] 44
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(2) [That] States that the business will, after the date on 1
which the abatement becomes effective: 2
(I) Continue in operation in the historically underutilized 3
business zone, as defined in 15 U.S.C. § 632, redevelopment area 4
created pursuant to chapter 279 of NRS, area eligible for a 5
community development block grant pursuant to 24 C.F.R. Part 570 6
or enterprise community established pursuant to 24 C.F.R. Part 597 7
for a period specified by the Office, which must be at least 5 years; 8
and 9
(II) Continue to meet the eligibility requirements set forth 10
in this subsection [.] ; and 11
(3) Incorporates a community benefits plan, which must: 12
(I) Include a brief description of the environmental, 13
economic and social effects that the applicant anticipates the 14
expansion of the business will have on the local community that 15
immediately surrounds the location of the business; 16
(II) State that the business will proactively undertake 17
actions, beyond those incidental to the regular activities of the 18
business, to increase the vitality of the local community and 19
improve the social and economic well-being of the members of 20
that community; 21
(III) Detail the specific actions described in sub-22
subparagraph (II) that the business agrees to undertake during 23
the duration of the agreement entered into pursuant to this 24
paragraph, which may include, without limitation, partnering with 25
community-based charitable or educational organizations, 26
sponsoring educational or vocational activities, participating in 27
philanthropic endeavors meant to specifically aid the local 28
community and the members of that community and establishing 29
other programs to improve the well-being of the local community 30
and the members of the community; and 31
(IV) Include such other provisions as the Office may 32
require. 33
The agreement must bind successors in interest of the business 34
for the specified period. 35
(c) The business is registered pursuant to the laws of this State 36
or the applicant commits to obtain a valid business license and all 37
other permits required by the county, city or town in which the 38
business operates. 39
(d) The applicant invested or commits to invest a minimum of 40
$250,000 in capital equipment that will be retained at the location of 41
the business in the historically underutilized business zone, as 42
defined in 15 U.S.C. § 632, redevelopment area created pursuant to 43
chapter 279 of NRS, area eligible for a community development 44
block grant pursuant to 24 C.F.R. Part 570 or enterprise community 45
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established pursuant to 24 C.F.R. Part 597 until at least the date 1
which is 5 years after the date on which the abatement becomes 2
effective. 3
4. If the Office of Economic Development approves an 4
application for a partial abatement, the Office shall immediately 5
forward a certificate of eligibility for the abatement to: 6
(a) The Department of Taxation; and 7
(b) The Nevada Tax Commission. 8
5. If the Office of Economic Development approves an 9
application for a partial abatement pursuant to this section: 10
(a) The partial abatement must be for a duration of not less than 11
1 year but not more than 5 years. 12
(b) If the abatement is from the property tax imposed pursuant 13
to chapter 361 of NRS, the partial abatement must not exceed 75 14
percent of the taxes on personal property payable by a business each 15
year pursuant to that chapter. 16
6. If an applicant for a partial abatement pursuant to this 17
section fails to execute the agreement described in paragraph (b) of 18
subsection 3 within 1 year after the date on which the application 19
was received by the Office, the applicant shall not be approved for a 20
partial abatement pursuant to this section unless the applicant 21
submits a new request pursuant to subsection 1. 22
7. If a business whose partial abatement has been approved 23
pursuant to this section and is in effect ceases: 24
(a) To meet the eligibility requirements for the partial 25
abatement; or 26
(b) Operation before the time specified in the agreement 27
described in paragraph (b) of subsection 3, 28
the business shall repay to the Department of Taxation the 29
amount of the partial abatement that was allowed pursuant to this 30
section before the failure of the business to comply unless the 31
Nevada Tax Commission determines that the business has 32
substantially complied with the requirements of this section. Except 33
as otherwise provided in NRS 360.232 and 360.320, the business 34
shall, in addition to the amount of the partial abatement required to 35
be paid pursuant to this subsection, pay interest on the amount due 36
at the rate most recently established pursuant to NRS 99.040 for 37
each month, or portion thereof, from the last day of the month 38
following the period for which the payment would have been made 39
had the partial abatement not been approved until the date of 40
payment of the tax. 41
8. The Office of Economic Development may investigate a 42
business whose partial abatement is approved pursuant to this 43
section to determine whether the business is in substantial 44
compliance with the terms of the community benefits plan 45
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described in subparagraph (3) of paragraph (b) of subsection 3. If 1
the Executive Director of the Office determines, based on an 2
investigation conducted pursuant to this subsection, that a 3
business has failed to substantially comply with the terms of such 4
an agreement, the business shall repay to the Department of 5
Taxation the amount of the partial abatement that was allowed 6
pursuant to this section. Except as otherwise provided in NRS 7
360.232 and 360.320, the business shall, in addition to the amount 8
of the partial abatement required to be paid pursuant to this 9
subsection, pay interest on the amount due at the rate most 10
recently established pursuant to NRS 99.040 for each month, or 11
portion thereof, from the last day of the month following the 12
period for which the payment would have been made had the 13
partial abatement not been approved until the date of payment of 14
the tax. 15
9. The Office of Economic Development may adopt such 16
regulations as the Office determines to be necessary or advisable to 17
carry out the provisions of this section. 18
[9.] 10. An applicant for an abatement who is aggrieved by a 19
final decision of the Office of Economic Development may petition 20
for judicial review in the manner provided in chapter 233B of NRS. 21
Sec. 15. NRS 274.330 is hereby amended to read as follows: 22
274.330 1. A person who owns a business which is located 23
within an enterprise community established pursuant to 24 C.F.R. 24
Part 597 in this State may submit a request to the governing body of 25
the county, city or town in which the business is located for an 26
endorsement of an application by the person to the Office of 27
Economic Development for a partial abatement of one or more of 28
the taxes imposed pursuant to chapter 361 of NRS or the local sales 29
and use taxes. The governing body of the county, city or town shall 30
provide notice of the request to the board of trustees of the school 31
district in which the business operates. The notice must set forth the 32
date, time and location of the hearing at which the governing body 33
will consider whether to endorse the application. As used in this 34
subsection, “local sales and use taxes” means the taxes imposed on 35
the gross receipts of any retailer from the sale of tangible personal 36
property sold at retail, or stored, used or otherwise consumed, in the 37
political subdivision in which the business is located, except the 38
taxes imposed by the Sales and Use Tax Act and the Local School 39
Support Tax Law. 40
2. The governing body of a county, city or town shall develop 41
procedures for: 42
(a) Evaluating whether such an abatement would be beneficial 43
for the economic development of the county, city or town. 44
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(b) Issuing a certificate of endorsement for an application for 1
such an abatement that is found to be beneficial for the economic 2
development of the county, city or town. 3
3. A person whose application has been endorsed by the 4
governing body of the county, city or town, as applicable, pursuant 5
to this section may submit the application to the Office of Economic 6
Development. The Office shall approve the application if the Office 7
makes the following determinations: 8
(a) The business is consistent with: 9
(1) The State Plan for Economic Development developed by 10
the Administrator pursuant to subsection 2 of NRS 231.053; and 11
(2) Any guidelines adopted by the Administrator to 12
implement the State Plan for Economic Development. 13
(b) Not later than 1 year after the date on which the application 14
was received by the Office, the applicant has executed an agreement 15
with the Office which : [states:] 16
(1) [The] States the date on which the abatement becomes 17
effective, as agreed to by the applicant and the Office, which must 18
not be earlier than the date on which the Office received the 19
application and not later than 1 year after the date on which the 20
Office approves the application; [and] 21
(2) [That] States that the business will, after the date on 22
which the abatement becomes effective: 23
(I) Continue in operation in the enterprise community for 24
a period specified by the Office, which must be at least 5 years; and 25
(II) Continue to meet the eligibility requirements set forth 26
in this subsection [.] ; and 27
(3) Incorporates a community benefits plan, which must: 28
(I) Include a brief description of the environmental, 29
economic and social effects that the applicant anticipates the 30
location of the business will have on the local community that 31
immediately surrounds the location of the business; 32
(II) State that the business will proactively undertake 33
actions, beyond those incidental to the regular activities of the 34
business, to increase the vitality of the local community and 35
improve the social and economic well-being of the members of 36
that community; 37
(III) Detail the specific actions described in sub-38
subparagraph (II) that the business agrees to undertake during 39
the period of the agreement entered into pursuant to this 40
paragraph, which may include, without limitation, partnering with 41
community-based charitable or educational organizations, 42
sponsoring educational or vocational activities, participating in 43
philanthropic endeavors meant to specifically aid the local 44
community and the members of that community and establishing 45
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other programs to improve the well-being of the local community 1
and the members of that community; and 2
(IV) Include such other provisions as the Office may 3
require. 4
The agreement must bind successors in interest of the business 5
for the specified period. 6
(c) The business is registered pursuant to the laws of this State 7
or the applicant commits to obtain a valid business license and all 8
other permits required by the county, city or town in which the 9
business operates. 10
(d) The business: 11
(1) Employs one or more dislocated workers who reside in 12
the enterprise community; and 13
(2) Pays such employees a wage of not less than 100 percent 14
of the federally designated level signifying poverty for a family of 15
four persons and provides medical benefits to the employees and 16
their dependents which meet the minimum requirements for medical 17
benefits established by the Office. 18
4. If the Office of Economic Development approves an 19
application for a partial abatement, the Office shall: 20
(a) Determine the percentage of employees of the business 21
which meet the requirements of paragraph (d) of subsection 3 and 22
grant a partial abatement equal to that percentage; and 23
(b) Immediately forward a certificate of eligibility for the 24
abatement to: 25
(1) The Department of Taxation; 26
(2) The Nevada Tax Commission; and 27
(3) If the partial abatement is from the property tax imposed 28
pursuant to chapter 361 of NRS, the county treasurer of the county 29
in which the business is located. 30
5. If the Office of Economic Development approves an 31
application for a partial abatement pursuant to this section: 32
(a) The partial abatement must be for a duration of not less than 33
1 year but not more than 5 years. 34
(b) If the abatement is from the property tax imposed pursuant 35
to chapter 361 of NRS, the partial abatement must not exceed 75 36
percent of the taxes on personal property payable by a business each 37
year pursuant to that chapter. 38
6. If an applicant for a partial abatement pursuant to this 39
section fails to execute the agreement described in paragraph (b) of 40
subsection 3 within 1 year after the date on which the application 41
was received by the Office, the applicant shall not be approved for a 42
partial abatement pursuant to this section unless the applicant 43
submits a new request pursuant to subsection 1. 44
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7. If a business whose partial abatement has been approved 1
pursuant to this section and is in effect ceases: 2
(a) To meet the eligibility requirements for the partial 3
abatement; or 4
(b) Operation before the time specified in the agreement 5
described in paragraph (b) of subsection 3, 6
the business shall repay to the Department of Taxation or, if the 7
partial abatement was from the property tax imposed pursuant to 8
chapter 361 of NRS, to the county treasurer, the amount of the 9
partial abatement that was allowed pursuant to this section before 10
the failure of the business to comply unless the Nevada Tax 11
Commission determines that the business has substantially complied 12
with the requirements of this section. Except as otherwise provided 13
in NRS 360.232 and 360.320, the business shall, in addition to the 14
amount of the partial abatement required to be paid pursuant to this 15
subsection, pay interest on the amount due at the rate most recently 16
established pursuant to NRS 99.040 for each month, or portion 17
thereof, from the last day of the month following the period for 18
which the payment would have been made had the partial abatement 19
not been approved until the date of payment of the tax. 20
8. The Office of Economic Development may investigate a 21
business whose partial abatement is approved pursuant to this 22
section to determine whether the business is in substantial 23
compliance with the terms of the community benefits plan 24
described in subparagraph (3) of paragraph (b) of subsection 3. If 25
the Executive Director of the Office determines, based on an 26
investigation conducted pursuant to this subsection, that a 27
business has failed to substantially comply with the terms of such 28
an agreement, the business shall repay to the Department of 29
Taxation or, if the partial abatement was from the property tax 30
imposed pursuant to chapter 361 of NRS, to the county treasurer, 31
the amount of the partial abatement that was allowed pursuant to 32
this section. Except as otherwise provided in NRS 360.232 and 33
360.320, the business shall, in addition to the amount of the 34
partial abatement required to be paid pursuant to this subsection, 35
pay interest on the amount due at the rate most recently 36
established pursuant to NRS 99.040 for each month, or portion 37
thereof, from the last day of the month following the period for 38
which the payment would have been made had the partial 39
abatement not been approved until the date of payment of the tax. 40
9. The Office of Economic Development: 41
(a) Shall adopt regulations relating to the minimum level of 42
benefits that a business must provide to its employees to qualify for 43
an abatement pursuant to this section. 44
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(b) May adopt such other regulations as the Office determines to 1
be necessary or advisable to carry out the provisions of this section. 2
[9.] 10. An applicant for an abatement who is aggrieved by a 3
final decision of the Office of Economic Development may petition 4
for judicial review in the manner provided in chapter 233B of NRS. 5
[10.] 11. As used in this section, “dislocated worker” means a 6
person who: 7
(a) Has been terminated, laid off or received notice of 8
termination or layoff from employment; 9
(b) Is eligible for or receiving or has exhausted his or her 10
entitlement to unemployment compensation; 11
(c) Has been dependent on the income of another family 12
member but is no longer supported by that income; 13
(d) Has been self-employed but is no longer receiving an income 14
from self-employment because of general economic conditions in 15
the community or natural disaster; or 16
(e) Is currently unemployed and unable to return to a previous 17
industry or occupation. 18
Sec. 16. The amendatory provisions of this act apply only to 19
an application for an abatement from taxation for which a person 20
applies on or after July 1, 2025. 21
Sec. 17. 1. This section becomes effective upon passage and 22
approval. 23
2. Sections 1 to 16, inclusive, of this act become effective: 24
(a) Upon passage and approval for the purpose of adopting any 25
regulations and performing any other preparatory administrative 26
tasks that are necessary to carry out the provisions of this act; and 27
(b) On July 1, 2025, for all other purposes. 28
3. Sections 6 and 7 of this act expires by limitation on June 30, 29
2032. 30
4. Sections 2, 10 and 11 of this act expires by limitation on 31
June 30, 2035. 32
5. Sections 8 and 9 of this act expires by limitation on June 30, 33
2036. 34
6. Section 3 of this act expires by limitation on December 31, 35
2056. 36
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