NRS360.759. Eligibility; application; taxes to which credit may be applied; powers and duties of Office of Economic Development, Nevada Tax Commission, Nevada Gaming Commission and producer of qualified production; regulations. [Effective January 1, 2014, through June 30, 2023.]

      1.  A producer of a qualified production that is produced in this State in whole or in part may, on or before December 31, 2017, apply to the Office of Economic Development for a certificate of eligibility for transferable tax credits for any qualified expenditures and production costs identified in NRS 360.7591. The transferable tax credits may be applied to:

      (a) Any tax imposed by chapters 363A and 363B of NRS;

      (b) The gaming license fees imposed by the provisions of NRS 463.370;

      (c) Any tax imposed pursuant to chapter 680B of NRS; or

      (d) Any combination of the fees and taxes described in paragraphs (a), (b) and (c).

      2.  The Office shall approve an application for a certificate of eligibility for transferable tax credits if the Office finds that the producer of the qualified production qualifies for the transferable tax credits pursuant to subsection 3 and shall calculate the estimated amount of the transferable tax credits pursuant to NRS 360.7592, 360.7593 and 360.7594.

      3.  To be eligible for transferable tax credits pursuant to this section, a producer must:

      (a) Submit an application that meets the requirements of subsection 4;

      (b) Provide proof satisfactory to the Office that the qualified production is in the economic interest of the State;

      (c) Provide proof satisfactory to the Office that 50 percent or more of the funding for the qualified production has been placed in an escrow account or trust account for the benefit of the qualified production;

      (d) Provide proof satisfactory to the Office that at least 60 percent of the total qualified expenditures and production costs for the qualified production, including preproduction and postproduction, will be incurred in this State;

      (e) At the completion of the qualified production, provide the Office with an audit of the qualified production that includes an itemized report of qualified expenditures and production costs which:

             (1) Shows that the qualified production incurred qualified expenditures and production costs in this State of $500,000 or more; and

             (2) Is certified by an independent certified public accountant in this State who is approved by the Office;

      (f) Pay the cost of the audit required by paragraph (e); and

      (g) Meet any other requirements prescribed by regulation pursuant to this section.

      4.  An application submitted pursuant to subsection 3 must contain:

      (a) A script, storyboard or synopsis of the qualified production;

      (b) The names of the producer, director and proposed cast;

      (c) An estimated timeline to complete the qualified production;

      (d) A detailed budget for the entire production, including projected expenses incurred outside of Nevada;

      (e) Details regarding the financing of the project, including, without limitation, any information relating to a binding financing commitment, loan application, commitment letter or investment letter;

      (f) An insurance certificate, binder or quote for general liability insurance of $1,000,000 or more;

      (g) The business address of the producer, which must be an address in this State;

      (h) Proof that the qualified production meets any applicable requirements relating to workers’ compensation insurance;

      (i) Proof that the producer has secured all licenses required to do business in each location in this State at which the qualified production will be produced; and

      (j) Any other information required by regulations adopted by the Office pursuant to subsection 8.

      5.  If the Office approves an application for a certificate of eligibility for transferable tax credits pursuant to this section, the Office shall immediately forward a copy of the certificate of eligibility which identifies the estimated amount of the tax credits available pursuant to NRS 360.7592 to:

      (a) The applicant;

      (b) The Department; and

      (c) The State Gaming Control Board.

      6.  Within 14 business days after receipt of an audit provided by the producer pursuant to paragraph (e) of subsection 3 and any other accountings or other information required by the Office, the Office shall determine whether to certify the audit and make a final determination of whether a certificate of transferable tax credits will be issued. If the Office certifies the audit and determines that all other requirements for the transferable tax credits have been met, the Office shall notify the producer that the transferable tax credits will be issued. Within 30 days after the receipt of the notice, the producer shall make an irrevocable declaration of the amount of transferable tax credits that will be applied to each fee or tax set forth in subsection 1, thereby accounting for all of the credits which will be issued. Upon receipt of the declaration, the Office shall issue to the eligible producer a certificate of transferable tax credits in the amount approved by the Office for the fees or taxes included in the declaration of the producer. The producer shall notify the Office upon transferring any of the transferable tax credits. The Office shall notify the Department and the State Gaming Control Board of all transferable tax credits issued, segregated by each fee or tax set forth in subsection 1, and the amount of any transferable tax credits transferred.

      7.  An applicant for transferable tax credits pursuant to this section shall, upon the request of the Executive Director of the Office, furnish the Executive Director with copies of all records necessary to verify that the applicant meets the requirements of subsection 3.

      8.  The Office:

      (a) Shall adopt regulations prescribing:

             (1) Any additional requirements to receive transferable tax credits;

             (2) Any additional qualified expenditures or production costs that may serve as the basis for transferable tax credits pursuant to NRS 360.7591;

             (3) Any additional information that must be included with an application pursuant to subsection 4;

             (4) The application review process;

             (5) Any type of qualified production which, due to obscene or sexually explicit material, is not eligible for transferable tax credits; and

             (6) The requirements for notice pursuant to NRS 360.7595; and

      (b) May adopt any other regulations that are necessary to carry out the provisions of NRS 360.758 to 360.7598, inclusive.

      9.  The Nevada Tax Commission and the Nevada Gaming Commission:

      (a) Shall adopt regulations prescribing the manner in which transferable tax credits will be administered.

      (b) May adopt any other regulations that are necessary to carry out the provisions of NRS 360.758 to 360.7598, inclusive.

      (Added to NRS by 2013, 3091, effective January 1, 2014)