EXEMPT
(Reprinted with amendments adopted on April 21, 2025)
FIRST REPRINT S.B. 364
- *SB364_R1*
SENATE BILL NO. 364–SENATOR CRUZ-CRAWFORD
MARCH 17, 2025
____________
Referred to Committee on Revenue and
Economic Development
SUMMARY—Revises provisions relating to economic
development. (BDR 32-799)
FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
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; authorizing certain qualified
businesses in this State to apply to the Office of Economic
Development for a partial abatement from certain taxes
imposed in connection with the development of railroad
tracks, railroad spurs and other railroad-related
infrastructure; prescribing certain requirements and
conditions relating to the partial abatement; and providing
other matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law authorizes the Office of Economic Development to grant a partial 1
abatement of property taxes, business taxes or sales and use taxes to a business that 2
locates or expands in this State and meets certain qualifications for the partial 3
abatement. (NRS 274.310, 274.320, 274.330, 360.750, 360.753, 360.754, 4
701A.210) Section 1 of this bill authorizes the owner of a business or a person who 5
intends to locate or expand a business in this State to apply to the Office for a 6
partial abatement of property taxes or local sales and use taxes, or an abatement of 7
modified business taxes, imposed with respect to the construction, operation, 8
manufacture, reconstruction, maintaining, repairing or laying of railroad tracks, 9
railroad spurs and other physical infrastructure in this State necessary to provide 10
rail service. Section 1 requires the Office to approve a partial abatement for a 11
period of not more than 10 years if the Office makes certain determinations 12
regarding the applicant, including that the applicant: (1) has entered into an 13
agreement with the Office addressing certain matters; (2) will provide certain 14
wages and other benefits to the applicant’s employees; (3) will increase the number 15
of full-time employees employed by the applicant in this State; and (4) will make 16
certain new capital investments or maintain and possess tangible personal property 17
in this State which exceeds a specified value. 18
– 2 –
- *SB364_R1*
Section 2 of this bill requires the Department of Taxation to, during certain 19
investigations of a person claiming an abatement of taxes pursuant to section 1, 20
investigate whether the person meets the requirements for eligibility for the 21
abatement. Section 3 of this bill requires the agreement between a business granted 22
an abatement pursuant to section 1 and the Office to include an agreement: (1) to 23
allow the Department of Taxation to audit the business in order to assess whether 24
the business is in full compliance of the requirements for the abatement; and (2) to 25
the public disclosure of an audit report, under certain conditions. 26
Section 4 of this bill requires that the Office take any action on an application 27
for a partial abatement of taxes pursuant to section 1 at a public meeting conducted 28
for that purpose after providing notice of the public meeting not less than 30 days 29
before the meeting. Section 5 of this bill requires the Office to issue a document to 30
a business whose application for a partial abatement of sales and use taxes has been 31
approved that: (1) can be presented to retailers who are responsible for collecting 32
sales and use taxes; and (2) clearly states the rate of sales and use tax that the 33
business is required to pay to the retailer. 34
Existing law requires the Office to biennially prepare and submit to the 35
Legislature a report containing certain information relating to the abatements from 36
taxation that the Office has approved. (NRS 231.0685) Section 7 of this bill 37
requires that information relating to partial abatements approved by the Office 38
pursuant to section 1 be included in such reports. 39
Existing law enacts the Nevada New Markets Jobs Act, which entitles certain 40
businesses to receive credit against certain taxes in exchange for investing in a 41
qualified community development entity, which in turn must make certain capital 42
or equity investments in, or loans to, qualified active low-income community 43
businesses. (Chapter 231A of NRS) Existing law provides that a business that has 44
received certain abatements from taxation from the Office is not a “qualified active 45
low-income community business” for purposes of the Nevada New Markets Jobs 46
Act, unless the business has waived the abatement and meets certain other 47
qualifications. (NRS 231A.155, 231A.170) Sections 8 and 9 of this bill provide 48
that a business that has received a partial tax abatement pursuant to section 1 is not 49
a qualified active low-income community business, unless the business waives the 50
abatement and meets certain other qualifications. 51
Existing law requires the Office to periodically conduct an analysis of the 52
relative costs and benefits of each incentive for economic development, including 53
any abatement from taxes, approved by the Office and in effect during the 54
immediately preceding 2 fiscal years. (NRS 353.207) Section 10 of this bill 55
requires the Office to perform such an analysis for the partial abatements approved 56
pursuant to section 1. 57
Section 12 of this bill provides that the provisions of sections 5-11 of this bill 58
expire by limitation on June 30, 2045, to comply with the requirement of the 59
Nevada Constitution that the Legislature must provide a specific expiration date for 60
certain tax exemptions. (Nev. Const. Art. 10, § 6) Accordingly, section 6 of this bill 61
exempts section 1 from provisions of law providing that any legislation which 62
requires or authorizes the Office to approve any abatement of taxes expires 10 years 63
after the effective date of such legislation. (NRS 218D.355) 64
– 3 –
- *SB364_R1*
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 360 of NRS is hereby amended by adding 1
thereto a new section to read as follows: 2
1. An owner of a business or a person who intends to locate 3
or expand a business in this State may apply to the Office of 4
Economic Development pursuant to this section for a partial 5
abatement of one or more of: 6
(a) The property taxes imposed on personal property used to 7
construct, operate, manufacture, reconstruct, maintain, repair or 8
lay railroad tracks, railroad spurs and other physical 9
infrastructure in this State necessary to provide rail service or 10
qualifying railroad real property; 11
(b) The local sales and use taxes imposed on the purchase of 12
tangible personal property used to construct, operate, 13
manufacture, reconstruct, maintain, repair or lay railroad tracks, 14
railroad spurs and other physical infrastructure in this State 15
necessary to provide rail service; or 16
(c) The taxes imposed by chapter 363B of NRS on the wages 17
paid by an employer to full-time employees who construct, operate, 18
manufacture, reconstruct, maintain, repair or lay railroad tracks, 19
railroad spurs and other physical infrastructure in this State 20
necessary to provide rail service. 21
2. Notwithstanding the provisions of any law to the contrary 22
and except as otherwise provided in subsection 3, the Office of 23
Economic Development shall approve an application for a partial 24
abatement if the Office makes the following determinations: 25
(a) Not later than 1 year after the date on which the 26
application was received by the Office, the applicant has executed 27
an agreement with the Office which: 28
(1) Complies with the requirements of NRS 360.755; 29
(2) States the date on which the partial abatement becomes 30
effective, as agreed to by the applicant and the Office, which must 31
be not earlier than the date on which the Office received the 32
application and not later than 1 year after the date on which the 33
Office approves the application; 34
(3) States that the business will, after the date on which a 35
certificate of eligibility for the partial abatement is issued pursuant 36
to subsection 4, continue in operation in this State for a period 37
specified by the Office, which must be not less than 5 years, and 38
will continue to meet the eligibility requirements set forth in this 39
subsection; and 40
(4) Binds any successor in interest of the applicant for the 41
specified period; 42
– 4 –
- *SB364_R1*
(b) The business is registered pursuant to the laws of this State 1
or the applicant commits to obtaining a valid business license and 2
all other permits required by the county, city or town in which the 3
business operates; 4
(c) The average hourly wage that will be paid by the business 5
to its employees in this State during the period of partial 6
abatement is not less than 100 percent of the average statewide 7
hourly wage as established by the Employment Security Division 8
of the Department of Employment, Training and Rehabilitation on 9
July 1 of each fiscal year; 10
(d) The business will, by the eighth calendar quarter following 11
the calendar quarter in which the partial abatement becomes 12
effective, offer a health insurance plan for all employees that 13
includes an option for health insurance coverage for dependents 14
of the employees, and the health care benefits the business offers 15
to its employees in this State will meet the minimum requirements 16
for health care benefits established by the Office; 17
(e) If the business is: 18
(1) A new business, it will have 10 or more full-time 19
employees in this State on the payroll of the business within 1 year 20
after receiving its certificate of eligibility for a partial abatement; 21
or 22
(2) An existing business, it will increase its number of full-23
time employees in this State on the payroll of the business by 10 24
percent or six employees, whichever is greater, within 1 year after 25
receiving its certificate of eligibility for a partial abatement; 26
(f) The business meets at least one of the following 27
requirements: 28
(1) The business will make a new capital investment of at 29
least $250,000 in this State within 1 year after receiving its 30
certificate of eligibility for a partial abatement; and 31
(2) The business will maintain and possess in this State 32
tangible personal property having a value of not less than 33
$5,000,000 during the period of partial abatement; and 34
(g) If the application is for the partial abatement of the taxes 35
imposed by the Local School Support Tax Law, the application 36
has been approved by the vote of at least two-thirds of the 37
members of the Board of Economic Development created by 38
NRS 231.033. 39
3. The Office of Economic Development: 40
(a) Shall approve or deny an application submitted pursuant to 41
this section and notify the applicant of its decision not later than 42
100 days after receiving the application. 43
(b) Must not: 44
– 5 –
- *SB364_R1*
(1) Consider an application for a partial abatement 1
submitted pursuant to this section unless the Office has requested 2
a letter of acknowledgment of the request for the partial abatement 3
from any affected county, school district, city or town and has 4
complied with the requirements of NRS 360.757; or 5
(2) Approve a partial abatement for any applicant for a 6
period of more than 10 years. 7
4. If the Office of Economic Development approves an 8
application for a partial abatement pursuant to this section, the 9
Office shall immediately forward a certificate of eligibility for the 10
partial abatement to: 11
(a) The Department; 12
(b) The Nevada Tax Commission; and 13
(c) If the partial abatement is from property taxes imposed 14
pursuant to chapter 361 of NRS, the appropriate county treasurer. 15
5. An applicant for a partial abatement pursuant to this 16
section or an existing business whose partial abatement is in effect 17
shall, upon the request of the Executive Director of the Office of 18
Economic Development, furnish the Executive Director with 19
copies of all records necessary to verify that the applicant meets 20
the requirements of subsection 2. 21
6. If an applicant for a partial abatement pursuant to this 22
section fails to execute the agreement described in paragraph (a) 23
of subsection 2 within 1 year after the date on which the 24
application was received by the Office, the applicant shall not be 25
approved for a partial abatement pursuant to this section unless 26
the applicant submits a new application. 27
7. If a business whose partial abatement has been approved 28
pursuant to this section and whose partial abatement is in effect 29
ceases: 30
(a) To meet the requirements set forth in subsection 2; or 31
(b) Operation before the time specified in the agreement 32
described in paragraph (a) of subsection 2, 33
the business shall repay to the Department or, if the partial 34
abatement was from property taxes, to the appropriate county 35
treasurer, the amount of the partial abatement that was allowed 36
pursuant to this section before the failure of the business to 37
comply, unless the Nevada Tax Commission determines that the 38
business has substantially complied with the requirements of this 39
section. Except as otherwise provided in NRS 360.232 and 40
360.320, the business shall, in addition to the amount of the 41
partial abatement required to be repaid pursuant to this 42
subsection, pay interest on the amount due at the rate most 43
recently established pursuant to NRS 99.040 for each month, or 44
portion thereof, from the last day of the month following the 45
– 6 –
- *SB364_R1*
period for which the payment would have been made had the 1
partial abatement not been approved until the date of payment of 2
the tax. 3
8. The Office of Economic Development may adopt such 4
regulations as the Office determines to be necessary to carry out 5
the provisions of this section. 6
9. The Nevada Tax Commission may adopt such regulations 7
as the Commission determines are necessary to carry out the 8
provisions of this section. 9
10. An applicant for a partial abatement who is aggrieved by 10
a final decision of the Office of Economic Development may 11
petition a court of competent jurisdiction to review the decision in 12
the manner provided in chapter 233B of NRS. 13
11. As used in this section: 14
(a) “Full-time employee” means a person who is in a 15
permanent position of employment and works an average of 30 16
hours per week during the applicable period set forth in 17
subparagraph (3) of paragraph (a) of subsection 2. 18
(b) “Local sales and use taxes” means any taxes imposed on 19
the gross receipts of any retailer from the sale of tangible personal 20
property sold at retail, or stored, used or otherwise consumed, in 21
any political subdivision of this State, except the taxes imposed by 22
the Sales and Use Tax Act. 23
(c) “Property taxes” means any taxes levied by the State or a 24
local government pursuant to the provisions of chapter 361 of 25
NRS. 26
(d) “Qualifying railroad real property” means real property: 27
(1) On which railroad tracks or railroad spurs which are 28
used to provide rail service are located, including the area between 29
the rails. 30
(2) Which is adjacent to a railroad track or railroad spur 31
which is used to provide rail service, up to 1 foot horizontally from 32
the outside edge of the rails. 33
Sec. 2. NRS 360.225 is hereby amended to read as follows: 34
360.225 1. During the course of an investigation undertaken 35
pursuant to NRS 360.130 of a person claiming: 36
(a) A partial abatement of property taxes pursuant to 37
NRS 361.0687; 38
(b) An exemption from taxes pursuant to NRS 363B.120; 39
(c) A deferral of the payment of taxes on the sale of eligible 40
property pursuant to NRS 372.397 or 374.402; 41
(d) An abatement of taxes on the gross receipts from the sale, 42
storage, use or other consumption of eligible machinery or 43
equipment pursuant to NRS 374.357; 44
– 7 –
- *SB364_R1*
(e) A partial abatement of taxes pursuant to NRS 360.754 on or 1
before December 31, 2056; 2
(f) A partial abatement of taxes pursuant to section 1 of this 3
act on or before June 30, 2045; 4
(g) A partial abatement of taxes pursuant to NRS 360.890 on or 5
before June 30, 2032; or 6
[(g)] (h) An abatement of taxes pursuant to NRS 360.950 on or 7
before June 30, 2036, 8
the Department shall investigate whether the person meets the 9
eligibility requirements for the abatement, partial abatement, 10
exemption or deferral that the person is claiming. 11
2. If the Department finds that the person does not meet the 12
eligibility requirements for the abatement, exemption or deferral 13
which the person is claiming, the Department shall report its 14
findings to the Office of Economic Development and take any other 15
necessary actions. 16
Sec. 3. NRS 360.755 is hereby amended to read as follows: 17
360.755 1. If the Office of Economic Development approves 18
an application by a business for an abatement of taxes pursuant to 19
NRS 360.950 or a partial abatement pursuant to NRS 360.750, 20
360.753, 360.754 or 360.890, or section 1 of this act, the agreement 21
with the Office must provide that the business: 22
(a) Agrees to allow the Department to conduct audits of the 23
business to determine whether the business is in full compliance 24
with the requirements for the abatement or partial abatement; and 25
(b) Consents to the disclosure of the audit reports in the manner 26
set forth in this section. 27
2. If the Department conducts an audit of the business to 28
determine whether the business is in full compliance with the 29
requirements for the abatement or partial abatement, the Department 30
shall, upon request, provide the audit report to the Office of 31
Economic Development. 32
3. Until the business has exhausted all appeals to the 33
Department and the Nevada Tax Commission relating to the audit, 34
the information contained in the audit report provided to the Office 35
of Economic Development: 36
(a) Is confidential proprietary information of the business; 37
(b) Is not a public record; and 38
(c) Must not be disclosed to any person who is not an officer or 39
employee of the Office of Economic Development unless the 40
business consents to the disclosure. 41
4. After the business has exhausted all appeals to the 42
Department and the Nevada Tax Commission relating to the audit: 43
(a) The audit report provided to the Office of Economic 44
Development is a public record; and 45
– 8 –
- *SB364_R1*
(b) Upon request by any person, the Executive Director of the 1
Office of Economic Development shall disclose the audit report to 2
the person who made the request, except for any information in the 3
audit report that is protected from disclosure pursuant to 4
subsection 5. 5
5. Before the Executive Director of the Office of Economic 6
Development discloses the audit report to the public, the business 7
may submit a request to the Executive Director to protect from 8
disclosure any information in the audit report which, under 9
generally accepted business practices, would be considered a trade 10
secret or other confidential proprietary information of the business. 11
After consulting with the business, the Executive Director shall 12
determine whether to protect the information from disclosure. The 13
decision of the Executive Director is final and is not subject to 14
judicial review. If the Executive Director determines to protect the 15
information from disclosure, the protected information: 16
(a) Is confidential proprietary information of the business; 17
(b) Is not a public record; 18
(c) Must be redacted by the Executive Director from any audit 19
report that is disclosed to the public; and 20
(d) Must not be disclosed to any person who is not an officer or 21
employee of the Office of Economic Development unless the 22
business consents to the disclosure. 23
Sec. 4. NRS 360.757 is hereby amended to read as follows: 24
360.757 1. The Office of Economic Development shall not 25
take any action on an application for any abatement of taxes 26
pursuant to NRS 274.310, 274.320, 274.330, 360.750, 360.753 or 27
360.754 or section 1 of this act or any other specific statute unless 28
the Office: 29
(a) Takes that action at a public meeting conducted for that 30
purpose; and 31
(b) At least 30 days before the meeting, provides notice of the 32
application to: 33
(1) The governing body of the county, the board of trustees 34
of the school district and the governing body of the city or town, if 35
any, in which the pertinent business is or will be located; 36
(2) The governing body of any other political subdivision 37
that could be affected by the abatement; and 38
(3) The general public. 39
2. The notice required by this section must set forth the date, 40
time and location of the meeting at which the Office of Economic 41
Development will consider the application. 42
3. The Office of Economic Development shall adopt 43
regulations relating to the notice required by this section. 44
– 9 –
- *SB364_R1*
Sec. 5. NRS 360.7575 is hereby amended to read as follows: 1
360.7575 1. If the Office of Economic Development 2
approves an application for an abatement of sales and use taxes 3
pursuant to NRS 360.950 or a partial abatement of any sales and use 4
taxes pursuant to NRS 274.310, 274.320, 274.330, 360.750, 5
360.753, 360.754 or 360.890, or section 1 of this act, the 6
Department shall issue to the business a document certifying the 7
abatement or partial abatement which can be presented to retailers at 8
the time of purchase. The document must clearly state that the 9
business is not required to pay sales and use taxes or the rate of sales 10
and use tax that the business is required to pay. 11
2. If the Department has issued to a business a document 12
pursuant to subsection 1 and the business pays an amount of sales 13
and use taxes for which the business was entitled to an abatement 14
because the business fails to present the document, the business may 15
apply to the Department for a refund of the amount of sales and use 16
tax paid for which the business was entitled to an abatement. If the 17
Department has issued to a business a document pursuant to 18
subsection 1 and the failure of the business to present the document 19
results in the business paying the full amount of sales and use tax on 20
50 percent or more of the purchases for which the business was 21
eligible for the abatement, the Department shall impose on the 22
business a penalty equal to 10 percent of the total amount of the 23
abatement. The Department shall distribute the proceeds of any 24
penalty imposed pursuant to this subsection to each local 25
government affected by a refund issued pursuant to this subsection 26
in proportion to the amount of the refunds for which the affected 27
local government is responsible. 28
3. If, after submitting an application for an abatement of sales 29
and use taxes pursuant to NRS 360.950 or a partial abatement of any 30
sales and use taxes pursuant to NRS 360.750, 360.753, 360.754 or 31
360.890 or section 1 of this act and before receiving the document 32
issued pursuant to subsection 1, a business pays an amount of sales 33
and use tax for which the business is entitled to an abatement, the 34
business may apply to the Department for a refund of the amount of 35
sales and use tax which the applicant paid for which the business is 36
entitled to an abatement. 37
4. Notwithstanding any other provision of law, no interest is 38
allowed on a refund made pursuant to subsection 2 or 3. 39
Sec. 6. NRS 218D.355 is hereby amended to read as follows: 40
218D.355 1. Except as otherwise provided in NRS 360.753, 41
360.754, 360.893 and 360.965, and section 1 of this act, any state 42
legislation enacted on or after July 1, 2012, which authorizes or 43
requires the Office of Economic Development to approve any 44
– 10 –
- *SB364_R1*
abatement of taxes or increases the amount of any abatement of 1
taxes which the Office is authorized or required to approve: 2
(a) Expires by limitation 10 years after the effective date of that 3
legislation. 4
(b) Does not apply to: 5
(1) Any taxes imposed pursuant to NRS 374.110 and 6
374.111 or 374.190 and 374.191; or 7
(2) Any entity that receives: 8
(I) Any funding from a governmental entity, other than 9
any private activity bonds as defined in 26 U.S.C. § 141; or 10
(II) Any real or personal property from a governmental 11
entity at no cost or at a reduced cost. 12
(c) Requires each recipient of the abatement to submit to the 13
Department of Taxation, on or before the last day of each even-14
numbered year, a report on whether the recipient is in compliance 15
with the terms of the abatement. The Department of Taxation shall 16
establish a form for the report and may adopt such regulations as it 17
determines to be appropriate to carry out this paragraph. The report 18
must include, without limitation: 19
(1) The date the recipient commenced operation in this State; 20
(2) The number of employees actually employed by the 21
recipient and the average hourly wage of those employees; 22
(3) An accounting of any fees paid by the recipient to the 23
State and to local governmental entities; 24
(4) An accounting of the property taxes paid by the recipient 25
and the amount of those taxes that would have been due if not for 26
the abatement; 27
(5) An accounting of the sales and use taxes paid by the 28
recipient and the amount of those taxes that would have been due if 29
not for the abatement; 30
(6) An accounting of the total capital investment made in 31
connection with the project to which the abatement applies; and 32
(7) An accounting of the total investment in personal 33
property made in connection with the project to which the 34
abatement applies. 35
2. On or before January 15 of each odd-numbered year, the 36
Department of Taxation shall: 37
(a) Based upon the information submitted to the Department of 38
Taxation pursuant to paragraph (c) of subsection 1, prepare a written 39
report of its findings regarding whether the costs of the abatement 40
exceed the benefits of the abatement; and 41
(b) Submit the report to the Director for transmittal to the 42
Legislature. 43
– 11 –
- *SB364_R1*
Sec. 7. NRS 231.0685 is hereby amended to read as follows: 1
231.0685 The Office shall, on or before January 15 of each 2
odd-numbered year, prepare and submit to the Director of the 3
Legislative Counsel Bureau for transmission to the Legislature a 4
report concerning the abatements from taxation that the Office 5
approved pursuant to NRS 274.310, 274.320, 274.330, 360.750, 6
360.753 or 360.754 [.] or section 1 of this act. The report must set 7
forth, for each abatement from taxation that the Office approved 8
during the fiscal years which are 3 fiscal years and 6 fiscal years 9
immediately preceding the submission of the report: 10
1. The dollar amount of the abatement; 11
2. The location of the business for which the abatement was 12
approved; 13
3. The value of infrastructure included as an incentive for the 14
business; 15
4. If applicable, the number of employees that the business for 16
which the abatement was approved employs or will employ; 17
5. Whether the business for which the abatement was approved 18
is a new business or an existing business; 19
6. The economic sector in which the business operates, the 20
number of primary jobs related to the business, the average wage 21
paid to employees of the business and the assessed values of 22
personal property and real property of the business; 23
7. Any information concerning whether the business for which 24
the abatement was approved participates or has participated in a 25
program of workforce development, as defined in NRS 231.146, 26
implemented by the Executive Director; and 27
8. Any other information that the Office determines to be 28
useful. 29
Sec. 8. NRS 231A.155 is hereby amended to read as follows: 30
231A.155 1. For the purposes of NRS 231A.0753, an impact 31
qualified active low-income community business is limited to those 32
businesses which have their principal business operations in this 33
State and: 34
(a) Whose primary North American Industry Classification 35
System classification is within sector 31, 32 or 33 or sector 44 or 45; 36
or 37
(b) Are businesses that have 51 percent or more of its ownership 38
interest held by women, disabled veterans, persons who are lesbian, 39
gay, bisexual or transgender or members of a racial or ethnic 40
minority group. 41
2. A business must be considered an impact qualified active 42
low-income community business for the duration of the impact 43
qualified community development entity’s investment in, or loan to, 44
the business if the entity reasonably expects, at the time it makes the 45
– 12 –
- *SB364_R1*
investment or loan, that the business will continue to satisfy the 1
requirements for being an impact qualified active low-income 2
community business throughout the entire period of the investment 3
or loan. 4
3. Except as otherwise provided in this subsection, the 5
businesses limited by this section do not include any business that 6
derives or projects to derive 15 percent or more of its annual 7
revenue from the rental or sale of real estate. This exclusion does 8
not apply to a business that is controlled by, or under common 9
control with, another business if the second business: 10
(a) Does not derive or project to derive 15 percent or more of its 11
annual revenue from the rental or sale of real estate; and 12
(b) Is the primary tenant of the real estate leased from the first 13
business. 14
4. Except as otherwise provided in subsection 5, the following 15
businesses are not impact qualified active low-income community 16
businesses: 17
(a) A business that has received an abatement from taxation 18
pursuant to NRS 274.310, 274.320, 274.330, 360.750, 360.753 or 19
360.754 [.] or section 1 of this act. 20
(b) An entity that has liability for insurance premium tax on a 21
premium tax report filed pursuant to NRS 680B.030. 22
(c) A business engaged in banking or lending. 23
(d) A massage parlor. 24
(e) A bath house. 25
(f) A tanning salon. 26
(g) A country club. 27
(h) A business operating under a nonrestricted license for 28
gaming issued pursuant to NRS 463.170. 29
(i) A liquor store. 30
(j) A golf course. 31
5. A business that has received an abatement from taxation 32
pursuant to NRS 274.310, 274.320, 274.330, 360.750, 360.753 or 33
360.754 or section 1 of this act is an impact qualified active low-34
income community business if the business elects to waive the 35
abatement and provides written notice of the waiver of the 36
abatement to the Office of Economic Development not later than 37
the due date of the first payment of any tax which would be abated 38
if the abatement became effective. If the business provides the 39
written notice to the Office of Economic Development: 40
(a) Within the period required by this subsection: 41
(1) Any agreement entered into by the business and the 42
Office of Economic Development pursuant to NRS 274.310, 43
274.320, 274.330, 360.750, 360.753 or 360.754 or section 1 of this 44
act is void; and 45
– 13 –
- *SB364_R1*
(2) The Office of Economic Development must forward a 1
copy of the written notice to the Department and each governmental 2
entity or official to whom a copy of the certificate of eligibility for 3
the abatement was forwarded. 4
(b) After the period required by this subsection has expired, the 5
Office of Economic Development must provide written notice to the 6
Department and the business that the abatement has not been waived 7
and the business is not an impact qualified active low-income 8
community business. 9
Sec. 9. NRS 231A.170 is hereby amended to read as follows: 10
231A.170 1. For the purpose of NRS 231A.110, a qualified 11
active low-income community business is limited to those 12
businesses meeting the Small Business Administration size 13
eligibility standards established in 13 C.F.R. §§ 121.101 to 201, 14
inclusive, at the time the qualified low-income community 15
investment is made. A business must be considered a qualified 16
active low-income community business for the duration of the 17
qualified community development entity’s investment in, or loan to, 18
the business if the entity reasonably expects, at the time it makes the 19
investment or loan, that the business will continue to satisfy the 20
requirements for being a qualified active low-income community 21
business, other than the Small Business Administration size 22
standards, throughout the entire period of the investment or loan. 23
2. Except as otherwise provided in this subsection, the 24
businesses limited by this section do not include any business that 25
derives or projects to derive 15 percent or more of its annual 26
revenue from the rental or sale of real estate. This exclusion does 27
not apply to a business that is controlled by, or under common 28
control with, another business if the second business: 29
(a) Does not derive or project to derive 15 percent or more of its 30
annual revenue from the rental or sale of real estate; and 31
(b) Is the primary tenant of the real estate leased from the first 32
business. 33
3. Except as otherwise provided in subsection 4, the following 34
businesses are not qualified active low-income community 35
businesses: 36
(a) A business that has received an abatement from taxation 37
pursuant to NRS 274.310, 274.320, 274.330, 360.750, 360.753 or 38
360.754 [.] or section 1 of this act. 39
(b) An entity that has liability for insurance premium tax on a 40
premium tax report filed pursuant to NRS 680B.030. 41
(c) A business engaged in banking or lending. 42
(d) A massage parlor. 43
(e) A bath house. 44
(f) A tanning salon. 45
– 14 –
- *SB364_R1*
(g) A country club. 1
(h) A business operating under a nonrestricted license for 2
gaming issued pursuant to NRS 463.170. 3
(i) A liquor store. 4
(j) A golf course. 5
4. A business that has received an abatement from taxation 6
pursuant to NRS 274.310, 274.320, 274.330, 360.750, 360.753 or 7
360.754 or section 1 of this act is a qualified active low-income 8
community business if the business elects to waive the abatement 9
and provides written notice of the waiver of the abatement to the 10
Office of Economic Development not later than the due date of the 11
first payment of any tax which would be abated if the abatement 12
became effective. If the business provides the written notice to the 13
Office of Economic Development: 14
(a) Within the period required by this subsection: 15
(1) Any agreement entered into by the business and the 16
Office of Economic Development pursuant to NRS 274.310, 17
274.320, 274.330, 360.750, 360.753 or 360.754 or section 1 of this 18
act is void; and 19
(2) The Office of Economic Development must forward a 20
copy of the written notice to the Department and each governmental 21
entity or official to whom a copy of the certificate of eligibility for 22
the abatement was forwarded. 23
(b) After the period required by this subsection has expired, the 24
Office of Economic Development must provide written notice to the 25
Department and the business that the abatement has not been waived 26
and the business is not a qualified active low-income community 27
business. 28
Sec. 10. NRS 353.207 is hereby amended to read as follows: 29
353.207 1. The Chief shall: 30
(a) Require the Office of Economic Development and the Office 31
of Energy each periodically to conduct an analysis of the relative 32
costs and benefits of each incentive for economic development 33
previously approved by the respective office and in effect during the 34
immediately preceding 2 fiscal years, including, without limitation, 35
any abatement of taxes approved by the Office of Economic 36
Development pursuant to NRS 274.310, 274.320, 274.330, 360.750, 37
360.753, 360.754, 360.890, 360.950, 361.0687, 374.357 or 38
701A.210, or section 1 of this act, to assist the Governor and the 39
Legislature in determining whether the economic benefits of the 40
incentive have accomplished the purposes of the statute pursuant to 41
which the incentive was approved and warrant additional incentives 42
of that kind; 43
– 15 –
- *SB364_R1*
(b) Require each office to report in writing to the Chief the 1
results of the analysis conducted by the office pursuant to paragraph 2
(a); and 3
(c) Establish a schedule for performing and reporting the results 4
of the analysis required by paragraph (a) which ensures that the 5
results of the analysis reported by each office are included in the 6
proposed budget prepared pursuant to NRS 353.205, as required by 7
that section. 8
2. Each report prepared for the Chief pursuant to this section is 9
a public record and is open to inspection pursuant to the provisions 10
of NRS 239.010. 11
Sec. 11. The provisions of subsection 1 of NRS 218D.380 do 12
not apply to any provision of this act which adds or revises a 13
requirement to submit a report to the Legislature. 14
Sec. 12. 1. This section becomes effective upon passage and 15
approval. 16
2. Sections 1 to 11, inclusive, of this act become effective upon 17
passage and approval for the purpose of adopting any regulations 18
and performing any other preparatory administrative tasks that are 19
necessary to carry out the provisions of this act, and on July 1, 2025, 20
for all other purposes, and expire by limitation on June 30, 2045. 21
H