Under existing law, a person who intends to locate or expand a business in this State may apply to the Office of Economic Development for a partial abatement of one or more of the taxes imposed on the new or expanded business. (NRS 360.750, 361.0687, 363B.120, 374.357) Section 1 of this bill authorizes the Office to grant a partial abatement of property taxes, business taxes and sales and use taxes to a business that locates or expands in this State and that provides mental health services for children. Section 1 establishes criteria for a business to be eligible to apply for such a partial abatement. If the Office determines a business applying for the partial abatement meets these criteria, section 1 authorizes the Office to approve the application for the partial abatement subject to the agreement made with the applicant. If the Office approves an application, section 1: (1) establishes certain limits on the amount and duration of the abatement; and (2) requires the Office to forward a certificate of eligibility to certain entities in this State. Section 1 prohibits the Office from considering an application for a partial abatement until the Office has requested a letter of acknowledgement of the request for the abatement from any affected county, school district, city or town. Section 1 also requires the Office to consider certain other factors related to the services provided by and the economic impacts related to the business. If the Office determines it is necessary, section 1 authorizes the Office to require a business to meet additional criteria to qualify for the partial abatement. Section 1 requires a business that is applying for a partial abatement or an existing business that has a partial abatement in effect to furnish the Executive Director of the Office with copies of all records necessary to verify that the business meets all requirements to obtain approval for or retain the partial abatement, as applicable. Section 1 requires a business that fails to execute an agreement with the Office within 1 year after the date on which the application was received by the Office to submit a new application for the approval of a partial abatement. Section 1 prescribes the process and amount for repayment to the Department of Taxation or county treasurer, as applicable, if the business whose partial abatement has been approved or is in effect ceases under certain circumstances. If such repayment is made to a county treasurer, section 1 directs the county treasurer to deposit the amount from the repayment in certain funds established by the relevant local government and requires that the amount deposited be used for certain purposes. Section 1 authorizes the Office, the Division of Child and Family Services of the Department of Health and Human Services and the Nevada Tax Commission to adopt certain regulations related to the partial abatement. Lastly, section 1 authorizes a business that has successfully received a partial abatement to apply to the Division of Health Care Financing and Policy of the Department of Health and Human Services, after 1 year of operations, to qualify for a cost-based reimbursement rate for services provided by the business. Sections 2, 3 and 4 of this bill make conforming changes to include the provisions of section 1 in provisions of existing law governing other partial abatements from certain taxes. Under existing law, financial institutions, mining businesses and other employers are required to pay an excise tax (the modified business tax) on wages paid by them. (NRS 363A.130, 363B.110) Section 10 of this bill creates the Account to Improve Mental Health Services for Children in the State General Fund to be administered by the Division of Health Care Financing and Policy and from which money must be expended to provide supplemental rates or enhanced rates of reimbursement to a recipient of Medicaid who is a child for mental health services. Sections 5 and 7 of this bill establish a credit against the modified business tax paid by businesses that make a donation to the Account. Sections 6 and 8 of this bill make conforming changes to incorporate this credit into provisions of existing law governing tax returns. Existing law creates the Nevada State Infrastructure Bank, the purpose of which is to provide loans and other financial assistance to various units of state and local government or nonprofit entities for the development, construction, repair, improvement, operation, maintenance, decommissioning and ownership of certain transportation facilities and utility infrastructure, including, without limitation, social infrastructure. (NRS 408.55048-408.55088) Existing law defines “social infrastructure” as any infrastructure which is used or useful for the construction, development and maintenance of facilities and systems that support social services, including, without limitation, those services related to health care. (NRS 408.550647) Section 9 of this bill revises the definition of “social infrastructure” to clarify that facilities that provide mental health services to children are eligible for loans and financial assistance from the Nevada State Infrastructure Bank. Section 11 of this bill directs the Division of Child and Family Services, by January 1, 2025, to review existing regulations relating to mental health services and facilities and the extension of such services to persons who are 18 years of age and received such services as children and adopt revisions to such regulations as necessary.

Statutes affected:
As Introduced: 360.755, 360.757, 360.7575, 363A.130, 363B.110, 408.550647
BDR: 360.755, 360.757, 360.7575, 363A.130, 363B.110, 408.550647