Existing law authorizes the Office of Economic Development to approve transferable tax credits and abatements or partial abatements of certain property taxes, business taxes and sales and use taxes for certain businesses in certain circumstances. (NRS 231.1555, 274.310, 274.320, 274.330, 360.750, 360.753, 360.754, 360.759, 360.889, 360.945) Sections 3 and 13-15 of this bill authorize a person who intends to locate or expand a high-impact business in this State, which is defined in section 3 as a business primarily engaged in electric battery production, the production of clean energy and water technology, advanced manufacturing or the manufacturing of aerospace systems, defense technologies, national security solutions or certain advanced health care technology, to apply to the Office for a partial deduction of certain property taxes, business taxes and sales and use taxes. Section 3 authorizes the Office to approve an application for a partial deduction if the Office makes certain determinations and establishes the method to calculate the amount of the partial deduction based upon whether the applicant meets certain criteria. Section 3 prohibits the Office from approving a partial deduction that would allow a business to deduct: (1) more than 60 percent of the total amount of taxes that would otherwise be due in any tax year or over the 10-year period following the date on which the partial deduction becomes effective; or (2) in combination with any partial abatement that the business might receive, more than 90 percent of the total amount of taxes that would otherwise be due. Section 7 of this bill requires the Department of Taxation to investigate whether a person meets the eligibility requirements for the partial deduction created by section 3 during the course of certain other investigations. Sections 3 and 9 of this bill require a person, to be eligible for the partial deduction, to enter into an agreement with the Office that contains certain provisions. Section 10 of this bill requires the Office to provide certain notice and take action at a public meeting on an application for the partial deduction created by section 3. If the Office approves a partial deduction of sales and use tax pursuant to section 3, section 11 of this bill requires the Office to issue to the business a document certifying the partial deduction. Section 16 of this bill exempts the partial deduction created by section 3 from provisions excluding certain provisions of the Local School Support Tax Law from being subject to abatements on taxation which the Office is authorized to approve. Sections 22 and 30 of this bill add the partial deduction created by section 3 to the list of economic development incentives for which the Office is required to submit certain reports. Sections 26 and 27 of this bill provide that businesses that receive the deduction created by section 3 are not eligible to receive certain tax credits that are authorized under existing law for businesses that meet criteria to be a qualified active low-income community business or impact qualified active low-income community business. To be eligible for certain partial abatements or transferable tax credits, existing law requires the business of the applicant to offer primary jobs. (NRS 360.750, 360.889) Section 3 requires a business to offer primary jobs to be eligible for the partial deduction created by that section. Section 2 of this bill defines the term “primary job” for the purposes of such provisions to mean a permanent, full-time position of employment at a physical location of a business in this State that is: (1) a location that generates a certain percentage of its revenue from exports to locations outside of this State; or (2) a business that operates in certain sectors of the economy and manufactures, produces or sells certain goods or services that are imported into this State in significant quantities and which closes gaps in supply chains, promotes local production or reduces the outflow of capital from this State. Section 18 of this bill similarly defines “primary jobs” for the purposes of certain other programs administered by the Office, and section 20 of this bill makes this definition applicable to such programs. Section 4 of this bill requires a person who claims an abatement, partial abatement or partial deduction to submit a quarterly report to the Department containing certain information, including: (1) a certification that the person was approved for and continues to meet the requirements for the abatement or deduction; and (2) documentation to demonstrate the person's continuing compliance with those requirements. Section 4 also requires the person to remit sales and use tax owed for the previous calendar quarter that was not previously remitted. Section 5 of this bill authorizes the Board of Economic Development to deny, or approve for a lesser amount, an application for an abatement, partial abatement, partial deduction or transferable tax credits if the Board determines that approving the full amount applied for is not in the best interests of the State. Section 5 lists certain factors that the Board may consider in determining whether granting the full amount applied for is in the best interests of the State. Existing law authorizes the Office to approve applications for partial abatements of certain taxes and the issuance of transferable tax credits submitted by the lead participant engaged in a qualified project with other participants for a common purpose or business endeavor and which is located within the geographic boundaries of a single project site, if the participants agree collectively to make a total new capital investment in this State of at least $1 billion during the 10-year period immediately following the approval of the application. (NRS 360.880-360.896) Under existing law, the Office is prohibited from approving such transferable tax credits for any fiscal year beginning on or after July 1, 2025. (NRS 360.892) Additionally, the provisions authorizing such partial abatements and transferable tax credits expire on June 30, 2032. (Section 69 of chapter 2, Statutes of Nevada 2015, 29th Special Session, at page 54) Section 12 of this bill authorizes the Office to approve such transferable tax credits, not to exceed $7,600,000 per fiscal year, in each fiscal year beginning on or after July 1, 2025. Section 34 of this bill delays the expiration of those provisions until June 30, 2033. Section 6 of this bill authorizes the Office to issue transferable tax credits to a person who has undertaken a project for the location or expansion of a child care facility in this State which may be applied to certain fees and taxes. Section 6 limits the number of the transferable tax credits that may be authorized by the Office each fiscal year to $12,000,000, except that: (1) any amount of transferable tax credits not approved in the fiscal year of a biennium must be carried forward and used only in the second fiscal year of the biennium; and (2) the Office may not approve credits for a fiscal year beginning on or after July 1, 2045. Section 6 provides that the amount of transferable tax credits issued to an applicant must be a percentage of the amount of qualified expenditures by the applicant and not more than 60 percent of such qualified expenditures. Section 6 requires the Office, before issuing a certificate of transferable tax credits, to certify to the Department or the Nevada Gaming Control Board, as applicable, that the amount of transferable tax credits will be deducted from the maximum amount of certain transferable tax credits that the Office is authorized to approve that fiscal year. Section 6 prohibits more than one-fifth of the total tax credits issued to a person from being used by the person, or a person to whom the tax credits were transferred, in a fiscal year and provides that the tax credits expire after 5 years. Section 6 requires the Office to submit a report to the Governor, the Legislature and the Joint Interim Standing Committee on Revenue regarding the tax credit for child care facilities. Existing law authorizes a person who intends to locate or expand a business in this State to apply to the Office for a partial abatement of certain property taxes, business taxes and sales and use taxes. (NRS 360.750) Section 8 of this bill removes a prohibition on the approval of a partial abatement for an applicant who intends to locate or expand a business but who has already received a partial abatement for locating or expanding that business, thereby authorizing a business to obtain a partial abatement for locating or expanding a business in this State multiple times. Section 19 of this bill requires the Office to establish and administer a program to award grants to qualified entities to construct certain infrastructure projects or rural housing projects and creates the Community Infrastructure Grant Program Account, which must be used to award such grants. Section 19 provides requirements for the administration of the money in the Account and requires the Office to prioritize applications for grants for certain projects. Existing law requires the Executive Director of the Office to develop a State Plan for Economic Development. (NRS 231.053) Section 21 of this bill requires the Executive Director to revise the State Plan at least biennially and revises the information which the Executive Director is required to include in the State Plan. Existing law authorizes the Office to provide an allocation, grant or loan of money to defray the cost of an approved program of workforce recruitment, assessment and training. Existing law requires such a program to include a workforce diversity action plan. (NRS 231.1467, 231.1468) Section 23 of this bill revises the requirements for an application for approval of such a program and an application by a business to participate in such a program. Section 23 replaces the requirement for such a program to include a workforce diversity action plan with a requirement to include a workforce development action plan, and section 38 of this bill repeals provisions providing for the contents of a workforce diversity action plan. Section 25 of this bill replaces a reference to the workforce diversity action plan with the workforce development action plan. Section 28 of this bill requires the Department of Employment, Training and Rehabilitation and the Office to jointly establish a program to provide reimbursement for certain expenses related to enrollment in an undergraduate or certificate program in a trade-related field provided by the Nevada System of Higher Education to persons who successfully completed a program of career and technical education provided by a school district in this State. Section 28 requires such reimbursement to be repaid unless the recipient meets certain requirements, including completion of the undergraduate or certificate program and satisfaction of a requirement to work in a trade-related field in a rural county for at least 2 years. Section 29 of this bill applies certain definitions in existing law governing the Department to section 28. Section 31 of this bill requires the State Board of Education, to the extent money is made available by the Department of Employment, Training and Rehabilitation and in collaboration with the Department and the Office of Economic Development, to establish a program to provide stipends to employers whose employees act as part-time teachers for programs of career and technical education. Section 31 authorizes an employer that is approved for a stipend to donate the stipend to the school district in which the employee teaches for costs associated with the program of career and technical education. Section 31 requires an employer that receives the stipend to provide the employee with the full compensation and benefits the employee would receive if the employee was not acting as a part-time teacher. Existing law requires the board of trustees of a school district in a county whose population is 100,000 or more (currently Clark and Washoe Counties) and authorizes the board of trustees of a school district in a county whose population is less than 100,000 to establish a program of career and technical education. (NRS 388.380) Section 32 of this bill requires the board of trustees of a school district that offers a program of career and technical education to enter into talent pipeline agreements with local businesses to facilitate the participation of pupils in internships, apprenticeships and short-term career experiences. Section 32 requires a talent pipeline agreement to include certain provisions. Sections 24 and 32 of this bill require the Office to establish a program to award grants to school districts with active talent pipeline agreements using funds from the Workforce Innovations for a New Nevada Account. Section 32 requires a business which is party to an active talent pipeline agreement to submit annually a report to the State Board and the Office. Section 32 revises the curriculum which is required to be provided through a program of career and technical education. Existing law authorizes the Office to approve a partial abatement from the taxes imposed on real property for a business that: (1) engages in the primary trade of preparing, fabricating, manufacturing or otherwise processing raw material or an intermediate product using a certain percentage of recycled materials or includes as a primary component a facility for the generation of electricity from recycled material; and (2) has as its primary purpose the conservation of energy or the substitution of other sources of energy for fossil fuel sources of energy. (NRS 701A.210) Section 33 of this bill authorizes the Office to grant such a partial abatement of property taxes to a business that: (1) includes as a primary component a facility for the production of biofuels, biomass or other primary fuels from recycled material for use in the production of energy; or (2) primarily engages in the recycling or repurposing of materials that were used to produce or store renewable energy, including, without limitation, materials used in solar panels, or waste materials resulting from the extraction of minerals. Section 39 of this bill makes the provisions of sections 3, 13-15 and 33 expire by limitation on June 30, 2045, to comply with the requirement of Article 10, section 6 of the Nevada Constitution that the Legislature must provide an expiration date for certain exemptions from taxes.

Statutes affected:
As Introduced: 360.225, 360.750, 360.755, 360.757, 360.7575, 360.892, 218D.355, 231.002, 231.053, 231.0685, 231.1467, 231.151, 231.1513, 231A.155, 231A.170, 232.900, 353.207, 388.380, 701A.210, 231.1468
BDR: 360.225, 360.750, 360.755, 360.757, 360.7575, 360.892, 218D.355, 231.002, 231.053, 231.0685, 231.1467, 231.151, 231.1513, 231A.155, 231A.170, 232.900, 353.207, 388.380, 701A.210, 231.1468