NRS360.752. Partial abatement of property taxes imposed on new or expanded business making capital investment in certain institutions of higher education: Powers and duties of Office of Economic Development, Nevada Tax Commission, applicant for abatement, business approved for abatement and county treasurer. [Effective through June 30, 2023.]

      1.  A person who intends to locate or expand a business in this State may apply to the Office of Economic Development pursuant to this section for a partial abatement of the tax imposed on the new or expanded business pursuant to chapter 361 of NRS.

      2.  The Office of Economic Development shall approve an application for a partial abatement pursuant to this section if the Office makes the following determinations:

      (a) The business is in one or more of the industry sectors for economic development promoted, identified or otherwise approved by the Governor’s Workforce Investment Board described in NRS 232.935.

      (b) The business is consistent with:

             (1) The State Plan for Economic Development developed by the Executive Director of the Office of Economic Development pursuant to subsection 2 of NRS 231.053; and

             (2) Any guidelines adopted by the Executive Director of the Office to implement the State Plan for Economic Development.

      (c) The applicant has executed an agreement with the Office which must:

             (1) Comply with the requirements of NRS 360.755;

             (2) Require the business to submit to the Department the reports required by paragraph (c) of subsection 1 of NRS 218D.355;

             (3) State the agreed terms of the partial abatement, which must comply with the requirements of subsection 4;

             (4) State that the business will, after the date on which a certificate of eligibility for the abatement is issued pursuant to subsection 5, continue in operation in this State for a period specified by the Office, which must be at least 5 years, and will continue to meet the eligibility requirements set forth in this subsection; and

             (5) Bind the successors in interest of the business for the specified period.

      (d) The business is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and all other permits required by the county, city or town in which the business operates.

      (e) The business does not receive:

             (1) Any funding from a governmental entity, other than any private activity bonds as defined in 26 U.S.C. § 141; or

             (2) Any real or personal property from a governmental entity at no cost or at a reduced cost.

      (f) The business meets the following requirements:

             (1) The business makes a capital investment of at least $1,000,000 in a program of the University of Nevada, Reno, the University of Nevada, Las Vegas, or the Desert Research Institute to be used in support of research, development or training related to the field of endeavor of the business.

             (2) The business will employ 15 or more full-time employees for the duration of the abatement.

             (3) The business will employ two or more graduate students from the program in which the capital investment is made on a part-time basis during years 2 through 5, inclusive, of the abatement.

             (4) The average hourly wage that will be paid by the business to its employees in this State is at least 100 percent of the average statewide hourly wage or the average countywide hourly wage, whichever is less, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year and:

                   (I) The business will provide a health insurance plan for all full-time employees that includes an option for health insurance coverage for dependents of those employees, or will abide by all applicable provisions of the Patient Protection and Affordable Care Act, Public Law 111-148, or both; and

                   (II) The cost to the business for the benefits the business provides to its employees in this State will meet the minimum requirements for benefits established by the Office by regulation pursuant to subsection 9.

             (5) The business submits with its application for a partial abatement:

                   (I) A letter of support from the institution in which the capital investment is made, which is signed by the chief administrative officer of the institution and the director or chair of the program or the appropriate department, and which includes, without limitation, a summary of the financial and other resources the business will provide to the program and an agreement that the institution will provide to the Office periodic reports, at such times and containing such information as the Office may require, regarding the use of those resources; and

                   (II) A letter of support which is signed by the chair of the board of directors of the regional economic development authority within whose jurisdiction the institution is located and which includes, without limitation, a summary of the role the business will play in diversifying the economy and, if applicable, in achieving the broader goals of the regional economic development authority for economic development and diversification.

      (g) In lieu of meeting the requirements of paragraph (f), the business meets the following requirements:

             (1) The business makes a capital investment of at least $500,000 in the Nevada State College or an institution of the Nevada System of Higher Education other than those set forth in subparagraph (1) of paragraph (f), to be used in support of college certification or in support of research or training related to the field of endeavor of the business.

             (2) The business will employ 15 or more full-time employees for the duration of the abatement.

             (3) The business will employ two or more students from the college or institution in which the capital investment is made on a full-time basis during years 2 through 5, inclusive, of the abatement.

             (4) The average hourly wage that will be paid by the business to its employees in this State is at least 100 percent of the average statewide hourly wage or the average countywide hourly wage, whichever is less, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year and:

                   (I) The business will provide a health insurance plan for all full-time employees that includes an option for health insurance coverage for dependents of those employees, or will abide by all applicable provisions of the Patient Protection and Affordable Care Act, Public Law 111-148, or both; and

                   (II) The cost to the business for the benefits the business provides to its employees in this State will meet the minimum requirements for benefits established by the Office by regulation pursuant to subsection 9.

             (5) The business submits with its application for a partial abatement:

                   (I) A letter of support from the college or institution in which the capital investment is made, which is signed by the chief administrative officer of the college or institution and which includes, without limitation, a summary of the financial and other resources the business will provide to the program and an agreement that the college or institution will provide to the Office periodic reports, at such times and containing such information as the Office may require, regarding the use of those resources; and

                   (II) A letter of support which is signed by the chair of the board of directors of the regional economic development authority within whose jurisdiction the college or institution is located and which includes, without limitation, a summary of the role the business will play in diversifying the economy and, if applicable, in achieving the broader goals of the regional economic development authority for economic development and diversification.

      3.  Notwithstanding the provisions of subsection 2, the Office of Economic Development:

      (a) Shall furnish to the board of county commissioners of each affected county a copy of each application for a partial abatement pursuant to this section.

      (b) Shall not consider an application for a partial abatement pursuant to this section unless the Office has requested a letter of acknowledgment of the request for the abatement from any affected county, school district, city or town.

      (c) Shall not approve an application for a partial abatement pursuant to this section unless the abatement is approved or deemed approved as described in this paragraph. The board of county commissioners of each affected county must approve or deny the application not later than 30 days after the board of county commissioners receives a copy of the application as described in paragraph (a). If the board of county commissioners does not approve or deny the application within 30 days after the board of county commissioners receives a copy of the application, the application shall be deemed approved.

      (d) May, if the Office determines that such action is necessary add additional requirements that a business must meet to qualify for a partial abatement pursuant to this section.

      4.  If the Office of Economic Development approves an application for a partial abatement pursuant to this section:

      (a) The total amount of the abatement must not exceed;

             (1) Fifty percent of the amount of the taxes imposed on the personal property of the business pursuant to chapter 361 of NRS during the period of the abatement; or

             (2) Fifty percent of the amount of the capital investment by the business,

Ê whichever amount is less;

      (b) The duration of the abatement must be for 5 years; and

      (c) The abatement applies only to the business for which the abatement was approved pursuant to this section and the property used in connection with that business.

      5.  If the Office of Economic Development approves an application for a partial abatement pursuant to this section, the Office shall immediately forward a certificate of eligibility for the abatement to:

      (a) The Department;

      (b) The Nevada Tax Commission; and

      (c) If the partial abatement is from the property tax imposed pursuant to chapter 361 of NRS, the county treasurer of the county in which the business will be located.

      6.  An applicant for a partial abatement pursuant to this section or an existing business whose partial abatement is in effect shall, upon the request of the Executive Director of the Office of Economic Development, furnish the Executive Director with copies of all records necessary to verify that the applicant meets the requirements of subsection 2.

      7.  If a business whose partial abatement has been approved pursuant to this section and is in effect ceases to meet the requirements set forth in subsection 2 or ceases operation before the time specified in the agreement described in paragraph (c) of subsection 2:

      (a) The business shall repay to the county treasurer the amount of the exemption that was allowed pursuant to this section before the failure of the business to comply unless the Nevada Tax Commission determines that the business has substantially complied with the requirements of this section. Except as otherwise provided in NRS 360.232 and 360.320, the business shall, in addition to the amount of the exemption required to be paid pursuant to this subsection, pay interest on the amount due at the rate most recently established pursuant to NRS 99.040 for each month, or portion thereof, from the last day of the month following the period for which the payment would have been made had the partial abatement not been approved until the date of payment of the tax.

      (b) The applicable institution of higher education is entitled to keep the entire capital investment made by the business in that institution.

      8.  A county treasurer:

      (a) Shall deposit any money that he or she receives pursuant to subsection 7 in one or more of the funds established by a local government of the county pursuant to NRS 354.6113 or 354.6115; and

      (b) May use the money deposited pursuant to paragraph (a) only for the purposes authorized by NRS 354.6113 and 354.6115.

      9.  The Office of Economic Development:

      (a) Shall adopt regulations relating to the minimum level of benefits that a business must provide to its employees to qualify for a partial abatement pursuant to this section; and

      (b) May adopt such other regulations as the Office determines to be necessary to carry out the provisions of this section.

      10.  The Nevada Tax Commission:

      (a) Shall adopt regulations regarding any security that a business is required to post to qualify for a partial abatement pursuant to this section; and

      (b) May adopt such other regulations as the Nevada Tax Commission determines to be necessary to carry out the provisions of this section.

      11.  An applicant for a partial abatement pursuant to this section who is aggrieved by a final decision of the Office of Economic Development may petition for judicial review in the manner provided in chapter 233B of NRS.

      12.  Except as otherwise provided in this subsection, as used in this section, “capital investment” includes, without limitation, an investment of real or personal property, money or other assets by a business in an institution of the Nevada System of Higher Education. The Office of Economic Development may, by regulation, specify the types of real or personal property or assets that are included within the definition of “capital investment.”

      (Added to NRS by 2013, 2802)