NV Incentives | Finance, Loans, IRB, Workforce Development

A comprehensive list of Nevada financial aid, loans, grants, abatements, workforce development, exemptions, funds & capital investment opportunities.


https://businessfacilities.com/2014/07/nv-incentives-and-workforce-development-guide/
A comprehensive list of Nevada financial aid, loans, grants, abatements, workforce development, exemptions, funds & capital investment opportunities.
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Nevada Incentives and Workforce Development Guide

NV Incentives | Finance, Loans, IRB, Workforce Development

For a list of Nevada economic development agencies that can help with the site selection process, visit our Online Site Seekers’ Guide.

 

FINANCING

Industrial Development Revenue Bonds (IDRBs): A type of tax-exempt municipal bond/public debt instrument. Proceeds are utilized by private manufacturing companies interested in locating a facility in Nevada or expanding an existing Nevada-based business. These bonds, issued by the Nevada Department of Business & Industry, are structured to assist a borrower to achieve the lowest cost of capital. The size of the expansion, the number of new jobs created, and high wages are important factors in weighing the approval of the application along with the ability of the applicant to pay back the bonds. Bonds may be used for projects located in Nevada including but not limited to:

  • Industrial uses including manufacturing and warehousing
  • Research and development facilities
  • Commercial enterprises
  • Civic and cultural enterprises open to the public including theaters and museums
  • Accredited educational institutions
  • Health facilities
  • Preservation of historic structures

The project must comply with requirements of the Internal Revenue Code and will be subject to specific evaluation criteria.

Catalyst Fund: Incentivizes the expansion or relocation of businesses that will quickly result in the creation of high-quality, primary jobs in Nevada. This fund offers a tool to Regional Development Authorities to assist their efforts to close deals with viable companies that will enhance the state’s economic sectors and offer stable jobs with good pay and benefits.

Nevada Microenterprise Initiative: The Nevada Microenterprise Initiative (NMI) provides business development training and financial investments to small business entrepreneurs.

State Small Business Credit Initiative: he $13.8 million fund assists with the growth of small and micro-enterprise businesses.

Silver State Opportunities Fund: The Nevada Silver State Opportunities Fund (SSOF) manages $50 million of capital dedicated to investing in compelling businesses located in Nevada, looking to expand in Nevada, or seeking to relocate to Nevada.

 

TAX INCENTIVES

Aviation Tax Abatement: (NRS Chapter 360) Partial abatements from Personal Property and Sales & Use Taxes are available to companies that locate or expand their business in Nevada. The personal property tax abatement can be up to 50% for 20 years on the taxes due on tangible personal property, and the sales & use tax abatement reduces the applicable tax rate to 2% for a similar 20 year period, a near 75% reduction in most jurisdictions. Note: the Sales & Use tax abatement excludes aircraft purchase.

Data Center Tax Abatement: (NRS Chapter 360) A partial abatement from personal property tax and sales and use tax are available to data center companies that locate or expand their business in Nevada. The personal property tax abatement can be up to 75% of the taxes due for 10 or 20 year abatement periods. Abatements for sales and use tax are for taxes imposed on the purchase of eligible machinery or equipment. The abatement reduces the applicable tax rate to 2% for a period of 10 or 20 years, a near 75% reduction in most jurisdictions. Abatements apply to co-located businesses of the data center.

Modified Business Tax Abatement: (NRS 363B.120, NRS 360.750) A partial abatement of the Modified Business Tax is available to qualified companies that locate or expand their business in Nevada. The current tax imposed on each employer is at the rate of 1.475% on taxable wages over $50,000 in a quarter. A business may qualify for a partial abatement of up to 50% of the amount of the business tax due during the first four years of operations.

For a new company, the abatement of the Modified Business Tax applies to the number of new employees stated in its application. For an expanding business, the abatement does not apply to existing employees of the business, but does apply to the number of new employees directly related to the expansion.

Personal Property Tax Abatement: (NRS 361.0687, NRS 360.750) A partial abatement from personal property tax is available to qualified companies that locate or expand their business in Nevada. This tax abatement can be up to 50% of the tax due for 10 years beginning from when the abatement becomes effective. The applicant must apply for abatement not more than one year before the business begins to develop for expansion or operation in Nevada.

A partial abatement of personal property taxes applies only to the same list of machinery and equipment eligible for the sales and use tax abatement allowed under NRS 374.357. Property tax rates vary by taxing district within Nevada.

Real Property Tax Abatement for Recycling: (NRS 701A.210, NRS 360.750) A partial abatement of real property (land and buildings) tax is available for businesses and facilities using recycled material that have as a primary purpose the conservation of energy or the substitution of fossil sources for other sources of energy. To qualify, the business must be in the primary trade of recycling at least 50% of raw material or an intermediate product onsite; or converting the energy derived from recycled material (specifically, industrial, domestic, agricultural or municipal waste) into electricity. Qualifying businesses can receive a partial abatement of up to 50% of the tax due on real property for not more than 10 years beginning from when the abatement becomes effective.

Sales and Use Tax Abatement: (NRS 374.357, NRS 360.750) A partial abatement of sales and use taxes is available to qualified companies that locate or expand their business in Nevada. The tax abatement is on the gross receipts from the sale, and the storage, use or other consumption, of eligible capital equipment. The sales and use tax rates vary by county within Nevada. The abatement reduces the sales and use tax rate to 2%. The approved business is eligible for tax abatements for a two-year period beginning the date the abatement becomes effective.

NOTE:

All tax abatements can be reduced if the company’s average hourly wage falls below the state average wage, even when a company qualifies under (i) number of employees and (ii) capital investment. If a company qualifies under (i) average wage and (ii) number of employees or capital investment, this reduction is not applicable. This reduction has two tiers:

  1. (a) If the unemployment rate in the applicable county is 6% or higher, and the company average hourly wage is 80%-99% of the average statewide hourly rate, the company will receive the full abatement provided the additional requirements have been met.
  2. (b) If the unemployment rate is 6% or higher and the company average hourly wage is 65%-79% of the average statewide hourly rate, then the company will receive 25% of the Modified Business Tax Abatement (MBT) and Personal Property Tax Abatement (PPT) and the full amount of the Sales & Use Tax Abatement (SUT), provided the additional requirements have been met.
  3. (a) If the unemployment rate is less than 6% and the company average hourly wage is 80%-99% of the average statewide hourly rate, then the company will receive 25% of the MBT and PPT, but the SUT abatement is only reduced to 4.6% instead of down to 2%.
  4. (b) If the unemployment rate is less than 6% and the company average hourly wage is below 80%, then no abatements will be awarded.


WORKFORCE DEVELOPMENT

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 Job Connect 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.

  1. Employer-based training. This component allows laid-off workers who qualify for UI benefits to simultaneously receive on-site workplace training and regular UI benefits. This component is also available to other targeted populations. It provides a special training allowance of $200 every two weeks for a maximum of $600. Job seekers would be required to train 24 hours per week up to six weeks while continuing regular work search. Business Services Representatives in the Nevada JobConnect offices will be responsible for developing training sites and completion of all the forms for the employer and the participant. There is no cost to the employer.
  1. Employer incentive job program. Under this component, employers enter into a contract that establishes the agreed upon wage, number of hours to master the tasks, and the maximum amount of reimbursement based on the wage paid. Employers will be reimbursed up to a maximum of 50 percent of the participant’s initial agreed upon gross wage for the contract period and a maximum of 40 hours per week. Contract length will be based on the time estimated to complete the needed training. Employers will submit a timesheet/invoice/progress report on a monthly basis to receive reimbursement.
  1. Incentive-based employment. This component supports employers who hire and retain eligible individuals in full-time employment (30 hours or more per week) by providing a wage and training subsidy based on the total amount of time the qualified individual remains actively employed. Upon completion and satisfaction of certain requirements, the employer may receive a wage retention supplement – on average up to $2,000 – payable in four equal increments of $500 after each 30 days of successful employment, up to 120 days. The Employer Agreement outlines the role and responsibility of the employer to the employee and is signed by both the employer and the agency representative.

Train Employees Now (TEN): A program through the Governor’s Office of Economic Development that provides up to $1,000 per employee for training purposes for qualifying new and expanding businesses.

 

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