Biggins Lacy Shapiro & Company, LLC

Nevada Economic Development Incentive Programs

Grants

Catalyst Fund:  This discretionary program offers post-performance transferable tax credits to support business attraction and expansion projects that involve significant capital investment and job creation.   Funds are disbursed in equal installments over a 5-year period.

TAX ABATEMENTS

Modified Business Tax Abatement:  Nevada’s Modified Business Tax (MBT) is imposed on employers at a rate equal to 1.475% of taxable wages above $50,000 in a quarter.  The Governor’s Office of Economic Development (GOED) can abate 50% of this tax for up to four years for new or expanding businesses meeting any two of three eligibility requirements:

  • Minimum Capital Investment: For new businesses, $1 million in urban areas (defined as a county with a population greater than 100,000 or a city over 60,000); or $250,000 in rural jurisdictions.  For existing businesses, the new capital investment must equal at least 20% of the value of existing tangible property
  • Minimum Job Creation/Retention: For new businesses, 50 or more full-time, permanent jobs within eight quarters in urban areas; or 10 new jobs in rural areas.  For existing businesses, the number of new jobs must increase by 10%, or by 25 in an urban area or 6 in a rural area, whatever is greater.
  • Minimum Wages: The level of incentive benefit will depend on a combination of factors including the percentage of the average statewide hourly wage being paid and the unemployment rate at the time of application.   However, if the unemployment rate is less than 7% and company average hourly wage is below 85% of the statewide hourly wage, then no abatements will be awarded.

GOED can significantly reduce the amount of the abatement, or eliminate the benefit altogether should the average hourly wage fall below these thresholds, and should the local unemployment rate be below 7%.

Partial Sales and Use Tax Abatement:  Sales and Use Tax rates vary by county in Nevada.  GOED can abate approximately 75% of this tax to result in an effective rate of 2% for two years for businesses locating or growing in Nevada and purchasing and using eligible capital equipment.  To qualify, businesses must meet any two of the three criteria that also apply to the MBT abatement (above); businesses also will be subject to a reduction in benefit similar to the MBT incentive should they fail to attain certain wage thresholds. 

Personal Property Tax Abatement:  Qualifying businesses locating or expanding in Nevada and operating eligible machinery and equipment can receive an abatement of up to 50% of business personal property taxes for 10 years.  To qualify businesses must meet any two of the three requirements that also apply to the MBT abatement (above), however there is a $5 million minimum capital investment for new industrial machinery and equipment in facilities located in urban areas and a $1 million minimum in rural areas.  Other capital investment is treated the same as the MBT abatement.

Data Center Tax Abatement: Companies that build new data centers or expand existing operations may receive abatements up to 75% of sales and use taxes and nearly 75% of business personal property taxes on eligible data center machinery and equipment for periods of 10 or 20 years.  To qualify, a business must invest at least $25 million over 10 years for new and expanded facilities or $100 million over 20 years.  A minimum of 10 jobs with wages that meet or exceed the statewide average must be created to receive the 10-year abatement.  To obtain the 20-year abatement, a company must create at least 50 jobs with wages that are at or above the statewide average.

Real Property Tax Abatement for Recycling: A partial abatement of real property (land and buildings) tax is available for businesses and facilities using recycled material that have as a primary purpose the conservation of energy or the substitution of fossil sources for other sources of energy. Qualifying businesses can receive a partial abatement of up to 50% of the tax due on real property for not more than 10 years beginning from when the abatement becomes effective. To qualify, the business must be in the primary trade of recycling at least 50% of raw material or an intermediate product onsite; or converting the energy derived from recycled material (specifically, industrial, domestic, agricultural or municipal waste) into electricity. Businesses must also meet any two of the three requirements that also apply to the MBT abatement (above), however there is a $5 million minimum capital investment for new industrial machinery and equipment in facilities located in urban areas and a $1 million minimum in rural areas.  Other capital investment is treated the same as the MBT abatement.

JOB TRAINING

WINN: The Workforce Innovation for the New Nevada (WINN) program helps fund job training programs for qualifying employers. 

Silver State Works: Employers can receive up to $2,000 per employee in incentive reimbursements or training allowances for new hires.  Three options are offered: 1] Employer-Based Training of unemployed and other targeted workers ($600 per employee maximum training allowance); 2] Employer Incentive Job Program: reimbursement of up to 50% of wages for an agreed upon period; or 3] Incentive-Based Employment: up to $2,000 per employee wage supplement.

Last updated: June 2018



 
Biggins Lacy Shapiro & Company, LLC
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