S.B. 403
- *SB403*
SENATE BILL NO. 403–SENATORS DONDERO LOOP; CANNIZZARO,
CRUZ-CRAWFORD, DOÑATE, NGUYEN, OHRENSCHALL,
PAZINA, SCHEIBLE AND TAYLOR
MARCH 17, 2025
____________
Referred to Committee on Education
SUMMARY—Revises provisions relating to education.
(BDR 34-611)
FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
Effect on the State: Yes.
CONTAINS UNFUNDED MANDATE (§§ 4, 5)
(NOT REQUESTED BY AFFECTED LOCAL GOVERNMENT)
~
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to education; creating the Subcommittee on
Metrics of the Commission on Innovation and Excellence
in Education; revising provisions governing competency-
based education; authorizing an alternative schedule for
certain public schools; requiring pupils in certain grades
to be provided a course of study in occupational guidance
and counseling; requiring the Department of Education to
develop, maintain and publish certain materials related to
career exploration; requiring the Board of Economic
Development to make certain recommendations relating
to opportunities for pupils for career exploration in
schools; authorizing the Office of Economic Development
to require applicants for certain transferable tax credits
and certain tax abatements to agree to a plan to provide
opportunities for career exploration to pupils; making
appropriations; and providing other matters properly
relating thereto.
Legislative Counsel’s Digest:
Existing law creates the Commission on Innovation and Excellence in 1
Education and requires the Commission to develop a statewide vision and 2
implementation plan to improve the public education system in this State. (NRS 3
385.910, 385.920) Section 1 of this bill creates the Subcommittee on Metrics of the 4
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Commission and requires the Subcommittee to develop metrics for school districts 5
and schools to measure the progress and success of pupils, schools and school 6
districts. Section 2 of this bill makes a conforming change to apply the definition of 7
the term “Commission,” which is applicable to provisions governing the 8
Commission on Innovation and Excellence in Education, to the provisions of 9
section 1. Section 24 of this bill makes an appropriation of $137,820 for a staff 10
position to oversee the implementation of recommendations made by the 11
Commission. Section 26 of this bill makes an appropriation of $25,000 for the 12
Fiscal Year 2025-2026 and $25,000 for the Fiscal Year 2026-2027 for the travel 13
expenses of the members of the Commission and Subcommittee. 14
Existing law requires the Department of Education to establish a pilot program 15
to provide competency-based education. (NRS 389.210) Existing law defines 16
“competency-based education” as a system of instruction by which a pupil 17
advances to a higher level of learning when the pupil demonstrates mastery of a 18
concept or skill, regardless of the time, place or pace at which the pupil progresses. 19
(NRS 389.200) Sections 6-8 of this bill change the term “competency-based 20
education” to “competency-based learning,” but otherwise retain the existing 21
definition for that term. Section 7 authorizes the Department: (1) to create a 22
timeline and action plan to implement alternatives to Carnegie Units or methods to 23
enable the use of Carnegie Units to coexist with the system of instruction used in 24
competency-based learning; and (2) submit recommendations to the Joint Interim 25
Standing Committee on Education for legislation necessary to implement such 26
alternatives or methods or to authorize the Department to revise or eliminate certain 27
regulations. 28
Existing law requires the boards of trustees of school districts to schedule and 29
provide a minimum of 180 days of free school in the districts under their charge. 30
(NRS 388.090) Sections 3 and 7 of this bill authorize the board of trustees of a 31
school district or the governing body of a charter school to apply to the 32
Superintendent of Public Instruction for approval of: (1) an alternative schedule for 33
a school which is selected to participate in the pilot program to provide 34
competency-based learning; and (2) an alternative method in which the 35
Superintendent of Public Instruction will count enrollment and calculate the 36
average daily attendance of pupils enrolled in such a school for the purposes of 37
apportionments and allowances from the State Education Fund. 38
Existing law requires the State Board of Education to establish a course of 39
study in occupational guidance and counseling and requires such instruction to be 40
made available for pupils in grades 7-12. Existing law requires the board of trustees 41
in each school district to organize and offer the curriculum within the limits of 42
money made available for that purpose. (NRS 389.041) Sections 4 and 5 of this 43
bill eliminate the provisions making such instruction optional and instead require 44
the board of trustees of each school district and the governing body of each charter 45
school to ensure that the course is provided to pupils enrolled in grades 6, 7 and 8. 46
Section 5 of this bill requires the Department to develop, maintain and publish on 47
an Internet website maintained by the Department educational materials and 48
information regarding career exploration suitable for pupils in grades 1-5. 49
Existing law creates the Board of Economic Development, which, among other 50
duties, is required to make recommendations to the Executive Director of the Office 51
of Economic Development relating to the criteria to be used by the Office in 52
providing development resources and making allocations, grants and loans. (NRS 53
231.033, 231.037) Existing law additionally requires the Board to review and 54
evaluate all programs of economic development in this State and make 55
recommendations to the Legislature for legislation. (NRS 231.037) Section 9 of 56
this bill further requires such recommendations to include recommendations to 57
provide incentives for businesses, including small businesses, to provide 58
opportunities for career exploration to pupils enrolled in public schools in this 59
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State. Section 9 additionally requires the Board to review and make 60
recommendations to the Department regarding technologies to facilitate the 61
exploration by pupils of careers in industries in this State. 62
Existing law authorizes the Office to approve transferable tax credits and 63
abatements or partial abatements of certain property taxes, business taxes and sales 64
and use taxes for certain businesses in certain circumstances. The Office is 65
prohibited from approving an application for such credits or abatements unless the 66
applicant satisfies certain criteria. (NRS 231.1555, 274.310, 274.320, 274.330, 67
360.750, 360.753, 360.754, 360.759, 360.889, 360.945) Sections 10-23 of this bill 68
authorize the Office to require an applicant for transferable tax credits or a tax 69
abatement to enter into an agreement with the Office that includes a plan by the 70
applicant to provide opportunities for career exploration to pupils enrolled in public 71
schools in this State. 72
Section 25 of this bill appropriates $2,250,000 to the Department to: (1) make 73
grants to school districts to assist schools in participating in the pilot program to 74
provide competency-based learning; and (2) enter into a contract with a qualified 75
entity to provide professional development regarding competency-based learning 76
programs and assist the Department in implementing the recommendations made 77
by the Commission on Innovation and Excellence in Education. 78
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 385 of NRS is hereby amended by adding 1
thereto a new section to read as follows: 2
1. There is hereby created the Subcommittee on Metrics of 3
the Commission on Innovation and Excellence in Education, 4
consisting of members appointed by the Chair of the Commission. 5
The Subcommittee shall develop metrics that school districts and 6
schools may use to measure the progress and success of pupils, 7
schools and school districts, including, without limitation: 8
(a) Metrics for learning outcomes which are based on growth, 9
including, without limitation, the development of skills, 10
competencies and dispositions. 11
(b) Metrics of holistic factors, including, without limitation, 12
the well-being of pupils, social capital and civic engagement. 13
2. Each member of the Subcommittee: 14
(a) Serves without compensation; and 15
(b) While engaged in the business of the Subcommittee, is 16
entitled to receive the travel expenses provided for state officers 17
and employees generally. 18
Sec. 2. NRS 385.900 is hereby amended to read as follows: 19
385.900 As used in this section and NRS 385.910 and 385.920, 20
and section 1 of this act, unless the context otherwise requires, 21
“Commission” means the Commission on Inno vation and 22
Excellence in Education created by NRS 385.910. 23
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Sec. 3. NRS 388.090 is hereby amended to read as follows: 1
388.090 1. Except as otherwise provided in this section and 2
NRS 388D.330 [,] and section 7 of this act, boards of trustees of 3
school districts shall schedule and provide a minimum of 180 days 4
of free school in the districts under their charge. 5
2. Except for an alternative schedule described in subsection 3, 6
the Superintendent of Public Instruction may, upon application by 7
the board of trustees of a school district, authorize the school district 8
to provide a program of instruction based on an alternative schedule 9
if the number of minutes of instruction to be provided is equal to or 10
greater than the number of minutes of instruction that would be 11
provided in a program of instruction consisting of 180 school days. 12
The Superintendent of Public Instruction shall notify the board of 13
trustees of the school district of the approval or denial of the 14
application not later than 30 days after the Superintendent of Public 15
Instruction receives the application. An alternative schedule 16
proposed pursuant to this subsection must be developed in 17
accordance with chapter 288 of NRS. 18
3. The Superintendent of Public Instruction may, upon 19
application by the board of trustees of a school district, authorize a 20
reduction of not more than 15 school days in that particular district 21
to establish or maintain an alternative schedule consisting of a 12-22
month school program if the board of trustees demonstrates that the 23
proposed alternative schedule for the program provides for a number 24
of minutes of instruction that is equal to or greater than that which 25
would be provided under a program consisting of 180 school days. 26
4. The Superintendent of Public Instruction may, upon 27
application by a board of trustees, authorize the addition of minutes 28
of instruction to any scheduled day of free school if days of free 29
school are lost because of any interscholastic activity. Not more than 30
5 days of free school so lost may be rescheduled in this manner. The 31
provisions of this subsection do not apply to an alternative schedule 32
approved pursuant to subsection 2. 33
5. The number of minutes of instruction required for a 34
particular group of pupils in a program of instruction based on an 35
alternative schedule approved pursuant to this section and NRS 36
388.095 and 388.097 must be determined by multiplying the 37
appropriate minimum daily period of instruction established by the 38
State Board by regulation for that particular group of pupils by 180. 39
Sec. 4. Chapter 389 of NRS is hereby amended by adding 40
thereto a new section to read as follows: 41
The board of trustees of each school district and the governing 42
body of each charter school shall ensure that the course of study 43
in occupational guidance and counseling established pursuant to 44
NRS 389.041 is provided to pupils enrolled in grades 6, 7 and 8 in 45
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each public school within the school district or charter school, as 1
applicable. 2
Sec. 5. NRS 389.041 is hereby amended to read as follows: 3
389.041 1. The State Board shall, by regulation, establish a 4
course of study in occupational guidance and counseling. 5
2. The board of trustees of each school district shall establish 6
the curriculum for the course of study in that district. The 7
curriculum must be organized and, with the assistance of teachers, 8
administrators, pupils, parents and the business community, 9
coordinated by licensed school counselors who shall provide 10
instruction and activities designed to: 11
(a) Promote normal growth and development. 12
(b) Promote positive mental and physical health. 13
(c) Provide each pupil with knowledge and skills which permit 14
the pupil to control his or her own destiny. 15
(d) Assist each pupil to plan, monitor and manage the pupil’s 16
personal, educational and occupational development. 17
(e) Meet the immediate needs and concerns of each pupil, 18
whether the pupil’s needs or concerns require counseling, 19
consultation, referral or information. 20
(f) Provide counselors, teachers and support staff with the 21
knowledge and skills required to maintain and improve the course. 22
(g) Provide such other related assistance and instruction as is 23
deemed necessary. 24
3. [The instruction required by this section must be made 25
available for each pupil in grades 7 to 12, inclusive. 26
4. The board of trustees in each school district shall organize 27
and offer the curriculum within the limits of money made available 28
to the district by the Legislature for that purpose.] The Department 29
shall develop, maintain and publish on an Internet website 30
maintained by the Department educational materials and 31
information regarding career exploration suitable for pupils in 32
grades 1 to 5, inclusive. 33
Sec. 6. NRS 389.200 is hereby amended to read as follows: 34
389.200 As used in NRS 389.200, 389.210 and 389.230, 35
“competency-based [education”] learning” means a system of 36
instruction by which a pupil advances to a higher level of learning 37
when the pupil demonstrates mastery of a concept or skill, 38
regardless of the time, place or pace at which the pupil progresses. 39
Sec. 7. NRS 389.210 is hereby amended to read as follows: 40
389.210 1. The Department shall establish a pilot program to 41
provide competency-based [education.] learning. 42
2. The State Board shall adopt regulations that prescribe: 43
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(a) The process for submission of an application by the board of 1
trustees of a school district or the governing body of a charter school 2
to participate in the pilot program; and 3
(b) The qualifications and conditions for participation by a 4
school in the pilot program, including, without limitation: 5
(1) A commitment by the school district or charter school to 6
implement competency-based [education] learning for not less than 7
5 years; and 8
(2) Evidence of support for the implementation of 9
competency-based [education] learning by the community served 10
by the school district or charter school. 11
3. A school selected to participate in the pilot program to 12
provide competency-based [education] learning shall: 13
(a) Implement a system of instruction by which a pupil advances 14
to a higher level of learning when the pupil demonstrates mastery of 15
a concept or skill; 16
(b) Establish concrete skills on which a pupil will be evaluated 17
that include explicit, measurable and transferable learning 18
objectives; 19
(c) Ensure that assessment is a meaningful and positive learning 20
experience for pupils; 21
(d) Ensure that pupils receive timely and differentiated support 22
based upon their individual learning needs; and 23
(e) Ensure that pupils are able to apply knowledge learned, 24
create new knowledge and develop important skills and dispositions 25
relating to such knowledge. 26
4. The board of trustees of a school district or the governing 27
body of a charter school may apply to the Superintendent of 28
Public Instruction for approval of: 29
(a) An alternative schedule for a school which is selected to 30
participate in the pilot program to provide competency-based 31
learning, which must provide for at least as many hours or 32
minutes of instruction as would be provided under a schedule 33
consisting of 180 days; and 34
(b) An alternative method in which the Superintendent of 35
Public Instruction will count enrollment and calculate the average 36
daily attendance of pupils enrolled at the school for the purposes 37
of apportionments and allowances from the State Education Fund 38
pursuant to NRS 387.121 to 387.12468, inclusive. 39
5. If at least one application to participate in the pilot program 40
is made on behalf of a school that primarily serves pupils who are at 41
risk or credit deficient, or in need of credit retrieval, the Department 42
must select at least one such school to participate in the pilot 43
program. 44
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[5.] 6. The Department may, based upon the results of the 1
pilot program to provide competency-based learning, create a 2
timeline and action plan to implement alternatives to Carnegie 3
Units or methods to enable the use of Carnegie Units to flexibly 4
coexist with the system of instruction used in competency-based 5
learning. The Department may submit to the Joint Interim 6
Standing Committee on Education recommendations for 7
legislation necessary to: 8
(a) Implement alternatives to Carnegie Units or methods to 9
enable Carnegie Units to flexibly coexist with the system of 10
instruction used in competency-based learning. 11
(b) Authorize the Department to revise or eliminate regulations 12
that stifle innovation, restrict student choice and agency, and 13
inhibit flexible, competency-based pathways to graduation. 14
7. As used in this section [, a] : 15
(a) A pupil is “at risk” if the pupil has an economic or academic 16
disadvantage such that he or she requires special services and 17
assistance to enable him or her to succeed in educational programs. 18
The term includes, without limitation, pupils who are members of 19
economically disadvantaged families, pupils who are English 20
learners, pupils who are at risk of dropping out of high school and 21
pupils who do not meet minimum standards of academic 22
proficiency. The term does not include a pupil with a disability. 23
(b) “Carnegie Unit” means the credit given for the successful 24
completion of a course based upon the number of hours of 25
classroom instruction or contact time with a teacher provided 26
during the course. 27
Sec. 8. NRS 389.230 is hereby amended to read as follows: 28
389.230 1. The Department of Education shall: 29
(a) Conduct a public campaign to raise awareness about 30
competency-based [education.] learning. 31
(b) Conduct one or more meetings with the superintendents of 32
the school districts for the purpose of increasing: 33
(1) Understanding of competency-based [education;] 34
learning; and 35
(2) Interest in implementing a system of competency-based 36
[education.] learning. 37
2. To the extent that money is available for that purpose, the 38
Department of Education may, through a competitive grants 39
program, distribute any money appropriated to the Department to 40
carry out the pilot program to provide competency-based 41
[education] learning established pursuant to NRS 389.210. Grants 42
must be awarded by the Department to schools selected to 43
participate in the program based upon money available for this 44
purpose. 45
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Sec. 9. NRS 231.037 is hereby amended to read as follows: 1
231.037 The Board shall: 2
1. Review and evaluate all programs of economic development 3
in this State and make recommendations to the Legislature for 4
legislation to [improve] : 5
(a) Improve the effectiveness of those programs in 6
implementing the State Plan for Economic Development developed 7
by the Executive Director pursuant to subsection 2 of NRS 231.053. 8
(b) Provide incentives for businesses, including small 9
businesses, to provide opportunities for career exploration to 10
pupils enrolled in public schools in this State. 11
2. Recommend to the Executive Director a State Plan for 12
Economic Development and make recommendations to the 13
Executive Director for carrying out the State Plan for Economic 14
Development, including, without limitation, recommendations 15
regarding the development and implementation of a recruiting and 16
marketing effort to attract professionals and businesses to this State. 17
3. Recommend to the Executive Director the criteria for the 18
designation of regional development authorities. 19
4. Make recommendations to the Executive Director for the 20
designation for the southern region of this State, the northern region 21
of this State and the rural region of this State, one or more regional 22
development authorities for each region. 23
5. Provide advice and recommendations to the Executive 24
Director concerning: 25
(a) The procedures to be followed by any entity seeking to 26
obtain any development resource, allocation, grant or loan from the 27
Office; 28
(b) The criteria to be used by the Office in providing 29
development resources and making allocations, grants and loans; 30
(c) The requirements for reports from the recipients of 31
development resources, allocations, grants and loans from the Office 32
concerning the use thereof; 33
(d) The development and implementation of programs to 34
provide customized workforce development services to existing and 35
prospective businesses in this State; and 36
(e) Any other activities of the Office. 37
6. Review each proposal by the Executive Director to enter into 38
a contract pursuant to NRS 231.057 for more than $100,000 or 39
allocate, grant or loan more than $100,000 to any entity and, as the 40
Board determines to be in the best interests of the State, approve or 41
disapprove the proposed allocation, grant or loan. Notwithstanding 42
any other statutory provision to the contrary, the Executive Director 43
shall not enter into any contract pursuant to NRS 231.057 for more 44
than $100,000 or make any allocation, grant or loan of more than 45
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$100,000 to any entity unless the allocation, grant or loan is 1
approved by the Board. 2
7. Review and make recommendations to the Department of 3
Education regarding technologies to facilitate the exploration by 4
pupils of careers in industries in this State. 5
Sec. 10. NRS 231.1555 is hereby amended to read as follows: 6
231.1555 1. A person who intends to locate or expand a 7
business in this State may apply to the Office for a certificate of 8
eligibility for transferable tax credits which may be applied to: 9
(a) Any tax imposed by chapter 363A or 363B of NRS; 10
(b) The gaming license fee imposed by the provisions of 11
NRS 463.370; 12
(c) Any tax imposed by chapter 680B of NRS; or 13
(d) Any combination of the fees and taxes described in 14
paragraphs (a), (b) and (c). 15
2. After considering any advice and recommendations of the 16
Board, the Executive Director shall establish: 17
(a) Procedures for applying to the Office for a certificate of 18
eligibility for transferable tax credits which must: 19
(1) Include, without limitation, a requirement that the 20
applicant set forth in the application: 21
(I) The proposed use of the transferable tax credits; 22
(II) The plans, projects and programs for which the 23
transferable tax credits will be used; 24
(III) The expected benefits of the issuance of the 25
transferable tax credits; and 26
(IV) A statement of the short-term and long-term impacts 27
of the issuance of the transferable tax credits; and 28
(2) Allow the applicant to revise the application upon the 29
recommendation of the Executive Director. 30
(b) The criteria which a person to whom a certificate of 31
eligibility for transferable tax credits has been issued must satisfy to 32
be issued a certificate of transferable tax credits. Such criteria may 33
include, without limitation, a requirement for the applicant to 34
enter into an agreement with the Office that incorporates a plan 35
by the applicant to provide opportunities for career exploration to 36
pupils enrolled in public schools in this State, which may include, 37
without limitation, a proposal to offer work-based learning or 38
apprenticeship opportunities at the business of the applicant or to 39
provide for employees of the applicant to serve as full-time or part-40
time instructors for career and technical education courses. 41
3. After receipt of an application pursuant to this section, the 42
Executive Director shall review and evaluate the application and 43
determine whether the approval of the application would promote 44
the economic development of this State and aid the implementation 45
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of the State Plan for Economic Development developed by the 1
Executive Director pursuant to subsection 2 of NRS 231.053. 2
4. If the applicant is requesting transferable tax credits in an 3
amount of $100,000 or less, the Executive Director may approve the 4
application, subject to the provisions of subsection 6, if the 5
Executive Director determines that approving the application will 6
promote the economic development of this State and aid the 7
implementation of the State Plan for Economic Development. 8
5. If the applicant is requesting transferable tax credits in an 9
amount greater than $100,000, the Executive Director shall submit 10
the application and the Executive Director’s review and evaluation 11
of the application pursuant to subsection 3 to the Board, and the 12
Board may approve the application, subject to the provisions of 13
subsection 6, if the Board determines that approving the application 14
will promote the economic development of this State and aid the 15
implementation of the State Plan for Economic Development. 16
6. The Executive Director or the Board shall not approve any 17
application for transferable tax credits for: 18
(a) A period of more than 5 fiscal years; 19
(b) Fiscal Year 2015-2016; or 20
(c) Any fiscal year if the approval of the application would 21
cause the total amount of transferable tax credits issued pursuant to 22
this section to exceed: 23
(1) For Fiscal Year 2016-2017, $1,000,000. 24
(2) For Fiscal Year 2017-2018, $2,000,000. 25
(3) For Fiscal Year 2018-2019, $2,000,000. 26
(4) For Fiscal Year 2019-2020, $3,000,000. 27
(5) For a fiscal year beginning on or after July 1, 2020, 28
$5,000,000. 29
7. If the Executive Director or the Board approves an 30
application and issues a certificate of eligibility for transferable tax 31
credits, the Office shall immediately forward a copy of the 32
certificate of eligibility which identifies the estimated amount of the 33
tax credits available pursuant to this section to: 34
(a) The applicant; 35
(b) The Department of Taxation; and 36
(c) The Nevada Gaming Control Board. 37
8. Within 14 days after the Office determines that a person to 38
whom a certificate of eligibility for transferable tax credits has been 39
issued satisfies the criteria established by the Executive Director 40
pursuant to subsection 2, the Office shall notify the person that 41
transferable tax credits will be issued. Within 30 days after the 42
receipt of the notice, the person shall make an irrevocable 43
declaration of the amount of transferable tax credits that will be 44
applied to each fee or tax set forth in paragraphs (a), (b) and (c) of 45
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subsection 1, thereby accounting for all of the credits which will be 1
issued. Upon receipt of the declaration, the Office shall issue to the 2
person a certificate of transferable tax credits in the amount 3
approved by the Executive Director or the Board, as applicable, for 4
the fees or taxes included in the declaration. The Office shall notify 5
the Department of Taxation and the Nevada Gaming Control Board 6
of all transferable tax credits issued, segregated by each fee or tax 7
set forth in paragraphs (a), (b) and (c) of subsection 1, and the 8
amount of any transferable tax credits transferred. 9
Sec. 11. NRS 274.310 is hereby amended to read as follows: 10
274.310 1. A person who intends to locate a business in this 11
State within: 12
(a) A historically underutilized business zone, as defined in 15 13
U.S.C. § 632; 14
(b) A redevelopment area created pursuant to chapter 279 of 15
NRS; 16
(c) An area eligible for a community development block grant 17
pursuant to 24 C.F.R. Part 570; or 18
(d) An enterprise community established pursuant to 24 C.F.R. 19
Part 597, 20
may submit a request to the governing body of the county, city or 21
town in which the business would operate for an endorsement of an 22
application by the person to the Office of Economic Development 23
for a partial abatement of one or more of the taxes imposed pursuant 24
to chapter 361 of NRS or the local sales and use taxes. The 25
governing body of the county, city or town shall provide notice of 26
the request to the board of trustees of the school district in which the 27
business would operate. The notice must set forth the date, time and 28
location of the hearing at which the governing body will consider 29
whether to endorse the application. As used in this subsection, 30
“local sales and use taxes” means the taxes imposed on the gross 31
receipts of any retailer from the sale of tangible personal property 32
sold at retail, or stored, used or otherwise consumed, in the political 33
subdivision in which the business is located, except the taxes 34
imposed by the Sales and Use Tax Act and the Local School 35
Support Tax Law. 36
2. The governing body of a county, city or town shall develop 37
procedures for: 38
(a) Evaluating whether such an abatement would be beneficial 39
for the economic development of the county, city or town. 40
(b) Issuing a certificate of endorsement for an application for 41
such an abatement that is found to be beneficial for the economic 42
development of the county, city or town. 43
3. A person whose application has been endorsed by the 44
governing body of the county, city or town, as applicable, pursuant 45
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to this section may submit the application to the Office of Economic 1
Development. The Office shall approve the application if the Office 2
makes the following determinations: 3
(a) The business is consistent with: 4
(1) The State Plan for Economic Development developed by 5
the Administrator pursuant to subsection 2 of NRS 231.053; and 6
(2) Any guidelines adopted by the Administrator to 7
implement the State Plan for Economic Development. 8
(b) Not later than 1 year after the date on which the application 9
was received by the Office, the applicant has executed an agreement 10
with the Office which states: 11
(1) The date on which the abatement becomes effective, as 12
agreed to by the applicant and the Office, which must not be earlier 13
than the date on which the Office received the application and not 14
later than 1 year after the date on which the Office approves the 15
application; and 16
(2) That the business will, after the date on which the 17
abatement becomes effective: 18
(I) Commence operation and continue in operation in the 19
historically underutilized business zone, as defined in 15 U.S.C. § 20
632, redevelopment area created pursuant to chapter 279 of NRS, 21
area eligible for a community development block grant pursuant to 22
24 C.F.R. Part 570 or enterprise community established pursuant to 23
24 C.F.R. Part 597 for a period specified by the Office, which must 24
be at least 5 years; and 25
(II) Continue to meet the eligibility requirements set forth 26
in this subsection. 27
The agreement must bind successors in interest of the business 28
for the specified period. 29
(c) The business is registered pursuant to the laws of this State 30
or the applicant commits to obtain a valid business license and all 31
other permits required by the county, city or town in which the 32
business will operate. 33
(d) The applicant invested or commits to invest a minimum of 34
$500,000 in capital assets that will be retained at the location of the 35
business in the historically underutilized business zone, as defined 36
in 15 U.S.C. § 632, redevelopment area created pursuant to chapter 37
279 of NRS, area eligible for a community development block grant 38
pursuant to 24 C.F.R. Part 570 or enterprise community established 39
pursuant to 24 C.F.R. Part 597 until at least the date which is 5 years 40
after the date on which the abatement becomes effective. 41
4. The Office of Economic Development may require the 42
agreement described in paragraph (b) of subsection 3 to 43
incorporate a plan by the business to provide opportunities for 44
career exploration to pupils enrolled in public schools in this 45
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State, which may include, without limitation, a proposal to offer 1
work-based learning or apprenticeship opportunities at the 2
business or to provide for employees of the business to serve as 3
full-time or part-time instructors for career and technical 4
education courses. 5
5. If the Office of Economic Development approves an 6
application for a partial abatement, the Office shall immediately 7
forward a certificate of eligibility for the abatement to: 8
(a) The Department of Taxation; 9
(b) The Nevada Tax Commission; and 10
(c) If the partial abatement is from the property tax imposed 11
pursuant to chapter 361 of NRS, the county treasurer of the county 12
in which the business will be located. 13
[5.] 6. If the Office of Economic Development approves an 14
application for a partial abatement pursuant to this section: 15
(a) The partial abatement must be for a duration of not less than 16
1 year but not more than 5 years. 17
(b) If the abatement is from the property tax imposed pursuant 18
to chapter 361 of NRS, the partial abatement must not exceed 75 19
percent of the taxes on personal property payable by a business each 20
year pursuant to that chapter. 21
[6.] 7. If an applicant for a partial abatement pursuant to this 22
section fails to execute the agreement described in paragraph (b) of 23
subsection 3 within 1 year after the date on which the application 24
was received by the Office, the applicant shall not be approved for a 25
partial abatement pursuant to this section unless the applicant 26
submits a new request pursuant to subsection 1. 27
[7.] 8. If a business whose partial abatement has been 28
approved pursuant to this section and is in effect ceases: 29
(a) To meet the eligibility requirements for the partial 30
abatement; or 31
(b) Operation before the time specified in the agreement 32
described in paragraph (b) of subsection 3, 33
the business shall repay to the Department of Taxation or, if the 34
partial abatement was from the property tax imposed pursuant to 35
chapter 361 of NRS, to the county treasurer, the amount of the 36
partial abatement that was allowed pursuant to this section before 37
the failure of the business to comply unless the Nevada Tax 38
Commission determines that the business has substantially complied 39
with the requirements of this section. Except as otherwise provided 40
in NRS 360.232 and 360.320, the business shall, in addition to the 41
amount of the partial abatement required to be paid pursuant to this 42
subsection, pay interest on the amount due at the rate most recently 43
established pursuant to NRS 99.040 for each month, or portion 44
thereof, from the last day of the month following the period for 45
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which the payment would have been made had the partial abatement 1
not been approved until the date of payment of the tax. 2
[8.] 9. The Office of Economic Development may adopt such 3
regulations as the Office determines to be necessary or advisable to 4
carry out the provisions of this section. 5
[9.] 10. An applicant for an abatement who is aggrieved by a 6
final decision of the Office of Economic Development may petition 7
for judicial review in the manner provided in chapter 233B of NRS. 8
Sec. 12. NRS 274.320 is hereby amended to read as follows: 9
274.320 1. A person who intends to expand a business in this 10
State within: 11
(a) A historically underutilized business zone, as defined in 15 12
U.S.C. § 632; 13
(b) A redevelopment area created pursuant to chapter 279 of 14
NRS; 15
(c) An area eligible for a community development block grant 16
pursuant to 24 C.F.R. Part 570; or 17
(d) An enterprise community established pursuant to 24 C.F.R. 18
Part 597, 19
may submit a request to the governing body of the county, city or 20
town in which the business operates for an endorsement of an 21
application by the person to the Office of Economic Development 22
for a partial abatement of the local sales and use taxes imposed on 23
capital equipment. The governing body of the county, city or town 24
shall provide notice of the request to the board of trustees of the 25
school district in which the business operates. The notice must set 26
forth the date, time and location of the hearing at which the 27
governing body will consider whether to endorse the application. As 28
used in this subsection, “local sales and use taxes” means the taxes 29
imposed on the gross receipts of any retailer from the sale of 30
tangible personal property sold at retail, or stored, used or otherwise 31
consumed, in the political subdivision in which the business is 32
located, except the taxes imposed by the Sales and Use Tax Act and 33
the Local School Support Tax Law. 34
2. The governing body of a county, city or town shall develop 35
procedures for: 36
(a) Evaluating whether such an abatement would be beneficial 37
for the economic development of the county, city or town. 38
(b) Issuing a certificate of endorsement for an application for 39
such an abatement that is found to be beneficial for the economic 40
development of the county, city or town. 41
3. A person whose application has been endorsed by the 42
governing body of the county, city or town, as applicable, pursuant 43
to this section may submit the application to the Office of Economic 44
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Development. The Office shall approve the application if the Office 1
makes the following determinations: 2
(a) The business is consistent with: 3
(1) The State Plan for Economic Development developed by 4
the Administrator pursuant to subsection 2 of NRS 231.053; and 5
(2) Any guidelines adopted by the Administrator to 6
implement the State Plan for Economic Development. 7
(b) Not later than 1 year after the date on which the application 8
was received by the Office, the applicant has executed an agreement 9
with the Office which states: 10
(1) The date on which the abatement becomes effective, as 11
agreed to by the applicant and the Office, which must not be earlier 12
than the date on which the Office received the application and not 13
later than 1 year after the date on which the Office approves the 14
application; and 15
(2) That the business will, after the date on which the 16
abatement becomes effective: 17
(I) Continue in operation in the historically underutilized 18
business zone, as defined in 15 U.S.C. § 632, redevelopment area 19
created pursuant to chapter 279 of NRS, area eligible for a 20
community development block grant pursuant to 24 C.F.R. Part 570 21
or enterprise community established pursuant to 24 C.F.R. Part 597 22
for a period specified by the Office, which must be at least 5 years; 23
and 24
(II) Continue to meet the eligibility requirements set forth 25
in this subsection. 26
The agreement must bind successors in interest of the business 27
for the specified period. 28
(c) The business is registered pursuant to the laws of this State 29
or the applicant commits to obtain a valid business license and all 30
other permits required by the county, city or town in which the 31
business operates. 32
(d) The applicant invested or commits to invest a minimum of 33
$250,000 in capital equipment that will be retained at the location of 34
the business in the historically underutilized business zone, as 35
defined in 15 U.S.C. § 632, redevelopment area created pursuant to 36
chapter 279 of NRS, area eligible for a community development 37
block grant pursuant to 24 C.F.R. Part 570 or enterprise community 38
established pursuant to 24 C.F.R. Part 597 until at least the date 39
which is 5 years after the date on which the abatement becomes 40
effective. 41
4. The Office of Economic Development may require the 42
agreement described in paragraph (b) of subsection 3 to 43
incorporate a plan by the business to provide opportunities for 44
career exploration to pupils enrolled in public schools in this 45
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State, which may include, without limitation, a proposal to offer 1
work-based learning or apprenticeship opportunities at the 2
business or to provide for employees of the business to serve as 3
full-time or part-time instructors for career and technical 4
education courses. 5
5. If the Office of Economic Development approves an 6
application for a partial abatement, the Office shall immediately 7
forward a certificate of eligibility for the abatement to: 8
(a) The Department of Taxation; and 9
(b) The Nevada Tax Commission. 10
[5.] 6. 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.] 7. 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.] 8. If a business whose partial abatement has been 25
approved 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 the 31
amount of the partial abatement that was allowed pursuant to this 32
section before the failure of the business to comply unless the 33
Nevada Tax Commission determines that the business has 34
substantially complied with the requirements of this section. Except 35
as otherwise provided in NRS 360.232 and 360.320, the business 36
shall, in addition to the amount of the partial abatement required to 37
be paid pursuant to this subsection, pay interest on the amount due 38
at the rate most recently established pursuant to NRS 99.040 for 39
each month, or portion thereof, from the last day of the month 40
following the period for which the payment would have been made 41
had the partial abatement not been approved until the date of 42
payment of the tax. 43
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[8.] 9. The Office of Economic Development may adopt such 1
regulations as the Office determines to be necessary or advisable to 2
carry out the provisions of this section. 3
[9.] 10. An applicant for an abatement who is aggrieved by a 4
final decision of the Office of Economic Development may petition 5
for judicial review in the manner provided in chapter 233B of NRS. 6
Sec. 13. NRS 274.330 is hereby amended to read as follows: 7
274.330 1. A person who owns a business which is located 8
within an enterprise community established pursuant to 24 C.F.R. 9
Part 597 in this State may submit a request to the governing body of 10
the county, city or town in which the business is located for an 11
endorsement of an application by the person to the Office of 12
Economic Development for a partial abatement of one or more of 13
the taxes imposed pursuant to chapter 361 of NRS or the local sales 14
and use taxes. The governing body of the county, city or town shall 15
provide notice of the request to the board of trustees of the school 16
district in which the business operates. The notice must set forth the 17
date, time and location of the hearing at which the governing body 18
will consider whether to endorse the application. As used in this 19
subsection, “local sales and use taxes” means the taxes imposed on 20
the gross receipts of any retailer from the sale of tangible personal 21
property sold at retail, or stored, used or otherwise consumed, in the 22
political subdivision in which the business is located, except the 23
taxes imposed by the Sales and Use Tax Act and the Local School 24
Support Tax Law. 25
2. The governing body of a county, city or town shall develop 26
procedures for: 27
(a) Evaluating whether such an abatement would be beneficial 28
for the economic development of the county, city or town. 29
(b) Issuing a certificate of endorsement for an application for 30
such an abatement that is found to be beneficial for the economic 31
development of the county, city or town. 32
3. A person whose application has been endorsed by the 33
governing body of the county, city or town, as applicable, pursuant 34
to this section may submit the application to the Office of Economic 35
Development. The Office shall approve the application if the Office 36
makes the following determinations: 37
(a) The business is consistent with: 38
(1) The State Plan for Economic Development developed by 39
the Administrator pursuant to subsection 2 of NRS 231.053; and 40
(2) Any guidelines adopted by the Administrator to 41
implement the State Plan for Economic Development. 42
(b) Not later than 1 year after the date on which the application 43
was received by the Office, the applicant has executed an agreement 44
with the Office which states: 45
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(1) The date on which the abatement becomes effective, as 1
agreed to by the applicant and the Office, which must not be earlier 2
than the date on which the Office received the application and not 3
later than 1 year after the date on which the Office approves the 4
application; and 5
(2) That the business will, after the date on which the 6
abatement becomes effective: 7
(I) Continue in operation in the enterprise community for 8
a period specified by the Office, which must be at least 5 years; and 9
(II) Continue to meet the eligibility requirements set forth 10
in this subsection. 11
The agreement must bind successors in interest of the business 12
for the specified period. 13
(c) The business is registered pursuant to the laws of this State 14
or the applicant commits to obtain a valid business license and all 15
other permits required by the county, city or town in which the 16
business operates. 17
(d) The business: 18
(1) Employs one or more dislocated workers who reside in 19
the enterprise community; and 20
(2) Pays such employees a wage of not less than 100 percent 21
of the federally designated level signifying poverty for a family of 22
four persons and provides medical benefits to the employees and 23
their dependents which meet the minimum requirements for medical 24
benefits established by the Office. 25
4. The Office of Economic Development may require the 26
agreement described in paragraph (b) of subsection 3 to 27
incorporate a plan by the business to provide opportunities for 28
career exploration to pupils enrolled in public schools in this 29
State, which may include, without limitation, a proposal to offer 30
work-based learning or apprenticeship opportunities at the 31
business or to provide for employees of the business to serve as 32
full-time or part-time instructors for career and technical 33
education courses. 34
5. If the Office of Economic Development approves an 35
application for a partial abatement, the Office shall: 36
(a) Determine the percentage of employees of the business 37
which meet the requirements of paragraph (d) of subsection 3 and 38
grant a partial abatement equal to that percentage; and 39
(b) Immediately forward a certificate of eligibility for the 40
abatement to: 41
(1) The Department of Taxation; 42
(2) The Nevada Tax Commission; and 43
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(3) If the partial abatement is from the property tax imposed 1
pursuant to chapter 361 of NRS, the county treasurer of the county 2
in which the business is located. 3
[5.] 6. If the Office of Economic Development approves an 4
application for a partial abatement pursuant to this section: 5
(a) The partial abatement must be for a duration of not less than 6
1 year but not more than 5 years. 7
(b) If the abatement is from the property tax imposed pursuant 8
to chapter 361 of NRS, the partial abatement must not exceed 75 9
percent of the taxes on personal property payable by a business each 10
year pursuant to that chapter. 11
[6.] 7. If an applicant for a partial abatement pursuant to this 12
section fails to execute the agreement described in paragraph (b) of 13
subsection 3 within 1 year after the date on which the application 14
was received by the Office, the applicant shall not be approved for a 15
partial abatement pursuant to this section unless the applicant 16
submits a new request pursuant to subsection 1. 17
[7.] 8. If a business whose partial abatement has been 18
approved pursuant to this section and is in effect ceases: 19
(a) To meet the eligibility requirements for the partial 20
abatement; or 21
(b) Operation before the time specified in the agreement 22
described in paragraph (b) of subsection 3, 23
the business shall repay to the Department of Taxation or, if the 24
partial abatement was from the property tax imposed pursuant to 25
chapter 361 of NRS, to the county treasurer, the amount of the 26
partial abatement that was allowed pursuant to this section before 27
the failure of the business to comply unless the Nevada Tax 28
Commission determines that the business has substantially complied 29
with the requirements of this section. Except as otherwise provided 30
in NRS 360.232 and 360.320, the business shall, in addition to the 31
amount of the partial abatement required to be paid pursuant to this 32
subsection, 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 abatement 36
not been approved until the date of payment of the tax. 37
[8.] 9. The Office of Economic Development: 38
(a) Shall adopt regulations relating to the minimum level of 39
benefits that a business must provide to its employees to qualify for 40
an abatement pursuant to this section. 41
(b) May adopt such other regulations as the Office determines to 42
be necessary or advisable to carry out the provisions of this section. 43
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[9.] 10. An applicant for an abatement who is aggrieved by a 1
final decision of the Office of Economic Development may petition 2
for judicial review in the manner provided in chapter 233B of NRS. 3
[10.] 11. As used in this section, “dislocated worker” means a 4
person who: 5
(a) Has been terminated, laid off or received notice of 6
termination or layoff from employment; 7
(b) Is eligible for or receiving or has exhausted his or her 8
entitlement to unemployment compensation; 9
(c) Has been dependent on the income of another family 10
member but is no longer supported by that income; 11
(d) Has been self-employed but is no longer receiving an income 12
from self-employment because of general economic conditions in 13
the community or natural disaster; or 14
(e) Is currently unemployed and unable to return to a previous 15
industry or occupation. 16
Sec. 14. NRS 360.750 is hereby amended to read as follows: 17
360.750 1. A person who intends to locate or expand a 18
business in this State may apply to the Office of Economic 19
Development pursuant to this section for a partial abatement of one 20
or more of the taxes imposed on the: 21
(a) New business pursuant to chapter 361, 363B or 374 of NRS. 22
(b) Expanded business pursuant to chapter 361 or 363B of NRS 23
or a partial abatement of the local sales and use taxes imposed on 24
the expanded business. As used in this paragraph, “local sales and 25
use taxes” means the taxes imposed on the gross receipts of any 26
retailer from the sale of tangible personal property sold at retail, or 27
stored, used or otherwise consumed, in the political subdivision in 28
which the business is to be located or expanded, except the taxes 29
imposed by the Sales and Use Tax Act and the Local School 30
Support Tax Law. 31
2. The Office of Economic Development shall approve an 32
application for a partial abatement pursuant to this section if the 33
Office makes the following determinations: 34
(a) The business offers primary jobs and is consistent with: 35
(1) The State Plan for Economic Development developed by 36
the Executive Director of the Office of Economic Development 37
pursuant to subsection 2 of NRS 231.053; and 38
(2) Any guidelines adopted by the Executive Director of the 39
Office to implement the State Plan for Economic Development. 40
(b) Not later than 1 year after the date on which the application 41
was received by the Office, the applicant has executed an agreement 42
with the Office which must: 43
(1) Comply with the requirements of NRS 360.755; 44
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(2) State the date on which the abatement becomes effective, 1
as agreed to by the applicant and the Office, which must not be 2
earlier than the date on which the Office received the application 3
and not later than 1 year after the date on which the Office approves 4
the application; 5
(3) State that the business will, after the date on which the 6
abatement becomes effective, continue in operation in this State for 7
a period specified by the Office, which must be at least 5 years, and 8
will continue to meet the eligibility requirements set forth in this 9
subsection; 10
(4) State that the business will offer primary jobs; and 11
(5) Bind the successors in interest of the business for the 12
specified period. 13
(c) The business is registered pursuant to the laws of this State 14
or the applicant commits to obtain a valid business license and all 15
other permits required by the county, city or town in which the 16
business operates. 17
(d) Except as otherwise provided in subsection 4, 5 or 6, the 18
average hourly wage that will be paid by the business to its new 19
employees in this State is at least 100 percent of the average 20
statewide hourly wage as established by the Employment Security 21
Division of the Department of Employment, Training and 22
Rehabilitation on July 1 of each fiscal year. 23
(e) The business will, by the eighth calendar quarter following 24
the calendar quarter in which the abatement becomes effective, offer 25
a health insurance plan for all employees that includes an option for 26
health insurance coverage for dependents of the employees, and the 27
health care benefits the business offers to its employees in this State 28
will meet the minimum requirements for health care benefits 29
established by the Office. 30
(f) Except as otherwise provided in this subsection and NRS 31
361.0687, if the business is a new business in a county whose 32
population is 100,000 or more or a city whose population is 60,000 33
or more, the business meets at least one of the following 34
requirements: 35
(1) The business will have 50 or more full-time employees 36
on the payroll of the business by the eighth calendar quarter 37
following the calendar quarter in which the abatement becomes 38
effective who will be employed at the location of the business in 39
that county or city until at least the date which is 5 years after the 40
date on which the abatement becomes effective. 41
(2) Establishing the business will require the business to 42
make, not later than the date which is 2 years after the date on which 43
the abatement becomes effective, a capital investment of at least 44
$1,000,000 in this State in capital assets that will be retained at the 45
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location of the business in that county or city until at least the date 1
which is 5 years after the date on which the abatement becomes 2
effective. 3
(g) Except as otherwise provided in NRS 361.0687, if the 4
business is a new business in a county whose population is less than 5
100,000, in an area of a county whose population is 100,000 or more 6
that is located within the geographic boundaries of an area that is 7
designated as rural by the United States Department of Agriculture 8
and at least 20 miles outside of the geographic boundaries of an area 9
designated as urban by the United States Department of Agriculture, 10
or in a city whose population is less than 60,000, the business meets 11
at least one of the following requirements: 12
(1) The business will have 10 or more full-time employees 13
on the payroll of the business by the eighth calendar quarter 14
following the calendar quarter in which the abatement becomes 15
effective who will be employed at the location of the business in 16
that county or city until at least the date which is 5 years after the 17
date on which the abatement becomes effective. 18
(2) Establishing the business will require the business to 19
make, not later than the date which is 2 years after the date on which 20
the abatement becomes effective, a capital investment of at least 21
$250,000 in this State in capital assets that will be retained at the 22
location of the business in that county or city until at least the date 23
which is 5 years after the date on which the abatement becomes 24
effective. 25
(h) If the business is an existing business, the business meets at 26
least one of the following requirements: 27
(1) For a business in: 28
(I) Except as otherwise provided in sub-subparagraph (II), 29
a county whose population is 100,000 or more or a city whose 30
population is 60,000 or more, the business will, by the eighth 31
calendar quarter following the calendar quarter in which the 32
abatement becomes effective, increase the number of employees on 33
its payroll in that county or city by 10 percent more than it 34
employed in the fiscal year immediately preceding the fiscal year in 35
which the abatement becomes effective or by twenty-five 36
employees, whichever is greater, who will be employed at the 37
location of the business in that county or city until at least the date 38
which is 5 years after the date on which the abatement becomes 39
effective; or 40
(II) A county whose population is less than 100,000, an 41
area of a county whose population is 100,000 or more that is located 42
within the geographic boundaries of an area that is designated as 43
rural by the United States Department of Agriculture and at least 20 44
miles outside of the geographic boundaries of an area designated as 45
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urban by the United States Department of Agriculture, or a city 1
whose population is less than 60,000, the business will, by the 2
eighth calendar quarter following the calendar quarter in which the 3
abatement becomes effective, increase the number of employees on 4
its payroll in that county or city by 10 percent more than it 5
employed in the fiscal year immediately preceding the fiscal year in 6
which the abatement becomes effective or by six employees, 7
whichever is greater, who will be employed at the location of the 8
business in that county or city until at least the date which is 5 years 9
after the date on which the abatement becomes effective. 10
(2) The business will expand by making a capital investment 11
in this State, not later than the date which is 2 years after the date on 12
which the abatement becomes effective, in an amount equal to at 13
least 20 percent of the value of the tangible property possessed by 14
the business in the fiscal year immediately preceding the fiscal year 15
in which the abatement becomes effective, and the capital 16
investment will be in capital assets that will be retained at the 17
location of the business in that county or city until at least the date 18
which is 5 years after the date on which the abatement becomes 19
effective. The determination of the value of the tangible property 20
possessed by the business in the immediately preceding fiscal year 21
must be made by the: 22
(I) County assessor of the county in which the business 23
will expand, if the business is locally assessed; or 24
(II) Department, if the business is centrally assessed. 25
(i) The applicant has provided in the application an estimate of 26
the total number of new employees which the business anticipates 27
hiring in this State by the eighth calendar quarter following the 28
calendar quarter in which the abatement becomes effective if the 29
Office approves the application. 30
(j) Except as otherwise provided in subsection 3, if the business 31
will have at least 50 full-time employees on the payroll of the 32
business by the eighth calendar quarter following the calendar 33
quarter in which the abatement becomes effective, the business, by 34
the earlier of the eighth calendar quarter following the calendar 35
quarter in which the abatement becomes effective or the date on 36
which the business has at least 50 full-time employees on the payroll 37
of the business, has a policy for paid family and medical leave and 38
agrees that all employees who have been employed by the business 39
for at least 1 year will be eligible for at least 12 weeks of paid 40
family and medical leave at a rate of at least 55 percent of the 41
regular wage of the employee. The business will agree in writing 42
that if the Office approves the application, the business will not: 43
(1) Prohibit, interfere with or otherwise discourage an 44
employee from taking paid family and medical leave: 45
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(I) For any reason authorized pursuant to the Family and 1
Medical Leave Act of 1993, 29 U.S.C. §§ 2601 et seq. 2
(II) To care for any adult child, sibling or domestic 3
partner of the employee. 4
(2) Discriminate, discipline or discharge an employee for 5
taking paid family and medical leave: 6
(I) For any reason authorized pursuant to the Family and 7
Medical Leave Act of 1993, 29 U.S.C. §§ 2601 et seq. 8
(II) To care for any adult child, sibling or domestic 9
partner of the employee. 10
(3) Prohibit, interfere with or otherwise discourage an 11
employee or other person from bringing a proceeding or testifying 12
in a proceeding against the business for a violation of the policy for 13
paid family and medical leave that is required pursuant to this 14
paragraph. 15
3. For purposes of paragraph (j) of subsection 2, the Office of 16
Economic Development shall determine that a business meets the 17
requirements of that paragraph if the business has a policy for paid 18
family and medical leave for employees on the payroll of the 19
business outside of this State that meets or exceeds the requirements 20
for a policy for paid family and medical leave pursuant to that 21
paragraph and the business agrees in writing that its employees on 22
the payroll in this State are eligible for paid family and medical 23
leave under such policy. 24
4. Notwithstanding the provisions of subsection 2, the Office 25
of Economic Development: 26
(a) Shall not consider an application for a partial abatement 27
pursuant to this section unless the Office has requested a letter of 28
acknowledgment of the request for the abatement from any affected 29
county, school district, city or town. 30
(b) Shall consider the level of health care benefits provided by 31
the business to its employees, the policy of paid family and medical 32
leave provided by the business to its employees, the projected 33
economic impact of the business and the projected tax revenue of 34
the business after deducting projected revenue from the abated 35
taxes. 36
(c) May, if the Office determines that such action is necessary: 37
(1) Approve an application for a partial abatement pursuant 38
to this section by a business that does not meet the requirements set 39
forth in paragraph (f), (g) or (h) of subsection 2; 40
(2) Make any of the requirements set forth in paragraphs (d) 41
to (h), inclusive, of subsection 2 more stringent; or 42
(3) Add additional requirements that a business must meet to 43
qualify for a partial abatement pursuant to this section. 44
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(d) May require the agreement described in paragraph (b) of 1
subsection 2 to incorporate a plan by the business to provide 2
opportunities for career exploration to pupils enrolled in public 3
schools in this State, which may include, without limitation, a 4
proposal to offer work-based learning or apprenticeship 5
opportunities at the business or to provide for employees of the 6
business to serve as full-time or part-time instructors for career 7
and technical education courses. 8
5. Notwithstanding any other provision of law, the Office of 9
Economic Development shall not approve an application for a 10
partial abatement pursuant to this section if: 11
(a) The applicant intends to locate or expand in a county in 12
which the rate of unemployment is 7 percent or more and the 13
average hourly wage that will be paid by the applicant to its new 14
employees in this State is less than 70 percent of the average 15
statewide hourly wage, as established by the Employment Security 16
Division of the Department of Employment, Training and 17
Rehabilitation on July 1 of each fiscal year. 18
(b) The applicant intends to locate or expand in a county in 19
which the rate of unemployment is less than 7 percent and the 20
average hourly wage that will be paid by the applicant to its new 21
employees in this State is less than 85 percent of the average 22
statewide hourly wage, as established by the Employment Security 23
Division of the Department of Employment, Training and 24
Rehabilitation on July 1 of each fiscal year. 25
(c) The applicant intends to locate in a county but has already 26
received a partial abatement pursuant to this section for locating that 27
business in that county. 28
(d) The applicant intends to expand in a county but has already 29
received a partial abatement pursuant to this section for expanding 30
that business in that county. 31
(e) The applicant has changed the name or identity of the 32
business to evade the provisions of paragraph (c) or (d). 33
6. Notwithstanding any other provision of law, if the Office of 34
Economic Development approves an application for a partial 35
abatement pursuant to this section, in determining the types of taxes 36
imposed on a new or expanded business for which the partial 37
abatement will be approved and the amount of the partial abatement: 38
(a) If the new or expanded business is located in a county in 39
which the rate of unemployment is 7 percent or more and the 40
average hourly wage that will be paid by the business to its new 41
employees in this State is less than 85 percent of the average 42
statewide hourly wage, as established by the Employment Security 43
Division of the Department of Employment, Training and 44
Rehabilitation on July 1 of each fiscal year, the Office shall not: 45
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(1) Approve an abatement of the taxes imposed pursuant to 1
chapter 361 of NRS which exceeds 25 percent of the taxes on 2
personal property payable by the business each year. 3
(2) Approve an abatement of the taxes imposed pursuant to 4
chapter 363B of NRS which exceeds 25 percent of the amount of 5
tax otherwise due pursuant to NRS 363B.110. 6
(b) If the new or expanded business is located in a county in 7
which the rate of unemployment is less than 7 percent and the 8
average hourly wage that will be paid by the business to its new 9
employees in this State is less than 100 percent of the average 10
statewide hourly wage, as established by the Employment Security 11
Division of the Department of Employment, Training and 12
Rehabilitation on July 1 of each fiscal year, the Office shall not: 13
(1) Approve an abatement of the taxes imposed pursuant to 14
chapter 361 of NRS which exceeds 25 percent of the taxes on 15
personal property payable by the business each year. 16
(2) Approve an abatement of the taxes imposed pursuant to 17
chapter 363B of NRS which exceeds 25 percent of the amount of 18
tax otherwise due pursuant to NRS 363B.110. 19
7. If the Office of Economic Development approves an 20
application for a partial abatement pursuant to this section, the 21
Office shall immediately forward a certificate of eligibility for the 22
abatement to: 23
(a) The Department; 24
(b) The Nevada Tax Commission; and 25
(c) If the partial abatement is from the property tax imposed 26
pursuant to chapter 361 of NRS, the county treasurer. 27
8. An applicant for a partial abatement pursuant to this section 28
or an existing business whose partial abatement is in effect shall, 29
upon the request of the Executive Director of the Office of 30
Economic Development, furnish the Executive Director with copies 31
of all records necessary to verify that the applicant meets the 32
requirements of subsection 2. 33
9. If an applicant for a partial abatement pursuant to this 34
section fails to execute the agreement described in paragraph (b) of 35
subsection 2 within 1 year after the date on which the application 36
was received by the Office, the applicant shall not be approved for a 37
partial abatement pursuant to this section unless the applicant 38
submits a new application. 39
10. If a business whose partial abatement has been approved 40
pursuant to this section and is in effect ceases: 41
(a) To meet the requirements set forth in subsection 2; or 42
(b) Operation before the time specified in the agreement 43
described in paragraph (b) of subsection 2, 44
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the business shall repay to the Department or, if the partial 1
abatement was from the property tax imposed pursuant to chapter 2
361 of NRS, to the county treasurer, the amount of the partial 3
abatement that was allowed pursuant to this section before the 4
failure of the business to comply unless the Nevada Tax 5
Commission determines that the business has substantially complied 6
with the requirements of this section. Except as otherwise provided 7
in NRS 360.232 and 360.320, the business shall, in addition to the 8
amount of the partial abatement required to be paid pursuant to this 9
subsection, pay interest on the amount due at the rate most recently 10
established pursuant to NRS 99.040 for each month, or portion 11
thereof, from the last day of the month following the period for 12
which the payment would have been made had the partial abatement 13
not been approved until the date of payment of the tax. 14
11. A county treasurer: 15
(a) Shall deposit any money that he or she receives pursuant to 16
subsection 10 in one or more of the funds established by a local 17
government of the county pursuant to NRS 354.6113 or 354.6115; 18
and 19
(b) May use the money deposited pursuant to paragraph (a) only 20
for the purposes authorized by NRS 354.6113 and 354.6115. 21
12. The Office of Economic Development may adopt such 22
regulations as the Office of Economic Development determines to 23
be necessary to carry out the provisions of this section and 24
NRS 360.755. 25
13. The Nevada Tax Commission: 26
(a) Shall adopt regulations regarding: 27
(1) The capital investment that a new business must make to 28
meet the requirement set forth in paragraph (f) or (g) of subsection 29
2; and 30
(2) Any security that a business is required to post to qualify 31
for a partial abatement pursuant to this section. 32
(b) May adopt such other regulations as the Nevada Tax 33
Commission determines to be necessary to carry out the provisions 34
of this section and NRS 360.755. 35
14. An applicant for a partial abatement pursuant to this section 36
who is aggrieved by a final decision of the Office of Economic 37
Development may petition for judicial review in the manner 38
provided in chapter 233B of NRS. 39
15. For the purposes of this section, an employee is a “full-time 40
employee” if he or she is in a permanent position of employment 41
and works an average of 30 hours per week during the applicable 42
period set forth in subsection 2. 43
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Sec. 15. NRS 360.753 is hereby amended to read as follows: 1
360.753 1. An owner of a business or a person who intends 2
to locate or expand a business in this State may apply to the Office 3
of Economic Development pursuant to this section for a partial 4
abatement of one or more of: 5
(a) The personal property taxes imposed on an aircraft and the 6
personal property used to own, operate, manufacture, service, 7
maintain, test, repair, overhaul or assemble an aircraft or any 8
component of an aircraft; and 9
(b) The local sales and use taxes imposed on the purchase of 10
tangible personal property used to operate, manufacture, service, 11
maintain, test, repair, overhaul or assemble an aircraft or any 12
component of an aircraft. 13
2. Notwithstanding the provisions of any law to the contrary 14
and except as otherwise provided in subsections 3 and 4, the Office 15
of Economic Development shall approve an application for a partial 16
abatement if the Office makes the following determinations: 17
(a) Not later than 1 year after the date on which the application 18
was received by the Office, the applicant has executed an agreement 19
with the Office which: 20
(1) Complies with the requirements of NRS 360.755; 21
(2) States the date on which the abatement becomes 22
effective, as agreed to by the applicant and the Office, which must 23
not be earlier than the date on which the Office received the 24
application and not later than 1 year after the date on which the 25
Office approves the application; 26
(3) States that the business will, after the date on which a 27
certificate of eligibility for the partial abatement is issued pursuant 28
to subsection 5, continue in operation in this State for a period 29
specified by the Office, which must be not less than 5 years, and 30
will continue to meet the eligibility requirements set forth in this 31
subsection; and 32
(4) Binds any successor in interest of the applicant for the 33
specified period; 34
(b) The business is registered pursuant to the laws of this State 35
or the applicant commits to obtaining a valid business license and all 36
other permits required by the county, city or town in which the 37
business operates; 38
(c) The business owns, operates, manufactures, services, 39
maintains, tests, repairs, overhauls or assembles an aircraft or any 40
component of an aircraft; 41
(d) The average hourly wage that will be paid by the business to 42
its employees in this State during the period of partial abatement is 43
not less than 100 percent of the average statewide hourly wage as 44
established by the Employment Security Division of the Department 45
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- *SB403*
of Employment, Training and Rehabilitation on July 1 of each fiscal 1
year; 2
(e) The business will, by the eighth calendar quarter following 3
the calendar quarter in which the abatement becomes effective, offer 4
a health insurance plan for all employees that includes an option for 5
health insurance coverage for dependents of the employees, and the 6
health care benefits the business offers to its employees in this State 7
will meet the minimum requirements for health care benefits 8
established by the Office; 9
(f) If the business is: 10
(1) A new business, that it will have five or more full-time 11
employees on the payroll of the business within 1 year after 12
receiving its certificate of eligibility for a partial abatement; or 13
(2) An existing business, that it will increase its number of 14
full-time employees on the payroll of the business in this State by 3 15
percent or three employees, whichever is greater, within 1 year after 16
receiving its certificate of eligibility for a partial abatement; 17
(g) The business meets at least one of the following 18
requirements: 19
(1) The business will make a new capital investment of at 20
least $250,000 in this State within 1 year after receiving its 21
certificate of eligibility for a partial abatement; 22
(2) The business will maintain and possess in this State 23
tangible personal property having a value of not less than 24
$5,000,000 during the period of partial abatement; 25
(3) The business develops, refines or owns a patent or other 26
intellectual property, or has been issued a type certificate by the 27
Federal Aviation Administration pursuant to 14 C.F.R. Part 21; and 28
(h) If the application is for the partial abatement of the taxes 29
imposed by the Local School Support Tax Law, the application has 30
been approved by a vote of at least two-thirds of the members of the 31
Board of Economic Development created by NRS 231.033. 32
3. The Office of Economic Development: 33
(a) Shall approve or deny an application submitted pursuant to 34
this section and notify the applicant of its decision not later than 45 35
days after receiving the application. 36
(b) Must not: 37
(1) Consider an application for a partial abatement unless the 38
Office has requested a letter of acknowledgment of the request for 39
the partial abatement from any affected county, school district, city 40
or town and has complied with the requirements of NRS 360.757; or 41
(2) Approve a partial abatement for any applicant for a 42
period of more than 10 years. 43
(c) Notwithstanding the provisions of subsection 2, may 44
require the agreement described in paragraph (a) of subsection 2 45
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to incorporate a plan by the business to provide opportunities for 1
career exploration to pupils enrolled in public schools in this 2
State, which may include, without limitation, a proposal to offer 3
work-based learning or apprenticeship opportunities at the 4
business or to provide for employees of the business to serve as 5
full-time or part-time instructors for career and technical 6
education courses. 7
4. The Office of Economic Development must not approve a 8
partial abatement of personal property taxes for a business whose 9
physical property is collectively valued and centrally assessed 10
pursuant to NRS 361.320 and 361.3205. 11
5. If the Office of Economic Development approves an 12
application for a partial abatement pursuant to this section, the 13
Office shall immediately forward a certificate of eligibility for the 14
partial abatement to: 15
(a) The Department; 16
(b) The Nevada Tax Commission; and 17
(c) If the partial abatement is from personal property taxes, the 18
appropriate county treasurer. 19
6. An applicant for a partial abatement pursuant to this section 20
or an existing business whose partial abatement is in effect shall, 21
upon the request of the Executive Director of the Office of 22
Economic Development, furnish the Executive Director with copies 23
of all records necessary to verify that the applicant meets the 24
requirements of subsection 2. 25
7. If an applicant for a partial abatement pursuant to this 26
section fails to execute the agreement described in paragraph (a) of 27
subsection 2 within 1 year after the date on which the application 28
was received by the Office, the applicant shall not be approved for a 29
partial abatement pursuant to this section unless the applicant 30
submits a new application. 31
8. If a business whose partial abatement has been approved 32
pursuant to this section and whose partial abatement is in effect 33
ceases: 34
(a) To meet the requirements set forth in subsection 2; or 35
(b) Operation before the time specified in the agreement 36
described in paragraph (a) of subsection 2, 37
the business shall repay to the Department or, if the partial 38
abatement was from personal property taxes, to the appropriate 39
county treasurer, the amount of the partial abatement that was 40
allowed pursuant to this section before the failure of the business to 41
comply unless the Nevada Tax Commission determines that the 42
business has substantially complied with the requirements of this 43
section. Except as otherwise provided in NRS 360.232 and 360.320, 44
the business shall, in addition to the amount of the partial abatement 45
– 31 –
- *SB403*
required to be repaid pursuant to this subsection, pay interest on the 1
amount due at the rate most recently established pursuant to NRS 2
99.040 for each month, or portion thereof, from the last day of the 3
month following the period for which the payment would have been 4
made had the partial abatement not been approved until the date of 5
payment of the tax. 6
9. The Office of Economic Development may adopt such 7
regulations as the Office determines to be necessary to carry out the 8
provisions of this section. 9
10. The Nevada Tax Commission may adopt such regulations 10
as the Commission determines are necessary to carry out the 11
provisions of this section. 12
11. An applicant for a partial abatement who is aggrieved by a 13
final decision of the Office of Economic Development may petition 14
a court of competent jurisdiction to review the decision in the 15
manner provided in chapter 233B of NRS. 16
12. As used in this section: 17
(a) “Aircraft” means any fixed-wing, rotary-wing or unmanned 18
aerial vehicle. 19
(b) “Component of an aircraft” means any: 20
(1) Element that makes up the physical structure of an 21
aircraft, or is affixed thereto; 22
(2) Mechanical, electrical or other system of an aircraft, 23
including, without limitation, any component thereof; and 24
(3) Raw material or processed material, part, machinery, 25
tool, chemical, gas or equipment used to operate, manufacture, 26
service, maintain, test, repair, overhaul or assemble an aircraft or 27
component of an aircraft. 28
(c) “Full-time employee” means a person who is in a permanent 29
position of employment and works an average of 30 hours per week 30
during the applicable period set forth in subparagraph (3) of 31
paragraph (a) of subsection 2. 32
(d) “Local sales and use taxes” means any taxes imposed on the 33
gross receipts of any retailer from the sale of tangible personal 34
property sold at retail, or stored, used or otherwise consumed, in any 35
political subdivision of this State, except the taxes imposed by the 36
Sales and Use Tax Act. 37
(e) “Personal property taxes” means any taxes levied on 38
personal property by the State or a local government pursuant to 39
chapter 361 of NRS. 40
Sec. 16. NRS 360.754 is hereby amended to read as follows: 41
360.754 1. A person who intends to locate or expand a data 42
center in this State may apply to the Office of Economic 43
Development pursuant to this section for a partial abatement of one 44
– 32 –
- *SB403*
or more of the taxes imposed on the new or expanded data center 1
pursuant to chapter 361 or 374 of NRS. 2
2. The Office of Economic Development shall approve an 3
application for a partial abatement pursuant to this section if the 4
Office makes the following determinations: 5
(a) The application is consistent with the State Plan for 6
Economic Development developed by the Executive Director of the 7
Office of Economic Development pursuant to subsection 2 of NRS 8
231.053 and any guidelines adopted by the Executive Director of the 9
Office to implement the State Plan for Economic Development. 10
(b) Not later than 1 year after the date on which the application 11
was received by the Office, the applicant has executed an agreement 12
with the Office of Economic Development which must: 13
(1) Comply with the requirements of NRS 360.755; 14
(2) State the date on which the abatement becomes effective, 15
as agreed to by the applicant and the Office of Economic 16
Development, which must not be earlier than the date on which the 17
Office received the application and not later than 1 year after the 18
date on which the Office approves the application; 19
(3) State that the data center will, after the date on which the 20
abatement becomes effective, continue in operation in this State for 21
a period specified by the Office of Economic Development, which 22
must be at least 10 years, and will continue to meet the eligibility 23
requirements set forth in this subsection; and 24
(4) Bind the successors in interest of the applicant for the 25
specified period. 26
(c) The applicant is registered pursuant to the laws of this State 27
or the applicant commits to obtain a valid business license and all 28
other permits required by each county, city or town in which the 29
data center operates. 30
(d) If the applicant is seeking a partial abatement for a period of 31
not more than 10 years, the applicant meets the following 32
requirements: 33
(1) The data center will, by not later than the date that is 5 34
years after the date on which the abatement becomes effective, have 35
or have added 10 or more full-time employees who are residents of 36
Nevada and who will be employed at the data center and will 37
continue to employ 10 or more full-time employees who are 38
residents of Nevada at the data center until at least the date which is 39
10 years after the date on which the abatement becomes effective. 40
(2) Establishing or expanding the data center will require the 41
data center or any combination of the data center and one or more 42
colocated businesses to make in each county in this State in which 43
the data center is located, by not later than the date which is 5 years 44
after the date on which the abatement becomes effective, a 45
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cumulative capital investment of at least $25,000,000 in capital 1
assets that will be used or located at the data center. 2
(3) The average hourly wage that will be paid by the data 3
center to its employees in this State is at least 100 percent of the 4
average statewide hourly wage as established by the Employment 5
Security Division of the Department of Employment, Training and 6
Rehabilitation on July 1 of each fiscal year and: 7
(I) The data center will, by not later than the date which is 8
2 years after the date on which the abatement becomes effective, 9
provide a health insurance plan for all employees employed at the 10
data center that includes an option for health insurance coverage for 11
dependents of the employees; and 12
(II) The health care benefits provided to employees 13
employed at the data center will meet the minimum requirements for 14
health care benefits established by the Office of Economic 15
Development by regulation pursuant to subsection 13. 16
(4) At least 50 percent of the employees engaged in the 17
construction of the data center are residents of Nevada, unless 18
waived by the Executive Director of the Office of Economic 19
Development upon proof satisfactory to the Executive Director of 20
the Office of Economic Development that there is an insufficient 21
number of residents of Nevada available and qualified for such 22
employment. 23
(e) If the applicant is seeking a partial abatement for a period of 24
10 years or more but not more than 20 years, the applicant meets the 25
following requirements: 26
(1) The data center will, by not later than the date that is 5 27
years after the date on which the abatement becomes effective, have 28
or have added 50 or more full-time employees who are residents of 29
Nevada and who will be employed at the data center and will 30
continue to employ 50 or more full-time employees who are 31
residents of Nevada at the data center until at least the date which is 32
20 years after the date on which the abatement becomes effective. 33
(2) Establishing or expanding the data center will require the 34
data center or any combination of the data center and one or more 35
colocated businesses to make in each county in this State in which 36
the data center is located, by not later than the date which is 5 years 37
after the date on which the abatement becomes effective, a 38
cumulative capital investment of at least $100,000,000 in capital 39
assets that will be used or located at the data center. 40
(3) The average hourly wage that will be paid by the data 41
center to its employees in this State is at least 100 percent of the 42
average statewide hourly wage as established by the Employment 43
Security Division of the Department of Employment, Training and 44
Rehabilitation on July 1 of each fiscal year and: 45
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(I) The data center will, by not later than the date which is 1
2 years after the date on which the abatement becomes effective, 2
provide a health insurance plan for all employees employed at the 3
data center that includes an option for health insurance coverage for 4
dependents of the employees; and 5
(II) The health care benefits provided to employees 6
employed at the data center will meet the minimum requirements for 7
health care benefits established by the Office of Economic 8
Development by regulation pursuant to subsection 13. 9
(4) At least 50 percent of the employees engaged in the 10
construction of the data center are residents of Nevada, unless 11
waived by the Executive Director of the Office of Economic 12
Development upon proof satisfactory to the Executive Director of 13
the Office of Economic Development that there is an insufficient 14
number of residents of Nevada available and qualified for such 15
employment. 16
(f) The applicant has provided in the application an estimate of 17
the total number of new employees which the data center anticipates 18
hiring in this State if the Office of Economic Development approves 19
the application. 20
(g) If the applicant is seeking a partial abatement of the taxes 21
imposed by the Local School Support Tax Law, the application has 22
been approved by a vote of at least two-thirds of the members of the 23
Board of Economic Development created by NRS 231.033. 24
3. Notwithstanding the provisions of subsection 2, the Office 25
of Economic Development: 26
(a) Shall not consider an application for a partial abatement 27
pursuant to this section unless the Office of Economic Development 28
has requested a letter of acknowledgment of the request for the 29
abatement from each affected county, school district, city or town. 30
(b) Shall consider the level of health care benefits provided to 31
employees employed at the data center, the projected economic 32
impact of the data center and the projected tax revenue of the data 33
center after deducting projected revenue from the abated taxes. 34
(c) May, if the Office of Economic Development determines 35
that such action is necessary: 36
(1) Approve an application for a partial abatement pursuant 37
to this section by a data center that does not meet the requirements 38
set forth in paragraph (d) or (e) of subsection 2; 39
(2) Make the requirements set forth in paragraphs (d) and (e) 40
of subsection 2 more stringent; or 41
(3) Add additional requirements that an applicant must meet 42
to qualify for a partial abatement pursuant to this section. 43
(d) May require the agreement described in paragraph (b) of 44
subsection 2 to incorporate a plan by the data center to provide 45
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opportunities for career exploration to pupils enrolled in public 1
schools in this State, which may include, without limitation, a 2
proposal to offer work-based learning or apprenticeship 3
opportunities at the data center or to provide for employees of the 4
data center to serve as full-time or part-time instructions or career 5
and technical education courses. 6
4. If the Office of Economic Development approves an 7
application for a partial abatement pursuant to this section, the 8
Office shall immediately forward a certificate of eligibility for the 9
abatement to: 10
(a) The Department; 11
(b) The Nevada Tax Commission; and 12
(c) If the partial abatement is from the property tax imposed 13
pursuant to chapter 361 of NRS, the county treasurer of each county 14
in which the data center is or will be located. 15
5. If the Office of Economic Development approves an 16
application for a partial abatement pursuant to this section, the 17
Office may also approve a partial abatement of taxes for each 18
colocated business that enters into a contract to use or occupy, for a 19
period of at least 2 years, all or a portion of the new or expanded 20
data center. Each such colocated business shall obtain a state 21
business license issued by the Secretary of State. The percentage 22
amount of a partial abatement approved for a colocated business 23
pursuant to this subsection must not exceed the percentage amount 24
of the partial abatement approved for the data center. The duration 25
of a partial abatement approved for a colocated business pursuant to 26
this subsection must not exceed the duration of the contract or 27
contracts entered into between the colocated business and the data 28
center, including the duration of any contract or contracts extended 29
or renewed by the parties. If a colocated business ceases to meet the 30
requirements set forth in this subsection, the colocated business 31
shall repay the amount of the abatement that was allowed in the 32
same manner in which a data center is required by subsection 8 to 33
repay the Department or a county treasurer. If a data center ceases to 34
meet the requirements of subsection 2 or ceases operation before the 35
time specified in the agreement described in paragraph (b) of 36
subsection 2, any partial abatement approved for a colocated 37
business ceases to be in effect, but the colocated business is not 38
required to repay the amount of the abatement that was allowed 39
before the date on which the abatement ceases to be in effect. A data 40
center shall provide the Executive Director of the Office and the 41
Department with a list of the colocated businesses that are qualified 42
to receive a partial abatement pursuant to this subsection and shall 43
notify the Executive Director within 30 days after any change to the 44
list. The Executive Director shall provide the list and any updates to 45
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the list to the Department and the county treasurer of each affected 1
county. 2
6. An applicant for a partial abatement pursuant to this section 3
or a data center whose partial abatement is in effect shall, upon the 4
request of the Executive Director of the Office of Economic 5
Development, furnish the Executive Director with copies of all 6
records necessary to verify that the applicant meets the requirements 7
of subsection 2. 8
7. If an applicant for a partial abatement pursuant to this 9
section fails to execute the agreement described in paragraph (b) 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 data center whose partial abatement has been approved 15
pursuant to this section and is in effect ceases: 16
(a) To meet the requirements set forth in subsection 2; or 17
(b) Operation before the time specified in the agreement 18
described in paragraph (b) of subsection 2, 19
the data center shall repay to the Department or, if the partial 20
abatement was from the property tax imposed pursuant to chapter 21
361 of NRS, to the county treasurer, the amount of the partial 22
abatement that was allowed pursuant to this section before the 23
failure of the data center to comply unless the Nevada Tax 24
Commission determines that the data center has substantially 25
complied with the requirements of this section. Except as otherwise 26
provided in NRS 360.232 and 360.320, the data center shall, in 27
addition to the amount of the partial abatement required to be repaid 28
pursuant to this subsection, pay interest on the amount due at the 29
rate most recently established pursuant to NRS 99.040 for each 30
month, or portion thereof, from the last day of the month following 31
the period for which the payment would have been made had the 32
partial abatement not been approved until the date of payment of the 33
tax. 34
9. A county treasurer: 35
(a) Shall deposit any money that he or she receives pursuant to 36
subsection 5 or 8 in one or more of the funds established by a local 37
government of the county pursuant to NRS 354.6113 or 354.6115; 38
and 39
(b) May use the money deposited pursuant to paragraph (a) only 40
for the purposes authorized by NRS 354.6113 and 354.6115. 41
10. An applicant for a partial abatement pursuant to this section 42
who is aggrieved by a final decision of the Office of Economic 43
Development may petition for judicial review in the manner 44
provided in chapter 233B of NRS. 45
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11. For an employee to be considered a resident of Nevada for 1
the purposes of this section, a data center must maintain the 2
following documents in the personnel file of the employee: 3
(a) A copy of the current and valid Nevada driver’s license of 4
the employee or a current and valid identification card for the 5
employee issued by the Department of Motor Vehicles; 6
(b) If the employee is a registered owner of one or more motor 7
vehicles in Nevada, a copy of the current motor vehicle registration 8
of at least one of those vehicles; 9
(c) Proof that the employee is a full-time employee; and 10
(d) Proof that the employee is covered by the health insurance 11
plan which the data center is required to provide pursuant to sub-12
subparagraph (I) of subparagraph (3) of paragraph (d) of subsection 13
2 or sub-subparagraph (I) of subparagraph (3) of paragraph (e) of 14
subsection 2. 15
12. For the purpose of obtaining from the Executive Director 16
of the Office of Economic Development any waiver of the 17
requirements set forth in subparagraph (4) of paragraph (d) of 18
subsection 2 or subparagraph (4) of paragraph (e) of subsection 2, a 19
data center must submit to the Executive Director of the Office of 20
Economic Development written documentation of the efforts to 21
meet the requirements and documented proof that an insufficient 22
number of Nevada residents is available and qualified for 23
employment. 24
13. The Office of Economic Development: 25
(a) Shall adopt regulations relating to the minimum level of 26
health care benefits that a data center must provide to its employees 27
to meet the requirement set forth in paragraph (d) or (e) of 28
subsection 2; 29
(b) May adopt such other regulations as the Office determines to 30
be necessary to carry out the provisions of this section; and 31
(c) Shall not approve any application for a partial abatement 32
submitted pursuant to this section which is received on or after 33
January 1, 2036. 34
14. The Nevada Tax Commission: 35
(a) Shall adopt regulations regarding: 36
(1) The capital investment necessary to meet the requirement 37
set forth in paragraph (d) or (e) of subsection 2; and 38
(2) Any security that a data center is required to post to 39
qualify for a partial abatement pursuant to this section. 40
(b) May adopt such other regulations as the Nevada Tax 41
Commission determines to be necessary to carry out the provisions 42
of this section. 43
15. As used in this section, unless the context otherwise 44
requires: 45
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(a) “Colocated business” means a person who enters into a 1
contract with a data center that is qualified to receive an abatement 2
pursuant to this section to use or occupy all or part of the data 3
center. 4
(b) “Data center” means one or more buildings located at one or 5
more physical locations in this State which house a group of 6
networked server computers for the purpose of centralizing the 7
storage, management and dissemination of data and information 8
pertaining to one or more businesses and includes any modular or 9
preassembled components, associated telecommunications and 10
storage systems and, if the data center includes more than one 11
building or physical location, any network or connection between 12
such buildings or physical locations. 13
(c) “Full-time employee” means a person who is in a permanent 14
position of employment and works an average of 30 hours per week 15
during the applicable period set forth in paragraph (d) or (e) of 16
subsection 2. 17
Sec. 17. NRS 360.759 is hereby amended to read as follows: 18
360.759 1. A production company that produces a qualified 19
production in this State in whole or in part may apply to the Office 20
of Economic Development for a certificate of eligibility for 21
transferable tax credits for any qualified direct production 22
expenditures. The transferable tax credits may be applied to: 23
(a) Any tax imposed by chapters 363A and 363B of NRS; 24
(b) The gaming license fees imposed by the provisions of 25
NRS 463.370; 26
(c) Any tax imposed pursuant to chapter 680B of NRS; or 27
(d) Any combination of the fees and taxes described in 28
paragraphs (a), (b) and (c). 29
2. The Office may approve an application for a certificate of 30
eligibility for transferable tax credits if the Office finds that the 31
production company producing the qualified production qualifies for 32
the transferable tax credits pursuant to subsection 3. If the Office 33
approves the application, the Office shall calculate the estimated 34
amount of the transferable tax credits pursuant to NRS 360.7592, 35
360.7593 and 360.7594. 36
3. To be eligible for transferable tax credits pursuant to this 37
section, a production company must: 38
(a) Submit an application that meets the requirements of 39
subsection 4; 40
(b) Provide proof satisfactory to the Office that the qualified 41
production is in the economic interest of the State; 42
(c) Provide proof satisfactory to the Office that 70 percent or 43
more of the funding for the qualified production has been obtained; 44
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(d) Provide proof satisfactory to the Office that at least 60 1
percent of the direct production expenditures for: 2
(1) Preproduction; 3
(2) Production; and 4
(3) If any direct production expenditures for postproduction 5
will be incurred in this State, postproduction, 6
of the qualified production will be incurred in this State as 7
qualified direct production expenditures; 8
(e) Not later than 270 days after the completion of principal 9
photography of the qualified production or, if any direct production 10
expenditures for postproduction will be incurred in this State, not 11
later than 270 days after the completion of postproduction, unless 12
the Office agrees to extend this period by not more than 90 days, 13
provide the Office with an audit of the qualified production that 14
includes an itemized report of qualified direct production 15
expenditures which: 16
(1) Shows that the qualified production incurred qualified 17
direct production expenditures of $500,000 or more; and 18
(2) Is certified by an independent certified public accountant 19
in this State who is approved by the Office; 20
(f) Pay the cost of the audit required by paragraph (e); 21
(g) Enter into a written agreement with the Office that requires 22
the production company to include: 23
(1) In the end screen credits of the qualified production, a 24
logo of this State provided by the Office which indicates that the 25
qualified production was filmed or otherwise produced in Nevada; 26
or 27
(2) If the qualified production does not have end screen 28
credits, another acknowledgment in the final version of the qualified 29
production which indicates that the qualified production was filmed 30
or otherwise produced in Nevada; and 31
(h) Meet any other requirements prescribed by regulation 32
pursuant to this section. 33
4. An application submitted pursuant to subsection 3 must 34
contain: 35
(a) A script, storyboard or synopsis of the qualified production; 36
(b) The names of the production company, producer, director 37
and proposed cast; 38
(c) An estimated timeline to complete the qualified production; 39
(d) A summary of the budgeted expenditures for the entire 40
production, including projected expenditures to be incurred outside 41
of Nevada; 42
(e) Details regarding the financing of the project, including, 43
without limitation, any information relating to a binding financing 44
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commitment, loan application, commitment letter or investment 1
letter; 2
(f) An insurance certificate, binder or quote for general liability 3
insurance of $1,000,000 or more; 4
(g) The business address of the production company; 5
(h) Proof that the qualified production meets any applicable 6
requirements relating to workers’ compensation insurance; 7
(i) Proof that the production company has secured all licenses 8
and registrations required to do business in each location in this 9
State at which the qualified production will be produced; and 10
(j) Any other information required by regulations adopted by the 11
Office pursuant to subsection [8.] 9. 12
5. In addition to meeting the requirements set forth in 13
subsection 3, the Office may require a production company to 14
enter into an agreement with the Office that incorporates a plan 15
by the production company to provide opportunities for career 16
exploration to pupils enrolled in public schools in this State, which 17
may include, without limitation, a proposal to offer work-based 18
learning or apprenticeship opportunities with the qualified 19
production or to provide for employees of the production company 20
to serve as full-time or part-time instructors for career and 21
technical education courses. 22
6. If the Office approves an application for a certificate of 23
eligibility for transferable tax credits pursuant to this section, the 24
Office shall immediately forward a copy of the certificate of 25
eligibility which identifies the estimated amount of the tax credits 26
available pursuant to NRS 360.7592 to: 27
(a) The applicant; 28
(b) The Department; and 29
(c) The Nevada Gaming Control Board. 30
[6.] 7. Within 60 business days after receipt of an audit 31
provided by a production company pursuant to paragraph (e) of 32
subsection 3 and any other accountings or other information 33
required by the Office, the Office shall determine whether to certify 34
the audit and make a final determination of whether a certificate of 35
transferable tax credits will be issued. If the Office certifies the 36
audit, determines that all other requirements for the transferable tax 37
credits have been met and determines that a certificate of 38
transferable tax credits will be issued, the Office shall notify the 39
production company that the transferable tax credits will be issued. 40
Within 30 days after the receipt of the notice, the production 41
company shall make an irrevocable declaration of the amount of 42
transferable tax credits that will be applied to each fee or tax set 43
forth in subsection 1, thereby accounting for all of the credits which 44
will be issued. Upon receipt of the declaration, the Office shall issue 45
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to the production company a certificate of transferable tax credits in 1
the amount approved by the Office for the fees or taxes included in 2
the declaration of the production company. The production company 3
shall notify the Office upon transferring any of the transferable tax 4
credits. The Office shall notify the Department and the Nevada 5
Gaming Control Board of all transferable tax credits issued, 6
segregated by each fee or tax set forth in subsection 1, and the 7
amount of any transferable tax credits transferred. 8
[7.] 8. An applicant for transferable tax credits pursuant to this 9
section shall, upon the request of the Executive Director of the 10
Office, furnish the Executive Director with copies of all records 11
necessary to verify that the applicant meets the requirements of 12
subsection 3. 13
[8.] 9. The Office: 14
(a) Shall adopt regulations prescribing: 15
(1) Any additional requirements to receive transferable tax 16
credits; 17
(2) Any additional qualified expenditures or production costs 18
that may serve as the basis for transferable tax credits pursuant to 19
NRS 360.7591; 20
(3) Any additional information that must be included with an 21
application pursuant to subsection 4; 22
(4) The application review process; 23
(5) Any type of qualified production which, due to obscene 24
or sexually explicit material, is not eligible for transferable tax 25
credits; and 26
(6) The requirements for notice pursuant to NRS 360.7595; 27
and 28
(b) May adopt any other regulations that are necessary to carry 29
out the provisions of NRS 360.758 to 360.7598, inclusive. 30
[9.] 10. The Nevada Tax Commission and the Nevada Gaming 31
Commission: 32
(a) Shall adopt regulations prescribing the manner in which 33
transferable tax credits will be administered. 34
(b) May adopt any other regulations that are necessary to carry 35
out the provisions of NRS 360.758 to 360.7598, inclusive. 36
Sec. 18. NRS 360.888 is hereby amended to read as follows: 37
360.888 “Qualified project” means a project which the Office 38
of Economic Development determines meets all the requirements 39
set forth in subsections 2, 3, [5 and] 4, 6 and 7 of NRS 360.889. 40
Sec. 19. NRS 360.889 is hereby amended to read as follows: 41
360.889 1. On behalf of a project, the lead participant in the 42
project may apply to the Office of Economic Development for: 43
(a) A certificate of eligibility for transferable tax credits which 44
may be applied to: 45
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(1) Any tax imposed by chapters 363A and 363B of NRS; 1
(2) The gaming license fees imposed by the provisions of 2
NRS 463.370; 3
(3) Any tax imposed by chapter 680B of NRS; or 4
(4) Any combination of the fees and taxes described in 5
subparagraphs (1), (2) and (3). 6
(b) A partial abatement of property taxes, employer excise taxes 7
or local sales and use taxes, or any combination of any of those 8
taxes. 9
2. For a project to be eligible for the transferable tax credits 10
described in paragraph (a) of subsection 1 and the partial abatement 11
of the taxes described in paragraph (b) of subsection 1, the lead 12
participant in the project must, on behalf of the project: 13
(a) Submit an application that meets the requirements of 14
subsection [5;] 6; 15
(b) Provide documentation satisfactory to the Office that 16
approval of the application would promote the economic 17
development of this State and aid the implementation of the State 18
Plan for Economic Development developed by the Executive 19
Director of the Office pursuant to subsection 2 of NRS 231.053; 20
(c) Provide documentation satisfactory to the Office that the 21
participants in the project collectively will make a total new capital 22
investment of at least $1 billion in this State within the 10-year 23
period immediately following approval of the application; 24
(d) Provide documentation satisfactory to the Office that the 25
participants in the project are engaged in a common business 26
purpose or industry; 27
(e) Provide documentation satisfactory to the Office that the 28
place of business of each participant is or will be located within the 29
geographic boundaries of the project site or sites; 30
(f) Provide documentation satisfactory to the Office that each 31
participant in the project is registered pursuant to the laws of this 32
State or commits to obtaining a valid business license and all other 33
permits required by the county, city or town in which the project 34
operates; 35
(g) Provide documentation satisfactory to the Office of the 36
number of employees engaged in the construction of the project; 37
(h) Provide documentation satisfactory to the Office of the 38
number of qualified employees employed or anticipated to be 39
employed at the project by the participants; 40
(i) Provide documentation satisfactory to the Office that each 41
employer engaged in the construction of the project provides a plan 42
of health insurance and that each employee engaged in the 43
construction of the project is offered coverage under the plan of 44
health insurance provided by his or her employer; 45
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(j) Provide documentation satisfactory to the Office that each 1
participant in the project provides a plan of health insurance and that 2
each employee employed at the project by each participant is 3
offered coverage under the plan of health insurance provided by his 4
or her employer; 5
(k) Provide documentation satisfactory to the Office that at least 6
50 percent of the employees engaged in construction of the project 7
and 50 percent of the employees employed at the project are 8
residents of Nevada, unless waived by the Executive Director of the 9
Office upon proof satisfactory to the Executive Director of the 10
Office that there is an insufficient number of Nevada residents 11
available and qualified for such employment; 12
(l) Agree to provide the Office with a full compliance audit of 13
the participants in the project at the end of each fiscal year which: 14
(1) Shows the amount of money invested in this State by 15
each participant in the project; 16
(2) Shows the number of employees engaged in the 17
construction of the project and the number of those employees who 18
are residents of Nevada; 19
(3) Shows the number of employees employed at the project 20
by each participant and the number of those employees who are 21
residents of Nevada; and 22
(4) Is certified by an independent certified public accountant 23
in this State who is approved by the Office; 24
(m) Pay the cost of the audit required by paragraph (l); 25
(n) Enter into an agreement with the governing body of the city 26
or county in which the qualified project is located that: 27
(1) Requires the lead participant to pay the cost of any 28
engineering or design work necessary to determine the cost of 29
infrastructure improvements required to be made by the governing 30
body pursuant to an economic development financing proposal 31
approved pursuant to NRS 360.990; and 32
(2) Requires the lead participant to seek reimbursement for 33
any costs paid by the lead participant pursuant to subparagraph (1) 34
from the proceeds of bonds issued pursuant to NRS 360.991; and 35
(o) Meet any other requirements prescribed by the Office. 36
3. In addition to meeting the requirements set forth in 37
subsection 2, for a project located on more than one site in this State 38
to be eligible for the partial abatement of the taxes described in 39
paragraph (b) of subsection 1, the lead participant must, on behalf of 40
the project, submit an application that meets the requirements of 41
subsection [5] 6 on or before June 30, 2019, and provide 42
documentation satisfactory to the Office that: 43
(a) The initial project will have a total of 500 or more full-time 44
employees employed at the site of the initial project and the average 45
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hourly wage that will be paid to employees of the initial project in 1
this State is at least 120 percent of the average statewide hourly 2
wage as established by the Employment Security Division of the 3
Department of Employment, Training and Rehabilitation on July 1 4
of each fiscal year; 5
(b) Each participant in the project must be a subsidiary or 6
affiliate of the lead participant; and 7
(c) Each participant offers primary jobs and: 8
(1) Except as otherwise provided in subparagraph (2), 9
satisfies the requirements of paragraph (f) or (g) of subsection 2 of 10
NRS 360.750, regardless of whether the business is a new business 11
or an existing business; and 12
(2) If a participant owns, operates, manufactures, services, 13
maintains, tests, repairs, overhauls or assembles an aircraft or any 14
component of an aircraft, that the participant satisfies the applicable 15
requirements of paragraph (f) or (g) of subsection 2 of 16
NRS 360.753. 17
If any participant is a data center, as defined in NRS 360.754, any 18
capital investment by that participant must not be counted in 19
determining whether the participants in the project collectively will 20
make a total new capital investment of at least $1 billion in this 21
State within the 10-year period immediately following approval of 22
the application, as required by paragraph (c) of subsection 2. 23
4. In addition to meeting the requirements set forth in 24
subsection 2, the Office may require the lead participant in the 25
project, on behalf of the project, to enter into an agreement with 26
the Office that incorporates a plan by the participants in the 27
project to provide opportunities for career exploration to pupils 28
enrolled in public schools in this State, which may include, 29
without limitation, a proposal to offer work-based learning or 30
apprenticeship opportunities at the project or to provide for 31
employees of the participants to serve as full-time or part-time 32
instructors for career and technical education courses. 33
5. In addition to meeting the requirements set forth in 34
subsection 2, a project is eligible for the transferable tax credits 35
described in paragraph (a) of subsection 1 only if the Interim 36
Finance Committee approves a written request for the issuance of 37
the transferable tax credits. Such a request may only be submitted 38
by the Office and only after the Office has approved the application 39
submitted for the project pursuant to subsection 2. The Interim 40
Finance Committee may approve a request submitted pursuant to 41
this subsection only if the Interim Finance Committee determines 42
that approval of the request: 43
(a) Will not impede the ability of the Legislature to carry out its 44
duty to provide for an annual tax sufficient to defray the estimated 45
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expenses of the State for each fiscal year as set forth in Article 9, 1
Section 2 of the Nevada Constitution; and 2
(b) Will promote the economic development of this State and 3
aid the implementation of the State Plan for Economic Development 4
developed by the Executive Director of the Office pursuant to 5
subsection 2 of NRS 231.053. 6
[5.] 6. An application submitted pursuant to subsection 2 must 7
include: 8
(a) A detailed description of the project, including a description 9
of the common purpose or business endeavor in which the 10
participants in the project are engaged; 11
(b) A detailed description of the location of the project, 12
including a precise description of the geographic boundaries of the 13
project site or sites; 14
(c) The name and business address of each participant in the 15
project, which must be an address in this State; 16
(d) A detailed description of the plan by which the participants 17
in the project intend to comply with the requirement that the 18
participants collectively make a total new capital investment of at 19
least $1 billion in this State in the 10-year period immediately 20
following approval of the application; 21
(e) If the application includes one or more partial abatements, an 22
agreement executed by the Office with the lead participant in the 23
project not later than 1 year after the date on which the application 24
was received by the Office which: 25
(1) Complies with the requirements of NRS 360.755; 26
(2) States the date on which the partial abatement becomes 27
effective, as agreed to by the applicant and the Office, which must 28
not be earlier than the date on which the Office received the 29
application and not later than 1 year after the date on which the 30
Office approves the application; 31
(3) States that the project will, after the date on which a 32
certificate of eligibility for the partial abatement is approved 33
pursuant to NRS 360.893, continue in operation in this State for a 34
period specified by the Office; and 35
(4) Binds successors in interest of the lead participant for the 36
specified period; and 37
(f) Any other information required by the Office. 38
[6.] 7. For an employee to be considered a resident of Nevada 39
for the purposes of this section, each participant in the project must 40
maintain the following documents in the personnel file of the 41
employee: 42
(a) A copy of the: 43
(1) Current and valid Nevada driver’s license of the 44
employee originally issued by the Department of Motor Vehicles 45
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more than 60 days before the hiring of the employee or a current and 1
valid identification card for the employee originally issued by the 2
Department of Motor Vehicles more than 60 days before the hiring 3
of the employee; or 4
(2) If the employee is a veteran of the Armed Forces of the 5
United States, a current and valid Nevada driver’s license of the 6
employee or a current and valid identification card for the employee 7
issued by the Department of Motor Vehicles; 8
(b) If the employee is a registered owner of one or more motor 9
vehicles in Nevada, a copy of the current motor vehicle registration 10
of at least one of those vehicles; 11
(c) Proof that the employee is employed full-time and scheduled 12
to work for an average minimum of 30 hours per week; and 13
(d) Proof that the employee is offered coverage under a plan of 14
health insurance provided by his or her employer. 15
[7.] 8. For the purpose of obtaining from the Executive 16
Director of the Office any waiver of the requirement set forth in 17
paragraph (k) of subsection 2, the lead participant in the project 18
must submit to the Executive Director of the Office written 19
documentation of the efforts to meet the requirement and 20
documented proof that an insufficient number of Nevada residents is 21
available and qualified for employment. 22
[8.] 9. The Executive Director of the Office shall make 23
available to the public and post on the Internet website of the Office: 24
(a) Any request for a waiver of the requirements set forth in 25
paragraph (k) of subsection 2; and 26
(b) Any approval of such a request for a waiver that is granted 27
by the Executive Director of the Office. 28
[9.] 10. The Executive Director of the Office shall post a 29
request for a waiver of the requirements set forth in paragraph (k) of 30
subsection 2 on the Internet website of the Office within 3 days after 31
receiving the request and shall keep the request posted on the 32
Internet website for not less than 5 days. The Executive Director of 33
the Office shall ensure that the Internet website allows members of 34
the public to post comments regarding the request. 35
[10.] 11. The Executive Director of the Office shall consider 36
any comments posted on the Internet website concerning any 37
request for a waiver of the requirements set forth in paragraph (k) of 38
subsection 2 before making a decision regarding whether to approve 39
the request. If the Executive Director of the Office approves the 40
request for a waiver, the Executive Director of the Office must post 41
the approval on the Internet website of the Office within 3 days and 42
ensure that the Internet website allows members of the public to post 43
comments regarding the approval. 44
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[11.] 12. If an applicant for one or more partial abatements 1
pursuant to this section fails to execute the agreement described in 2
paragraph (e) of subsection [5] 6 within 1 year after the date on 3
which the application was received by the Office, the applicant shall 4
not be approved for a partial abatement pursuant to this section 5
unless the applicant submits a new application. 6
Sec. 20. NRS 360.891 is hereby amended to read as follows: 7
360.891 1. If the Office of Economic Development approves 8
an application for a certificate of eligibility for transferable tax 9
credits submitted pursuant to paragraph (a) of subsection 1 of NRS 10
360.889 and the Interim Finance Committee approves a written 11
request for the issuance of transferable tax credits pursuant to 12
subsection [4] 5 of NRS 360.889, the Office shall immediately 13
forward a copy of the certificate of eligibility which identifies the 14
estimated amount of the tax credits available pursuant to this section 15
to: 16
(a) The lead participant in the qualified project; 17
(b) The Department; and 18
(c) The Nevada Gaming Control Board. 19
2. Within 14 business days after receipt of an audit provided by 20
the lead participant in the qualified project pursuant to paragraph (l) 21
of subsection 2 of NRS 360.889 and any other accountings or other 22
information required by the Office, the Office shall determine 23
whether to certify the audit and make a final determination of 24
whether a certificate of transferable tax credits will be issued. If the 25
Office certifies the audit and determines that all other requirements 26
for the transferable tax credits have been met, the Office shall notify 27
the lead participant in the qualified project that the transferable tax 28
credits will be issued. Within 30 days after the receipt of the notice, 29
the lead participant in the qualified project shall make an irrevocable 30
declaration of the amount of transferable tax credits that will be 31
applied to each fee or tax set forth in subparagraphs (1), (2) and (3) 32
of paragraph (a) of subsection 1 of NRS 360.889, thereby 33
accounting for all of the credits which will be issued. Upon receipt 34
of the declaration, the Office shall issue to the lead participant a 35
certificate of transferable tax credits in the amount approved by the 36
Office for the fees or taxes included in the declaration. The lead 37
participant shall notify the Department upon transferring any of the 38
transferable tax credits. The Office shall notify the Department and 39
the Nevada Gaming Control Board of all transferable tax credits 40
issued, segregated by each fee or tax set forth in subparagraphs (1), 41
(2) and (3) of paragraph (a) of subsection 1 of NRS 360.889. The 42
Department shall notify the Office and the Nevada Gaming Control 43
Board of the amount of any transferable tax credits transferred. 44
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3. A qualified project may be approved for a certificate of 1
eligibility for transferable tax credits in the amount of $9,500 for 2
each qualified employee, up to a maximum of 4,000 qualified 3
employees. 4
4. For the purpose of computing the amount of transferable tax 5
credits for which a qualified project is eligible pursuant to 6
subsection 3: 7
(a) Each qualified employee must be: 8
(1) Employed by a participant at the site of the qualified 9
project. 10
(2) Employed full-time and scheduled to work for an average 11
minimum of 30 hours per week. 12
(3) Employed for at least the last 3 consecutive months of the 13
fiscal year. 14
(4) Offered coverage under a plan of health insurance 15
provided by his or her employer. 16
(b) The wages for federal income tax purposes reported or 17
required to be reported on Form W-2 of the qualified employees of 18
the qualified project must be paid at an average rate of $22 per hour. 19
(c) An employee engaged solely in the construction of the 20
qualified project is deemed not to be a qualified employee. 21
Sec. 21. NRS 360.894 is hereby amended to read as follows: 22
360.894 1. The lead participant in a qualified project shall, 23
upon the request of the Office of Economic Development, furnish 24
the Office with copies of all records necessary to verify that the 25
qualified project meets the eligibility requirements for any 26
transferable tax credits issued pursuant to NRS 360.891 and the 27
partial abatement of any taxes pursuant to NRS 360.893. 28
2. The lead participant shall repay to the Department or the 29
Nevada Gaming Control Board, as applicable, any portion of the 30
transferable tax credits to which the lead participant is not entitled 31
if: 32
(a) The participants in the qualified project collectively fail to 33
make the investment in this State necessary to support the 34
determination by the Executive Director of the Office of Economic 35
Development that the project is a qualified project; 36
(b) The participants in the qualified project collectively fail to 37
employ the number of qualified employees identified in the 38
certificate of eligibility approved for the qualified project; 39
(c) The lead participant submits any false statement, 40
representation or certification in any document submitted for the 41
purpose of obtaining transferable tax credits; or 42
(d) The lead participant otherwise becomes ineligible for 43
transferable tax credits after receiving the transferable tax credits 44
pursuant to NRS 360.880 to 360.896, inclusive. 45
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3. 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. Notwithstanding any provision of this chapter or chapter 361 4
of NRS, if the lead participant in a qualified project for which a 5
partial abatement has been approved pursuant to NRS 360.893 and 6
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] 6 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. The Secretary of State may, upon application by the 26
Executive Director of the Office, revoke or suspend the state 27
business license of the lead participant in a qualified project which 28
is required to repay any portion of transferable tax credits pursuant 29
to subsection 2 or the amount of any partial abatement pursuant to 30
subsection 4 and which the Office determines is not in compliance 31
with the provisions of this section governing repayment. If the state 32
business license of the lead participant in a qualified project is 33
suspended or revoked pursuant to this subsection, the Secretary of 34
State shall provide written notice of the action to the lead 35
participant. The Secretary of State shall not reinstate a state business 36
license suspended pursuant to this subsection or issue a new state 37
business license to the lead participant whose state business license 38
has been revoked pursuant to this subsection unless the Executive 39
Director of the Office provides proof satisfactory to the Secretary of 40
State that the lead participant is in compliance with the requirements 41
of this section governing repayment. 42
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Sec. 22. NRS 360.940 is hereby amended to read as follows: 1
360.940 “Qualified project” means a project which the Office 2
of Economic Development determines meets all the requirements 3
set forth in subsections 2, [3 and 4] to 5, inclusive, of NRS 360.945. 4
Sec. 23. NRS 360.945 is hereby amended to read as follows: 5
360.945 1. On behalf of a project, the lead participant in the 6
project may apply to the Office of Economic Development for: 7
(a) A certificate of eligibility for transferable tax credits which 8
may be applied to: 9
(1) Any tax imposed by chapters 363A and 363B of NRS; 10
(2) The gaming license fees imposed by the provisions of 11
NRS 463.370; 12
(3) Any tax imposed by chapter 680B of NRS; or 13
(4) Any combination of the fees and taxes described in 14
subparagraphs (1), (2) and (3). 15
(b) An abatement of property taxes, employer excise taxes or 16
local sales and use taxes, or any combination of any of those taxes. 17
2. For a project to be eligible for the transferable tax credits 18
described in paragraph (a) of subsection 1 and abatement of the 19
taxes described in paragraph (b) of subsection 1, the lead participant 20
in the project must, on behalf of the project: 21
(a) Submit an application that meets the requirements of 22
subsection 3; 23
(b) Provide documentation satisfactory to the Office that 24
approval of the application would promote the economic 25
development of this State and aid the implementation of the State 26
Plan for Economic Development developed by the Executive 27
Director of the Office pursuant to subsection 2 of NRS 231.053; 28
(c) Provide documentation satisfactory to the Office that the 29
participants in the project collectively will make a total new capital 30
investment of at least $3.5 billion in this State within the 10-year 31
period immediately following approval of the application; 32
(d) Provide documentation satisfactory to the Office that the 33
participants in the project are engaged in a common business 34
purpose or industry; 35
(e) Provide documentation satisfactory to the Office that the 36
place of business of each participant is or will be located within the 37
geographic boundaries of the project site; 38
(f) Provide documentation satisfactory to the Office that each 39
participant in the project is registered pursuant to the laws of this 40
State or commits to obtaining a valid business license and all other 41
permits required by the county, city or town in which the project 42
operates; 43
(g) Provide documentation satisfactory to the Office of the 44
number of employees engaged in the construction of the project; 45
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(h) Provide documentation satisfactory to the Office of the 1
number of qualified employees employed or anticipated to be 2
employed at the project by the participants; 3
(i) Provide documentation satisfactory to the Office that each 4
employer engaged in the construction of the project provides a plan 5
of health insurance and that each employee engaged in the 6
construction of the project is offered coverage under the plan of 7
health insurance provided by his or her employer; 8
(j) Provide documentation satisfactory to the Office that each 9
participant in the project provides a plan of health insurance and that 10
each employee employed at the project by each participant is 11
offered coverage under the plan of health insurance provided by his 12
or her employer; 13
(k) Provide documentation satisfactory to the Office that at least 14
50 percent of the employees engaged in construction of the project 15
and 50 percent of the employees employed at the project are 16
residents of Nevada, unless waived by the Executive Director of the 17
Office upon proof satisfactory to the Executive Director of the 18
Office that there is an insufficient number of Nevada residents 19
available and qualified for such employment; 20
(l) Agree to provide the Office with a full compliance audit of 21
the participants in the project at the end of each fiscal year which: 22
(1) Shows the amount of money invested in this State by 23
each participant in the project; 24
(2) Shows the number of employees engaged in the 25
construction of the project and the number of those employees who 26
are residents of Nevada; 27
(3) Shows the number of employees employed at the project 28
by each participant and the number of those employees who are 29
residents of Nevada; and 30
(4) Is certified by an independent certified public accountant 31
in this State who is approved by the Office; 32
(m) Pay the cost of the audit required by paragraph (l); 33
(n) Enter into an agreement with the governing body of the city 34
or county in which the qualified project is located that: 35
(1) Requires the lead participant to pay the cost of any 36
engineering or design work necessary to determine the cost of 37
infrastructure improvements required to be made by the governing 38
body pursuant to an economic development financing proposal 39
approved pursuant to NRS 360.990; and 40
(2) Requires the lead participant to seek reimbursement for 41
any costs paid by the lead participant pursuant to subparagraph (1) 42
from the proceeds of bonds of the State of Nevada issued pursuant 43
to NRS 360.991; and 44
(o) Meet any other requirements prescribed by the Office. 45
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3. An application submitted pursuant to subsection 2 must 1
include: 2
(a) A detailed description of the project, including a description 3
of the common purpose or business endeavor in which the 4
participants in the project are engaged; 5
(b) A detailed description of the location of the project, 6
including a precise description of the geographic boundaries of the 7
project site; 8
(c) The name and business address of each participant in the 9
project, which must be an address in this State; 10
(d) A detailed description of the plan by which the participants 11
in the project intend to comply with the requirement that the 12
participants collectively make a total new capital investment of at 13
least $3.5 billion in this State in the 10-year period immediately 14
following approval of the application; 15
(e) If the application includes one or more abatements, an 16
agreement executed by the Office with the lead participant in the 17
project not later than 1 year after the date on which the application 18
was received by the Office which: 19
(1) Complies with the requirements of NRS 360.755; 20
(2) States that the project will, after the date on which a 21
certificate of eligibility for the abatement is approved pursuant to 22
NRS 360.965, continue in operation in this State for a period 23
specified by the Office; and 24
(3) Binds successors in interest of the lead participant for the 25
specified period; and 26
(f) Any other information required by the Office. 27
4. In addition to meeting the requirements set forth in 28
subsection 2, the Office may require the lead participant in the 29
project, on behalf of the project, to enter into an agreement with 30
the Office that incorporates a plan by the participants in the 31
project to provide opportunities for career exploration to pupils 32
enrolled in public schools in this State, which may include, 33
without limitation, a proposal to offer work-based learning or 34
apprenticeship opportunities at the project or to provide for 35
employees of the participants to serve as full-time or part-time 36
instructors for career and technical education courses. 37
5. For an employee to be considered a resident of Nevada for 38
the purposes of this section, each participant in the project must 39
maintain the following documents in the personnel file of the 40
employee: 41
(a) A copy of the current and valid Nevada driver’s license of 42
the employee or a current and valid identification card for the 43
employee issued by the Department of Motor Vehicles; 44
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(b) If the employee is a registered owner of one or more motor 1
vehicles in Nevada, a copy of the current motor vehicle registration 2
of at least one of those vehicles; 3
(c) Proof that the employee is employed full-time and scheduled 4
to work for an average minimum of 30 hours per week; and 5
(d) Proof that the employee is offered coverage under a plan of 6
health insurance provided by his or her employer. 7
[5.] 6. For the purpose of obtaining from the Executive 8
Director of the Office any waiver of the requirement set forth in 9
paragraph (k) of subsection 2, the lead participant in the project 10
must submit to the Executive Director of the Office written 11
documentation of the efforts to meet the requirement and 12
documented proof that an insufficient number of Nevada residents is 13
available and qualified for employment. 14
[6.] 7. The Executive Director of the Office shall make 15
available to the public and post on the Internet website for the 16
Office: 17
(a) Any request for a waiver of the requirements set forth in 18
paragraph (k) of subsection 2; and 19
(b) Any approval of such a request for a waiver that is granted 20
by the Executive Director of the Office. 21
[7.] 8. The Executive Director of the Office shall post a 22
request for a waiver of the requirements set forth in paragraph (k) of 23
subsection 2 on the Internet website of the Office within 3 days after 24
receiving the request and shall keep the request posted on the 25
Internet website for not less than 5 days. The Executive Director of 26
the Office shall ensure that the Internet website allows members of 27
the public to post comments regarding the request. 28
[8.] 9. The Executive Director of the Office shall consider any 29
comments posted on the Internet website concerning any request for 30
a waiver of the requirements set forth in paragraph (k) of subsection 31
2 before making a decision regarding whether to approve the 32
request. If the Executive Director of the Office approves the request 33
for a waiver, the Executive Director of the Office must post the 34
approval on the Internet website of the Office within 3 days and 35
ensure that the Internet website allows members of the public to post 36
comments regarding the approval. 37
[9.] 10. If an applicant for one or more abatements pursuant to 38
this section fails to execute the agreement described in paragraph (e) 39
of subsection 3 within 1 year after the date on which the application 40
was received by the Office, the applicant shall not be approved for 41
an abatement pursuant to this section unless the applicant submits a 42
new application. 43
Sec. 24. 1. There is hereby appropriated from the State 44
General Fund to the Department of Education the sum of $137,820 45
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for one staff position to oversee the implementation of 1
recommendations made by the Commission on Innovation and 2
Excellence in Education pursuant to NRS 385.920. 3
2. Any remaining balance of the appropriation made by 4
subsection 1 must not be committed for expenditure after June 30, 5
2027, by the entity to which the appropriation is made or any entity 6
to which money from the appropriation is granted or otherwise 7
transferred in any manner, and any portion of the appropriated 8
money remaining must not be spent for any purpose after 9
September 17, 2027, by either the entity to which the money was 10
appropriated or the entity to which the money was subsequently 11
granted or transferred, and must be reverted to the State General 12
Fund on or before September 17, 2027. 13
Sec. 25. 1. There is hereby appropriated from the State 14
General Fund to the Department of Education the sum of 15
$2,250,000 to: 16
(a) Make grants to school districts to assist schools in 17
participating in the pilot program to provide competency-based 18
learning pursuant to NRS 389.210; 19
(b) Enter into a contract with a qualified entity to: 20
(1) Provide professional development to teachers and 21
administrators regarding the implementation of competency-based 22
learning programs; and 23
(2) Assist the Department in imple menting the 24
recommendations made by the Commission on Innovation and 25
Excellence in Education pursuant to NRS 385.920. 26
2. Any remaining balance of the appropriation made by 27
subsection 1 must not be committed for expenditure after June 30, 28
2027, by the entity to which the appropriation is made or any entity 29
to which money from the appropriation is granted or otherwise 30
transferred in any manner, and any portion of the appropriated 31
money remaining must not be spent for any purpose after 32
September 17, 2027, by either the entity to which the money was 33
appropriated or the entity to which the money was subsequently 34
granted or transferred, and must be reverted to the State General 35
Fund on or before September 17, 2027. 36
Sec. 26. 1. There is hereby appropriated from the State 37
General Fund to the Commission on Innovation and Excellence in 38
Education created by NRS 385.910 for travel expenses of the 39
members of the Commission and the members of the Subcommittee 40
on Metrics created by section 1 of this act the following sums: 41
For the Fiscal Year 2025-2026 .................................... $25,000 42
For the Fiscal Year 2026-2027 .................................... $25,000 43
2. Any balance of the sums appropriated by subsection 1 44
remaining at the end of the respective fiscal years must not be 45
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committed for expenditure after June 30 of the respective fiscal 1
years by the entity to which the appropriation is made or any entity 2
to which money from the appropriation is granted or otherwise 3
transferred in any manner, and any portion of the appropriated 4
money remaining must not be spent for any purpose after 5
September 18, 2026, and September 17, 2027, respectively, by 6
either the entity to which the money was appropriated or the entity 7
to which the money was subsequently granted or transferred, 8
and must be reverted to the State General Fund on or before 9
September 18, 2026, and September 17, 2027, respectively. 10
Sec. 27. The provisions of NRS 354.599 do not apply to any 11
additional expenses of a local government that are related to the 12
provisions of this act. 13
Sec. 28. 1. This act becomes effective on July 1, 2025. 14
2. Sections 18 to 21, inclusive, of this act expire by limitation 15
on June 30, 2032. 16
3. Section 15 of this act expires by limitation on June 30, 2035. 17
4. Sections 22 and 23 of this act expire by limitation on 18
June 30, 2036. 19
5. Section 16 of this act expires by limitation on December 31, 20
2056. 21
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