2023 Nevada Revised Statutes › Chapter 274 - Zones for Economic Development › NRS 274.320 - Abatement for expanding business in certain areas of economic development: Endorsement required; application; requirements for approval; certificate of eligibility; duration and amount of abatement; repayment required under certain circumstances; regulations; judicial review. [Effective through June 30, 2032.] Abatement for expanding business in certain areas of economic development: Endorsement required; application; requirements for approval; certificate of eligibility; repayment required under certain circumstances; regulations; judicial review. [Effective July 1, 2032.]

1. A person who intends to expand a business in this State within:
(a) A historically underutilized business zone, as defined in 15 U.S.C. § 632;
(b) A redevelopment area created pursuant to chapter 279 of NRS;
(c) An area eligible for a community development block grant pursuant to 24 C.F.R. Part 570; or
(d) An enterprise community established pursuant to 24 C.F.R. Part 597,
may submit a request to the governing body of the county, city or town in which the business operates for an endorsement of an application by the person to the Office of Economic Development for a partial abatement of the local sales and use taxes imposed on capital equipment. The governing body of the county, city or town shall provide notice of the request to the board of trustees of the school district in which the business operates. The notice must set forth the date, time and location of the hearing at which the governing body will consider whether to endorse the application. As used in this subsection, "local sales and use taxes" means the taxes imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in the political subdivision in which the business is located, except the taxes imposed by the Sales and Use Tax Act and the Local School Support Tax Law.
2. The governing body of a county, city or town shall develop procedures for:
(a) Evaluating whether such an abatement would be beneficial for the economic development of the county, city or town.
(b) Issuing a certificate of endorsement for an application for such an abatement that is found to be beneficial for the economic development of the county, city or town.
3. A person whose application has been endorsed by the governing body of the county, city or town, as applicable, pursuant to this section may submit the application to the Office of Economic Development. The Office shall approve the application if the Office makes the following determinations:
(a) The business is consistent with:
(1) The State Plan for Economic Development developed by the Administrator pursuant to subsection 2 of NRS 231.053; and
(2) Any guidelines adopted by the Administrator to implement the State Plan for Economic Development.
(b) Not later than 1 year after the date on which the application was received by the Office, the applicant has executed an agreement with the Office which states:
(1) The date on which the abatement becomes effective, as agreed to by the applicant and the Office, which must not be earlier than the date on which the Office received the application and not later than 1 year after the date on which the Office approves the application; and
(2) That the business will, after the date on which the abatement becomes effective:
(I) Continue in operation in the historically underutilized business zone, as defined in 15 U.S.C. § 632, redevelopment area created pursuant to chapter 279 of NRS, area eligible for a community development block grant pursuant to 24 C.F.R. Part 570 or enterprise community established pursuant to 24 C.F.R. Part 597 for a period specified by the Office, which must be at least 5 years; and
(II) Continue to meet the eligibility requirements set forth in this subsection.
The agreement must bind successors in interest of the business for the specified period.
(c) 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.
(d) The applicant invested or commits to invest a minimum of $250,000 in capital equipment that will be retained at the location of the business in the historically underutilized business zone, as defined in 15 U.S.C. § 632, redevelopment area created pursuant to chapter 279 of NRS, area eligible for a community development block grant pursuant to 24 C.F.R. Part 570 or enterprise community established pursuant to 24 C.F.R. Part 597 until at least the date which is 5 years after the date on which the abatement becomes effective.
4. If the Office of Economic Development approves an application for a partial abatement, the Office shall immediately forward a certificate of eligibility for the abatement to:
(a) The Department of Taxation; and
(b) The Nevada Tax Commission.
5. If the Office of Economic Development approves an application for a partial abatement pursuant to this section:
(a) The partial abatement must be for a duration of not less than 1 year but not more than 5 years.
(b) If the abatement is from the property tax imposed pursuant to chapter 361 of NRS, the partial abatement must not exceed 75 percent of the taxes on personal property payable by a business each year pursuant to that chapter.
6. If an applicant for a partial abatement pursuant to this section fails to execute the agreement described in paragraph (b) of subsection 3 within 1 year after the date on which the application was received by the Office, the applicant shall not be approved for a partial abatement pursuant to this section unless the applicant submits a new request pursuant to subsection 1.
7. If a business whose partial abatement has been approved pursuant to this section and is in effect ceases:
(a) To meet the eligibility requirements for the partial abatement; or
(b) Operation before the time specified in the agreement described in paragraph (b) of subsection 3,
the business shall repay to the Department of Taxation the amount of the partial abatement 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 partial abatement 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.
8. The Office of Economic Development may adopt such regulations as the Office determines to be necessary or advisable to carry out the provisions of this section.
9. An applicant for an abatement 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.
(Added to NRS by 2005, 640; A 2011, 3454; 2013, 27th Special Session, 23; 2015, 1076, 3054; 2019, 2228; 2021, 2313)
1. A person who intends to expand a business in this State within:
(a) A historically underutilized business zone, as defined in 15 U.S.C. § 632;
(b) A redevelopment area created pursuant to chapter 279 of NRS;
(c) An area eligible for a community development block grant pursuant to 24 C.F.R. Part 570; or
(d) An enterprise community established pursuant to 24 C.F.R. Part 597,
may submit a request to the governing body of the county, city or town in which the business operates for an endorsement of an application by the person to the Office of Economic Development for a partial abatement of the local sales and use taxes imposed on capital equipment. The governing body of the county, city or town shall provide notice of the request to the board of trustees of the school district in which the business operates. The notice must set forth the date, time and location of the hearing at which the governing body will consider whether to endorse the application. As used in this subsection, "local sales and use taxes" means the taxes imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in the political subdivision in which the business is located, except the taxes imposed by the Sales and Use Tax Act and the Local School Support Tax Law.
2. The governing body of a county, city or town shall develop procedures for:
(a) Evaluating whether such an abatement would be beneficial for the economic development of the county, city or town.
(b) Issuing a certificate of endorsement for an application for such an abatement that is found to be beneficial for the economic development of the county, city or town.
3. A person whose application has been endorsed by the governing body of the county, city or town, as applicable, pursuant to this section may submit the application to the Office of Economic Development. The Office shall approve the application if the Office makes the following determinations:
(a) The business is consistent with:
(1) The State Plan for Economic Development developed by the Administrator pursuant to subsection 2 of NRS 231.053; and
(2) Any guidelines adopted by the Administrator to implement the State Plan for Economic Development.
(b) Not later than 1 year after the date on which the application was received by the Office, the applicant has executed an agreement with the Office which states:
(1) The date on which the abatement becomes effective, as agreed to by the applicant and the Office, which must not be earlier than the date on which the Office received the application and not later than 1 year after the date on which the Office approves the application; and
(2) That the business will, after the date on which a certificate of eligibility for the abatement is issued pursuant to subsection 4:
(I) Continue in operation in the historically underutilized business zone, as defined in 15 U.S.C. § 632, redevelopment area created pursuant to chapter 279 of NRS, area eligible for a community development block grant pursuant to 24 C.F.R. Part 570 or enterprise community established pursuant to 24 C.F.R. Part 597 for a period specified by the Office, which must be at least 5 years; and
(II) Continue to meet the eligibility requirements set forth in this subsection.
The agreement must bind successors in interest of the business for the specified period.
(c) 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.
(d) The applicant invested or commits to invest a minimum of $250,000 in capital equipment.
4. If the Office of Economic Development approves an application for a partial abatement, the Office shall immediately forward a certificate of eligibility for the abatement to:
(a) The Department of Taxation; and
(b) The Nevada Tax Commission.
5. If an applicant for a partial abatement pursuant to this section fails to execute the agreement described in paragraph (b) of subsection 3 within 1 year after the date on which the application was received by the Office, the applicant shall not be approved for a partial abatement pursuant to this section unless the applicant submits a new request pursuant to subsection 1.
6. If a business whose partial abatement has been approved pursuant to this section and is in effect ceases:
(a) To meet the eligibility requirements for the partial abatement; or
(b) Operation before the time specified in the agreement described in paragraph (b) of subsection 3,
the business shall repay to the Department of Taxation the amount of the partial abatement 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 partial abatement 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.
7. The Office of Economic Development may adopt such regulations as the Office determines to be necessary or advisable to carry out the provisions of this section.
8. An applicant for an abatement 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.
(Added to NRS by 2005, 640; A 2011, 3454; 2013, 27th Special Session, 23; 2015, 1076, 3054; 2019, 2228, 2230; 2021, 2313, effective July 1, 2032)