EXEMPT
(Reprinted with amendments adopted on April 21, 2025)
FIRST REPRINT 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 an application for certain
transferable tax credits and certain tax abatements to
contain a certification that the applicant agrees to submit a
community benefits agreement and collaborate with the
community in which the business is located if the
application is approved; 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 1-3, 6, 8 and 12-15 of this bill additionally require an 8
applicant for certain transferable tax credits or a tax abatement to certify in the 9
application for transferrable tax credits or a tax abatement, as applicable, that, if the 10
application is approved, the business will: (1) collaborate with the community in 11
which the business is located; and (2) submit to the Office a community benefits 12
agreement not later than 2 years after the date on which the application is approved. 13
Section 16 of this bill makes the requirements of this bill relating to the 14
certification requirement applicable only to applications for certain transferable tax 15
credits or certain abatements submitted on or after July 1, 2025. 16
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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
a period specified by the Office, which must be at least 5 years, and 36
will continue to meet the eligibility requirements set forth in this 37
subsection; 38
(4) State that the business will offer primary jobs; and 39
(5) Bind the successors in interest of the business for the 40
specified period. 41
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(c) The business is registered pursuant to the laws of this State 1
or the applicant commits to obtain a valid business license and all 2
other permits required by the county, city or town in which the 3
business operates. 4
(d) Except as otherwise provided in subsection 4, 5 or 6, the 5
average hourly wage that will be paid by the business to its new 6
employees in this State is at least 100 percent of the average 7
statewide hourly wage as established by the Employment Security 8
Division of the Department of Employment, Training and 9
Rehabilitation on July 1 of each fiscal year. 10
(e) The business will, by the eighth calendar quarter following 11
the calendar quarter in which the abatement becomes effective, offer 12
a health insurance plan for all employees that includes an option for 13
health insurance coverage for dependents of the employees, and the 14
health care benefits the business offers to its employees in this State 15
will meet the minimum requirements for health care benefits 16
established by the Office. 17
(f) Except as otherwise provided in this subsection and NRS 18
361.0687, if the business is a new business in a county whose 19
population is 100,000 or more or a city whose population is 60,000 20
or more, the business meets at least one of the following 21
requirements: 22
(1) The business will have 50 or more full-time employees 23
on the payroll of the business by the eighth calendar quarter 24
following the calendar quarter in which the abatement becomes 25
effective who will be employed at the location of the business in 26
that county or city until at least the date which is 5 years after the 27
date on which the abatement becomes effective. 28
(2) Establishing the business will require the business to 29
make, not later than the date which is 2 years after the date on which 30
the abatement becomes effective, a capital investment of at least 31
$1,000,000 in this State in capital assets that will be retained at the 32
location of the business in that county or city until at least the date 33
which is 5 years after the date on which the abatement becomes 34
effective. 35
(g) Except as otherwise provided in NRS 361.0687, if the 36
business is a new business in a county whose population is less than 37
100,000, in an area of a county whose population is 100,000 or more 38
that is located within the geographic boundaries of an area that is 39
designated as rural by the United States Department of Agriculture 40
and at least 20 miles outside of the geographic boundaries of an area 41
designated as urban by the United States Department of Agriculture, 42
or in a city whose population is less than 60,000, the business meets 43
at least one of the following requirements: 44
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(1) The business will have 10 or more full-time employees 1
on the payroll of the business by the eighth calendar quarter 2
following the calendar quarter in which the abatement becomes 3
effective who will be employed at the location of the business in 4
that county or city until at least the date which is 5 years after the 5
date on which the abatement becomes effective. 6
(2) Establishing the business will require the business to 7
make, not later than the date which is 2 years after the date on which 8
the abatement becomes effective, a capital investment of at least 9
$250,000 in this State in capital assets that will be retained at the 10
location of the business in that county or city until at least the date 11
which is 5 years after the date on which the abatement becomes 12
effective. 13
(h) If the business is an existing business, the business meets at 14
least one of the following requirements: 15
(1) For a business in: 16
(I) Except as otherwise provided in sub-subparagraph (II), 17
a county whose population is 100,000 or more or a city whose 18
population is 60,000 or more, the business will, by the eighth 19
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 twenty-five 24
employees, whichever is greater, who will be employed at the 25
location of the business in that county or city until at least the date 26
which is 5 years after the date on which the abatement becomes 27
effective; or 28
(II) A county whose population is less than 100,000, an 29
area of a county whose population is 100,000 or more that is located 30
within the geographic boundaries of an area that is designated as 31
rural by the United States Department of Agriculture and at least 20 32
miles outside of the geographic boundaries of an area designated as 33
urban by the United States Department of Agriculture, or a city 34
whose population is less than 60,000, the business will, by the 35
eighth calendar quarter following the calendar quarter in which the 36
abatement becomes effective, increase the number of employees on 37
its payroll in that county or city by 10 percent more than it 38
employed in the fiscal year immediately preceding the fiscal year in 39
which the abatement becomes effective or by six employees, 40
whichever is greater, who will be employed at the location of the 41
business in that county or city until at least the date which is 5 years 42
after the date on which the abatement becomes effective. 43
(2) The business will expand by making a capital investment 44
in this State, not later than the date which is 2 years after the date on 45
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which the abatement becomes effective, in an amount equal to at 1
least 20 percent of the value of the tangible property possessed by 2
the business in the fiscal year immediately preceding the fiscal year 3
in which the abatement becomes effective, and the capital 4
investment will be in capital assets that will be retained at the 5
location of the business in that county or city until at least the date 6
which is 5 years after the date on which the abatement becomes 7
effective. The determination of the value of the tangible property 8
possessed by the business in the immediately preceding fiscal year 9
must be made by the: 10
(I) County assessor of the county in which the business 11
will expand, if the business is locally assessed; or 12
(II) Department, if the business is centrally assessed. 13
(i) The applicant has provided in the application an estimate of 14
the total number of new employees which the business anticipates 15
hiring in this State by the eighth calendar quarter following the 16
calendar quarter in which the abatement becomes effective if the 17
Office approves the application. 18
(j) Except as otherwise provided in subsection 3, if the business 19
will have at least 50 full-time employees on the payroll of the 20
business by the eighth calendar quarter following the calendar 21
quarter in which the abatement becomes effective, the business, by 22
the earlier of the eighth calendar quarter following the calendar 23
quarter in which the abatement becomes effective or the date on 24
which the business has at least 50 full-time employees on the payroll 25
of the business, has a policy for paid family and medical leave and 26
agrees that all employees who have been employed by the business 27
for at least 1 year will be eligible for at least 12 weeks of paid 28
family and medical leave at a rate of at least 55 percent of the 29
regular wage of the employee. The business will agree in writing 30
that if the Office approves the application, the business will not: 31
(1) Prohibit, interfere with or otherwise discourage an 32
employee from taking paid family and medical leave: 33
(I) For any reason authorized pursuant to the Family and 34
Medical Leave Act of 1993, 29 U.S.C. §§ 2601 et seq. 35
(II) To care for any adult child, sibling or domestic 36
partner of the employee. 37
(2) Discriminate, discipline or discharge an employee for 38
taking paid family and medical leave: 39
(I) For any reason authorized pursuant to the Family and 40
Medical Leave Act of 1993, 29 U.S.C. §§ 2601 et seq. 41
(II) To care for any adult child, sibling or domestic 42
partner of the employee. 43
(3) Prohibit, interfere with or otherwise discourage an 44
employee or other person from bringing a proceeding or testifying 45
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in a proceeding against the business for a violation of the policy for 1
paid family and medical leave that is required pursuant to this 2
paragraph. 3
(k) The applicant has certified in the application that the 4
business will, if the application is approved: 5
(1) Collaborate with the community in which the business 6
is located; and 7
(2) Submit a community benefits agreement to the Office 8
not later than 2 years after the date on which the Office approves 9
the application. 10
3. For purposes of paragraph (j) of subsection 2, the Office of 11
Economic Development shall determine that a business meets the 12
requirements of that paragraph if the business has a policy for paid 13
family and medical leave for employees on the payroll of the 14
business outside of this State that meets or exceeds the requirements 15
for a policy for paid family and medical leave pursuant to that 16
paragraph and the business agrees in writing that its employees on 17
the payroll in this State are eligible for paid family and medical 18
leave under such policy. 19
4. Notwithstanding the provisions of subsection 2, the Office 20
of Economic Development: 21
(a) Shall not consider an application for a partial abatement 22
pursuant to this section unless the Office has requested a letter of 23
acknowledgment of the request for the abatement from any affected 24
county, school district, city or town. 25
(b) Shall consider the level of health care benefits provided by 26
the business to its employees, the policy of paid family and medical 27
leave provided by the business to its employees, the projected 28
economic impact of the business and the projected tax revenue of 29
the business after deducting projected revenue from the abated 30
taxes. 31
(c) May, if the Office determines that such action is necessary: 32
(1) Approve an application for a partial abatement pursuant 33
to this section by a business that does not meet the requirements set 34
forth in paragraph (f), (g) or (h) of subsection 2; 35
(2) Make any of the requirements set forth in paragraphs (d) 36
to (h), inclusive, of subsection 2 more stringent; or 37
(3) Add additional requirements that a business must meet to 38
qualify for a partial abatement pursuant to this section. 39
5. Notwithstanding any other provision of law, the Office of 40
Economic Development shall not approve an application for a 41
partial abatement pursuant to this section if: 42
(a) The applicant intends to locate or expand in a county in 43
which the rate of unemployment is 7 percent or more and the 44
average hourly wage that will be paid by the applicant to its new 45
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employees in this State is less than 70 percent of the average 1
statewide hourly wage, as established by the Employment Security 2
Division of the Department of Employment, Training and 3
Rehabilitation on July 1 of each fiscal year. 4
(b) The applicant intends to locate or expand in a county in 5
which the rate of unemployment is less than 7 percent and the 6
average hourly wage that will be paid by the applicant to its new 7
employees in this State is less than 85 percent of the average 8
statewide hourly wage, as established by the Employment Security 9
Division of the Department of Employment, Training and 10
Rehabilitation on July 1 of each fiscal year. 11
(c) The applicant intends to locate in a county but has already 12
received a partial abatement pursuant to this section for locating that 13
business in that county. 14
(d) The applicant intends to expand in a county but has already 15
received a partial abatement pursuant to this section for expanding 16
that business in that county. 17
(e) The applicant has changed the name or identity of the 18
business to evade the provisions of paragraph (c) or (d). 19
6. Notwithstanding any other provision of law, if the Office of 20
Economic Development approves an application for a partial 21
abatement pursuant to this section, in determining the types of taxes 22
imposed on a new or expanded business for which the partial 23
abatement will be approved and the amount of the partial abatement: 24
(a) If the new or expanded business is located in a county in 25
which the rate of unemployment is 7 percent or more and the 26
average hourly wage that will be paid by the business to its new 27
employees in this State is less than 85 percent of the average 28
statewide hourly wage, as established by the Employment Security 29
Division of the Department of Employment, Training and 30
Rehabilitation on July 1 of each fiscal year, the Office shall not: 31
(1) Approve an abatement of the taxes imposed pursuant to 32
chapter 361 of NRS which exceeds 25 percent of the taxes on 33
personal property payable by the business each year. 34
(2) Approve an abatement of the taxes imposed pursuant to 35
chapter 363B of NRS which exceeds 25 percent of the amount of 36
tax otherwise due pursuant to NRS 363B.110. 37
(b) If the new or expanded business is located in a county in 38
which the rate of unemployment is less than 7 percent and the 39
average hourly wage that will be paid by the business to its new 40
employees in this State is less than 100 percent of the average 41
statewide hourly wage, as established by the Employment Security 42
Division of the Department of Employment, Training and 43
Rehabilitation on July 1 of each fiscal year, the Office shall not: 44
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(1) Approve an abatement of the taxes imposed pursuant to 1
chapter 361 of NRS which exceeds 25 percent of the taxes on 2
personal property payable by the business each year. 3
(2) Approve an abatement of the taxes imposed pursuant to 4
chapter 363B of NRS which exceeds 25 percent of the amount of 5
tax otherwise due pursuant to NRS 363B.110. 6
7. If the Office of Economic Development approves an 7
application for a partial abatement pursuant to this section, the 8
Office shall immediately forward a certificate of eligibility for the 9
abatement to: 10
(a) The Department; 11
(b) The Nevada Tax Commission; and 12
(c) If the partial abatement is from the property tax imposed 13
pursuant to chapter 361 of NRS, the county treasurer. 14
8. An applicant for a partial abatement pursuant to this section 15
or an existing business whose partial abatement is in effect shall, 16
upon the request of the Executive Director of the Office of 17
Economic Development, furnish the Executive Director with copies 18
of all records necessary to verify that the applicant meets the 19
requirements of subsection 2. 20
9. If an applicant for a partial abatement pursuant to this 21
section fails to execute the agreement described in paragraph (b) of 22
subsection 2 within 1 year after the date on which the application 23
was received by the Office, the applicant shall not be approved for a 24
partial abatement pursuant to this section unless the applicant 25
submits a new application. 26
10. If a business whose partial abatement has been approved 27
pursuant to this section and is in effect ceases: 28
(a) To meet the requirements set forth in subsection 2; or 29
(b) Operation before the time specified in the agreement 30
described in paragraph (b) of subsection 2, 31
the business shall repay to the Department or, if the partial 32
abatement was from the property tax imposed pursuant to chapter 33
361 of NRS, to the county treasurer, the amount of the partial 34
abatement that was allowed pursuant to this section before the 35
failure of the business to comply unless the Nevada Tax 36
Commission determines that the business has substantially complied 37
with the requirements of this section. Except as otherwise provided 38
in NRS 360.232 and 360.320, the business shall, in addition to the 39
amount of the partial abatement required to be paid pursuant to this 40
subsection, 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 abatement 44
not been approved until the date of payment of the tax. 45
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11. 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. The Office of Economic Development may adopt such 8
regulations as the Office of Economic Development determines to 9
be necessary to carry out the provisions of this section and 10
NRS 360.755. 11
13. 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. An applicant for a partial abatement pursuant to this section 22
who is aggrieved by a final decision of the Office of Economic 23
Development may petition for judicial review in the manner 24
provided in chapter 233B of NRS. 25
15. For the purposes of this section, an employee is a “full-time 26
employee” if he or she is in a permanent position of employment 27
and works an average of 30 hours per week during the applicable 28
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) Binds any successor in interest of the applicant for the 18
specified period; 19
(b) The business is registered pursuant to the laws of this State 20
or the applicant commits to obtaining a valid business license and all 21
other permits required by the county, city or town in which the 22
business operates; 23
(c) The business owns, operates, manufactures, services, 24
maintains, tests, repairs, overhauls or assembles an aircraft or any 25
component of an aircraft; 26
(d) The average hourly wage that will be paid by the business to 27
its employees in this State during the period of partial abatement is 28
not less than 100 percent of the average statewide hourly wage as 29
established by the Employment Security Division of the Department 30
of Employment, Training and Rehabilitation on July 1 of each fiscal 31
year; 32
(e) The business will, by the eighth calendar quarter following 33
the calendar quarter in which the abatement becomes effective, offer 34
a health insurance plan for all employees that includes an option for 35
health insurance coverage for dependents of the employees, and the 36
health care benefits the business offers to its employees in this State 37
will meet the minimum requirements for health care benefits 38
established by the Office; 39
(f) If the business is: 40
(1) A new business, that it will have five or more full-time 41
employees on the payroll of the business within 1 year after 42
receiving its certificate of eligibility for a partial abatement; or 43
(2) An existing business, that it will increase its number of 44
full-time employees on the payroll of the business in this State by 3 45
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percent or three employees, whichever is greater, within 1 year after 1
receiving its certificate of eligibility for a partial abatement; 2
(g) The business meets at least one of the following 3
requirements: 4
(1) The business will make a new capital investment of at 5
least $250,000 in this State within 1 year after receiving its 6
certificate of eligibility for a partial abatement; 7
(2) The business will maintain and possess in this State 8
tangible personal property having a value of not less than 9
$5,000,000 during the period of partial abatement; 10
(3) The business develops, refines or owns a patent or other 11
intellectual property, or has been issued a type certificate by the 12
Federal Aviation Administration pursuant to 14 C.F.R. Part 21; 13
[and] 14
(h) If the application is for the partial abatement of the taxes 15
imposed by the Local School Support Tax Law, the application has 16
been approved by a vote of at least two-thirds of the members of the 17
Board of Economic Development created by NRS 231.033 [.] ; and 18
(i) The applicant has certified in the application that the 19
business will, if the application is approved: 20
(1) Collaborate with the community in which the business 21
is located; and 22
(2) Submit a community benefits agreement to the Office 23
not later than 2 years after the date on which the Office approves 24
the application. 25
3. The Office of Economic Development: 26
(a) Shall approve or deny an application submitted pursuant to 27
this section and notify the applicant of its decision not later than 45 28
days after receiving the application. 29
(b) Must not: 30
(1) Consider an application for a partial abatement unless the 31
Office has requested a letter of acknowledgment of the request for 32
the partial abatement from any affected county, school district, city 33
or town and has complied with the requirements of NRS 360.757; or 34
(2) Approve a partial abatement for any applicant for a 35
period of more than 10 years. 36
4. The Office of Economic Development must not approve a 37
partial abatement of personal property taxes for a business whose 38
physical property is collectively valued and centrally assessed 39
pursuant to NRS 361.320 and 361.3205. 40
5. If the Office of Economic Development approves an 41
application for a partial abatement pursuant to this section, the 42
Office shall immediately forward a certificate of eligibility for the 43
partial abatement to: 44
(a) The Department; 45
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(b) The Nevada Tax Commission; and 1
(c) If the partial abatement is from personal property taxes, the 2
appropriate county treasurer. 3
6. An applicant for a partial abatement pursuant to this section 4
or an existing business whose partial abatement is in effect shall, 5
upon the request of the Executive Director of the Office of 6
Economic Development, furnish the Executive Director with copies 7
of all records necessary to verify that the applicant meets the 8
requirements of subsection 2. 9
7. If an applicant for a partial abatement pursuant to this 10
section fails to execute the agreement described in paragraph (a) of 11
subsection 2 within 1 year after the date on which the application 12
was received by the Office, the applicant shall not be approved for a 13
partial abatement pursuant to this section unless the applicant 14
submits a new application. 15
8. If a business whose partial abatement has been approved 16
pursuant to this section and whose partial abatement is in effect 17
ceases: 18
(a) To meet the requirements set forth in subsection 2; or 19
(b) Operation before the time specified in the agreement 20
described in paragraph (a) of subsection 2, 21
the business shall repay to the Department or, if the partial 22
abatement was from personal property taxes, to the appropriate 23
county treasurer, the amount of the partial abatement that was 24
allowed pursuant to this section before the failure of the business to 25
comply unless the Nevada Tax Commission determines that the 26
business has substantially complied with the requirements of this 27
section. Except as otherwise provided in NRS 360.232 and 360.320, 28
the business shall, in addition to the amount of the partial abatement 29
required to be repaid pursuant to this subsection, pay interest on the 30
amount due at the rate most recently established pursuant to NRS 31
99.040 for each month, or portion thereof, from the last day of the 32
month following the period for which the payment would have been 33
made had the partial abatement not been approved until the date of 34
payment of the tax. 35
9. The Office of Economic Development may adopt such 36
regulations as the Office determines to be necessary to carry out the 37
provisions of this section. 38
10. The Nevada Tax Commission may adopt such regulations 39
as the Commission determines are necessary to carry out the 40
provisions of this section. 41
11. An applicant for a partial abatement who is aggrieved by a 42
final decision of the Office of Economic Development may petition 43
a court of competent jurisdiction to review the decision in the 44
manner provided in chapter 233B of NRS. 45
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12. As used in this section: 1
(a) “Aircraft” means any fixed-wing, rotary-wing or unmanned 2
aerial vehicle. 3
(b) “Component of an aircraft” means any: 4
(1) Element that makes up the physical structure of an 5
aircraft, or is affixed thereto; 6
(2) Mechanical, electrical or other system of an aircraft, 7
including, without limitation, any component thereof; and 8
(3) Raw material or processed material, part, machinery, 9
tool, chemical, gas or equipment used to operate, manufacture, 10
service, maintain, test, repair, overhaul or assemble an aircraft or 11
component of an aircraft. 12
(c) “Full-time employee” means a person who is in a permanent 13
position of employment and works an average of 30 hours per week 14
during the applicable period set forth in subparagraph (3) of 15
paragraph (a) of subsection 2. 16
(d) “Local sales and use taxes” means any taxes imposed on the 17
gross receipts of any retailer from the sale of tangible personal 18
property sold at retail, or stored, used or otherwise consumed, in any 19
political subdivision of this State, except the taxes imposed by the 20
Sales and Use Tax Act. 21
(e) “Personal property taxes” means any taxes levied on 22
personal property by the State or a local government pursuant to 23
chapter 361 of NRS. 24
Sec. 3. NRS 360.754 is hereby amended to read as follows: 25
360.754 1. A person who intends to locate or expand a data 26
center in this State may apply to the Office of Economic 27
Development pursuant to this section for a partial abatement of one 28
or more of the taxes imposed on the new or expanded data center 29
pursuant to chapter 361 or 374 of NRS. 30
2. The Office of Economic Development shall approve an 31
application for a partial abatement pursuant to this section if the 32
Office makes the following determinations: 33
(a) The application is consistent with the State Plan for 34
Economic Development developed by the Executive Director of the 35
Office of Economic Development pursuant to subsection 2 of NRS 36
231.053 and any guidelines adopted by the Executive Director of the 37
Office to implement the State Plan for Economic Development. 38
(b) Not later than 1 year after the date on which the application 39
was received by the Office, the applicant has executed an agreement 40
with the Office of Economic Development which must: 41
(1) Comply with the requirements of NRS 360.755; 42
(2) State the date on which the abatement becomes effective, 43
as agreed to by the applicant and the Office of Economic 44
Development, which must not be earlier than the date on which the 45
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- *AB226_R1*
Office received the application and not later than 1 year after the 1
date on which the Office approves the application; 2
(3) State that the data center will, after the date on which the 3
abatement becomes effective, continue in operation in this State for 4
a period specified by the Office of Economic Development, which 5
must be at least 10 years, and will continue to meet the eligibility 6
requirements set forth in this subsection; and 7
(4) Bind the successors in interest of the applicant for the 8
specified period. 9
(c) The applicant is registered pursuant to the laws of this State 10
or the applicant commits to obtain a valid business license and all 11
other permits required by each county, city or town in which the 12
data center operates. 13
(d) If the applicant is seeking a partial abatement for a period of 14
not more than 10 years, the applicant meets the following 15
requirements: 16
(1) The data center will, by not later than the date that is 5 17
years after the date on which the abatement becomes effective, have 18
or have added 10 or more full-time employees who are residents of 19
Nevada and who will be employed at the data center and will 20
continue to employ 10 or more full-time employees who are 21
residents of Nevada at the data center until at least the date which is 22
10 years after the date on which the abatement becomes effective. 23
(2) Establishing or expanding the data center will require the 24
data center or any combination of the data center and one or more 25
colocated businesses to make in each county in this State in which 26
the data center is located, by not later than the date which is 5 years 27
after the date on which the abatement becomes effective, a 28
cumulative capital investment of at least $25,000,000 in capital 29
assets that will be used or located at the data center. 30
(3) The average hourly wage that will be paid by the data 31
center to its employees in this State is at least 100 percent of the 32
average statewide hourly wage as established by the Employment 33
Security Division of the Department of Employment, Training and 34
Rehabilitation on July 1 of each fiscal year and: 35
(I) The data center will, by not later than the date which is 36
2 years after the date on which the abatement becomes effective, 37
provide a health insurance plan for all employees employed at the 38
data center that includes an option for health insurance coverage for 39
dependents of the employees; and 40
(II) The health care benefits provided to employees 41
employed at the data center will meet the minimum requirements for 42
health care benefits established by the Office of Economic 43
Development by regulation pursuant to subsection 13. 44
– 15 –
- *AB226_R1*
(4) At least 50 percent of the employees engaged in the 1
construction of the data center are residents of Nevada, unless 2
waived by the Executive Director of the Office of Economic 3
Development upon proof satisfactory to the Executive Director of 4
the Office of Economic Development that there is an insufficient 5
number of residents of Nevada available and qualified for such 6
employment. 7
(e) If the applicant is seeking a partial abatement for a period of 8
10 years or more but not more than 20 years, the applicant meets the 9
following requirements: 10
(1) The data center will, by not later than the date that is 5 11
years after the date on which the abatement becomes effective, have 12
or have added 50 or more full-time employees who are residents of 13
Nevada and who will be employed at the data center and will 14
continue to employ 50 or more full-time employees who are 15
residents of Nevada at the data center until at least the date which is 16
20 years after the date on which the abatement becomes effective. 17
(2) Establishing or expanding the data center will require the 18
data center or any combination of the data center and one or more 19
colocated businesses to make in each county in this State in which 20
the data center is located, by not later than the date which is 5 years 21
after the date on which the abatement becomes effective, a 22
cumulative capital investment of at least $100,000,000 in capital 23
assets that will be used or located at the data center. 24
(3) The average hourly wage that will be paid by the data 25
center to its employees in this State is at least 100 percent of the 26
average statewide hourly wage as established by the Employment 27
Security Division of the Department of Employment, Training and 28
Rehabilitation on July 1 of each fiscal year and: 29
(I) The data center will, by not later than the date which is 30
2 years after the date on which the abatement becomes effective, 31
provide a health insurance plan for all employees employed at the 32
data center that includes an option for health insurance coverage for 33
dependents of the employees; and 34
(II) The health care benefits provided to employees 35
employed at the data center will meet the minimum requirements for 36
health care benefits established by the Office of Economic 37
Development by regulation pursuant to subsection 13. 38
(4) At least 50 percent of the employees engaged in the 39
construction of the data center are residents of Nevada, unless 40
waived by the Executive Director of the Office of Economic 41
Development upon proof satisfactory to the Executive Director of 42
the Office of Economic Development that there is an insufficient 43
number of residents of Nevada available and qualified for such 44
employment. 45
– 16 –
- *AB226_R1*
(f) The applicant has provided in the application an estimate of 1
the total number of new employees which the data center anticipates 2
hiring in this State if the Office of Economic Development approves 3
the application. 4
(g) If the applicant is seeking a partial abatement of the taxes 5
imposed by the Local School Support Tax Law, the application has 6
been approved by a vote of at least two-thirds of the members of the 7
Board of Economic Development created by NRS 231.033. 8
(h) The applicant has certified in the application that the data 9
center will, if the application is approved: 10
(1) Collaborate with the community in which the data 11
center is located; and 12
(2) Submit a community benefits agreement to the Office 13
not later than 2 years after the date on which the Office approves 14
the application. 15
3. Notwithstanding the provisions of subsection 2, the Office 16
of Economic Development: 17
(a) Shall not consider an application for a partial abatement 18
pursuant to this section unless the Office of Economic Development 19
has requested a letter of acknowledgment of the request for the 20
abatement from each affected county, school district, city or town. 21
(b) Shall consider the level of health care benefits provided to 22
employees employed at the data center, the projected economic 23
impact of the data center and the projected tax revenue of the data 24
center after deducting projected revenue from the abated taxes. 25
(c) May, if the Office of Economic Development determines 26
that such action is necessary: 27
(1) Approve an application for a partial abatement pursuant 28
to this section by a data center that does not meet the requirements 29
set forth in paragraph (d) or (e) of subsection 2; 30
(2) Make the requirements set forth in paragraphs (d) and (e) 31
of subsection 2 more stringent; or 32
(3) Add additional requirements that an applicant must meet 33
to qualify for a partial abatement pursuant to this section. 34
4. If the Office of Economic Development approves an 35
application for a partial abatement pursuant to this section, the 36
Office shall immediately forward a certificate of eligibility for the 37
abatement to: 38
(a) The Department; 39
(b) The Nevada Tax Commission; and 40
(c) If the partial abatement is from the property tax imposed 41
pursuant to chapter 361 of NRS, the county treasurer of each county 42
in which the data center is or will be located. 43
5. If the Office of Economic Development approves an 44
application for a partial abatement pursuant to this section, the 45
– 17 –
- *AB226_R1*
Office may also approve a partial abatement of taxes for each 1
colocated business that enters into a contract to use or occupy, for a 2
period of at least 2 years, all or a portion of the new or expanded 3
data center. Each such colocated business shall obtain a state 4
business license issued by the Secretary of State. The percentage 5
amount of a partial abatement approved for a colocated business 6
pursuant to this subsection must not exceed the percentage amount 7
of the partial abatement approved for the data center. The duration 8
of a partial abatement approved for a colocated business pursuant to 9
this subsection must not exceed the duration of the contract or 10
contracts entered into between the colocated business and the data 11
center, including the duration of any contract or contracts extended 12
or renewed by the parties. If a colocated business ceases to meet the 13
requirements set forth in this subsection, the colocated business 14
shall repay the amount of the abatement that was allowed in the 15
same manner in which a data center is required by subsection 8 to 16
repay the Department or a county treasurer. If a data center ceases to 17
meet the requirements of subsection 2 or ceases operation before the 18
time specified in the agreement described in paragraph (b) of 19
subsection 2, any partial abatement approved for a colocated 20
business ceases to be in effect, but the colocated business is not 21
required to repay the amount of the abatement that was allowed 22
before the date on which the abatement ceases to be in effect. A data 23
center shall provide the Executive Director of the Office and the 24
Department with a list of the colocated businesses that are qualified 25
to receive a partial abatement pursuant to this subsection and shall 26
notify the Executive Director within 30 days after any change to the 27
list. The Executive Director shall provide the list and any updates to 28
the list to the Department and the county treasurer of each affected 29
county. 30
6. An applicant for a partial abatement pursuant to this section 31
or a data center whose partial abatement is in effect shall, upon the 32
request of the Executive Director of the Office of Economic 33
Development, furnish the Executive Director with copies of all 34
records necessary to verify that the applicant meets the requirements 35
of subsection 2. 36
7. If an applicant for a partial abatement pursuant to this 37
section fails to execute the agreement described in paragraph (b) of 38
subsection 2 within 1 year after the date on which the application 39
was received by the Office, the applicant shall not be approved for a 40
partial abatement pursuant to this section unless the applicant 41
submits a new application. 42
8. If a data center whose partial abatement has been approved 43
pursuant to this section and is in effect ceases: 44
(a) To meet the requirements set forth in subsection 2; or 45
– 18 –
- *AB226_R1*
(b) Operation before the time specified in the agreement 1
described in paragraph (b) of subsection 2, 2
the data center shall repay to the Department or, if the partial 3
abatement was from the property tax imposed pursuant to chapter 4
361 of NRS, to the county treasurer, the amount of the partial 5
abatement that was allowed pursuant to this section before the 6
failure of the data center to comply unless the Nevada Tax 7
Commission determines that the data center has substantially 8
complied with the requirements of this section. Except as otherwise 9
provided in NRS 360.232 and 360.320, the data center shall, in 10
addition to the amount of the partial abatement required to be repaid 11
pursuant to this subsection, pay interest on the amount due at the 12
rate most recently established pursuant to NRS 99.040 for each 13
month, or portion thereof, from the last day of the month following 14
the period for which the payment would have been made had the 15
partial abatement not been approved until the date of payment of the 16
tax. 17
9. A county treasurer: 18
(a) Shall deposit any money that he or she receives pursuant to 19
subsection 5 or 8 in one or more of the funds established by a local 20
government of the county pursuant to NRS 354.6113 or 354.6115; 21
and 22
(b) May use the money deposited pursuant to paragraph (a) only 23
for the purposes authorized by NRS 354.6113 and 354.6115. 24
10. An applicant for a partial abatement pursuant to this section 25
who is aggrieved by a final decision of the Office of Economic 26
Development may petition for judicial review in the manner 27
provided in chapter 233B of NRS. 28
11. For an employee to be considered a resident of Nevada for 29
the purposes of this section, a data center must maintain the 30
following documents in the personnel file of the employee: 31
(a) A copy of the current and valid Nevada driver’s license of 32
the employee or a current and valid identification card for the 33
employee issued by the Department of Motor Vehicles; 34
(b) If the employee is a registered owner of one or more motor 35
vehicles in Nevada, a copy of the current motor vehicle registration 36
of at least one of those vehicles; 37
(c) Proof that the employee is a full-time employee; and 38
(d) Proof that the employee is covered by the health insurance 39
plan which the data center is required to provide pursuant to sub-40
subparagraph (I) of subparagraph (3) of paragraph (d) of subsection 41
2 or sub-subparagraph (I) of subparagraph (3) of paragraph (e) of 42
subsection 2. 43
12. For the purpose of obtaining from the Executive Director 44
of the Office of Economic Development any waiver of the 45
– 19 –
- *AB226_R1*
requirements set forth in subparagraph (4) of paragraph (d) of 1
subsection 2 or subparagraph (4) of paragraph (e) of subsection 2, a 2
data center must submit to the Executive Director of the Office of 3
Economic Development written documentation of the efforts to 4
meet the requirements and documented proof that an insufficient 5
number of Nevada residents is available and qualified for 6
employment. 7
13. The Office of Economic Development: 8
(a) Shall adopt regulations relating to the minimum level of 9
health care benefits that a data center must provide to its employees 10
to meet the requirement set forth in paragraph (d) or (e) of 11
subsection 2; 12
(b) May adopt such other regulations as the Office determines to 13
be necessary to carry out the provisions of this section; and 14
(c) Shall not approve any application for a partial abatement 15
submitted pursuant to this section which is received on or after 16
January 1, 2036. 17
14. The Nevada Tax Commission: 18
(a) Shall adopt regulations regarding: 19
(1) The capital investment necessary to meet the requirement 20
set forth in paragraph (d) or (e) of subsection 2; and 21
(2) Any security that a data center is required to post to 22
qualify for a partial abatement pursuant to this section. 23
(b) May adopt such other regulations as the Nevada Tax 24
Commission determines to be necessary to carry out the provisions 25
of this section. 26
15. As used in this section, unless the context otherwise 27
requires: 28
(a) “Colocated business” means a person who enters into a 29
contract with a data center that is qualified to receive an abatement 30
pursuant to this section to use or occupy all or part of the data 31
center. 32
(b) “Data center” means one or more buildings located at one or 33
more physical locations in this State which house a group of 34
networked server computers for the purpose of centralizing the 35
storage, management and dissemination of data and information 36
pertaining to one or more businesses and includes any modular or 37
preassembled components, associated telecommunications and 38
storage systems and, if the data center includes more than one 39
building or physical location, any network or connection between 40
such buildings or physical locations. 41
(c) “Full-time employee” means a person who is in a permanent 42
position of employment and works an average of 30 hours per week 43
during the applicable period set forth in paragraph (d) or (e) of 44
subsection 2. 45
– 20 –
- *AB226_R1*
Sec. 4. (Deleted by amendment.) 1
Sec. 5. (Deleted by amendment.) 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
– 21 –
- *AB226_R1*
(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 governing body of the city 34
or county in which the qualified project is located that: 35
(1) Requires the lead participant to pay the cost of any 36
engineering or design work necessary to determine the cost of 37
infrastructure improvements required to be made by the governing 38
body pursuant to an economic development financing proposal 39
approved pursuant to NRS 360.990; and 40
(2) Requires the lead participant to seek reimbursement for 41
any costs paid by the lead participant pursuant to subparagraph (1) 42
from the proceeds of bonds issued pursuant to NRS 360.991; and 43
(o) Meet any other requirements prescribed by the Office. 44
– 22 –
- *AB226_R1*
3. In addition to meeting the requirements set forth in 1
subsection 2, for a project located on more than one site in this State 2
to be eligible for the partial abatement of the taxes described in 3
paragraph (b) of subsection 1, the lead participant must, on behalf of 4
the project, submit an application that meets the requirements of 5
subsection 5 on or before June 30, 2019, and provide documentation 6
satisfactory to the Office that: 7
(a) The initial project will have a total of 500 or more full-time 8
employees employed at the site of the initial project and the average 9
hourly wage that will be paid to employees of the initial project in 10
this State is at least 120 percent of the average statewide hourly 11
wage as established by the Employment Security Division of the 12
Department of Employment, Training and Rehabilitation on July 1 13
of each fiscal year; 14
(b) Each participant in the project must be a subsidiary or 15
affiliate of the lead participant; and 16
(c) Each participant offers primary jobs and: 17
(1) Except as otherwise provided in subparagraph (2), 18
satisfies the requirements of paragraph (f) or (g) of subsection 2 of 19
NRS 360.750, regardless of whether the business is a new business 20
or an existing business; and 21
(2) If a participant owns, operates, manufactures, services, 22
maintains, tests, repairs, overhauls or assembles an aircraft or any 23
component of an aircraft, that the participant satisfies the applicable 24
requirements of paragraph (f) or (g) of subsection 2 of 25
NRS 360.753. 26
If any participant is a data center, as defined in NRS 360.754, any 27
capital investment by that participant must not be counted in 28
determining whether the participants in the project collectively will 29
make a total new capital investment of at least $1 billion in this 30
State within the 10-year period immediately following approval of 31
the application, as required by paragraph (c) of subsection 2. 32
4. In addition to meeting the requirements set forth in 33
subsection 2, a project is eligible for the transferable tax credits 34
described in paragraph (a) of subsection 1 only if the Interim 35
Finance Committee approves a written request for the issuance of 36
the transferable tax credits. Such a request may only be submitted 37
by the Office and only after the Office has approved the application 38
submitted for the project pursuant to subsection 2. The Interim 39
Finance Committee may approve a request submitted pursuant to 40
this subsection only if the Interim Finance Committee determines 41
that approval of the request: 42
(a) Will not impede the ability of the Legislature to carry out its 43
duty to provide for an annual tax sufficient to defray the estimated 44
– 23 –
- *AB226_R1*
expenses of the State for each fiscal year as set forth in Article 9, 1
Section 2 of the Nevada Constitution; and 2
(b) Will promote the economic development of this State and 3
aid the implementation of the State Plan for Economic Development 4
developed by the Executive Director of the Office pursuant to 5
subsection 2 of NRS 231.053. 6
5. An application submitted pursuant to subsection 2 must 7
include: 8
(a) A detailed description of the project, including a description 9
of the common purpose or business endeavor in which the 10
participants in the project are engaged; 11
(b) A detailed description of the location of the project, 12
including a precise description of the geographic boundaries of the 13
project site or sites; 14
(c) The name and business address of each participant in the 15
project, which must be an address in this State; 16
(d) A detailed description of the plan by which the participants 17
in the project intend to comply with the requirement that the 18
participants collectively make a total new capital investment of at 19
least $1 billion in this State in the 10-year period immediately 20
following approval of the application; 21
(e) If the application includes one or more partial abatements, an 22
agreement executed by the Office with the lead participant in the 23
project not later than 1 year after the date on which the application 24
was received by the Office which: 25
(1) Complies with the requirements of NRS 360.755; 26
(2) States the date on which the partial abatement becomes 27
effective, as agreed to by the applicant and the Office, which must 28
not be earlier than the date on which the Office received the 29
application and not later than 1 year after the date on which the 30
Office approves the application; 31
(3) States that the project will, after the date on which a 32
certificate of eligibility for the partial abatement is approved 33
pursuant to NRS 360.893, continue in operation in this State for a 34
period specified by the Office; and 35
(4) Binds successors in interest of the lead participant for the 36
specified period; [and] 37
(f) A certification by the lead participant in the project that, if 38
the application is approved, the participants in the project will: 39
(1) Collaborate with the community in which the project is 40
located; and 41
(2) Submit a community benefits agreement to the Office 42
not later than 2 years after the date on which the Office approves 43
the application; and 44
(g) Any other information required by the Office. 45
– 24 –
- *AB226_R1*
6. For an employee to be considered a resident of Nevada for 1
the purposes of this section, each participant in the project must 2
maintain the following documents in the personnel file of the 3
employee: 4
(a) A copy of the: 5
(1) Current and valid Nevada driver’s license of the 6
employee originally issued by the Department of Motor Vehicles 7
more than 60 days before the hiring of the employee or a current and 8
valid identification card for the employee originally issued by the 9
Department of Motor Vehicles more than 60 days before the hiring 10
of the employee; or 11
(2) If the employee is a veteran of the Armed Forces of the 12
United States, a current and valid Nevada driver’s license of the 13
employee or a current and valid identification card for the employee 14
issued by the Department of Motor Vehicles; 15
(b) If the employee is a registered owner of one or more motor 16
vehicles in Nevada, a copy of the current motor vehicle registration 17
of at least one of those vehicles; 18
(c) Proof that the employee is employed full-time and scheduled 19
to work for an average minimum of 30 hours per week; and 20
(d) Proof that the employee is offered coverage under a plan of 21
health insurance provided by his or her employer. 22
7. For the purpose of obtaining from the Executive Director of 23
the Office any waiver of the requirement set forth in paragraph (k) 24
of subsection 2, the lead participant in the project must submit to the 25
Executive Director of the Office written documentation of the 26
efforts to meet the requirement and documented proof that an 27
insufficient number of Nevada residents is available and qualified 28
for employment. 29
8. The Executive Director of the Office shall make available to 30
the public and post on the Internet website of the Office: 31
(a) Any request for a waiver of the requirements set forth in 32
paragraph (k) of subsection 2; and 33
(b) Any approval of such a request for a waiver that is granted 34
by the Executive Director of the Office. 35
9. The Executive Director of the Office shall post a request for 36
a waiver of the requirements set forth in paragraph (k) of subsection 37
2 on the Internet website of the Office within 3 days after receiving 38
the request and shall keep the request posted on the Internet website 39
for not less than 5 days. The Executive Director of the Office shall 40
ensure that the Internet website allows members of the public to post 41
comments regarding the request. 42
10. The Executive Director of the Office shall consider any 43
comments posted on the Internet website concerning any request for 44
a waiver of the requirements set forth in paragraph (k) of subsection 45
– 25 –
- *AB226_R1*
2 before making a decision regarding whether to approve the 1
request. If the Executive Director of the Office approves the request 2
for a waiver, the Executive Director of the Office must post the 3
approval on the Internet website of the Office within 3 days and 4
ensure that the Internet website allows members of the public to post 5
comments regarding the approval. 6
11. If an applicant for one or more partial abatements pursuant 7
to this section fails to execute the agreement described in paragraph 8
(e) of subsection 5 within 1 year after the date on which the 9
application was received by the Office, the applicant shall not be 10
approved for a partial abatement pursuant to this section unless the 11
applicant submits a new application. 12
Sec. 7. (Deleted by amendment.) 13
Sec. 8. NRS 360.945 is hereby amended to read as follows: 14
360.945 1. On behalf of a project, the lead participant in the 15
project may apply to the Office of Economic Development for: 16
(a) A certificate of eligibility for transferable tax credits which 17
may be applied to: 18
(1) Any tax imposed by chapters 363A and 363B of NRS; 19
(2) The gaming license fees imposed by the provisions of 20
NRS 463.370; 21
(3) Any tax imposed by chapter 680B of NRS; or 22
(4) Any combination of the fees and taxes described in 23
subparagraphs (1), (2) and (3). 24
(b) An abatement of property taxes, employer excise taxes or 25
local sales and use taxes, or any combination of any of those taxes. 26
2. For a project to be eligible for the transferable tax credits 27
described in paragraph (a) of subsection 1 and abatement of the 28
taxes described in paragraph (b) of subsection 1, the lead participant 29
in the project must, on behalf of the project: 30
(a) Submit an application that meets the requirements of 31
subsection 3; 32
(b) Provide documentation satisfactory to the Office that 33
approval of the application would promote the economic 34
development of this State and aid the implementation of the State 35
Plan for Economic Development developed by the Executive 36
Director of the Office pursuant to subsection 2 of NRS 231.053; 37
(c) Provide documentation satisfactory to the Office that the 38
participants in the project collectively will make a total new capital 39
investment of at least $3.5 billion in this State within the 10-year 40
period immediately following approval of the application; 41
(d) Provide documentation satisfactory to the Office that the 42
participants in the project are engaged in a common business 43
purpose or industry; 44
– 26 –
- *AB226_R1*
(e) Provide documentation satisfactory to the Office that the 1
place of business of each participant is or will be located within the 2
geographic boundaries of the project site; 3
(f) Provide documentation satisfactory to the Office that each 4
participant in the project is registered pursuant to the laws of this 5
State or commits to obtaining a valid business license and all other 6
permits required by the county, city or town in which the project 7
operates; 8
(g) Provide documentation satisfactory to the Office of the 9
number of employees engaged in the construction of the project; 10
(h) Provide documentation satisfactory to the Office of the 11
number of qualified employees employed or anticipated to be 12
employed at the project by the participants; 13
(i) Provide documentation satisfactory to the Office that each 14
employer engaged in the construction of the project provides a plan 15
of health insurance and that each employee engaged in the 16
construction of the project is offered coverage under the plan of 17
health insurance provided by his or her employer; 18
(j) Provide documentation satisfactory to the Office that each 19
participant in the project provides a plan of health insurance and that 20
each employee employed at the project by each participant is 21
offered coverage under the plan of health insurance provided by his 22
or her employer; 23
(k) Provide documentation satisfactory to the Office that at least 24
50 percent of the employees engaged in construction of the project 25
and 50 percent of the employees employed at the project are 26
residents of Nevada, unless waived by the Executive Director of the 27
Office upon proof satisfactory to the Executive Director of the 28
Office that there is an insufficient number of Nevada residents 29
available and qualified for such employment; 30
(l) Agree to provide the Office with a full compliance audit of 31
the participants in the project at the end of each fiscal year which: 32
(1) Shows the amount of money invested in this State by 33
each participant in the project; 34
(2) Shows the number of employees engaged in the 35
construction of the project and the number of those employees who 36
are residents of Nevada; 37
(3) Shows the number of employees employed at the project 38
by each participant and the number of those employees who are 39
residents of Nevada; and 40
(4) Is certified by an independent certified public accountant 41
in this State who is approved by the Office; 42
(m) Pay the cost of the audit required by paragraph (l); 43
(n) Enter into an agreement with the governing body of the city 44
or county in which the qualified project is located that: 45
– 27 –
- *AB226_R1*
(1) Requires the lead participant to pay the cost of any 1
engineering or design work necessary to determine the cost of 2
infrastructure improvements required to be made by the governing 3
body pursuant to an economic development financing proposal 4
approved pursuant to NRS 360.990; and 5
(2) Requires the lead participant to seek reimbursement for 6
any costs paid by the lead participant pursuant to subparagraph (1) 7
from the proceeds of bonds of the State of Nevada issued pursuant 8
to NRS 360.991; and 9
(o) Meet any other requirements prescribed by the Office. 10
3. An application submitted pursuant to subsection 2 must 11
include: 12
(a) A detailed description of the project, including a description 13
of the common purpose or business endeavor in which the 14
participants in the project are engaged; 15
(b) A detailed description of the location of the project, 16
including a precise description of the geographic boundaries of the 17
project site; 18
(c) The name and business address of each participant in the 19
project, which must be an address in this State; 20
(d) A detailed description of the plan by which the participants 21
in the project intend to comply with the requirement that the 22
participants collectively make a total new capital investment of at 23
least $3.5 billion in this State in the 10-year period immediately 24
following approval of the application; 25
(e) If the application includes one or more abatements, an 26
agreement executed by the Office with the lead participant in the 27
project not later than 1 year after the date on which the application 28
was received by the Office which: 29
(1) Complies with the requirements of NRS 360.755; 30
(2) States that the project will, after the date on which a 31
certificate of eligibility for the abatement is approved pursuant to 32
NRS 360.965, continue in operation in this State for a period 33
specified by the Office; and 34
(3) Binds successors in interest of the lead participant for the 35
specified period; [and] 36
(f) A certification by the lead participant in the project that, if 37
the application is approved, the participants in the project will: 38
(1) Collaborate with the community in which the project is 39
located; and 40
(2) Submit a community benefits agreement to the Office 41
not later than 2 years after the date on which the Office approves 42
the application; and 43
(g) Any other information required by the Office. 44
– 28 –
- *AB226_R1*
4. For an employee to be considered a resident of Nevada for 1
the purposes of this section, each participant in the project must 2
maintain the following documents in the personnel file of the 3
employee: 4
(a) A copy of the current and valid Nevada driver’s license of 5
the employee or a current and valid identification card for the 6
employee issued by the Department of Motor Vehicles; 7
(b) If the employee is a registered owner of one or more motor 8
vehicles in Nevada, a copy of the current motor vehicle registration 9
of at least one of those vehicles; 10
(c) Proof that the employee is employed full-time and scheduled 11
to work for an average minimum of 30 hours per week; and 12
(d) Proof that the employee is offered coverage under a plan of 13
health insurance provided by his or her employer. 14
5. For the purpose of obtaining from the Executive Director of 15
the Office any waiver of the requirement set forth in paragraph (k) 16
of subsection 2, the lead participant in the project must submit to the 17
Executive Director of the Office written documentation of the 18
efforts to meet the requirement and documented proof that an 19
insufficient number of Nevada residents is available and qualified 20
for employment. 21
6. The Executive Director of the Office shall make available to 22
the public and post on the Internet website for the Office: 23
(a) Any request for a waiver of the requirements set forth in 24
paragraph (k) of subsection 2; and 25
(b) Any approval of such a request for a waiver that is granted 26
by the Executive Director of the Office. 27
7. The Executive Director of the Office shall post a request for 28
a waiver of the requirements set forth in paragraph (k) of subsection 29
2 on the Internet website of the Office within 3 days after receiving 30
the request and shall keep the request posted on the Internet website 31
for not less than 5 days. The Executive Director of the Office shall 32
ensure that the Internet website allows members of the public to post 33
comments regarding the request. 34
8. The Executive Director of the Office shall consider any 35
comments posted on the Internet website concerning any request for 36
a waiver of the requirements set forth in paragraph (k) of subsection 37
2 before making a decision regarding whether to approve the 38
request. If the Executive Director of the Office approves the request 39
for a waiver, the Executive Director of the Office must post the 40
approval on the Internet website of the Office within 3 days and 41
ensure that the Internet website allows members of the public to post 42
comments regarding the approval. 43
9. If an applicant for one or more abatements pursuant to this 44
section fails to execute the agreement described in paragraph (e) of 45
– 29 –
- *AB226_R1*
subsection 3 within 1 year after the date on which the application 1
was received by the Office, the applicant shall not be approved for 2
an abatement pursuant to this section unless the applicant submits a 3
new application. 4
Sec. 9. (Deleted by amendment.) 5
Sec. 10. (Deleted by amendment.) 6
Sec. 11. (Deleted by amendment.) 7
Sec. 12. NRS 231.1555 is hereby amended to read as follows: 8
231.1555 1. A person who intends to locate or expand a 9
business in this State may apply to the Office for a certificate of 10
eligibility for transferable tax credits which may be applied to: 11
(a) Any tax imposed by chapter 363A or 363B of NRS; 12
(b) The gaming license fee imposed by the provisions of 13
NRS 463.370; 14
(c) Any tax imposed by chapter 680B of NRS; or 15
(d) Any combination of the fees and taxes described in 16
paragraphs (a), (b) and (c). 17
2. After considering any advice and recommendations of the 18
Board, the Executive Director shall establish: 19
(a) Procedures for applying to the Office for a certificate of 20
eligibility for transferable tax credits which must: 21
(1) Include, without limitation, a requirement that the 22
applicant set forth in the application: 23
(I) The proposed use of the transferable tax credits; 24
(II) The plans, projects and programs for which the 25
transferable tax credits will be used; 26
(III) The expected benefits of the issuance of the 27
transferable tax credits; [and] 28
(IV) A statement of the short-term and long-term impacts 29
of the issuance of the transferable tax credits; and 30
(V) A certification that the business will, if the 31
application is approved, collaborate with the community in which 32
the business is located and submit a community benefits 33
agreement to the Office not later than 2 years after the date on 34
which the Office approves the application; and 35
(2) Allow the applicant to revise the application upon the 36
recommendation of the Executive Director. 37
(b) The criteria which a person to whom a certificate of 38
eligibility for transferable tax credits has been issued must satisfy to 39
be issued a certificate of transferable tax credits. 40
3. After receipt of an application pursuant to this section, the 41
Executive Director shall review and evaluate the application and 42
determine whether the approval of the application would promote 43
the economic development of this State and aid the implementation 44
– 30 –
- *AB226_R1*
of the State Plan for Economic Development developed by the 1
Executive Director pursuant to subsection 2 of NRS 231.053. 2
4. If the applicant is requesting transferable tax credits in an 3
amount of $100,000 or less, the Executive Director may approve the 4
application, subject to the provisions of subsection 6, if the 5
Executive Director determines that approving the application will 6
promote the economic development of this State and aid the 7
implementation of the State Plan for Economic Development. 8
5. If the applicant is requesting transferable tax credits in an 9
amount greater than $100,000, the Executive Director shall submit 10
the application and the Executive Director’s review and evaluation 11
of the application pursuant to subsection 3 to the Board, and the 12
Board may approve the application, subject to the provisions of 13
subsection 6, if the Board determines that approving the application 14
will promote the economic development of this State and aid the 15
implementation of the State Plan for Economic Development. 16
6. The Executive Director or the Board shall not approve any 17
application for transferable tax credits for: 18
(a) A period of more than 5 fiscal years; 19
(b) Fiscal Year 2015-2016; or 20
(c) Any fiscal year if the approval of the application would 21
cause the total amount of transferable tax credits issued pursuant to 22
this section to exceed: 23
(1) For Fiscal Year 2016-2017, $1,000,000. 24
(2) For Fiscal Year 2017-2018, $2,000,000. 25
(3) For Fiscal Year 2018-2019, $2,000,000. 26
(4) For Fiscal Year 2019-2020, $3,000,000. 27
(5) For a fiscal year beginning on or after July 1, 2020, 28
$5,000,000. 29
7. If the Executive Director or the Board approves an 30
application and issues a certificate of eligibility for transferable tax 31
credits, the Office shall immediately forward a copy of the 32
certificate of eligibility which identifies the estimated amount of the 33
tax credits available pursuant to this section to: 34
(a) The applicant; 35
(b) The Department of Taxation; and 36
(c) The Nevada Gaming Control Board. 37
8. Within 14 days after the Office determines that a person to 38
whom a certificate of eligibility for transferable tax credits has been 39
issued satisfies the criteria established by the Executive Director 40
pursuant to subsection 2, the Office shall notify the person that 41
transferable tax credits will be issued. Within 30 days after the 42
receipt of the notice, the person shall make an irrevocable 43
declaration of the amount of transferable tax credits that will be 44
applied to each fee or tax set forth in paragraphs (a), (b) and (c) of 45
– 31 –
- *AB226_R1*
subsection 1, thereby accounting for all of the credits which will be 1
issued. Upon receipt of the declaration, the Office shall issue to the 2
person a certificate of transferable tax credits in the amount 3
approved by the Executive Director or the Board, as applicable, for 4
the fees or taxes included in the declaration. The Office shall notify 5
the Department of Taxation and the Nevada Gaming Control Board 6
of all transferable tax credits issued, segregated by each fee or tax 7
set forth in paragraphs (a), (b) and (c) of subsection 1, and the 8
amount of any transferable tax credits transferred. 9
Sec. 13. NRS 274.310 is hereby amended to read as follows: 10
274.310 1. A person who intends to locate a business in this 11
State within: 12
(a) A historically underutilized business zone, as defined in 15 13
U.S.C. § 632; 14
(b) A redevelopment area created pursuant to chapter 279 of 15
NRS; 16
(c) An area eligible for a community development block grant 17
pursuant to 24 C.F.R. Part 570; or 18
(d) An enterprise community established pursuant to 24 C.F.R. 19
Part 597, 20
may submit a request to the governing body of the county, city or 21
town in which the business would operate for an endorsement of an 22
application by the person to the Office of Economic Development 23
for a partial abatement of one or more of the taxes imposed pursuant 24
to chapter 361 of NRS or the local sales and use taxes. The 25
governing body of the county, city or town shall provide notice of 26
the request to the board of trustees of the school district in which the 27
business would operate. The notice must set forth the date, time and 28
location of the hearing at which the governing body will consider 29
whether to endorse the application. As used in this subsection, 30
“local sales and use taxes” means the taxes imposed on the gross 31
receipts of any retailer from the sale of tangible personal property 32
sold at retail, or stored, used or otherwise consumed, in the political 33
subdivision in which the business is located, except the taxes 34
imposed by the Sales and Use Tax Act and the Local School 35
Support Tax Law. 36
2. The governing body of a county, city or town shall develop 37
procedures for: 38
(a) Evaluating whether such an abatement would be beneficial 39
for the economic development of the county, city or town. 40
(b) Issuing a certificate of endorsement for an application for 41
such an abatement that is found to be beneficial for the economic 42
development of the county, city or town. 43
3. A person whose application has been endorsed by the 44
governing body of the county, city or town, as applicable, pursuant 45
– 32 –
- *AB226_R1*
to this section may submit the application to the Office of Economic 1
Development. The Office shall approve the application if the Office 2
makes the following determinations: 3
(a) The business is consistent with: 4
(1) The State Plan for Economic Development developed by 5
the Administrator pursuant to subsection 2 of NRS 231.053; and 6
(2) Any guidelines adopted by the Administrator to 7
implement the State Plan for Economic Development. 8
(b) Not later than 1 year after the date on which the application 9
was received by the Office, the applicant has executed an agreement 10
with the Office which states: 11
(1) The date on which the abatement becomes effective, as 12
agreed to by the applicant and the Office, which must not be earlier 13
than the date on which the Office received the application and not 14
later than 1 year after the date on which the Office approves the 15
application; and 16
(2) That the business will, after the date on which the 17
abatement becomes effective: 18
(I) Commence operation and continue in operation in the 19
historically underutilized business zone, as defined in 15 U.S.C. § 20
632, redevelopment area created pursuant to chapter 279 of NRS, 21
area eligible for a community development block grant pursuant to 22
24 C.F.R. Part 570 or enterprise community established pursuant to 23
24 C.F.R. Part 597 for a period specified by the Office, which must 24
be at least 5 years; and 25
(II) Continue to meet the eligibility requirements set forth 26
in this subsection. 27
The agreement must bind successors in interest of the business 28
for the 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 will operate. 33
(d) The applicant invested or commits to invest a minimum of 34
$500,000 in capital assets that will be retained at the location of the 35
business in the historically underutilized business zone, as defined 36
in 15 U.S.C. § 632, redevelopment area created pursuant to chapter 37
279 of NRS, area eligible for a community development block grant 38
pursuant to 24 C.F.R. Part 570 or enterprise community established 39
pursuant to 24 C.F.R. Part 597 until at least the date which is 5 years 40
after the date on which the abatement becomes effective. 41
(e) The applicant has certified in the application that the 42
business will, if the application is approved: 43
(1) Collaborate with the community in which the business 44
is located; and 45
– 33 –
- *AB226_R1*
(2) Submit a community benefits agreement to the Office 1
not later than 2 years after the date on which the Office approves 2
the application. 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; 7
(b) The Nevada Tax Commission; and 8
(c) If the partial abatement is from the property tax imposed 9
pursuant to chapter 361 of NRS, the county treasurer of the county 10
in which the business will be located. 11
5. If the Office of Economic Development approves an 12
application for a partial abatement pursuant to this section: 13
(a) The partial abatement must be for a duration of not less than 14
1 year but not more than 5 years. 15
(b) If the abatement is from the property tax imposed pursuant 16
to chapter 361 of NRS, the partial abatement must not exceed 75 17
percent of the taxes on personal property payable by a business each 18
year pursuant to that chapter. 19
6. If an applicant for a partial abatement pursuant to this 20
section fails to execute the agreement described in paragraph (b) of 21
subsection 3 within 1 year after the date on which the application 22
was received by the Office, the applicant shall not be approved for a 23
partial abatement pursuant to this section unless the applicant 24
submits a new request pursuant to subsection 1. 25
7. If a business whose partial abatement has been approved 26
pursuant to this section and is in effect ceases: 27
(a) To meet the eligibility requirements for the partial 28
abatement; or 29
(b) Operation before the time specified in the agreement 30
described in paragraph (b) of subsection 3, 31
the business shall repay to the Department of Taxation or, if the 32
partial abatement was from the property tax imposed pursuant to 33
chapter 361 of NRS, to the county treasurer, the amount of the 34
partial abatement that was allowed pursuant to this section before 35
the failure of the business to comply unless the Nevada Tax 36
Commission determines that the business has substantially complied 37
with the requirements of this section. Except as otherwise provided 38
in NRS 360.232 and 360.320, the business shall, in addition to the 39
amount of the partial abatement required to be paid pursuant to this 40
subsection, 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 abatement 44
not been approved until the date of payment of the tax. 45
– 34 –
- *AB226_R1*
8. The Office of Economic Development may adopt such 1
regulations as the Office determines to be necessary or advisable to 2
carry out the provisions of this section. 3
9. An applicant for an abatement who is aggrieved by a final 4
decision of the Office of Economic Development may petition for 5
judicial review in the manner provided in chapter 233B of NRS. 6
Sec. 14. NRS 274.320 is hereby amended to read as follows: 7
274.320 1. A person who intends to expand a business in this 8
State within: 9
(a) A historically underutilized business zone, as defined in 15 10
U.S.C. § 632; 11
(b) A redevelopment area created pursuant to chapter 279 of 12
NRS; 13
(c) An area eligible for a community development block grant 14
pursuant to 24 C.F.R. Part 570; or 15
(d) An enterprise community established pursuant to 24 C.F.R. 16
Part 597, 17
may submit a request to the governing body of the county, city or 18
town in which the business operates for an endorsement of an 19
application by the person to the Office of Economic Development 20
for a partial abatement of the local sales and use taxes imposed on 21
capital equipment. The governing body of the county, city or town 22
shall provide notice of the request to the board of trustees of the 23
school district in which the business operates. The notice must set 24
forth the date, time and location of the hearing at which the 25
governing body will consider whether to endorse the application. As 26
used in this subsection, “local sales and use taxes” means the taxes 27
imposed on the gross receipts of any retailer from the sale of 28
tangible personal property sold at retail, or stored, used or otherwise 29
consumed, in the political subdivision in which the business is 30
located, except the taxes imposed by the Sales and Use Tax Act and 31
the Local School Support Tax Law. 32
2. The governing body of a county, city or town shall develop 33
procedures for: 34
(a) Evaluating whether such an abatement would be beneficial 35
for the economic development of the county, city or town. 36
(b) Issuing a certificate of endorsement for an application for 37
such an abatement that is found to be beneficial for the economic 38
development of the county, city or town. 39
3. A person whose application has been endorsed by the 40
governing body of the county, city or town, as applicable, pursuant 41
to this section may submit the application to the Office of Economic 42
Development. The Office shall approve the application if the Office 43
makes the following determinations: 44
(a) The business is consistent with: 45
– 35 –
- *AB226_R1*
(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 date on which the abatement becomes effective, as 8
agreed to by the applicant and the Office, which must not be earlier 9
than the date on which the Office received the application and not 10
later than 1 year after the date on which the Office approves the 11
application; and 12
(2) That the business will, after the date on which the 13
abatement becomes effective: 14
(I) Continue in operation in the historically underutilized 15
business zone, as defined in 15 U.S.C. § 632, redevelopment area 16
created pursuant to chapter 279 of NRS, area eligible for a 17
community development block grant pursuant to 24 C.F.R. Part 570 18
or enterprise community established pursuant to 24 C.F.R. Part 597 19
for a period specified by the Office, which must be at least 5 years; 20
and 21
(II) Continue to meet the eligibility requirements set forth 22
in this subsection. 23
The agreement must bind successors in interest of the business 24
for the specified period. 25
(c) The business is registered pursuant to the laws of this State 26
or the applicant commits to obtain a valid business license and all 27
other permits required by the county, city or town in which the 28
business operates. 29
(d) The applicant invested or commits to invest a minimum of 30
$250,000 in capital equipment that will be retained at the location of 31
the business in the historically underutilized business zone, as 32
defined in 15 U.S.C. § 632, redevelopment area created pursuant to 33
chapter 279 of NRS, area eligible for a community development 34
block grant pursuant to 24 C.F.R. Part 570 or enterprise community 35
established pursuant to 24 C.F.R. Part 597 until at least the date 36
which is 5 years after the date on which the abatement becomes 37
effective. 38
(e) The applicant has certified in the application that the 39
business will, if the application is approved: 40
(1) Collaborate with the community in which the business 41
is located; and 42
(2) Submit a community benefits agreement to the Office 43
not later than 2 years after the date on which the Office approves 44
the application. 45
– 36 –
- *AB226_R1*
4. If the Office of Economic Development approves an 1
application for a partial abatement, the Office shall immediately 2
forward a certificate of eligibility for the abatement to: 3
(a) The Department of Taxation; and 4
(b) The Nevada Tax Commission. 5
5. If the Office of Economic Development approves an 6
application for a partial abatement pursuant to this section: 7
(a) The partial abatement must be for a duration of not less than 8
1 year but not more than 5 years. 9
(b) If the abatement is from the property tax imposed pursuant 10
to chapter 361 of NRS, the partial abatement must not exceed 75 11
percent of the taxes on personal property payable by a business each 12
year pursuant to that chapter. 13
6. If an applicant for a partial abatement pursuant to this 14
section fails to execute the agreement described in paragraph (b) of 15
subsection 3 within 1 year after the date on which the application 16
was received by the Office, the applicant shall not be approved for a 17
partial abatement pursuant to this section unless the applicant 18
submits a new request pursuant to subsection 1. 19
7. If a business whose partial abatement has been approved 20
pursuant to this section and is in effect ceases: 21
(a) To meet the eligibility requirements for the partial 22
abatement; or 23
(b) Operation before the time specified in the agreement 24
described in paragraph (b) of subsection 3, 25
the business shall repay to the Department of Taxation the 26
amount of the partial abatement that was allowed pursuant to this 27
section before the failure of the business to comply unless the 28
Nevada Tax Commission determines that the business has 29
substantially complied with the requirements of this section. Except 30
as otherwise provided in NRS 360.232 and 360.320, the business 31
shall, in addition to the amount of the partial abatement required to 32
be paid pursuant to this subsection, pay interest on the amount due 33
at the rate most recently established pursuant to NRS 99.040 for 34
each month, or portion thereof, from the last day of the month 35
following the period for which the payment would have been made 36
had the partial abatement not been approved until the date of 37
payment of the tax. 38
8. The Office of Economic Development may adopt such 39
regulations as the Office determines to be necessary or advisable to 40
carry out the provisions of this section. 41
9. An applicant for an abatement who is aggrieved by a final 42
decision of the Office of Economic Development may petition for 43
judicial review in the manner provided in chapter 233B of NRS. 44
– 37 –
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Sec. 15. NRS 274.330 is hereby amended to read as follows: 1
274.330 1. A person who owns a business which is located 2
within an enterprise community established pursuant to 24 C.F.R. 3
Part 597 in this State may submit a request to the governing body of 4
the county, city or town in which the business is located for an 5
endorsement of an application by the person to the Office of 6
Economic Development for a partial abatement of one or more of 7
the taxes imposed pursuant to chapter 361 of NRS or the local sales 8
and use taxes. The governing body of the county, city or town shall 9
provide notice of the request to the board of trustees of the school 10
district in which the business operates. The notice must set forth the 11
date, time and location of the hearing at which the governing body 12
will consider whether to endorse the application. As used in this 13
subsection, “local sales and use taxes” means the taxes imposed on 14
the gross receipts of any retailer from the sale of tangible personal 15
property sold at retail, or stored, used or otherwise consumed, in the 16
political subdivision in which the business is located, except the 17
taxes imposed by the Sales and Use Tax Act and the Local School 18
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 date on which the abatement becomes effective, as 40
agreed to by the applicant and the Office, which must not be earlier 41
than the date on which the Office received the application and not 42
later than 1 year after the date on which the Office approves the 43
application; and 44
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(2) That the business will, after the date on which the 1
abatement becomes effective: 2
(I) Continue in operation in the enterprise community for 3
a period specified by the Office, which must be at least 5 years; and 4
(II) Continue to meet the eligibility requirements set forth 5
in this subsection. 6
The agreement must bind successors in interest of the business 7
for the specified period. 8
(c) The business is registered pursuant to the laws of this State 9
or the applicant commits to obtain a valid business license and all 10
other permits required by the county, city or town in which the 11
business operates. 12
(d) The business: 13
(1) Employs one or more dislocated workers who reside in 14
the enterprise community; and 15
(2) Pays such employees a wage of not less than 100 percent 16
of the federally designated level signifying poverty for a family of 17
four persons and provides medical benefits to the employees and 18
their dependents which meet the minimum requirements for medical 19
benefits established by the Office. 20
(e) The applicant has certified in the application that the 21
business will, if the application is approved: 22
(1) Collaborate with the community in which the business 23
is located; and 24
(2) Submit a community benefits agreement to the Office 25
not later than 2 years after the date on which the Office approves 26
the application. 27
4. If the Office of Economic Development approves an 28
application for a partial abatement, the Office shall: 29
(a) Determine the percentage of employees of the business 30
which meet the requirements of paragraph (d) of subsection 3 and 31
grant a partial abatement equal to that percentage; and 32
(b) Immediately forward a certificate of eligibility for the 33
abatement to: 34
(1) The Department of Taxation; 35
(2) The Nevada Tax Commission; and 36
(3) If the partial abatement is from the property tax imposed 37
pursuant to chapter 361 of NRS, the county treasurer of the county 38
in which the business is located. 39
5. If the Office of Economic Development approves an 40
application for a partial abatement pursuant to this section: 41
(a) The partial abatement must be for a duration of not less than 42
1 year but not more than 5 years. 43
(b) If the abatement is from the property tax imposed pursuant 44
to chapter 361 of NRS, the partial abatement must not exceed 75 45
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percent of the taxes on personal property payable by a business each 1
year pursuant to that chapter. 2
6. If an applicant for a partial abatement pursuant to this 3
section fails to execute the agreement described in paragraph (b) of 4
subsection 3 within 1 year after the date on which the application 5
was received by the Office, the applicant shall not be approved for a 6
partial abatement pursuant to this section unless the applicant 7
submits a new request pursuant to subsection 1. 8
7. If a business whose partial abatement has been approved 9
pursuant to this section and is in effect ceases: 10
(a) To meet the eligibility requirements for the partial 11
abatement; or 12
(b) Operation before the time specified in the agreement 13
described in paragraph (b) of subsection 3, 14
the business shall repay to the Department of Taxation or, if the 15
partial abatement was from the property tax imposed pursuant to 16
chapter 361 of NRS, to the county treasurer, the amount of the 17
partial abatement that was allowed pursuant to this section before 18
the failure of the business to comply unless the Nevada Tax 19
Commission determines that the business has substantially complied 20
with the requirements of this section. Except as otherwise provided 21
in NRS 360.232 and 360.320, the business shall, in addition to the 22
amount of the partial abatement required to be paid pursuant to this 23
subsection, 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 abatement 27
not been approved until the date of payment of the tax. 28
8. The Office of Economic Development: 29
(a) Shall adopt regulations relating to the minimum level of 30
benefits that a business must provide to its employees to qualify for 31
an abatement pursuant to this section. 32
(b) May adopt such other regulations as the Office determines to 33
be necessary or advisable to carry out the provisions of this section. 34
9. An applicant for an abatement who is aggrieved by a final 35
decision of the Office of Economic Development may petition for 36
judicial review in the manner provided in chapter 233B of NRS. 37
10. As used in this section, “dislocated worker” means a person 38
who: 39
(a) Has been terminated, laid off or received notice of 40
termination or layoff from employment; 41
(b) Is eligible for or receiving or has exhausted his or her 42
entitlement to unemployment compensation; 43
(c) Has been dependent on the income of another family 44
member but is no longer supported by that income; 45
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(d) Has been self-employed but is no longer receiving an income 1
from self-employment because of general economic conditions in 2
the community or natural disaster; or 3
(e) Is currently unemployed and unable to return to a previous 4
industry or occupation. 5
Sec. 16. The amendatory provisions of this act apply only to 6
an application for an abatement from taxation for which a person 7
applies on or after July 1, 2025. 8
Sec. 17. 1. This section becomes effective upon passage and 9
approval. 10
2. Sections 1 to 16, inclusive, of this act become effective: 11
(a) Upon passage and approval for the purpose of adopting any 12
regulations and performing any other preparatory administrative 13
tasks that are necessary to carry out the provisions of this act; and 14
(b) On July 1, 2025, for all other purposes. 15
3. Section 6 of this act expires by limitation on June 30, 2032. 16
4. Section 2 of this act expires by limitation on June 30, 2035. 17
5. Section 8 of this act expires by limitation on June 30, 2036. 18
6. Section 3 of this act expires by limitation on December 31, 19
2056. 20
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