S.B. 385
- *SB385*
SENATE BILL NO. 385–SENATOR TITUS
MARCH 17, 2025
____________
Referred to Committee on Revenue and
Economic Development
SUMMARY—Revises provisions relating to certain transferable tax
credits and certain tax abatements. (BDR 32-826)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Yes.
~
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to taxation; requiring applicants for certain
transferable tax credits and certain tax abatements to
agree to a workforce development plan; prescribing the
requirements for a program of workforce development
implemented under the plan; authorizing the Office of
Economic Development to investigate the recipient of
certain transferable tax credits and certain tax abatements
for compliance with a workforce development plan;
requiring the recipient of certain transferable tax credits
and certain tax abatements to repay the amount of the
credits and abatements if the recipient is not in substantial
compliance with the workforce development plan; and
providing other matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law authorizes the Office of Economic Development to approve 1
transferable tax credits and abatements or partial abatements of certain property 2
taxes, business taxes and sales and use taxes for certain businesses in certain 3
circumstances. The Office is prohibited from approving an application for such 4
credits or abatements unless the applicant satisfies certain criteria and has entered 5
into an agreement with the Office establishing certain terms for the abatement. 6
(NRS 231.1555, 274.310, 274.320, 274.330, 360.750, 360.753, 360.754, 360.759, 7
360.889, 360.945) Sections 1-3, 5 and 9-12 of this bill require an applicant for 8
transferable tax credits or a tax abatement to enter into an agreement with the 9
Office that includes a workforce development plan that provides for the 10
implementation by the applicant of a workforce development program which meets 11
certain requirements, including that the program is provided by certain educational 12
institutions and that the completion of the program will result in certain credentials 13
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or identifiable occupational skills. Sections 1, 2, 4, 6 and 9-12 of this bill: (1) 14
authorize the Office to investigate whether the recipient of an abatement or partial 15
abatement is complying with the terms of the workforce development plan; and (2) 16
require a recipient to repay the amount of the abatement or partial abatement or an 17
amount equal to the amount of transferable tax credits, plus interest, if the 18
Executive Director of the Office determines that the recipient has not substantially 19
complied with the terms of the workforce development plan. Sections 7 and 8 of 20
this bill make conforming changes to update references to provisions renumbered 21
by section 2. Section 13 of this bill makes the requirements of this bill relating to 22
workforce development plans applicable only to an application for certain 23
transferable tax credits or certain abatements made on or after July 1, 2025. 24
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
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and not later than 1 year after the date on which the Office approves 1
the application; 2
(3) State that the business 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, which must be at least 5 years, and 5
will continue to meet the eligibility requirements set forth in this 6
subsection; 7
(4) State that the business will offer primary jobs; [and] 8
(5) Incorporate a workforce development plan that provides 9
for the implementation by the business of a program of workforce 10
development for employees employed in this State by the business 11
that must: 12
(I) Train incumbent employees or be used to recruit, 13
assess and train new employees of the business; 14
(II) Be provided by an institution within the Nevada 15
System of Higher Education, a private postsecondary educational 16
institution, a school district or a charter school; and 17
(III) If completed, result in a postsecondary or industry-18
recognized credential, or an identifiable occupational skill that 19
meets the applicable industry standard; and 20
(6) Bind the successors in interest of the business for the 21
specified period. 22
(c) The business is registered pursuant to the laws of this State 23
or the applicant commits to obtain a valid business license and all 24
other permits required by the county, city or town in which the 25
business operates. 26
(d) Except as otherwise provided in subsection 4, 5 or 6, the 27
average hourly wage that will be paid by the business to its new 28
employees in this State is at least 100 percent of the average 29
statewide hourly wage as established by the Employment Security 30
Division of the Department of Employment, Training and 31
Rehabilitation on July 1 of each fiscal 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) Except as otherwise provided in this subsection and NRS 40
361.0687, if the business is a new business in a county whose 41
population is 100,000 or more or a city whose population is 60,000 42
or more, the business meets at least one of the following 43
requirements: 44
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(1) The business will have 50 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
$1,000,000 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
(g) Except as otherwise provided in NRS 361.0687, if the 14
business is a new business in a county whose population is less than 15
100,000, in an area of a county whose population is 100,000 or more 16
that is located within the geographic boundaries of an area that is 17
designated as rural by the United States Department of Agriculture 18
and at least 20 miles outside of the geographic boundaries of an area 19
designated as urban by the United States Department of Agriculture, 20
or in a city whose population is less than 60,000, the business meets 21
at least one of the following requirements: 22
(1) The business will have 10 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
$250,000 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
(h) If the business is an existing business, the business meets at 36
least one of the following requirements: 37
(1) For a business in: 38
(I) Except as otherwise provided in sub-subparagraph (II), 39
a county whose population is 100,000 or more or a city whose 40
population is 60,000 or more, the business will, by the eighth 41
calendar quarter following the calendar quarter in which the 42
abatement becomes effective, increase the number of employees on 43
its payroll in that county or city by 10 percent more than it 44
employed in the fiscal year immediately preceding the fiscal year in 45
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which the abatement becomes effective or by twenty-five 1
employees, whichever is greater, who will be employed at the 2
location of the business in that county or city until at least the date 3
which is 5 years after the date on which the abatement becomes 4
effective; or 5
(II) A county whose population is less than 100,000, an 6
area of a county whose population is 100,000 or more that is located 7
within the geographic boundaries of an area that is designated as 8
rural by the United States Department of Agriculture and at least 20 9
miles outside of the geographic boundaries of an area designated as 10
urban by the United States Department of Agriculture, or a city 11
whose population is less than 60,000, the business will, by the 12
eighth calendar quarter following the calendar quarter in which the 13
abatement becomes effective, increase the number of employees on 14
its payroll in that county or city by 10 percent more than it 15
employed in the fiscal year immediately preceding the fiscal year in 16
which the abatement becomes effective or by six employees, 17
whichever is greater, who will be employed at the location of the 18
business in that county or city until at least the date which is 5 years 19
after the date on which the abatement becomes effective. 20
(2) The business will expand by making a capital investment 21
in this State, not later than the date which is 2 years after the date on 22
which the abatement becomes effective, in an amount equal to at 23
least 20 percent of the value of the tangible property possessed by 24
the business in the fiscal year immediately preceding the fiscal year 25
in which the abatement becomes effective, and the capital 26
investment will be in capital assets that will be retained at the 27
location of the business in that county or city until at least the date 28
which is 5 years after the date on which the abatement becomes 29
effective. The determination of the value of the tangible property 30
possessed by the business in the immediately preceding fiscal year 31
must be made by the: 32
(I) County assessor of the county in which the business 33
will expand, if the business is locally assessed; or 34
(II) Department, if the business is centrally assessed. 35
(i) The applicant has provided in the application an estimate of 36
the total number of new employees which the business anticipates 37
hiring in this State by the eighth calendar quarter following the 38
calendar quarter in which the abatement becomes effective if the 39
Office approves the application. 40
(j) Except as otherwise provided in subsection 3, if the business 41
will have at least 50 full-time employees on the payroll of the 42
business by the eighth calendar quarter following the calendar 43
quarter in which the abatement becomes effective, the business, by 44
the earlier of the eighth calendar quarter following the calendar 45
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quarter in which the abatement becomes effective or the date on 1
which the business has at least 50 full-time employees on the payroll 2
of the business, has a policy for paid family and medical leave and 3
agrees that all employees who have been employed by the business 4
for at least 1 year will be eligible for at least 12 weeks of paid 5
family and medical leave at a rate of at least 55 percent of the 6
regular wage of the employee. The business will agree in writing 7
that if the Office approves the application, the business will not: 8
(1) Prohibit, interfere with or otherwise discourage an 9
employee from taking paid family and medical leave: 10
(I) For any reason authorized pursuant to the Family and 11
Medical Leave Act of 1993, 29 U.S.C. §§ 2601 et seq. 12
(II) To care for any adult child, sibling or domestic 13
partner of the employee. 14
(2) Discriminate, discipline or discharge an employee for 15
taking paid family and medical leave: 16
(I) For any reason authorized pursuant to the Family and 17
Medical Leave Act of 1993, 29 U.S.C. §§ 2601 et seq. 18
(II) To care for any adult child, sibling or domestic 19
partner of the employee. 20
(3) Prohibit, interfere with or otherwise discourage an 21
employee or other person from bringing a proceeding or testifying 22
in a proceeding against the business for a violation of the policy for 23
paid family and medical leave that is required pursuant to this 24
paragraph. 25
3. For purposes of paragraph (j) of subsection 2, the Office of 26
Economic Development shall determine that a business meets the 27
requirements of that paragraph if the business has a policy for paid 28
family and medical leave for employees on the payroll of the 29
business outside of this State that meets or exceeds the requirements 30
for a policy for paid family and medical leave pursuant to that 31
paragraph and the business agrees in writing that its employees on 32
the payroll in this State are eligible for paid family and medical 33
leave under such policy. 34
4. Notwithstanding the provisions of subsection 2, the Office 35
of Economic Development: 36
(a) Shall not consider an application for a partial abatement 37
pursuant to this section unless the Office has requested a letter of 38
acknowledgment of the request for the abatement from any affected 39
county, school district, city or town. 40
(b) Shall consider the level of health care benefits provided by 41
the business to its employees, the policy of paid family and medical 42
leave provided by the business to its employees, the projected 43
economic impact of the business and the projected tax revenue of 44
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the business after deducting projected revenue from the abated 1
taxes. 2
(c) May, if the Office determines that such action is necessary: 3
(1) Approve an application for a partial abatement pursuant 4
to this section by a business that does not meet the requirements set 5
forth in paragraph (f), (g) or (h) of subsection 2; 6
(2) Make any of the requirements set forth in paragraphs (d) 7
to (h), inclusive, of subsection 2 more stringent; or 8
(3) Add additional requirements that a business must meet to 9
qualify for a partial abatement pursuant to this section. 10
5. Notwithstanding any other provision of law, the Office of 11
Economic Development shall not approve an application for a 12
partial abatement pursuant to this section if: 13
(a) The applicant intends to locate or expand in a county in 14
which the rate of unemployment is 7 percent or more and the 15
average hourly wage that will be paid by the applicant to its new 16
employees in this State is less than 70 percent of the average 17
statewide hourly wage, as established by the Employment Security 18
Division of the Department of Employment, Training and 19
Rehabilitation on July 1 of each fiscal year. 20
(b) The applicant intends to locate or expand in a county in 21
which the rate of unemployment is less than 7 percent and the 22
average hourly wage that will be paid by the applicant to its new 23
employees in this State is less than 85 percent of the average 24
statewide hourly wage, as established by the Employment Security 25
Division of the Department of Employment, Training and 26
Rehabilitation on July 1 of each fiscal year. 27
(c) The applicant intends to locate in a county but has already 28
received a partial abatement pursuant to this section for locating that 29
business in that county. 30
(d) The applicant intends to expand in a county but has already 31
received a partial abatement pursuant to this section for expanding 32
that business in that county. 33
(e) The applicant has changed the name or identity of the 34
business to evade the provisions of paragraph (c) or (d). 35
6. Notwithstanding any other provision of law, if the Office of 36
Economic Development approves an application for a partial 37
abatement pursuant to this section, in determining the types of taxes 38
imposed on a new or expanded business for which the partial 39
abatement will be approved and the amount of the partial abatement: 40
(a) If the new or expanded business is located in a county in 41
which the rate of unemployment is 7 percent or more and the 42
average hourly wage that will be paid by the business to its new 43
employees in this State is less than 85 percent of the average 44
statewide hourly wage, as established by the Employment Security 45
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Division of the Department of Employment, Training and 1
Rehabilitation on July 1 of each fiscal year, the Office shall not: 2
(1) Approve an abatement of the taxes imposed pursuant to 3
chapter 361 of NRS which exceeds 25 percent of the taxes on 4
personal property payable by the business each year. 5
(2) Approve an abatement of the taxes imposed pursuant to 6
chapter 363B of NRS which exceeds 25 percent of the amount of 7
tax otherwise due pursuant to NRS 363B.110. 8
(b) If the new or expanded business is located in a county in 9
which the rate of unemployment is less than 7 percent and the 10
average hourly wage that will be paid by the business to its new 11
employees in this State is less than 100 percent of the average 12
statewide hourly wage, as established by the Employment Security 13
Division of the Department of Employment, Training and 14
Rehabilitation on July 1 of each fiscal year, the Office shall not: 15
(1) Approve an abatement of the taxes imposed pursuant to 16
chapter 361 of NRS which exceeds 25 percent of the taxes on 17
personal property payable by the business each year. 18
(2) Approve an abatement of the taxes imposed pursuant to 19
chapter 363B of NRS which exceeds 25 percent of the amount of 20
tax otherwise due pursuant to NRS 363B.110. 21
7. If the Office of Economic Development approves an 22
application for a partial abatement pursuant to this section, the 23
Office shall immediately forward a certificate of eligibility for the 24
abatement to: 25
(a) The Department; 26
(b) The Nevada Tax Commission; and 27
(c) If the partial abatement is from the property tax imposed 28
pursuant to chapter 361 of NRS, the county treasurer. 29
8. An applicant for a partial abatement pursuant to this section 30
or an existing business whose partial abatement is in effect shall, 31
upon the request of the Executive Director of the Office of 32
Economic Development, furnish the Executive Director with copies 33
of all records necessary to verify that the applicant or business 34
meets the requirements of subsection 2 [.] , including, without 35
limitation, that the business is complying with the terms of the 36
workforce development plan. 37
9. If an applicant for a partial abatement pursuant to this 38
section fails to execute the agreement described in paragraph (b) of 39
subsection 2 within 1 year after the date on which the application 40
was received by the Office, the applicant shall not be approved for a 41
partial abatement pursuant to this section unless the applicant 42
submits a new application. 43
10. If a business whose partial abatement has been approved 44
pursuant to this section and is in effect ceases: 45
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(a) To meet the requirements set forth in subsection 2; or 1
(b) Operation before the time specified in the agreement 2
described in paragraph (b) of subsection 2, 3
the business shall repay to the Department or, if the partial 4
abatement was from the property tax imposed pursuant to chapter 5
361 of NRS, to the county treasurer, the amount of the partial 6
abatement that was allowed pursuant to this section before the 7
failure of the business to comply unless the Nevada Tax 8
Commission determines that the business has substantially complied 9
with the requirements of this section. Except as otherwise provided 10
in NRS 360.232 and 360.320, the business shall, in addition to the 11
amount of the partial abatement required to be paid pursuant to this 12
subsection, pay interest on the amount due at the rate most recently 13
established pursuant to NRS 99.040 for each month, or portion 14
thereof, from the last day of the month following the period for 15
which the payment would have been made had the partial abatement 16
not been approved until the date of payment of the tax. 17
11. The Office of Economic Development may investigate a 18
business whose partial abatement has been approved pursuant to 19
this section to determine whether the business is in substantial 20
compliance with the terms of the workforce development plan 21
described in subparagraph (5) of paragraph (b) of subsection 2. If 22
the Executive Director of the Office determines, based on an 23
investigation conducted pursuant to this subsection, that a 24
business has failed to substantially comply with the terms of the 25
workforce development plan, the business shall repay to the 26
Department or, if the partial abatement was from the property tax 27
imposed pursuant to chapter 361 of NRS, to the county treasurer, 28
the amount of the partial abatement that was allowed pursuant to 29
this section. Except as otherwise provided in NRS 360.232 and 30
360.320, the business shall, in addition to the amount of the 31
partial abatement required to be paid pursuant to this subsection, 32
pay interest on the amount due at the rate most recently 33
established pursuant to NRS 99.040 for each month, or portion 34
thereof, from the last day of the month following the period for 35
which the payment would have been made had the partial 36
abatement not been approved until the date of payment of the tax. 37
12. A county treasurer: 38
(a) Shall deposit any money that he or she receives pursuant to 39
subsection 10 in one or more of the funds established by a local 40
government of the county pursuant to NRS 354.6113 or 354.6115; 41
and 42
(b) May use the money deposited pursuant to paragraph (a) only 43
for the purposes authorized by NRS 354.6113 and 354.6115. 44
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[12.] 13. The Office of Economic Development may adopt 1
such regulations as the Office of Economic Development 2
determines to be necessary to carry out the provisions of this section 3
and NRS 360.755. 4
[13.] 14. The Nevada Tax Commission: 5
(a) Shall adopt regulations regarding: 6
(1) The capital investment that a new business must make to 7
meet the requirement set forth in paragraph (f) or (g) of subsection 8
2; and 9
(2) Any security that a business is required to post to qualify 10
for a partial abatement pursuant to this section. 11
(b) May adopt such other regulations as the Nevada Tax 12
Commission determines to be necessary to carry out the provisions 13
of this section and NRS 360.755. 14
[14.] 15. An applicant for a partial abatement pursuant to this 15
section who is aggrieved by a final decision of the Office of 16
Economic Development may petition for judicial review in the 17
manner provided in chapter 233B of NRS. 18
[15.] 16. For the purposes of this section, an employee is a 19
“full-time employee” if he or she is in a permanent position of 20
employment and works an average of 30 hours per week during the 21
applicable period set forth in subsection 2. 22
Sec. 2. NRS 360.753 is hereby amended to read as follows: 23
360.753 1. An owner of a business or a person who intends 24
to locate or expand a business in this State may apply to the Office 25
of Economic Development pursuant to this section for a partial 26
abatement of one or more of: 27
(a) The personal property taxes imposed on an aircraft and the 28
personal property used to own, operate, manufacture, service, 29
maintain, test, repair, overhaul or assemble an aircraft or any 30
component of an aircraft; and 31
(b) The local sales and use taxes imposed on the purchase of 32
tangible personal property used to operate, manufacture, service, 33
maintain, test, repair, overhaul or assemble an aircraft or any 34
component of an aircraft. 35
2. Notwithstanding the provisions of any law to the contrary 36
and except as otherwise provided in subsections 3 and 4, the Office 37
of Economic Development shall approve an application for a partial 38
abatement if the Office makes the following determinations: 39
(a) Not later than 1 year after the date on which the application 40
was received by the Office, the applicant has executed an agreement 41
with the Office which: 42
(1) Complies with the requirements of NRS 360.755; 43
(2) States the date on which the abatement becomes 44
effective, as agreed to by the applicant and the Office, which must 45
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not be earlier than the date on which the Office received the 1
application and not later than 1 year after the date on which the 2
Office approves the application; 3
(3) States that the business will, after the date on which a 4
certificate of eligibility for the partial abatement is issued pursuant 5
to subsection 5, continue in operation in this State for a period 6
specified by the Office, which must be not less than 5 years, and 7
will continue to meet the eligibility requirements set forth in this 8
subsection; [and] 9
(4) Incorporates a workforce development plan that 10
provides for the implementation by the business of a program of 11
workforce development for employees employed in this State by 12
the business that must: 13
(I) Train incumbent employees or be used to recruit, 14
assess and train new employees of the business; 15
(II) Be provided by an institution within the Nevada 16
System of Higher Education, a private postsecondary educational 17
institution, a school district or a charter school; and 18
(III) If completed, result in a postsecondary or industry-19
recognized credential, or an identifiable occupational skill that 20
meets the applicable industry standard; and 21
(5) Binds any successor in interest of the applicant for the 22
specified period; 23
(b) The business is registered pursuant to the laws of this State 24
or the applicant commits to obtaining a valid business license and all 25
other permits required by the county, city or town in which the 26
business operates; 27
(c) The business owns, operates, manufactures, services, 28
maintains, tests, repairs, overhauls or assembles an aircraft or any 29
component of an aircraft; 30
(d) The average hourly wage that will be paid by the business to 31
its employees in this State during the period of partial abatement is 32
not less than 100 percent of the average statewide hourly wage as 33
established by the Employment Security Division of the Department 34
of Employment, Training and Rehabilitation on July 1 of each fiscal 35
year; 36
(e) The business will, by the eighth calendar quarter following 37
the calendar quarter in which the abatement becomes effective, offer 38
a health insurance plan for all employees that includes an option for 39
health insurance coverage for dependents of the employees, and the 40
health care benefits the business offers to its employees in this State 41
will meet the minimum requirements for health care benefits 42
established by the Office; 43
(f) If the business is: 44
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(1) A new business, that it will have five or more full-time 1
employees on the payroll of the business within 1 year after 2
receiving its certificate of eligibility for a partial abatement; or 3
(2) An existing business, that it will increase its number of 4
full-time employees on the payroll of the business in this State by 3 5
percent or three employees, whichever is greater, within 1 year after 6
receiving its certificate of eligibility for a partial abatement; 7
(g) The business meets at least one of the following 8
requirements: 9
(1) The business will make a new capital investment of at 10
least $250,000 in this State within 1 year after receiving its 11
certificate of eligibility for a partial abatement; 12
(2) The business will maintain and possess in this State 13
tangible personal property having a value of not less than 14
$5,000,000 during the period of partial abatement; 15
(3) The business develops, refines or owns a patent or other 16
intellectual property, or has been issued a type certificate by the 17
Federal Aviation Administration pursuant to 14 C.F.R. Part 21; and 18
(h) If the application is for the partial abatement of the taxes 19
imposed by the Local School Support Tax Law, the application has 20
been approved by a vote of at least two-thirds of the members of the 21
Board of Economic Development created by NRS 231.033. 22
3. The Office of Economic Development: 23
(a) Shall approve or deny an application submitted pursuant to 24
this section and notify the applicant of its decision not later than 45 25
days after receiving the application. 26
(b) Must not: 27
(1) Consider an application for a partial abatement unless the 28
Office has requested a letter of acknowledgment of the request for 29
the partial abatement from any affected county, school district, city 30
or town and has complied with the requirements of NRS 360.757; or 31
(2) Approve a partial abatement for any applicant for a 32
period of more than 10 years. 33
4. The Office of Economic Development must not approve a 34
partial abatement of personal property taxes for a business whose 35
physical property is collectively valued and centrally assessed 36
pursuant to NRS 361.320 and 361.3205. 37
5. If the Office of Economic Development approves an 38
application for a partial abatement pursuant to this section, the 39
Office shall immediately forward a certificate of eligibility for the 40
partial abatement to: 41
(a) The Department; 42
(b) The Nevada Tax Commission; and 43
(c) If the partial abatement is from personal property taxes, the 44
appropriate county treasurer. 45
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6. An applicant for a partial abatement pursuant to this section 1
or an existing business whose partial abatement is in effect shall, 2
upon the request of the Executive Director of the Office of 3
Economic Development, furnish the Executive Director with copies 4
of all records necessary to verify that the applicant or business 5
meets the requirements of subsection 2 [.] , including, without 6
limitation, that the business is complying with the terms of the 7
workforce development plan. 8
7. If an applicant for a partial abatement pursuant to this 9
section fails to execute the agreement described in paragraph (a) of 10
subsection 2 within 1 year after the date on which the application 11
was received by the Office, the applicant shall not be approved for a 12
partial abatement pursuant to this section unless the applicant 13
submits a new application. 14
8. If a business whose partial abatement has been approved 15
pursuant to this section and whose partial abatement is in effect 16
ceases: 17
(a) To meet the requirements set forth in subsection 2; or 18
(b) Operation before the time specified in the agreement 19
described in paragraph (a) of subsection 2, 20
the business shall repay to the Department or, if the partial 21
abatement was from personal property taxes, to the appropriate 22
county treasurer, the amount of the partial abatement that was 23
allowed pursuant to this section before the failure of the business to 24
comply unless the Nevada Tax Commission determines that the 25
business has substantially complied with the requirements of this 26
section. Except as otherwise provided in NRS 360.232 and 360.320, 27
the business shall, in addition to the amount of the partial abatement 28
required to be repaid pursuant to this subsection, pay interest on the 29
amount due at the rate most recently established pursuant to NRS 30
99.040 for each month, or portion thereof, from the last day of the 31
month following the period for which the payment would have been 32
made had the partial abatement not been approved until the date of 33
payment of the tax. 34
9. The Office of Economic Development may investigate a 35
business whose partial abatement has been approved pursuant to 36
this section to determine whether the business is in substantial 37
compliance with the terms of the workforce development plan 38
described in subparagraph (4) of paragraph (a) of subsection 2. If 39
the Executive Director of the Office determines, based on an 40
investigation conducted pursuant to this subsection, that a 41
business has failed to substantially comply with the terms of the 42
workforce development plan, the business shall repay to the 43
Department or, if the partial abatement was from the property tax 44
imposed pursuant to chapter 361 of NRS, to the county treasurer, 45
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the amount of the partial abatement that was allowed pursuant to 1
this section. Except as otherwise provided in NRS 360.232 and 2
360.320, the business shall, in addition to the amount of the 3
partial abatement required to be paid pursuant to this subsection, 4
pay interest on the amount due at the rate most recently 5
established pursuant to NRS 99.040 for each month, or portion 6
thereof, from the last day of the month following the period for 7
which the payment would have been made had the partial 8
abatement not been approved until the date of the payment of the 9
tax. 10
10. The Office of Economic Development may adopt such 11
regulations as the Office determines to be necessary to carry out the 12
provisions of this section. 13
[10.] 11. The Nevada Tax Commission may adopt such 14
regulations as the Commission determines are necessary to carry out 15
the provisions of this section. 16
[11.] 12. An applicant for a partial abatement who is aggrieved 17
by a final decision of the Office of Economic Development may 18
petition a court of competent jurisdiction to review the decision in 19
the manner provided in chapter 233B of NRS. 20
[12.] 13. As used in this section: 21
(a) “Aircraft” means any fixed-wing, rotary-wing or unmanned 22
aerial vehicle. 23
(b) “Component of an aircraft” means any: 24
(1) Element that makes up the physical structure of an 25
aircraft, or is affixed thereto; 26
(2) Mechanical, electrical or other system of an aircraft, 27
including, without limitation, any component thereof; and 28
(3) Raw material or processed material, part, machinery, 29
tool, chemical, gas or equipment used to operate, manufacture, 30
service, maintain, test, repair, overhaul or assemble an aircraft or 31
component of an aircraft. 32
(c) “Full-time employee” means a person who is in a permanent 33
position of employment and works an average of 30 hours per week 34
during the applicable period set forth in subparagraph (3) of 35
paragraph (a) of subsection 2. 36
(d) “Local sales and use taxes” means any taxes imposed on the 37
gross receipts of any retailer from the sale of tangible personal 38
property sold at retail, or stored, used or otherwise consumed, in any 39
political subdivision of this State, except the taxes imposed by the 40
Sales and Use Tax Act. 41
(e) “Personal property taxes” means any taxes levied on 42
personal property by the State or a local government pursuant to 43
chapter 361 of NRS. 44
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Sec. 3. NRS 360.889 is hereby amended to read as follows: 1
360.889 1. On behalf of a project, the lead participant in the 2
project may apply to the Office of Economic Development for: 3
(a) A certificate of eligibility for transferable tax credits which 4
may be applied to: 5
(1) Any tax imposed by chapters 363A and 363B of NRS; 6
(2) The gaming license fees imposed by the provisions of 7
NRS 463.370; 8
(3) Any tax imposed by chapter 680B of NRS; or 9
(4) Any combination of the fees and taxes described in 10
subparagraphs (1), (2) and (3). 11
(b) A partial abatement of property taxes, employer excise taxes 12
or local sales and use taxes, or any combination of any of those 13
taxes. 14
2. For a project to be eligible for the transferable tax credits 15
described in paragraph (a) of subsection 1 and the partial abatement 16
of the taxes described in paragraph (b) of subsection 1, the lead 17
participant in the project must, on behalf of the project: 18
(a) Submit an application that meets the requirements of 19
subsection 5; 20
(b) Provide documentation satisfactory to the Office that 21
approval of the application would promote the economic 22
development of this State and aid the implementation of the State 23
Plan for Economic Development developed by the Executive 24
Director of the Office pursuant to subsection 2 of NRS 231.053; 25
(c) Provide documentation satisfactory to the Office that the 26
participants in the project collectively will make a total new capital 27
investment of at least $1 billion in this State within the 10-year 28
period immediately following approval of the application; 29
(d) Provide documentation satisfactory to the Office that the 30
participants in the project are engaged in a common business 31
purpose or industry; 32
(e) Provide documentation satisfactory to the Office that the 33
place of business of each participant is or will be located within the 34
geographic boundaries of the project site or sites; 35
(f) Provide documentation satisfactory to the Office that each 36
participant in the project is registered pursuant to the laws of this 37
State or commits to obtaining a valid business license and all other 38
permits required by the county, city or town in which the project 39
operates; 40
(g) Provide documentation satisfactory to the Office of the 41
number of employees engaged in the construction of the project; 42
(h) Provide documentation satisfactory to the Office of the 43
number of qualified employees employed or anticipated to be 44
employed at the project by the participants; 45
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(i) Provide documentation satisfactory to the Office that each 1
employer engaged in the construction of the project provides a plan 2
of health insurance and that each employee engaged in the 3
construction of the project is offered coverage under the plan of 4
health insurance provided by his or her employer; 5
(j) Provide documentation satisfactory to the Office that each 6
participant in the project provides a plan of health insurance and that 7
each employee employed at the project by each participant is 8
offered coverage under the plan of health insurance provided by his 9
or her employer; 10
(k) Provide documentation satisfactory to the Office that at least 11
50 percent of the employees engaged in construction of the project 12
and 50 percent of the employees employed at the project are 13
residents of Nevada, unless waived by the Executive Director of the 14
Office upon proof satisfactory to the Executive Director of the 15
Office that there is an insufficient number of Nevada residents 16
available and qualified for such employment; 17
(l) Agree to provide the Office with a full compliance audit of 18
the participants in the project at the end of each fiscal year which: 19
(1) Shows the amount of money invested in this State by 20
each participant in the project; 21
(2) Shows the number of employees engaged in the 22
construction of the project and the number of those employees who 23
are residents of Nevada; 24
(3) Shows the number of employees employed at the project 25
by each participant and the number of those employees who are 26
residents of Nevada; and 27
(4) Is certified by an independent certified public accountant 28
in this State who is approved by the Office; 29
(m) Pay the cost of the audit required by paragraph (l); 30
(n) Enter into an agreement with the Office establishing a 31
workforce development plan that provides for the implementation 32
by the participants in the project of a program of workforce 33
development for employees employed at the project by each 34
participant that must: 35
(1) Train incumbent employees or be used to recruit, assess 36
and train new employees of the participants; 37
(2) Be provided by an institution within the Nevada System 38
of Higher Education, a private postsecondary educational 39
institution, a school district or a charter school; and 40
(3) If completed, result in a postsecondary or industry-41
recognized credential, or an identifiable occupational skill that 42
meets the applicable industry standard; 43
(o) Enter into an agreement with the governing body of the city 44
or county in which the qualified project is located that: 45
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(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 issued pursuant to NRS 360.991; and 8
[(o)] (p) Meet any other requirements prescribed by the Office. 9
3. In addition to meeting the requirements set forth in 10
subsection 2, for a project located on more than one site in this State 11
to be eligible for the partial abatement of the taxes described in 12
paragraph (b) of subsection 1, the lead participant must, on behalf of 13
the project, submit an application that meets the requirements of 14
subsection 5 on or before June 30, 2019, and provide documentation 15
satisfactory to the Office that: 16
(a) The initial project will have a total of 500 or more full-time 17
employees employed at the site of the initial project and the average 18
hourly wage that will be paid to employees of the initial project in 19
this State is at least 120 percent of the average statewide hourly 20
wage as established by the Employment Security Division of the 21
Department of Employment, Training and Rehabilitation on July 1 22
of each fiscal year; 23
(b) Each participant in the project must be a subsidiary or 24
affiliate of the lead participant; and 25
(c) Each participant offers primary jobs and: 26
(1) Except as otherwise provided in subparagraph (2), 27
satisfies the requirements of paragraph (f) or (g) of subsection 2 of 28
NRS 360.750, regardless of whether the business is a new business 29
or an existing business; and 30
(2) If a participant owns, operates, manufactures, services, 31
maintains, tests, repairs, overhauls or assembles an aircraft or any 32
component of an aircraft, that the participant satisfies the applicable 33
requirements of paragraph (f) or (g) of subsection 2 of 34
NRS 360.753. 35
If any participant is a data center, as defined in NRS 360.754, any 36
capital investment by that participant must not be counted in 37
determining whether the participants in the project collectively will 38
make a total new capital investment of at least $1 billion in this 39
State within the 10-year period immediately following approval of 40
the application, as required by paragraph (c) of subsection 2. 41
4. In addition to meeting the requirements set forth in 42
subsection 2, a project is eligible for the transferable tax credits 43
described in paragraph (a) of subsection 1 only if the Interim 44
Finance Committee approves a written request for the issuance of 45
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- *SB385*
the transferable tax credits. Such a request may only be submitted 1
by the Office and only after the Office has approved the application 2
submitted for the project pursuant to subsection 2. The Interim 3
Finance Committee may approve a request submitted pursuant to 4
this subsection only if the Interim Finance Committee determines 5
that approval of the request: 6
(a) Will not impede the ability of the Legislature to carry out its 7
duty to provide for an annual tax sufficient to defray the estimated 8
expenses of the State for each fiscal year as set forth in Article 9, 9
Section 2 of the Nevada Constitution; and 10
(b) Will promote the economic development of this State and 11
aid the implementation of the State Plan for Economic Development 12
developed by the Executive Director of the Office pursuant to 13
subsection 2 of NRS 231.053. 14
5. An application submitted pursuant to subsection 2 must 15
include: 16
(a) A detailed description of the project, including a description 17
of the common purpose or business endeavor in which the 18
participants in the project are engaged; 19
(b) A detailed description of the location of the project, 20
including a precise description of the geographic boundaries of the 21
project site or sites; 22
(c) The name and business address of each participant in the 23
project, which must be an address in this State; 24
(d) A detailed description of the plan by which the participants 25
in the project intend to comply with the requirement that the 26
participants collectively make a total new capital investment of at 27
least $1 billion in this State in the 10-year period immediately 28
following approval of the application; 29
(e) If the application includes one or more partial abatements, an 30
agreement executed by the Office with the lead participant in the 31
project not later than 1 year after the date on which the application 32
was received by the Office which: 33
(1) Complies with the requirements of NRS 360.755; 34
(2) States the date on which the partial abatement becomes 35
effective, as agreed to by the applicant and the Office, which must 36
not be earlier than the date on which the Office received the 37
application and not later than 1 year after the date on which the 38
Office approves the application; 39
(3) States that the project will, after the date on which a 40
certificate of eligibility for the partial abatement is approved 41
pursuant to NRS 360.893, continue in operation in this State for a 42
period specified by the Office; and 43
(4) Binds successors in interest of the lead participant for the 44
specified period; and 45
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(f) Any other information required by the Office. 1
6. For an employee to be considered a resident of Nevada for 2
the purposes of this section, each participant in the project must 3
maintain the following documents in the personnel file of the 4
employee: 5
(a) A copy of the: 6
(1) Current and valid Nevada driver’s license of the 7
employee originally issued by the Department of Motor Vehicles 8
more than 60 days before the hiring of the employee or a current and 9
valid identification card for the employee originally issued by the 10
Department of Motor Vehicles more than 60 days before the hiring 11
of the employee; or 12
(2) If the employee is a veteran of the Armed Forces of the 13
United States, a current and valid Nevada driver’s license of the 14
employee or a current and valid identification card for the employee 15
issued by the Department of Motor Vehicles; 16
(b) If the employee is a registered owner of one or more motor 17
vehicles in Nevada, a copy of the current motor vehicle registration 18
of at least one of those vehicles; 19
(c) Proof that the employee is employed full-time and scheduled 20
to work for an average minimum of 30 hours per week; and 21
(d) Proof that the employee is offered coverage under a plan of 22
health insurance provided by his or her employer. 23
7. For the purpose of obtaining from the Executive Director of 24
the Office any waiver of the requirement set forth in paragraph (k) 25
of subsection 2, the lead participant in the project must submit to the 26
Executive Director of the Office written documentation of the 27
efforts to meet the requirement and documented proof that an 28
insufficient number of Nevada residents is available and qualified 29
for employment. 30
8. The Executive Director of the Office shall make available to 31
the public and post on the Internet website of the Office: 32
(a) Any request for a waiver of the requirements set forth in 33
paragraph (k) of subsection 2; and 34
(b) Any approval of such a request for a waiver that is granted 35
by the Executive Director of the Office. 36
9. The Executive Director of the Office shall post a request for 37
a waiver of the requirements set forth in paragraph (k) of subsection 38
2 on the Internet website of the Office within 3 days after receiving 39
the request and shall keep the request posted on the Internet website 40
for not less than 5 days. The Executive Director of the Office shall 41
ensure that the Internet website allows members of the public to post 42
comments regarding the request. 43
10. The Executive Director of the Office shall consider any 44
comments posted on the Internet website concerning any request for 45
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- *SB385*
a waiver of the requirements set forth in paragraph (k) of subsection 1
2 before making a decision regarding whether to approve the 2
request. If the Executive Director of the Office approves the request 3
for a waiver, the Executive Director of the Office must post the 4
approval on the Internet website of the Office within 3 days and 5
ensure that the Internet website allows members of the public to post 6
comments regarding the approval. 7
11. If an applicant for one or more partial abatements pursuant 8
to this section fails to execute the agreement described in paragraph 9
(e) of subsection 5 within 1 year after the date on which the 10
application was received by the Office, the applicant shall not be 11
approved for a partial abatement pursuant to this section unless the 12
applicant submits a new application. 13
Sec. 4. NRS 360.894 is hereby amended to read as follows: 14
360.894 1. The lead participant in a qualified project shall, 15
upon the request of the Office of Economic Development, furnish 16
the Office with copies of all records necessary to verify that the 17
qualified project meets the eligibility requirements for any 18
transferable tax credits issued pursuant to NRS 360.891 and the 19
partial abatement of any taxes pursuant to NRS 360.893 [.] , 20
including, without limitation, that the participants in the project 21
are complying with the terms of the workforce development plan 22
described in paragraph (n) of subsection 2 of NRS 360.889. 23
2. The Office may investigate a qualified project to determine 24
whether the participants of the qualified project are in substantial 25
compliance with the terms of the workforce development plan 26
described in paragraph (n) of subsection 2 of NRS 360.889. 27
3. The lead participant shall repay to the Department or the 28
Nevada Gaming Control Board, as applicable, any portion of the 29
transferable tax credits to which the lead participant is not entitled 30
if: 31
(a) The participants in the qualified project collectively fail to 32
make the investment in this State necessary to support the 33
determination by the Executive Director of the Office of Economic 34
Development that the project is a qualified project; 35
(b) The participants in the qualified project collectively fail to 36
employ the number of qualified employees identified in the 37
certificate of eligibility approved for the qualified project; 38
(c) The lead participant submits any false statement, 39
representation or certification in any document submitted for the 40
purpose of obtaining transferable tax credits; or 41
(d) The lead participant otherwise becomes ineligible for 42
transferable tax credits after receiving the transferable tax credits 43
pursuant to NRS 360.880 to 360.896, inclusive. 44
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[3.] 4. Transferable tax credits purchased in good faith are not 1
subject to forfeiture unless the transferee submitted fraudulent 2
information in connection with the purchase. 3
[4.] 5. Notwithstanding any provision of this chapter or 4
chapter 361 of NRS, if the lead participant in a qualified project for 5
which a partial abatement has been approved pursuant to NRS 6
360.893 and is in effect: 7
(a) Fails to meet the requirements for eligibility pursuant to that 8
section; or 9
(b) Ceases operation before the time specified in the agreement 10
described in paragraph (e) of subsection 5 of NRS 360.889, 11
the lead participant shall repay to the Department or, if the partial 12
abatement is from the property tax imposed by chapter 361 of NRS, 13
to the appropriate county treasurer, the amount of the partial 14
abatement that was allowed to the lead participant pursuant to NRS 15
360.893 before the failure of the lead participant to meet the 16
requirements for eligibility. Except as otherwise provided in NRS 17
360.232 and 360.320, the lead participant shall, in addition to the 18
amount of the partial abatement required to be repaid by the lead 19
participant pursuant to this subsection, pay interest on the amount 20
due from the lead participant at the rate most recently established 21
pursuant to NRS 99.040 for each month, or portion thereof, from the 22
last day of the month following the period for which the payment 23
would have been made had the partial abatement not been approved 24
until the date of payment of the tax. 25
[5.] 6. If the Executive Director of the Office determines, 26
based on an investigation conducted pursuant to subsection 2, that 27
the participants in a qualified project have failed to substantially 28
comply with the terms of the workforce development plan, the lead 29
participant in the qualified project shall repay to the Department, 30
the Nevada Gaming Control Board or the appropriate county 31
treasurer, as applicable, an amount of money equal to the amount 32
of transferable tax credits issued to the lead participant pursuant 33
to NRS 360.891 and the amount of the partial abatement that was 34
allowed to the lead participant pursuant to NRS 360.893. Except 35
as otherwise provided in NRS 360.232 and 360.320, the lead 36
participant shall, in addition to the amount of any partial 37
abatement required to be repaid by the lead participant pursuant 38
to this subsection, pay interest on the amount due from the lead 39
participant at the rate most recently established pursuant to NRS 40
99.040 for each month, or portion thereof, from the last day of the 41
month following the period for which the payment would have 42
been made had the partial abatement not been approved until the 43
date of payment of the tax. 44
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7. The Secretary of State may, upon application by the 1
Executive Director of the Office, revoke or suspend the state 2
business license of the lead participant in a qualified project which 3
is required to repay any portion of transferable tax credits pursuant 4
to subsection [2] 3 or the amount of any partial abatement pursuant 5
to subsection [4] 5 or 6 and which the Office determines is not in 6
compliance with the provisions of this section governing repayment. 7
If the state business license of the lead participant in a qualified 8
project is suspended or revoked pursuant to this subsection, the 9
Secretary of State shall provide written notice of the action to the 10
lead participant. The Secretary of State shall not reinstate a state 11
business license suspended pursuant to this subsection or issue a 12
new state business license to the lead participant whose state 13
business license has been revoked pursuant to this subsection unless 14
the Executive Director of the Office provides proof satisfactory 15
to the Secretary of State that the lead participant is in compliance 16
with the requirements of this section governing repayment. 17
Sec. 5. NRS 360.945 is hereby amended to read as follows: 18
360.945 1. On behalf of a project, the lead participant in the 19
project may apply to the Office of Economic Development for: 20
(a) A certificate of eligibility for transferable tax credits which 21
may be applied to: 22
(1) Any tax imposed by chapters 363A and 363B of NRS; 23
(2) The gaming license fees imposed by the provisions of 24
NRS 463.370; 25
(3) Any tax imposed by chapter 680B of NRS; or 26
(4) Any combination of the fees and taxes described in 27
subparagraphs (1), (2) and (3). 28
(b) An abatement of property taxes, employer excise taxes or 29
local sales and use taxes, or any combination of any of those taxes. 30
2. For a project to be eligible for the transferable tax credits 31
described in paragraph (a) of subsection 1 and abatement of the 32
taxes described in paragraph (b) of subsection 1, the lead participant 33
in the project must, on behalf of the project: 34
(a) Submit an application that meets the requirements of 35
subsection 3; 36
(b) Provide documentation satisfactory to the Office that 37
approval of the application would promote the economic 38
development of this State and aid the implementation of the State 39
Plan for Economic Development developed by the Executive 40
Director of the Office pursuant to subsection 2 of NRS 231.053; 41
(c) Provide documentation satisfactory to the Office that the 42
participants in the project collectively will make a total new capital 43
investment of at least $3.5 billion in this State within the 10-year 44
period immediately following approval of the application; 45
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(d) Provide documentation satisfactory to the Office that the 1
participants in the project are engaged in a common business 2
purpose or industry; 3
(e) Provide documentation satisfactory to the Office that the 4
place of business of each participant is or will be located within the 5
geographic boundaries of the project site; 6
(f) Provide documentation satisfactory to the Office that each 7
participant in the project is registered pursuant to the laws of this 8
State or commits to obtaining a valid business license and all other 9
permits required by the county, city or town in which the project 10
operates; 11
(g) Provide documentation satisfactory to the Office of the 12
number of employees engaged in the construction of the project; 13
(h) Provide documentation satisfactory to the Office of the 14
number of qualified employees employed or anticipated to be 15
employed at the project by the participants; 16
(i) Provide documentation satisfactory to the Office that each 17
employer engaged in the construction of the project provides a plan 18
of health insurance and that each employee engaged in the 19
construction of the project is offered coverage under the plan of 20
health insurance provided by his or her employer; 21
(j) Provide documentation satisfactory to the Office that each 22
participant in the project provides a plan of health insurance and that 23
each employee employed at the project by each participant is 24
offered coverage under the plan of health insurance provided by his 25
or her employer; 26
(k) Provide documentation satisfactory to the Office that at least 27
50 percent of the employees engaged in construction of the project 28
and 50 percent of the employees employed at the project are 29
residents of Nevada, unless waived by the Executive Director of the 30
Office upon proof satisfactory to the Executive Director of the 31
Office that there is an insufficient number of Nevada residents 32
available and qualified for such employment; 33
(l) Agree to provide the Office with a full compliance audit of 34
the participants in the project at the end of each fiscal year which: 35
(1) Shows the amount of money invested in this State by 36
each participant in the project; 37
(2) Shows the number of employees engaged in the 38
construction of the project and the number of those employees who 39
are residents of Nevada; 40
(3) Shows the number of employees employed at the project 41
by each participant and the number of those employees who are 42
residents of Nevada; and 43
(4) Is certified by an independent certified public accountant 44
in this State who is approved by the Office; 45
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(m) Pay the cost of the audit required by paragraph (l); 1
(n) Enter into an agreement with the Office establishing a 2
workforce development plan that provides for the implementation 3
by the participants in the project of a program of workforce 4
development for employees employed at the project by each 5
participant that must: 6
(1) Train incumbent employees or be used to recruit, assess 7
and train new employees of the participants; 8
(2) Be provided by an institution within the Nevada System 9
of Higher Education, a private postsecondary educational 10
institution, a school district or a charter school; and 11
(3) If completed, result in a postsecondary or industry-12
recognized credential or an identifiable occupational skill that 13
meets the applicable industry standard; 14
(o) Enter into an agreement with the governing body of the city 15
or county in which the qualified project is located that: 16
(1) Requires the lead participant to pay the cost of any 17
engineering or design work necessary to determine the cost of 18
infrastructure improvements required to be made by the governing 19
body pursuant to an economic development financing proposal 20
approved pursuant to NRS 360.990; and 21
(2) Requires the lead participant to seek reimbursement for 22
any costs paid by the lead participant pursuant to subparagraph (1) 23
from the proceeds of bonds of the State of Nevada issued pursuant 24
to NRS 360.991; and 25
[(o)] (p) Meet any other requirements prescribed by the Office. 26
3. An application submitted pursuant to subsection 2 must 27
include: 28
(a) A detailed description of the project, including a description 29
of the common purpose or business endeavor in which the 30
participants in the project are engaged; 31
(b) A detailed description of the location of the project, 32
including a precise description of the geographic boundaries of the 33
project site; 34
(c) The name and business address of each participant in the 35
project, which must be an address in this State; 36
(d) A detailed description of the plan by which the participants 37
in the project intend to comply with the requirement that the 38
participants collectively make a total new capital investment of at 39
least $3.5 billion in this State in the 10-year period immediately 40
following approval of the application; 41
(e) If the application includes one or more abatements, an 42
agreement executed by the Office with the lead participant in the 43
project not later than 1 year after the date on which the application 44
was received by the Office which: 45
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(1) Complies with the requirements of NRS 360.755; 1
(2) States that the project will, after the date on which a 2
certificate of eligibility for the abatement is approved pursuant to 3
NRS 360.965, continue in operation in this State for a period 4
specified by the Office; and 5
(3) Binds successors in interest of the lead participant for the 6
specified period; and 7
(f) Any other information required by the Office. 8
4. For an employee to be considered a resident of Nevada for 9
the purposes of this section, each participant in the project must 10
maintain the following documents in the personnel file of the 11
employee: 12
(a) A copy of the current and valid Nevada driver’s license of 13
the employee or a current and valid identification card for the 14
employee 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
5. 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
6. The Executive Director of the Office shall make available to 30
the public and post on the Internet website for 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
7. 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
8. The Executive Director of the Office shall consider any 43
comments posted on the Internet website concerning any request 44
for a waiver of the requirements set forth in paragraph (k) of 45
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subsection 2 before making a decision regarding whether to approve 1
the request. If the Executive Director of the Office approves the 2
request for a waiver, the Executive Director of the Office must post 3
the 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
9. If an applicant for one or more abatements pursuant to this 7
section fails to execute the agreement described in paragraph (e) of 8
subsection 3 within 1 year after the date on which the application 9
was received by the Office, the applicant shall not be approved for 10
an abatement pursuant to this section unless the applicant submits a 11
new application. 12
Sec. 6. NRS 360.970 is hereby amended to read as follows: 13
360.970 1. The lead participant in a qualified project shall, 14
upon the request of the Office of Economic Development, furnish 15
the Office with copies of all records necessary to verify that the 16
qualified project meets the eligibility requirements for any 17
transferable tax credits issued pursuant to NRS 360.955 and the 18
abatement of any taxes pursuant to NRS 360.965 [.] , including, 19
without limitation, that the participants in the qualified project are 20
complying with the terms of the workforce development plan 21
described in paragraph (n) of subsection 2 of NRS 360.945. 22
2. The Office may investigate a qualified project to determine 23
whether the participants of the qualified project are in substantial 24
compliance with the terms of the workforce development plan 25
described in paragraph (n) of subsection 2 of NRS 360.945. 26
3. The lead participant shall repay to the Department or the 27
Nevada Gaming Control Board, as applicable, any portion of the 28
transferable tax credits to which the lead participant is not entitled 29
if: 30
(a) The participants in the qualified project collectively fail to 31
make the investment in this State necessary to support the 32
determination by the Executive Director of the Office of Economic 33
Development that the project is a qualified project; 34
(b) The participants in the qualified project collectively fail to 35
employ the number of qualified employees identified in the 36
certificate of eligibility approved for the qualified project; 37
(c) The lead participant submits any false statement, 38
representation or certification in any document submitted for the 39
purpose of obtaining transferable tax credits; or 40
(d) The lead participant otherwise becomes ineligible for 41
transferable tax credits after receiving the transferable tax credits 42
pursuant to NRS 360.900 to 360.975, inclusive. 43
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[3.] 4. Transferable tax credits purchased in good faith are not 1
subject to forfeiture unless the transferee submitted fraudulent 2
information in connection with the purchase. 3
[4.] 5. Notwithstanding any provision of this chapter or 4
chapter 361 of NRS, if the lead participant in a qualified project for 5
which an abatement has been approved pursuant to NRS 360.965 6
and is in effect: 7
(a) Fails to meet the requirements for eligibility pursuant to that 8
section; or 9
(b) Ceases operation before the time specified in the agreement 10
described in paragraph (e) of subsection 3 of NRS 360.945, 11
the lead participant shall repay to the Department or, if the 12
abatement is from the property tax imposed by chapter 361 of NRS, 13
to the appropriate county treasurer, the amount of the abatement that 14
was allowed to the lead participant pursuant to NRS 360.965 before 15
the failure of the lead participant to meet the requirements for 16
eligibility. Except as otherwise provided in NRS 360.232 and 17
360.320, the lead participant shall, in addition to the amount of the 18
abatement required to be repaid by the lead participant pursuant to 19
this subsection, pay interest on the amount due from the lead 20
participant at the rate most recently established pursuant to NRS 21
99.040 for each month, or portion thereof, from the last day of the 22
month following the period for which the payment would have been 23
made had the abatement not been approved until the date of 24
payment of the tax. 25
[5.] 6. If the Executive Director of the Office determines, 26
based on an investigation conducted pursuant to subsection 2, that 27
the participants in a qualified project have failed to substantially 28
comply with the terms of the workforce development plan, the lead 29
participant in the qualified project shall repay to the Department, 30
the Nevada Gaming Control Board or the appropriate county 31
treasurer, as applicable, an amount of money equal to the amount 32
of transferable tax credits issued to the lead participant pursuant 33
to NRS 360.955 and the amount of the abatement that was allowed 34
to the lead participant pursuant to NRS 360.965. Except as 35
otherwise provided in NRS 360.232 and 360.320, the lead 36
participant shall, in addition to the amount of the abatement 37
required to be repaid by the lead participant pursuant to this 38
subsection, pay interest on the amount due from the lead 39
participant at the rate most recently established pursuant to NRS 40
99.040 for each month, or portion thereof, from the last day of the 41
month following the period for which the payment would have 42
been made had the abatement not been approved until the date of 43
payment of the tax. 44
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7. The Secretary of State may, upon application by the 1
Executive Director of the Office, revoke or suspend the state 2
business license of the lead participant in a qualified project which 3
is required to repay any portion of transferable tax credits pursuant 4
to subsection [2] 3 or the amount of any abatement pursuant to 5
subsection [4] 5 or 6 and which the Office determines is not in 6
compliance with the provisions of this section governing repayment. 7
If the state business license of the lead participant in a qualified 8
project is suspended or revoked pursuant to this subsection, the 9
Secretary of State shall provide written notice of the action to the 10
lead participant. The Secretary of State shall not reinstate a state 11
business license suspended pursuant to this subsection or issue a 12
new state business license to the lead participant whose state 13
business license has been revoked pursuant to this subsection unless 14
the Executive Director of the Office provides proof satisfactory 15
to the Secretary of State that the lead participant is in compliance 16
with the requirements of this section governing repayment. 17
Sec. 7. NRS 372.7261 is hereby amended to read as follows: 18
372.7261 1. In administering the provisions of this chapter: 19
(a) The Department shall calculate the amount of tax imposed 20
on tangible personal property purchased for use in owning, 21
operating, manufacturing, servicing, maintaining, testing, repairing, 22
overhauling or assembling an aircraft or any component of an 23
aircraft as follows: 24
(1) If the tangible personal property is purchased by a 25
business for use in the performance of a contract, the business is 26
deemed the consumer of the tangible personal property and the sales 27
tax must be paid by the business on the sales price of the tangible 28
personal property to the business. 29
(2) If the tangible personal property is purchased by a 30
business for use in the performance of a contract and the sales tax is 31
not paid because the vendor did not have a valid seller’s permit, or 32
because the resale certificate was properly presented, or for any 33
other reason, the use tax must be imposed based on the sales price of 34
the tangible personal property to the business. 35
(b) Any tangible personal property purchased by a business for 36
use in the performance of a contract is deemed to have been 37
purchased for use in owning, operating, manufacturing, servicing, 38
maintaining, testing, repairing, overhauling or assembling an aircraft 39
or any component of an aircraft. 40
2. As used in this section: 41
(a) “Aircraft” has the meaning ascribed to it in paragraph (a) of 42
subsection [12] 13 of NRS 360.753. 43
(b) “Component of an aircraft” has the meaning ascribed to it in 44
paragraph (b) of subsection [12] 13 of NRS 360.753. 45
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(c) “Contract” means any contract for the ownership, operation, 1
manufacture, service, maintenance, testing, repair, overhaul or 2
assembly of an aircraft or any component of an aircraft entered into 3
by a business. 4
Sec. 8. NRS 374.7261 is hereby amended to read as follows: 5
374.7261 1. In administering the provisions of this chapter: 6
(a) The Department shall calculate the amount of tax imposed 7
on tangible personal property purchased for use in owning, 8
operating, manufacturing, servicing, maintaining, testing, repairing, 9
overhauling or assembling an aircraft or any component of an 10
aircraft as follows: 11
(1) If the tangible personal property is purchased by a 12
business for use in the performance of a contract, the business is 13
deemed the consumer of the tangible personal property and the sales 14
tax must be paid by the business on the sales price of the tangible 15
personal property to the business. 16
(2) If the tangible personal property is purchased by a 17
business for use in the performance of a contract and the sales tax is 18
not paid because the vendor did not have a valid seller’s permit, or 19
because the resale certificate was properly presented, or for any 20
other reason, the use tax must be imposed based on the sales price of 21
the tangible personal property to the business. 22
(b) Any tangible personal property purchased by a business for 23
use in the performance of a contract is deemed to have been 24
purchased for use in owning, operating, manufacturing, servicing, 25
maintaining, testing, repairing, overhauling or assembling an aircraft 26
or any component of an aircraft. 27
2. As used in this section: 28
(a) “Aircraft” has the meaning ascribed to it in paragraph (a) of 29
subsection [12] 13 of NRS 360.753. 30
(b) “Component of an aircraft” has the meaning ascribed to it in 31
paragraph (b) of subsection [12] 13 of NRS 360.753. 32
(c) “Contract” means any contract for the ownership, operation, 33
manufacture, service, maintenance, testing, repair, overhaul or 34
assembly of an aircraft or any component of an aircraft entered into 35
by a business. 36
Sec. 9. NRS 231.1555 is hereby amended to read as follows: 37
231.1555 1. A person who intends to locate or expand a 38
business in this State may apply to the Office for a certificate of 39
eligibility for transferable tax credits which may be applied to: 40
(a) Any tax imposed by chapter 363A or 363B of NRS; 41
(b) The gaming license fee imposed by the provisions of 42
NRS 463.370; 43
(c) Any tax imposed by chapter 680B of NRS; or 44
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(d) Any combination of the fees and taxes described in 1
paragraphs (a), (b) and (c). 2
2. After considering any advice and recommendations of the 3
Board, the Executive Director shall establish: 4
(a) Procedures for applying to the Office for a certificate of 5
eligibility for transferable tax credits which must: 6
(1) Include, without limitation, a requirement that the 7
applicant set forth in the application: 8
(I) The proposed use of the transferable tax credits; 9
(II) The plans, projects and programs for which the 10
transferable tax credits will be used; 11
(III) The expected benefits of the issuance of the 12
transferable tax credits; and 13
(IV) A statement of the short-term and long-term impacts 14
of the issuance of the transferable tax credits; and 15
(2) Allow the applicant to revise the application upon the 16
recommendation of the Executive Director. 17
(b) The criteria which a person to whom a certificate of 18
eligibility for transferable tax credits has been issued must satisfy to 19
be issued a certificate of transferable tax credits. In addition to any 20
other criteria established by the Executive Director, to be eligible 21
to be issued transferable tax credits pursuant to this section, the 22
applicant must enter into an agreement with the Office 23
establishing a workforce development plan that provides for the 24
implementation by the applicant of a program of workforce 25
development for employees employed by the applicant in this State 26
that must: 27
(1) Train incumbent employees or be used to recruit, assess 28
and train new employees of the applicant; 29
(2) Be provided by an institution within the Nevada System 30
of Higher Education, a private postsecondary educational 31
institution, a school district or a charter school; and 32
(3) If completed, result in a postsecondary or industry-33
recognized credential, or an identifiable occupational skill that 34
meets the applicable industry standard. 35
3. After receipt of an application pursuant to this section, the 36
Executive Director shall review and evaluate the application and 37
determine whether the approval of the application would promote 38
the economic development of this State and aid the implementation 39
of the State Plan for Economic Development developed by the 40
Executive Director pursuant to subsection 2 of NRS 231.053. 41
4. If the applicant is requesting transferable tax credits in an 42
amount of $100,000 or less, the Executive Director may approve the 43
application, subject to the provisions of subsection 6, if the 44
Executive Director determines that approving the application will 45
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promote the economic development of this State and aid the 1
implementation of the State Plan for Economic Development. 2
5. If the applicant is requesting transferable tax credits in an 3
amount greater than $100,000, the Executive Director shall submit 4
the application and the Executive Director’s review and evaluation 5
of the application pursuant to subsection 3 to the Board, and the 6
Board may approve the application, subject to the provisions of 7
subsection 6, if the Board determines that approving the application 8
will promote the economic development of this State and aid the 9
implementation of the State Plan for Economic Development. 10
6. The Executive Director or the Board shall not approve any 11
application for transferable tax credits for: 12
(a) A period of more than 5 fiscal years; 13
(b) Fiscal Year 2015-2016; or 14
(c) Any fiscal year if the approval of the application would 15
cause the total amount of transferable tax credits issued pursuant to 16
this section to exceed: 17
(1) For Fiscal Year 2016-2017, $1,000,000. 18
(2) For Fiscal Year 2017-2018, $2,000,000. 19
(3) For Fiscal Year 2018-2019, $2,000,000. 20
(4) For Fiscal Year 2019-2020, $3,000,000. 21
(5) For a fiscal year beginning on or after July 1, 2020, 22
$5,000,000. 23
7. If the Executive Director or the Board approves an 24
application and issues a certificate of eligibility for transferable tax 25
credits, the Office shall immediately forward a copy of the 26
certificate of eligibility which identifies the estimated amount of the 27
tax credits available pursuant to this section to: 28
(a) The applicant; 29
(b) The Department of Taxation; and 30
(c) The Nevada Gaming Control Board. 31
8. Within 14 days after the Office determines that a person to 32
whom a certificate of eligibility for transferable tax credits has been 33
issued satisfies the criteria established by the Executive Director 34
pursuant to subsection 2, the Office shall notify the person that 35
transferable tax credits will be issued. Within 30 days after the 36
receipt of the notice, the person shall make an irrevocable 37
declaration of the amount of transferable tax credits that will be 38
applied to each fee or tax set forth in paragraphs (a), (b) and (c) of 39
subsection 1, thereby accounting for all of the credits which will be 40
issued. Upon receipt of the declaration, the Office shall issue to the 41
person a certificate of transferable tax credits in the amount 42
approved by the Executive Director or the Board, as applicable, for 43
the fees or taxes included in the declaration. The Office shall notify 44
the Department of Taxation and the Nevada Gaming Control Board 45
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of all transferable tax credits issued, segregated by each fee or tax 1
set forth in paragraphs (a), (b) and (c) of subsection 1, and the 2
amount of any transferable tax credits transferred. 3
9. The Office may investigate a person that is issued 4
transferable tax credits pursuant to this section to determine 5
whether the person is in substantial compliance with the terms of 6
the workforce development plan described in paragraph (b) of 7
subsection 2. If the Executive Director determines, based on an 8
investigation conducted pursuant to this subsection, that a person 9
has failed to substantially comply with the terms of the workforce 10
development plan, the person shall repay to the Department or the 11
Nevada Gaming Control Board, as applicable, an amount of 12
money equal to the amount of transferable tax credits issued to the 13
person pursuant to this section. 14
Sec. 10. NRS 274.310 is hereby amended to read as follows: 15
274.310 1. A person who intends to locate a business in this 16
State within: 17
(a) A historically underutilized business zone, as defined in 15 18
U.S.C. § 632; 19
(b) A redevelopment area created pursuant to chapter 279 of 20
NRS; 21
(c) An area eligible for a community development block grant 22
pursuant to 24 C.F.R. Part 570; or 23
(d) An enterprise community established pursuant to 24 C.F.R. 24
Part 597, 25
may submit a request to the governing body of the county, city or 26
town in which the business would operate for an endorsement of an 27
application by the person to the Office of Economic Development 28
for a partial abatement of one or more of the taxes imposed pursuant 29
to chapter 361 of NRS or the local sales and use taxes. The 30
governing body of the county, city or town shall provide notice of 31
the request to the board of trustees of the school district in which the 32
business would operate. The notice must set forth the date, time and 33
location of the hearing at which the governing body will consider 34
whether to endorse the application. As used in this subsection, 35
“local sales and use taxes” means the taxes imposed on the gross 36
receipts of any retailer from the sale of tangible personal property 37
sold at retail, or stored, used or otherwise consumed, in the political 38
subdivision in which the business is located, except the taxes 39
imposed by the Sales and Use Tax Act and the Local School 40
Support Tax Law. 41
2. The governing body of a county, city or town shall develop 42
procedures for: 43
(a) Evaluating whether such an abatement would be beneficial 44
for the economic development of the county, city or town. 45
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(b) Issuing a certificate of endorsement for an application for 1
such an abatement that is found to be beneficial for the economic 2
development of the county, city or town. 3
3. A person whose application has been endorsed by the 4
governing body of the county, city or town, as applicable, pursuant 5
to this section may submit the application to the Office of Economic 6
Development. The Office shall approve the application if the Office 7
makes the following determinations: 8
(a) The business is consistent with: 9
(1) The State Plan for Economic Development developed by 10
the Administrator pursuant to subsection 2 of NRS 231.053; and 11
(2) Any guidelines adopted by the Administrator to 12
implement the State Plan for Economic Development. 13
(b) Not later than 1 year after the date on which the application 14
was received by the Office, the applicant has executed an agreement 15
with the Office which : [states:] 16
(1) [The] States the date on which the abatement becomes 17
effective, as agreed to by the applicant and the Office, which must 18
not be earlier than the date on which the Office received the 19
application and not later than 1 year after the date on which the 20
Office approves the application; [and] 21
(2) [That] States that the business will, after the date on 22
which the abatement becomes effective: 23
(I) Commence operation and continue in operation in the 24
historically underutilized business zone, as defined in 15 U.S.C. § 25
632, redevelopment area created pursuant to chapter 279 of NRS, 26
area eligible for a community development block grant pursuant to 27
24 C.F.R. Part 570 or enterprise community established pursuant to 28
24 C.F.R. Part 597 for a period specified by the Office, which must 29
be at least 5 years; and 30
(II) Continue to meet the eligibility requirements set forth 31
in this subsection [.] ; and 32
(3) Incorporates a workforce development plan that 33
provides for the implementation by the business of a program of 34
workforce development for employees employed by the business in 35
this State that must: 36
(I) Train incumbent employees or be used to recruit, 37
assess and train new employees of the business; 38
(II) Be provided by an institution within the Nevada 39
System of Higher Education, a private postsecondary educational 40
institution, a school district or a charter school; and 41
(III) If completed, result in a postsecondary or industry-42
recognized credential, or an identifiable occupational skill that 43
meets the applicable industry standard. 44
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The agreement must bind successors in interest of the business 1
for the specified period. 2
(c) The business is registered pursuant to the laws of this State 3
or the applicant commits to obtain a valid business license and all 4
other permits required by the county, city or town in which the 5
business will operate. 6
(d) The applicant invested or commits to invest a minimum of 7
$500,000 in capital assets that will be retained at the location of the 8
business in the historically underutilized business zone, as defined 9
in 15 U.S.C. § 632, redevelopment area created pursuant to chapter 10
279 of NRS, area eligible for a community development block grant 11
pursuant to 24 C.F.R. Part 570 or enterprise community established 12
pursuant to 24 C.F.R. Part 597 until at least the date which is 5 years 13
after the date on which the abatement becomes effective. 14
4. If the Office of Economic Development approves an 15
application for a partial abatement, the Office shall immediately 16
forward a certificate of eligibility for the abatement to: 17
(a) The Department of Taxation; 18
(b) The Nevada Tax Commission; and 19
(c) If the partial abatement is from the property tax imposed 20
pursuant to chapter 361 of NRS, the county treasurer of the county 21
in which the business will be located. 22
5. If the Office of Economic Development approves an 23
application for a partial abatement pursuant to this section: 24
(a) The partial abatement must be for a duration of not less than 25
1 year but not more than 5 years. 26
(b) If the abatement is from the property tax imposed pursuant 27
to chapter 361 of NRS, the partial abatement must not exceed 75 28
percent of the taxes on personal property payable by a business each 29
year pursuant to that chapter. 30
6. If an applicant for a partial abatement pursuant to this 31
section fails to execute the agreement described in paragraph (b) of 32
subsection 3 within 1 year after the date on which the application 33
was received by the Office, the applicant shall not be approved for a 34
partial abatement pursuant to this section unless the applicant 35
submits a new request pursuant to subsection 1. 36
7. If a business whose partial abatement has been approved 37
pursuant to this section and is in effect ceases: 38
(a) To meet the eligibility requirements for the partial 39
abatement; or 40
(b) Operation before the time specified in the agreement 41
described in paragraph (b) of subsection 3, 42
the business shall repay to the Department of Taxation or, if the 43
partial abatement was from the property tax imposed pursuant to 44
chapter 361 of NRS, to the county treasurer, the amount of the 45
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partial abatement that was allowed pursuant to this section before 1
the failure of the business to comply unless the Nevada Tax 2
Commission determines that the business has substantially complied 3
with the requirements of this section. Except as otherwise provided 4
in NRS 360.232 and 360.320, the business shall, in addition to the 5
amount of the partial abatement required to be paid pursuant to this 6
subsection, pay interest on the amount due at the rate most recently 7
established pursuant to NRS 99.040 for each month, or portion 8
thereof, from the last day of the month following the period for 9
which the payment would have been made had the partial abatement 10
not been approved until the date of payment of the tax. 11
8. The Office of Economic Development may investigate a 12
business whose partial abatement is approved pursuant to this 13
section to determine whether the business is in substantial 14
compliance with the terms of the workforce development plan 15
described in subparagraph (3) of paragraph (b) of subsection 3. If 16
the Executive Director of the Office determines, based on an 17
investigation conducted pursuant to this subsection, that a 18
business has failed to substantially comply with the terms of the 19
workforce development plan, the business shall repay to the 20
Department of Taxation or, if the partial abatement was from 21
the property tax imposed pursuant to chapter 361 of NRS, to the 22
county treasurer, the amount of the partial abatement that was 23
allowed to the business pursuant to this section. Except as 24
otherwise provided in NRS 360.232 and 360.320, the business 25
shall, in addition to the amount of the partial abatement required 26
to be paid pursuant to this subsection, pay interest on the amount 27
due at the rate most recently established pursuant to NRS 99.040 28
for each month, or portion thereof, from the last day of the month 29
following the period for which the payment would have been made 30
had the partial abatement not been approved until the date of 31
payment of the tax. 32
9. The Office of Economic Development may adopt such 33
regulations as the Office determines to be necessary or advisable to 34
carry out the provisions of this section. 35
[9.] 10. An applicant for an abatement who is aggrieved by a 36
final decision of the Office of Economic Development may petition 37
for judicial review in the manner provided in chapter 233B of NRS. 38
Sec. 11. NRS 274.320 is hereby amended to read as follows: 39
274.320 1. A person who intends to expand a business in this 40
State within: 41
(a) A historically underutilized business zone, as defined in 15 42
U.S.C. § 632; 43
(b) A redevelopment area created pursuant to chapter 279 of 44
NRS; 45
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(c) An area eligible for a community development block grant 1
pursuant to 24 C.F.R. Part 570; or 2
(d) An enterprise community established pursuant to 24 C.F.R. 3
Part 597, 4
may submit a request to the governing body of the county, city or 5
town in which the business operates for an endorsement of an 6
application by the person to the Office of Economic Development 7
for a partial abatement of the local sales and use taxes imposed on 8
capital equipment. The governing body of the county, city or town 9
shall provide notice of the request to the board of trustees of the 10
school district in which the business operates. The notice must set 11
forth the date, time and location of the hearing at which the 12
governing body will consider whether to endorse the application. As 13
used in this subsection, “local sales and use taxes” means the taxes 14
imposed on the gross receipts of any retailer from the sale of 15
tangible personal property sold at retail, or stored, used or otherwise 16
consumed, in the political subdivision in which the business is 17
located, except the taxes imposed by the Sales and Use Tax Act and 18
the Local School Support Tax Law. 19
2. The governing body of a county, city or town shall develop 20
procedures for: 21
(a) Evaluating whether such an abatement would be beneficial 22
for the economic development of the county, city or town. 23
(b) Issuing a certificate of endorsement for an application for 24
such an abatement that is found to be beneficial for the economic 25
development of the county, city or town. 26
3. A person whose application has been endorsed by the 27
governing body of the county, city or town, as applicable, pursuant 28
to this section may submit the application to the Office of Economic 29
Development. The Office shall approve the application if the Office 30
makes the following determinations: 31
(a) The business is consistent with: 32
(1) The State Plan for Economic Development developed by 33
the Administrator pursuant to subsection 2 of NRS 231.053; and 34
(2) Any guidelines adopted by the Administrator to 35
implement the State Plan for Economic Development. 36
(b) Not later than 1 year after the date on which the application 37
was received by the Office, the applicant has executed an agreement 38
with the Office which : [states:] 39
(1) [The] States the date on which the abatement becomes 40
effective, as agreed to by the applicant and the Office, which must 41
not be earlier than the date on which the Office received the 42
application and not later than 1 year after the date on which the 43
Office approves the application; [and] 44
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(2) [That] States that the business will, after the date on 1
which the abatement becomes effective: 2
(I) Continue in operation in the historically underutilized 3
business zone, as defined in 15 U.S.C. § 632, redevelopment area 4
created pursuant to chapter 279 of NRS, area eligible for a 5
community development block grant pursuant to 24 C.F.R. Part 570 6
or enterprise community established pursuant to 24 C.F.R. Part 597 7
for a period specified by the Office, which must be at least 5 years; 8
and 9
(II) Continue to meet the eligibility requirements set forth 10
in this subsection [.] ; and 11
(3) Incorporates a workforce development plan that 12
provides for the implementation by the business of a program of 13
workforce development for employees employed by the business in 14
this State that must: 15
(I) Train incumbent employees or be used to recruit, 16
assess and train new employees of the business; 17
(II) Be provided by an institution within the Nevada 18
System of Higher Education, a private postsecondary educational 19
institution, a school district or a charter school; and 20
(III) If completed, result in a postsecondary or industry-21
recognized credential, or an identifiable occupational skill that 22
meets the applicable industry standard. 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
4. If the Office of Economic Development approves an 39
application for a partial abatement, the Office shall immediately 40
forward a certificate of eligibility for the abatement to: 41
(a) The Department of Taxation; and 42
(b) The Nevada Tax Commission. 43
5. If the Office of Economic Development approves an 44
application for a partial abatement pursuant to this section: 45
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(a) The partial abatement must be for a duration of not less than 1
1 year but not more than 5 years. 2
(b) If the abatement is from the property tax imposed pursuant 3
to chapter 361 of NRS, the partial abatement must not exceed 75 4
percent of the taxes on personal property payable by a business each 5
year pursuant to that chapter. 6
6. If an applicant for a partial abatement pursuant to this 7
section fails to execute the agreement described in paragraph (b) of 8
subsection 3 within 1 year after the date on which the application 9
was received by the Office, the applicant shall not be approved for a 10
partial abatement pursuant to this section unless the applicant 11
submits a new request pursuant to subsection 1. 12
7. If a business whose partial abatement has been approved 13
pursuant to this section and is in effect ceases: 14
(a) To meet the eligibility requirements for the partial 15
abatement; or 16
(b) Operation before the time specified in the agreement 17
described in paragraph (b) of subsection 3, 18
the business shall repay to the Department of Taxation the 19
amount of the partial abatement that was allowed pursuant to this 20
section before the failure of the business to comply unless the 21
Nevada Tax Commission determines that the business has 22
substantially complied with the requirements of this section. Except 23
as otherwise provided in NRS 360.232 and 360.320, the business 24
shall, in addition to the amount of the partial abatement required to 25
be paid pursuant to this subsection, pay interest on the amount due 26
at the rate most recently established pursuant to NRS 99.040 for 27
each month, or portion thereof, from the last day of the month 28
following the period for which the payment would have been made 29
had the partial abatement not been approved until the date of 30
payment of the tax. 31
8. The Office of Economic Development may investigate a 32
business whose partial abatement is approved pursuant to this 33
section to determine whether the business is in substantial 34
compliance with the terms of the workforce development plan 35
described in subparagraph (3) of paragraph (b) of subsection 3. If 36
the Executive Director of the Office determines, based on an 37
investigation conducted pursuant to this subsection, that a 38
business has failed to substantially comply with the terms of the 39
workforce development plan, the business shall repay to the 40
Department of Taxation the amount of the partial abatement that 41
was allowed pursuant to this section. Except as otherwise provided 42
in NRS 360.232 and 360.320, the business shall, in addition to the 43
amount of the partial abatement required to be paid pursuant to 44
this subsection, pay interest on the amount due at the rate most 45
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recently established pursuant to NRS 99.040 for each month, or 1
portion thereof, from the last day of the month following the 2
period for which the payment would have been made had the 3
partial abatement not been approved until the date of payment of 4
the tax. 5
9. The Office of Economic Development may adopt such 6
regulations as the Office determines to be necessary or advisable to 7
carry out the provisions of this section. 8
[9.] 10. An applicant for an abatement who is aggrieved by a 9
final decision of the Office of Economic Development may petition 10
for judicial review in the manner provided in chapter 233B of NRS. 11
Sec. 12. NRS 274.330 is hereby amended to read as follows: 12
274.330 1. A person who owns a business which is located 13
within an enterprise community established pursuant to 24 C.F.R. 14
Part 597 in this State may submit a request to the governing body of 15
the county, city or town in which the business is located for an 16
endorsement of an application by the person to the Office of 17
Economic Development for a partial abatement of one or more of 18
the taxes imposed pursuant to chapter 361 of NRS or the local sales 19
and use taxes. The governing body of the county, city or town shall 20
provide notice of the request to the board of trustees of the school 21
district in which the business operates. The notice must set forth the 22
date, time and location of the hearing at which the governing body 23
will consider whether to endorse the application. As used in this 24
subsection, “local sales and use taxes” means the taxes imposed on 25
the gross receipts of any retailer from the sale of tangible personal 26
property sold at retail, or stored, used or otherwise consumed, in the 27
political subdivision in which the business is located, except the 28
taxes imposed by the Sales and Use Tax Act and the Local School 29
Support Tax Law. 30
2. The governing body of a county, city or town shall develop 31
procedures for: 32
(a) Evaluating whether such an abatement would be beneficial 33
for the economic development of the county, city or town. 34
(b) Issuing a certificate of endorsement for an application for 35
such an abatement that is found to be beneficial for the economic 36
development of the county, city or town. 37
3. A person whose application has been endorsed by the 38
governing body of the county, city or town, as applicable, pursuant 39
to this section may submit the application to the Office of Economic 40
Development. The Office shall approve the application if the Office 41
makes the following determinations: 42
(a) The business is consistent with: 43
(1) The State Plan for Economic Development developed by 44
the Administrator pursuant to subsection 2 of NRS 231.053; and 45
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(2) Any guidelines adopted by the Administrator to 1
implement the State Plan for Economic Development. 2
(b) 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 : [states:] 5
(1) [The] States the date on which the abatement becomes 6
effective, as agreed to by the applicant and the Office, which must 7
not be earlier than the date on which the Office received the 8
application and not later than 1 year after the date on which the 9
Office approves the application; [and] 10
(2) [That] States that the business will, after the date on 11
which the abatement becomes effective: 12
(I) Continue in operation in the enterprise community for 13
a period specified by the Office, which must be at least 5 years; and 14
(II) Continue to meet the eligibility requirements set forth 15
in this subsection [.] ; and 16
(3) Incorporates a workforce development plan that 17
provides for the implementation by the business of a program of 18
workforce development for employees employed by the business in 19
this State that must: 20
(I) Train incumbent employees or be used to recruit, 21
assess and train new employees of the business; 22
(II) Be provided by an institution within the Nevada 23
System of Higher Education, a private postsecondary educational 24
institution, a school district or a charter school; and 25
(III) If completed, result in a postsecondary or industry-26
recognized credential, or an identifiable occupational skill that 27
meets the applicable industry standard. 28
The agreement must bind successors in interest of the business 29
for the specified period. 30
(c) The business is registered pursuant to the laws of this State 31
or the applicant commits to obtain a valid business license and all 32
other permits required by the county, city or town in which the 33
business operates. 34
(d) The business: 35
(1) Employs one or more dislocated workers who reside in 36
the enterprise community; and 37
(2) Pays such employees a wage of not less than 100 percent 38
of the federally designated level signifying poverty for a family of 39
four persons and provides medical benefits to the employees and 40
their dependents which meet the minimum requirements for medical 41
benefits established by the Office. 42
4. If the Office of Economic Development approves an 43
application for a partial abatement, the Office shall: 44
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(a) Determine the percentage of employees of the business 1
which meet the requirements of paragraph (d) of subsection 3 and 2
grant a partial abatement equal to that percentage; and 3
(b) Immediately forward a certificate of eligibility for the 4
abatement to: 5
(1) The Department of Taxation; 6
(2) The Nevada Tax Commission; and 7
(3) If the partial abatement is from the property tax imposed 8
pursuant to chapter 361 of NRS, the county treasurer of the county 9
in which the business is located. 10
5. If the Office of Economic Development approves an 11
application for a partial abatement pursuant to this section: 12
(a) The partial abatement must be for a duration of not less than 13
1 year but not more than 5 years. 14
(b) If the abatement is from the property tax imposed pursuant 15
to chapter 361 of NRS, the partial abatement must not exceed 75 16
percent of the taxes on personal property payable by a business each 17
year pursuant to that chapter. 18
6. If an applicant for a partial abatement pursuant to this 19
section fails to execute the agreement described in paragraph (b) of 20
subsection 3 within 1 year after the date on which the application 21
was received by the Office, the applicant shall not be approved for a 22
partial abatement pursuant to this section unless the applicant 23
submits a new request pursuant to subsection 1. 24
7. If a business whose partial abatement has been approved 25
pursuant to this section and is in effect ceases: 26
(a) To meet the eligibility requirements for the partial 27
abatement; or 28
(b) Operation before the time specified in the agreement 29
described in paragraph (b) of subsection 3, 30
the business shall repay to the Department of Taxation or, if the 31
partial abatement was from the property tax imposed pursuant to 32
chapter 361 of NRS, to the county treasurer, the amount of the 33
partial abatement that was allowed pursuant to this section before 34
the failure of the business to comply unless the Nevada Tax 35
Commission determines that the business has substantially complied 36
with the requirements of this section. Except as otherwise provided 37
in NRS 360.232 and 360.320, the business shall, in addition to the 38
amount of the partial abatement required to be paid pursuant to this 39
subsection, pay interest on the amount due at the rate most recently 40
established pursuant to NRS 99.040 for each month, or portion 41
thereof, from the last day of the month following the period for 42
which the payment would have been made had the partial abatement 43
not been approved until the date of payment of the tax. 44
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8. The Office of Economic Development may investigate a 1
business whose partial abatement is approved pursuant to this 2
section to determine whether the business is in substantial 3
compliance with the terms of the workforce development plan 4
described in subparagraph (3) of paragraph (b) of subsection 3. If 5
the Executive Director of the Office determines, based on an 6
investigation conducted pursuant to this subsection, that a 7
business has failed to substantially comply with the terms of the 8
workforce development plan, the business shall repay to the 9
Department of Taxation or, if the partial abatement was from 10
the property tax imposed pursuant to chapter 361 of NRS, to the 11
county treasurer, the amount of the partial abatement that was 12
allowed pursuant to this section. Except as otherwise provided in 13
NRS 360.232 and 360.320, the business shall, in addition to the 14
amount of the partial abatement required to be paid pursuant to 15
this subsection, pay interest on the amount due at the rate most 16
recently established pursuant to NRS 99.040 for each month, or 17
portion thereof, from the last day of the month following the 18
period for which the payment would have been made had the 19
partial abatement not been approved until the date of payment of 20
the tax. 21
9. The Office of Economic Development: 22
(a) Shall adopt regulations relating to the minimum level of 23
benefits that a business must provide to its employees to qualify for 24
an abatement pursuant to this section. 25
(b) May adopt such other regulations as the Office determines to 26
be necessary or advisable to carry out the provisions of this section. 27
[9.] 10. An applicant for an abatement who is aggrieved by a 28
final decision of the Office of Economic Development may petition 29
for judicial review in the manner provided in chapter 233B of NRS. 30
[10.] 11. As used in this section, “dislocated worker” means a 31
person who: 32
(a) Has been terminated, laid off or received notice of 33
termination or layoff from employment; 34
(b) Is eligible for or receiving or has exhausted his or her 35
entitlement to unemployment compensation; 36
(c) Has been dependent on the income of another family 37
member but is no longer supported by that income; 38
(d) Has been self-employed but is no longer receiving an income 39
from self-employment because of general economic conditions in 40
the community or natural disaster; or 41
(e) Is currently unemployed and unable to return to a previous 42
industry or occupation. 43
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Sec. 13. The amendatory provisions of this act apply only to 1
an application for transferable tax credits or an abatement from 2
taxation for which a person applies on or after July 1, 2025. 3
Sec. 14. 1. This section becomes effective upon passage and 4
approval. 5
2. Sections 1 to 13, inclusive, of this act become effective: 6
(a) Upon passage and approval for the purpose of adopting any 7
regulations and performing any other preparatory administrative 8
tasks that are necessary to carry out the provisions of this act; and 9
(b) On July 1, 2025, for all other purposes. 10
3. Sections 3 and 4 of this act expire by limitation on June 30, 11
2032. 12
4. Sections 2, 7 and 8 of this act expire by limitation on 13
June 30, 2035. 14
5. Sections 5 and 6 of this act expire by limitation on June 30, 15
2036. 16
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