Nevada shows an average deal value of $1.10 million with 84 new jobs created per deal
MODIFIED BUSINESS TAX ABATEMENT
A business tax is imposed on each employer at the rate of 1.17% on wages over $62,500 (minus health care premiums) per quarter. Qualifying employers may apply for an abatement of 50 percent of the tax otherwise due during the first four years of its operations.
The company will provide a medical insurance plan for all employees including an option for dependent health insurance coverage. The company will also pay at least 25% of the employee premium cost.
The company is expected to register pursuant to the laws of Nevada and to obtain all licenses and permits required by Nevada and Clark County, city or town in which the business operates; they must also commit to maintaining the business in Nevada for 5-years. The abatement is voidable if business fails to comply with any of the terms of the agreement. Audits will be done by the Nevada Department of Taxation after 2 and 5 years to ensure compliance.
Two of the following three criteria must be met for eligibility:
- The Company’s average hourly wage at the Nevada facility must equal or exceeds 100% of the county average hourly wage or statewide average hourly wage, whichever is less. For new businesses, compliance with this criterion is required. The statewide average hourly wage established for FY 2012 is $20.10.
- For counties or cities with a population of more than 100,000 or 60,000, respectively, requires a minimum of 75 full-time permanent jobs in Nevada by the fourth quarter of operation and continue to employ at least the minimum. For an expansion, the company must increase the number of employees on the payroll by 10% or six employees, whichever is greater.
A capital investment of $1 million is required for counties or cities with a population greater than 100,000.
TRAIN EMPLOYEES NOW (TEN) GRANT
The Nevada Train Employees Now Program provides short-term, skills-based intensive job training. A customized program is designed covering recruitment, hiring and job training for Nevada residents. The program can fund up to 75% of total eligible costs. The company is required to contribute at least 25% of total eligible costs.
Each training program would be designed jointly by the company and multiple state agencies. Major elements of the program include the development of a job applicant list, programming, materials, and classroom training. State agencies involved are the Governor’s Office of Economic Development, Department of Employment, Training and Rehabilitation and the Nevada System of Higher Education. Training providers include local community colleges, private post-secondary institutions, or others identified by the company.
Program benefits include:
- Assistance with employee screening;
- The employer determines the goals and objectives of the training;
- Most direct training costs are eligible for reimbursement, including:
- Consumable materials and equipment;
- Rental of tools and equipment;
- Rental of training site;
- Instructor salaries and benefits;
- Travel and per diem for limited number of instructors and trainees (if applicable).
Program requirements include:
- Businesses must hire a minimum of 10 trainees to participate. Trainees must be Nevada residents. Generally the ceiling expenditure per trainee is $1,000-2,000.
- Wages for jobs considered for training must exceed 80% of the statewide or county average annual hourly wage (Current statewide average hourly wage is $20.10 and 80% equals $16.08).
- Health insurance must be provided by the employer with option for dependents.
- Training is provided only for full-time, primary jobs created by companies locating or undertaking a significant expansion in Nevada.
- Existing businesses must prove growth by significantly increased employment or other factors indicating new investment and job creation and must commit to Nevada for 5-years.
Training must commence within the first 90 days after approval, with a written request to the executive director, an extension maybe granted up to an additional 90 days. If the deadline is not met, after review and reconsideration, monies may be reallocated to other companies seeking funding during the fiscal year. The company must provide compliance and administrative reports to the regulating agency on funding and training quarterly during training and a status report within 90 days of completion of training.
SALES & USE TAX ABATEMENT
Partial sales and use tax abatements are available for purchases of capital equipment. The abatement reduces the applicable tax rate to 2%. An application for abatement must be made in advance to the State or, if the purchase has been made, within 60 days after the date on which the tax was due. If the application for abatement is approved, the company is eligible for a refund of the tax paid.
Two of the following three must be met:
- Wage Requirement - The Company’s average hourly wage at the Nevada facility must equal or exceed 100% of the county average hourly wage or statewide average hourly wage, whichever is less. For new businesses, compliance with these criteria is required. The statewide average hourly wage established for CY 2012 is $ 20.10.
- Number of Jobs Required - Counties or cities with a population of more than 100,000 or 60,000, respectively, requires a minimum of 75 full-time permanent jobs in Nevada by the fourth quarter of operation and continue to employ at least the minimum. For counties or cities with populations of less than 100,000 or 60,000, respectively, requires a minimum of 15 full-time permanent jobs in Nevada by the fourth quarter of operation and must continue to employ at least the minimum. For an expansion, the company must increase the number of employees on the payroll by 10% or six employees, whichever is greater.
- Capital Investment Requirement - For counties or cities with a population of more than 100,000 or 60,000, respectively, a capital investment of $1 million is required. For counties or cities with a population of less than 100,000 or 60,000, respectively, a capital investment of $250,000 is required.
PERSONAL PROPERTY TAX ABATEMENT
Partial abatement from personal property taxes are available to companies that locate or expand their businesses in Nevada. The abatement can be up to 50% of the taxes due for up to 10 years. The applicant must apply for abatement not more than one year before the business begins to develop for expansion or operation in Nevada.
Eligibility Requirements for the Personal Property Tax Abatement are the same as the Sales & Use Tax Abatement requirements listed above.
OTHER NEVADA INCENTIVE PROGRAMS
- Economic Development Rate Rider
- Real Property Tax Abatement for Recycling
- Silver State Works Employee Hiring Incentive
- Renewable and Energy Storage Abatements
- Property Tax Abatement for Renewable Energy
- Renewable Energy Systems Property Tax Exemption
- Catalyst Fund
- Industrial Development Bonds
- Portfolio Energy Credits