EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 360 of NRS is hereby amended by adding thereto a

1-2 new section to read as follows:

1-3 1. A person who intends to locate or expand a business in this state

1-4 may apply to the commission on economic development for a partial

1-5 abatement of one or more of the taxes imposed on the new or expanded

1-6 business pursuant to chapter 361, 364A or 374 of NRS.

1-7 2. The commission on economic development shall approve an

1-8 application for a partial abatement if the commission makes the

1-9 following determinations:

1-10 (a) The business is consistent with:

1-11 (1) The state plan for industrial development and diversification

1-12 that is developed by the commission pursuant to NRS 231.067; and

1-13 (2) Any guidelines adopted pursuant to the state plan.

1-14 (b) The applicant has executed an agreement with the commission

1-15 which states that the business will, after the date on which a certificate of

2-1 eligibility for the abatement is issued pursuant to subsection 5, continue

2-2 in operation in this state for a period specified by the commission, which

2-3 must be at least 5 years, and will continue to meet the eligibility

2-4 requirements set forth in this subsection. The agreement must bind the

2-5 successors in interest of the business for the specified period.

2-6 (c) The business is registered pursuant to the laws of this state or the

2-7 applicant commits to obtain a valid business license and all other permits

2-8 required by the county, city or town in which the business operates.

2-9 (d) Except as otherwise provided in NRS 361.0687, if the business is a

2-10 new business in a county or city whose population is 50,000 or more, the

2-11 business meets at least two of the following requirements:

2-12 (1) The business will have 75 or more full-time employees on the

2-13 payroll of the business by the fourth quarter that it is in operation.

2-14 (2) Establishing the business will require the business to make a

2-15 capital investment of at least $1,000,000 in this state.

2-16 (3) The average hourly wage that will be paid by the new business

2-17 to its employees in this state is at least 100 percent of the average

2-18 statewide hourly wage as established by the employment security division

2-19 of the department of employment, training and rehabilitation on July 1

2-20 of each fiscal year and:

2-21 (I) The business will provide a health insurance plan for all

2-22 employees that includes an option for health insurance coverage for

2-23 dependents of the employees; and

2-24 (II) The cost to the business for the benefits the business provides

2-25 to its employees in this state will meet the minimum requirements for

2-26 benefits established by the commission by regulation pursuant to

2-27 subsection 9.

2-28 (e) Except as otherwise provided in NRS 361.0687, if the business is a

2-29 new business in a county or city whose population is less than 50,000, the

2-30 business meets at least two of the following requirements:

2-31 (1) The business will have 25 or more full-time employees on the

2-32 payroll of the business by the fourth quarter that it is in operation.

2-33 (2) Establishing the business will require the business to make a

2-34 capital investment of at least $250,000 in this state.

2-35 (3) The average hourly wage that will be paid by the new business

2-36 to its employees in this state is at least 100 percent of the average

2-37 statewide hourly wage as established by the employment security division

2-38 of the department of employment, training and rehabilitation on July 1

2-39 of each fiscal year and:

2-40 (I) The business will provide a health insurance plan for all

2-41 employees that includes an option for health insurance coverage for

2-42 dependents of the employees; and

3-1 (II) The cost to the business for the benefits the business provides

3-2 to its employees in this state will meet the minimum requirements for

3-3 benefits established by the commission by regulation pursuant to

3-4 subsection 9.

3-5 (f) If the business is an existing business, the business meets at least

3-6 two of the following requirements:

3-7 (1) The business will increase the number of employees on its

3-8 payroll by 10 percent more than it employed in the immediately

3-9 preceding fiscal year or by six employees, whichever is greater.

3-10 (2) The business will expand by making a capital investment in this

3-11 state in an amount equal to at least 20 percent of the value of the

3-12 tangible property possessed by the business in the immediately preceding

3-13 fiscal year. The determination of the value of the tangible property

3-14 possessed by the business in the immediately preceding fiscal year must

3-15 be made by the:

3-16 (I) County assessor of the county in which the business will

3-17 expand, if the business is locally assessed; or

3-18 (II) Department, if the business is centrally assessed.

3-19 (3) The average hourly wage that will be paid by the existing

3-20 business to its new employees in this state is at least 100 percent of the

3-21 average statewide hourly wage as established by the employment security

3-22 division of the department of employment, training and rehabilitation on

3-23 July 1 of each fiscal year and:

3-24 (I) The business will provide a health insurance plan for all new

3-25 employees that includes an option for health insurance coverage for

3-26 dependents of the employees; and

3-27 (II) The cost to the business for the benefits the business provides

3-28 to its new employees in this state will meet the minimum requirements for

3-29 benefits established by the commission by regulation pursuant to

3-30 subsection 9.

3-31 3. Notwithstanding the provisions of subsection 2, the commission on

3-32 economic development may:

3-33 (a) Approve an application for a partial abatement by a business that

3-34 does not meet the requirements set forth in paragraph (d), (e) or (f) of

3-35 subsection 2;

3-36 (b) Make the requirements set forth in paragraph (d), (e) or (f) of

3-37 subsection 2 more stringent; or

3-38 (c) Add additional requirements that a business must meet to qualify

3-39 for a partial abatement,

3-40 if the commission determines that such action is necessary.

3-41 4. If a person submits an application to the commission on economic

3-42 development pursuant to subsection 1, the commission shall provide

3-43 notice to the governing body of the county and the city or town, if any, in

4-1 which the person intends to locate or expand a business. The notice

4-2 required pursuant to this subsection must set forth the date, time and

4-3 location of the hearing at which the commission will consider the

4-4 application.

4-5 5. If the commission on economic development approves an

4-6 application for a partial abatement, the commission shall immediately

4-7 forward a certificate of eligibility for the abatement to:

4-8 (a) The department;

4-9 (b) The Nevada tax commission; and

4-10 (c) If the partial abatement is from the property tax imposed pursuant

4-11 to chapter 361 of NRS, the county treasurer.

4-12 6. An applicant for a partial abatement pursuant to this section or an

4-13 existing business whose partial abatement is in effect shall, upon the

4-14 request of the executive director of the commission on economic

4-15 development, furnish the executive director with copies of all records

4-16 necessary to verify that the applicant meets the requirements of

4-17 subsection 2.

4-18 7. If a business whose partial abatement has been approved pursuant

4-19 to this section and is in effect ceases:

4-20 (a) To meet the requirements set forth in subsection 2; or

4-21 (b) Operation before the time specified in the agreement described in

4-22 paragraph (b) of subsection 2,

4-23 the business shall repay to the department or, if the partial abatement

4-24 was from the property tax imposed pursuant to chapter 361 of NRS, to

4-25 the county treasurer, the amount of the exemption that was allowed

4-26 pursuant to this section before the failure of the business to comply

4-27 unless the Nevada tax commission determines that the business has

4-28 substantially complied with the requirements of this section. The business

4-29 is also required to pay interest on the amount due at the rate most

4-30 recently established pursuant to NRS 99.040 for each month, or portion

4-31 thereof, from the last day of the month following the period for which the

4-32 payment would have been made had the partial abatement not been

4-33 approved until the date of payment of the tax.

4-34 8. A county treasurer:

4-35 (a) Shall deposit any money that he receives pursuant to subsection 7

4-36 in one or more of the funds established by a local government of the

4-37 county pursuant to NRS 354.611, 354.6113 or 354.6115; and

4-38 (b) May use the money deposited pursuant to paragraph (a) only for

4-39 the purposes authorized by NRS 354.611, 354.6113 and 354.6115.

5-1 9. The commission on economic development:

5-2 (a) Shall adopt regulations regarding:

5-3 (1) The minimum level of benefits that a business must provide to

5-4 its employees if the business is going to use benefits paid to employees as

5-5 a basis to qualify for a partial abatement; and

5-6 (2) The notice that must be provided pursuant to subsection 4.

5-7 (b) May adopt such other regulations as the commission on economic

5-8 development determines to be necessary to carry out the provisions of this

5-9 section.

5-10 10. The Nevada tax commission:

5-11 (a) Shall adopt regulations regarding:

5-12 (1) The capital investment that a new business must make to meet

5-13 the requirement set forth in paragraph (d) or (e) of subsection 2; and

5-14 (2) Any security that a business is required to post to qualify for a

5-15 partial abatement pursuant to this section.

5-16 (b) May adopt such other regulations as the Nevada tax commission

5-17 determines to be necessary to carry out the provisions of this section.

5-18 11. An applicant for an abatement who is aggrieved by a final

5-19 decision of the commission on economic development may petition for

5-20 judicial review in the manner provided in chapter 233B of NRS.

5-21 Sec. 2. NRS 361.0687 is hereby amended to read as follows:

5-22 361.0687 1. A person who intends to locate or expand a business in

5-43 employees.

6-1 (e) The cost to the business for the benefits the business provides to its

6-2 employees in this state will meet the minimum requirements for benefits

6-3 established by the commission pursuant to subsection 8.

6-4 (f) A capital investment for personal property will be made to locate or

6-5 expand the business in Nevada which is at least:

6-6 (1) If the personal property directly related to the establishment of the

6-7 business in this state is primarily located in a county whose population:

6-8 (I) Is 100,000 or more, $50,000,000.

6-9 (II) Is less than 100,000, $20,000,000.

6-10 (2) If the personal property directly related to the expansion of the

6-11 business is primarily located in a county whose population:

6-12 (I) Is 100,000 or more, $10,000,000.

6-13 (II) Is less than 100,000, $4,000,000.

6-14 (g) The business will create at least the following number of new, full-

6-15 time and permanent jobs in the State of Nevada by the fourth quarter that it

6-16 is in operation:

6-17 (1) If a new business will be primarily located in a county whose

6-18 population:

6-19 (I) Is 100,000 or more, 100 jobs.

6-20 (II) Is less than 100,000, 35 jobs.

6-21 (2) If an expanded business will be primarily located in a county

6-22 whose population:

6-23 (I) Is 100,000 or more, and the business has at least 100 employees

6-24 in this state, 20 jobs. An expanded business primarily located in such a

6-25 county that has less than 100 employees is not eligible for a partial

6-26 abatement pursuant to this section.

6-27 (II) Is less than 100,000, and the business has at least 35 employees

6-28 in this state, 10 jobs. An expanded business primarily located in such a

6-29 county that has less than 35 employees is not eligible for a partial

6-30 abatement pursuant to this section.

6-31 (h) For the expansion of a business primarily located in a county whose

6-32 population:

6-33 (1) Is 100,000 or more, the book value of the assets of the business in

6-34 this state is at least $20,000,000.

6-35 (2) Is less than 100,000, the book value of the assets of the business

6-36 in this state is at least $5,000,000.

6-37 (i) The business is registered pursuant to the laws of this state or the

6-38 applicant commits to obtain a valid business license and all other permits

6-39 required by the county, city or town in which the business operates.

6-40 (j) The proposed abatement has been approved by the governing body of

6-41 the appropriate affected local government as determined pursuant to the

6-42 regulations adopted pursuant to subsection 8. In determining whether to

6-43 approve a proposed abatement, the governing body shall consider whether

7-1 the taxes to be paid by the business are sufficient to pay for any investment

7-2 required to be made by the local government for services associated with

7-3 the relocation or expansion of the business, including, without limitation,

7-4 costs related to the construction and maintenance of roads, sewer and water

7-5 services, fire and police protection and the construction and maintenance of

7-6 schools.

7-7 (k) The applicant has executed an agreement with the commission which

7-8 states that the business will continue in operation in Nevada for 10 or more

7-9 years after the date on which a certificate of eligibility for the abatement is

7-10 issued pursuant to subsection 5 and will continue to meet the eligibility

7-11 requirements contained in this subsection. The agreement must bind the

7-12 successors in interest of the business for the required period.

7-13 3. An applicant shall, upon the request of the executive director of the

7-14 commission on economic development, furnish him with copies of all

7-15 records necessary to verify that the applicant meets the requirements of

7-16 subsection 2.

7-17 4. The percentage of the abatement must be 50 percent of the taxes

7-18 payable each year.

7-19 5. If an application for a partial abatement is approved, the commission

7-20 on economic development shall immediately forward a certificate of

7-21 eligibility for the abatement to:

7-22 (a) The department; and

7-23 (b) The county assessor of each county in which personal property

7-24 directly related to the establishment or expansion of the business will be

7-25 located.

7-26 6. Upon receipt by the department of the certificate of eligibility, the

7-27 taxpayer is eligible for an abatement from the tax imposed by this chapter

7-28 for 10 years:

7-29 (a) For the expansion of a business, on all personal property of the

7-30 business that is located in Nevada and directly related to the expansion of

7-31 the business in this state.

7-32 (b) For a new business, on all personal property of the business that is

7-33 located in Nevada and directly related to the establishment of the business

7-34 in this state.

7-35 7. If a business for which an abatement has been approved is not

7-36 maintained in this state in accordance with the agreement required in

7-37 subsection 2, for at least 10 years after the commission on economic

7-38 development approved the abatement, the person who applied for the

7-39 abatement shall repay to the county treasurer or treasurers who would have

7-40 received the taxes but for the abatement the total amount of all taxes that

7-41 were abated pursuant to this section. The person who applied for the

7-42 abatement shall pay interest on the amount due at the rate of 10 percent per

7-43 annum for each month, or portion thereof, from the last day of the month

8-1 following the period for which the payment would have been made if the

8-2 abatement had not been granted until the date of the actual payment of the

8-3 tax.

8-4 8. A county treasurer:

8-5 (a) Shall deposit any money that he receives pursuant to subsection 7 in

8-6 one or more of the funds established by a local government of the county

8-7 pursuant to NRS 354.611, 354.6113 or 354.6115; and

8-8 (b) May use the money deposited pursuant to paragraph (a) only for the

8-9 purposes authorized by NRS 354.611, 354.6113 and 354.6115.

8-10 9. The commission on economic development shall adopt regulations

8-11 necessary to carry out the provisions of this section. The regulations must

8-12 include, but not be limited to:

8-13 (a) A method for determining the appropriate affected local government

8-14 to approve a proposed abatement and the procedure for obtaining such

8-15 approval; and

8-16 (b) Minimum requirements for benefits that a business applying for a

8-17 partial abatement must offer to its employees to be approved for the partial

8-18 abatement.

8-19 10. The department shall adopt regulations concerning how county

8-20 assessors shall administer partial abatements approved pursuant to this

8-21 section.

8-22 11. An applicant for an abatement who is aggrieved by a final decision

8-23 of the commission on economic development may petition for judicial

8-24 review in the manner provided in chapter 233B of NRS.]

8-25 2. For a business to qualify pursuant to section 1 of this act for a

8-26 partial abatement from the taxes imposed by this chapter, the

8-27 commission on economic development must determine that, in addition

8-28 to meeting the other requirements set forth in subsection 2 of that

8-29 section:

8-30 (a) If the business is a new business in a county or city whose

8-31 population is 50,000 or more:

8-32 (1) The business will make a capital investment in the county of at

8-33 least $50,000,000 if the business is an industrial or manufacturing

8-34 business or at least $5,000,000 if the business is not an industrial or

8-35 manufacturing business; and

8-36 (2) The average hourly wage that will be paid by the new business

8-37 to its employees in this state is at least 100 percent of the average

8-38 statewide hourly wage as established by the employment security division

8-39 of the department of employment, training and rehabilitation on July 1

8-40 of each fiscal year.

8-41 (b) If the business is a new business in a county or city whose

8-42 population is less than 50,000:

9-1 (1) The business will make a capital investment in the county of at

9-2 least $5,000,000 if the business is an industrial or manufacturing

9-3 business or at least $500,000 if the business is not an industrial or

9-4 manufacturing business; and

9-5 (2) The average hourly wage that will be paid by the new business

9-6 to its employees in this state is at least 100 percent of the average

9-7 statewide hourly wage as established by the employment security division

9-8 of the department of employment, training and rehabilitation on July 1

9-9 of each fiscal year.

9-10 3. If a partial abatement from the taxes imposed by this chapter is

9-11 approved by the commission on economic development pursuant to

9-12 section 1 of this act:

9-13 (a) The partial abatement must:

9-14 (1) Be for a duration of at least 1 year but not more than 10 years;

9-15 (2) Not exceed 50 percent of the taxes payable by a business each

9-16 year pursuant to this chapter; and

9-17 (3) Be administered and carried out in the manner set forth in

9-18 section 1 of this act.

9-19 (b) The executive director of the commission on economic

9-20 development shall notify the county assessor of the county in which the

9-21 business is located of the approval of the partial abatement, including,

9-22 without limitation, the duration and percentage of the partial abatement

9-23 that the commission granted. The executive director shall, on or before

9-24 April 15 of each year, advise the county assessor of each county in which

9-25 a business qualifies for a partial abatement during the current fiscal year

9-26 as to whether the business is still eligible for the partial abatement in the

9-27 next succeeding fiscal year.

9-28 Sec. 3. NRS 364A.170 is hereby amended to read as follows:

9-29 364A.170 1. A [proposed] business that qualifies pursuant to the

9-43 payroll of the business by the fourth quarter that it is in operation;

10-1 (2) Establishing the business will require the business to make a

10-2 capital investment of $1,000,000 in Nevada; and

10-3 (3) The exemption is approved by the commission on economic

10-4 development pursuant to subsection 3.

10-5 (b) In a county whose population is less than 35,000:

10-6 (1) The business will have 25 or more full-time employees on the

10-7 payroll of the business by the fourth quarter that it is in operation;

10-8 (2) Establishing the business will require the business to make a

10-9 capital investment of $250,000 in Nevada; and

10-10 (3) The exemption is approved by the commission on economic

10-11 development pursuant to subsection 3.

10-12 3. A proposed business must apply to the commission on economic

10-13 development to obtain the exemption authorized pursuant to this section.

10-14 The commission shall certify a business’s eligibility for the exemption

10-15 pursuant to this section if:

10-16 (a) The proposed business commits to the requirements of

10-17 subparagraphs (1) and (2) of paragraph (a) or (b) of subsection 2,

10-18 whichever is applicable; and

10-19 (b) The proposed business is consistent with the commission’s plan for

10-20 economic diversification and development.

10-21 Upon certification, the commission shall immediately forward the

10-22 certificate of eligibility for the exemption to the Nevada tax commission.

10-23 4. Upon receipt of such a certificate, the Nevada tax commission shall

10-24 include the exemption in the calculation of the tax paid by the business. A

10-25 business for which an exemption is approved that does not:

10-26 (a) Have the required number of full-time employees on the payroll of

10-27 the business by the fourth quarter that it is in operation; or

10-28 (b) Make the required capital investment in Nevada in the course of

10-29 establishing the business,

10-30 is required to repay to the department the amount of the exemption that was

10-31 allowed pursuant to this section before the business’s failure to comply

10-32 unless the Nevada tax commission determines that the business has

10-33 substantially complied with the requirements of this section. The business is

10-34 also required to pay interest on the amount due at the rate most recently

10-35 established pursuant to NRS 99.040 for each month, or portion thereof,

10-36 from the last day of the month following the period for which the payment

10-37 would have been made had the exemption not been granted until the date of

10-38 payment of the tax.

10-39 5. The commission on economic development shall adopt regulations

10-40 governing the determination made pursuant to subsection 3 of a proposed

10-41 business’s eligibility for the exemption provided in this section.

11-1 6. The Nevada tax commission:

11-2 (a) Shall adopt regulations governing the investments that qualify for the

11-3 purposes of the required capital investment pursuant to subparagraph (2) of

11-4 paragraph (a) or (b) of subsection 2.

11-5 (b) May adopt such other regulations as are necessary to carry out the

11-6 provisions of this section.] If a partial abatement from the taxes otherwise

11-7 due pursuant to NRS 364A.140 is approved by the commission on

11-8 economic development pursuant to section 1 of this act, the partial

11-9 abatement must be administered and carried out in the manner set forth

11-10 in section 1 of this act.

11-11 Sec. 4. NRS 374.357 is hereby amended to read as follows:

11-12 374.357 1. A person who maintains a business or intends to locate a

11-42 requirement of paragraph (c) of subsection 2.

12-1 4. The commission on economic development may approve an

12-2 application for an abatement which does not meet the requirements of

12-3 subsection 2 if the commission determines that such an approval is

12-4 warranted.

12-5 5.] section 1 of this act.

12-6 2. If an application for an abatement is approved [, the] pursuant to

12-7 section 1 of this act:

12-8 (a) The taxpayer is eligible for an abatement from the tax imposed by

12-9 this chapter for not more than 2 years.

12-10 [6. If an application for an abatement is approved, the commission on

12-11 economic development shall immediately forward a certificate of eligibility

12-12 for the abatement to the Nevada tax commission.

12-13 7. If a business for which an abatement has been approved is not

12-14 maintained in this state for at least 5 years after the commission on

12-15 economic development approved the abatement, the person who applied for

12-16 the abatement shall repay to the department the amount of the abatement

12-17 that was allowed pursuant to this section before the failure of the business

12-18 to comply unless the Nevada tax commission determines that the business

12-19 has substantially complied with the requirements of this section. The person

12-20 who applied for the abatement shall pay interest on the amount due at the

12-21 rate most recently established pursuant to NRS 99.040 for each month, or

12-22 portion thereof, from the last day of the month following the period for

12-23 which the payment would have been made had the abatement not been

12-24 granted until the date of the actual payment of the tax.

12-25 8. The commission on economic development shall adopt regulations

12-26 which it considers necessary to carry out the provisions of this section.

12-27 9.] (b) The abatement must be administered and carried out in the

12-28 manner set forth in section 1 of this act.

12-29 3. As used in this section, unless the context otherwise requires,

12-30 "eligible machinery or equipment" means machinery or equipment for

12-31 which a deduction is authorized pursuant to 26 U.S.C. § 179. The term

12-32 does not include:

12-33 (a) Buildings or the structural components of buildings;

12-34 (b) Equipment used by a public utility;

12-35 (c) Equipment used for medical treatment;

12-36 (d) Machinery or equipment used in mining; or

12-37 (e) Machinery or equipment used in gaming.

12-38 Sec. 5. Chapter 231 of NRS is hereby amended by adding thereto a

12-39 new section to read as follows:

12-40 The commission on economic development shall, on or before
12-41 January 15 of each odd-numbered year, prepare and submit to the

12-42 director of the legislative counsel bureau for transmission to the

12-43 legislature a report concerning the abatements from taxation that the

13-1 commission approved pursuant to section 1 of this act. The report must

13-2 set forth, for each abatement from taxation that the commission

13-3 approved in the 2-year period immediately preceding the submission of

13-4 the report:

13-5 1. The dollar amount of the abatement;

13-6 2. The location of the business for which the abatement was

13-7 approved;

13-8 3. The number of employees that the business for which the

13-9 abatement was approved employs or will employ;

13-10 4. Whether the business for which the abatement was approved is a

13-11 new business or an existing business; and

13-12 5. Any other information that the committee determines to be useful.

13-13 Sec. 6. NRS 231.020 is hereby amended to read as follows:

13-14 231.020 As used in NRS [231.030 to 231.130,] 231.020 to 231.139,

13-17 television and programs made for broadcast on television in episodes.

13-18 Sec. 7. The amendatory provisions of this act apply only to an

13-19 abatement from taxation for which a person applies on or after the effective

13-20 date of this act.

13-21 Sec. 8. This act becomes effective upon passage and approval.