Nevada Incentives and Workforce Development Guide
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- Catalyst Fund:
- Nevada recently authorized the use of $10 million in general fund money to spur economic development through corporate expansions and relocations in Nevada. Working in connection with local governments, companies can apply to the state with an eligible economic development project for an allocation from the fund.
- Industrial Development Bonds (IDBs):
- Tax exempt, they provide low-interest financing of new construction, improvements, rehabilitation or redevelopment of qualified projects, which include manufacturing facilities and certain other projects organized under Section 501 of the Internal Revenue Service code.
- Portfolio Energy Credits (PEC):
- Allows renewable energy generators to sell PECS to the state’s utilities. One PEC is equal to one kWh of electricity generated, though photovoltaic projects generate 2.4 PECs for each kWh generated.
- Sales and Use Tax Abatement on Machinery & Equipment:
- Available to businesses with operations consistent with Nevada’s state plan for economic diversification and development. Qualifying criteria include a commitment to doing business in Nevada, minimum job creation, capital investment, employee heath plans and wage requirements.
- Renewable and Energy Storage Abatements:
- Available for companies involved in the production of energy from renewable sources such as wind, solar, and others, or a facility for the production of an energy storage device. The package of abatements includes sales/use tax and real and personal property tax.
- Modified Business (Payroll) Tax Abatements:
- Provide partial abatement from the payroll tax for new and expanding businesses. Statutory requirements, which must be met to qualify, include a minimum number of jobs created, a minimum capital investment, and wage and employee health plan requirements. Taxes may be abated by 50% for four years.
- Property Tax Abatement for Recycling:
- Partial abatement of real and personal property taxes for recycling is available to companies who locate or expand their business in Nevada and can be up to 50% of the tax due up to 10 years. Applicant must apply not more than one year before the business begins to develop for expansion or operation. Applications are due at least 30 working days prior to the Commission meeting. The business must either recycle at least 50% of the product onsite or primarily generate electricity from recycled material—industrial, domestic, agricultural or municipal waste as defined by NRS 701A.210(4). The primary purpose must be for the conservation of energy or the substitution of other sources of energy for fossil fuel. The company will provide a medical insurance plan for all employees (including an option for dependent health insurance coverage), pay at least 25% of the employee premium cost and maintain the business in Nevada for five years. Audits will be done by the Nevada Department of Taxation after two and five years to ensure compliance.
- Property Tax Abatements for Renewable Energy:
- Provides partial abatement of real and personal property taxes for businesses that produce electricity from renewable sources, including biomass, solar energy or wind.
- Renewable Energy Systems Property Tax Exemption:
- Exempts qualifying renewable energy projects from 100% of the property tax on the value added by the energy system. Eligible technologies include: solar, wind, geothermal, solid waste and hydroelectric systems. The exemption applies for all years, once the project is installed.
- Train Employees Now (TEN):
- Nevada offers a customized job training program to qualified businesses that meet established criteria. This program may be used prior to a plant opening and up to 90 days following.
- Silver State Works Program:
- An initiative introduced in July 2011 to encourage employers to train or hire now-unemployed job seekers in the community. The program uses the Nevada JobConnect network to search for available talent, connect businesses with employees, get qualified workers back into the work force and offer financial incentives to employers to hire. Employers have three options for receiving the incentive and the only requirements to participate are a valid business license and a verified paid-to-date unemployment insurance account. The employer can offer training or employment depending on the program that works best for the business.
- Employer-based training. In this option, businesses train workers who qualify for unemployment insurance benefits for 24 hours per week up to six weeks at no cost to the employer while the workers continue job hunting. The trainee will continue to receive unemployment benefits and a training allowance of $200 every two weeks, which can include assistance with transportation while they learn new skills or freshen current skills. After the training period, the trainee will receive a certificate of training that would be valuable to their job search or the business may hire them.
- Employer incentive job program. In this scenario, employers enter a contract that establishes a wage, a number of hours to master tasks, and a maximum amount of reimbursement based on the wage paid. Employers will be reimbursed up to 50% of the participant’s initial agreed-upon gross wage for up to 40 hours per week. For this program, you will hire and train the new employees and add them to your payroll. Silver State Works will reimburse you with an incentive check at the end of the training.
- Incentive-based employment. This supports employers who hire and retain eligible individuals in full-time employment (30 hours or more per week) by providing a hiring and retention incentive based on the time the qualified individual remains employed. Upon completion and satisfying certain requirements, the employer may receive a wage retention supplement for retaining the employee on average up to $2,000.