AB14 - Revises provisions relating to certain partial abatements of taxes for economic development. (BDR 32-140)

A.B. 14 - *AB14* ASSEMBLY BILL NO. 14–COMMITTEE ON REVENUE (ON BEHALF OF THE OFFICE OF ECONOMIC DEVELOPMENT IN THE OFFICE OF THE GOVERNOR) PREFILED OCTOBER 28, 2026 ____________ Referred to Committee on Revenue SUMMARY—Revises provisions relating to certain partial abatements of taxes for economic development. (BDR 32-140) FISCAL NOTE: Effect on Local Government: May have Fiscal Impact. Effect on the State: May have Fiscal Impact. Effect on the State Highway Fund: No. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to economic development; revising criteria governing the approval of an application for certain partial abatements of taxes for an expanding business; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law authorizes a person who intends to locate or expand a business in 1 this State to apply to the Office of Economic Development for a partial abatement 2 of certain taxes. Under existing law, if the applicant is locating a new business in 3 this State and satisfies certain criteria, the Office is authorized to approve a partial 4 abatement of certain property taxes, the modified business tax and all sales and use 5 taxes except for the taxes imposed by the Sales and Use Tax Act of 1955. However, 6 if the applicant is expanding a business in this State and satisfies certain criteria, the 7 Office is authorized to approve a partial abatement of the same types of taxes 8 except that the Office is additionally prohibited from approving a partial abatement 9 of the Local School Support Tax. In addition, existing law prohibits the Office from 10 approving an application for such a partial abatement if the applicant intends to 11 expand a business in a county and has already received a partial abatement for 12 expanding that business in that county. (NRS 360.750) This bill removes this 13 prohibition, thereby authorizing a business to obtain a partial abatement for 14 multiple expansions of a business in a county while maintaining the existing 15 prohibition against the approval of a partial abatement of the Local School Support 16 Tax for an expanding business. 17 – 2 – - *AB14* THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 360.750 is hereby amended to read as follows: 1 360.750 1. A person who intends to locate or expand a 2 business in this State may apply to the Office of Economic 3 Development pursuant to this section for a partial abatement of one 4 or more of the taxes imposed on the: 5 (a) New business pursuant to chapter 361, 363B or 374 of NRS. 6 (b) Expanded business pursuant to chapter 361 or 363B of NRS 7 or a partial abatement of the local sales and use taxes imposed on 8 the expanded business. As used in this paragraph, “local sales and 9 use taxes” means the taxes imposed on the gross receipts of any 10 retailer from the sale of tangible personal property sold at retail, or 11 stored, used or otherwise consumed, in the political subdivision in 12 which the business is to be located or expanded, except the taxes 13 imposed by the Sales and Use Tax Act and the Local School 14 Support Tax Law. 15 2. The Office of Economic Development shall approve an 16 application for a partial abatement pursuant to this section if the 17 Office makes the following determinations: 18 (a) The business offers primary jobs and is consistent with: 19 (1) The State Plan for Economic Development developed by 20 the Executive Director of the Office of Economic Development 21 pursuant to subsection 2 of NRS 231.053; and 22 (2) Any guidelines adopted by the Executive Director of the 23 Office to implement the State Plan for Economic Development. 24 (b) Not later than 1 year after the date on which the application 25 was received by the Office, the applicant has executed an agreement 26 with the Office which must: 27 (1) Comply with the requirements of NRS 360.755; 28 (2) State the date on which the abatement becomes effective, 29 as agreed to by the applicant and the Office, which must not be 30 earlier than the date on which the Office received the application 31 and not later than 1 year after the date on which the Office approves 32 the application; 33 (3) State that the business will, after the date on which the 34 abatement becomes effective, continue in operation in this State for 35 a period specified by the Office, which must be at least 5 years, and 36 will continue to meet the eligibility requirements set forth in this 37 subsection; 38 (4) State that the business will offer primary jobs; and 39 (5) Bind the successors in interest of the business for the 40 specified period. 41 – 3 – - *AB14* (c) The business is registered pursuant to the laws of this State 1 or the applicant commits to obtain a valid business license and all 2 other permits required by the county, city or town in which the 3 business operates. 4 (d) Except as otherwise provided in subsection 4, 5 or 6, the 5 average hourly wage that will be paid by the business to its new 6 employees in this State is at least 100 percent of the average 7 statewide hourly wage as established by the Employment Security 8 Division of the Department of Employment, Training and 9 Rehabilitation on July 1 of each fiscal year. 10 (e) The business will, by the eighth calendar quarter following 11 the calendar quarter in which the abatement becomes effective, offer 12 a health insurance plan for all employees that includes an option for 13 health insurance coverage for dependents of the employees, and the 14 health care benefits the business offers to its employees in this State 15 will meet the minimum requirements for health care benefits 16 established by the Office. 17 (f) Except as otherwise provided in this subsection and NRS 18 361.0687, if the business is a new business in a county whose 19 population is 100,000 or more or a city whose population is 60,000 20 or more, the business meets at least one of the following 21 requirements: 22 (1) The business will have 50 or more full-time employees 23 on the payroll of the business by the eighth calendar quarter 24 following the calendar quarter in which the abatement becomes 25 effective who will be employed at the location of the business in 26 that county or city until at least the date which is 5 years after the 27 date on which the abatement becomes effective. 28 (2) Establishing the business will require the business to 29 make, not later than the date which is 2 years after the date on which 30 the abatement becomes effective, a capital investment of at least 31 $1,000,000 in this State in capital assets that will be retained at the 32 location of the business in that county or city until at least the date 33 which is 5 years after the date on which the abatement becomes 34 effective. 35 (g) Except as otherwise provided in NRS 361.0687, if the 36 business is a new business in a county whose population is less than 37 100,000, in an area of a county whose population is 100,000 or more 38 that is located within the geographic boundaries of an area that is 39 designated as rural by the United States Department of Agriculture 40 and at least 20 miles outside of the geographic boundaries of an area 41 designated as urban by the United States Department of Agriculture, 42 or in a city whose population is less than 60,000, the business meets 43 at least one of the following requirements: 44 – 4 – - *AB14* (1) The business will have 10 or more full-time employees 1 on the payroll of the business by the eighth calendar quarter 2 following the calendar quarter in which the abatement becomes 3 effective who will be employed at the location of the business in 4 that county or city until at least the date which is 5 years after the 5 date on which the abatement becomes effective. 6 (2) Establishing the business will require the business to 7 make, not later than the date which is 2 years after the date on which 8 the abatement becomes effective, a capital investment of at least 9 $250,000 in this State in capital assets that will be retained at the 10 location of the business in that county or city until at least the date 11 which is 5 years after the date on which the abatement becomes 12 effective. 13 (h) If the business is an existing business, the business meets at 14 least one of the following requirements: 15 (1) For a business in: 16 (I) Except as otherwise provided in sub-subparagraph (II), 17 a county whose population is 100,000 or more or a city whose 18 population is 60,000 or more, the business will, by the eighth 19 calendar quarter following the calendar quarter in which the 20 abatement becomes effective, increase the number of employees on 21 its payroll in that county or city by 10 percent more than it 22 employed in the fiscal year immediately preceding the fiscal year in 23 which the abatement becomes effective or by twenty-five 24 employees, whichever is greater, who will be employed at the 25 location of the business in that county or city until at least the date 26 which is 5 years after the date on which the abatement becomes 27 effective; or 28 (II) A county whose population is less than 100,000, an 29 area of a county whose population is 100,000 or more that is located 30 within the geographic boundaries of an area that is designated as 31 rural by the United States Department of Agriculture and at least 20 32 miles outside of the geographic boundaries of an area designated as 33 urban by the United States Department of Agriculture, or a city 34 whose population is less than 60,000, the business will, by the 35 eighth calendar quarter following the calendar quarter in which the 36 abatement becomes effective, increase the number of employees on 37 its payroll in that county or city by 10 percent more than it 38 employed in the fiscal year immediately preceding the fiscal year in 39 which the abatement becomes effective or by six employees, 40 whichever is greater, who will be employed at the location of the 41 business in that county or city until at least the date which is 5 years 42 after the date on which the abatement becomes effective. 43 (2) The business will expand by making a capital investment 44 in this State, not later than the date which is 2 years after the date on 45 – 5 – - *AB14* which the abatement becomes effective, in an amount equal to at 1 least 20 percent of the value of the tangible property possessed by 2 the business in the fiscal year immediately preceding the fiscal year 3 in which the abatement becomes effective, and the capital 4 investment will be in capital assets that will be retained at the 5 location of the business in that county or city until at least the date 6 which is 5 years after the date on which the abatement becomes 7 effective. The determination of the value of the tangible property 8 possessed by the business in the immediately preceding fiscal year 9 must be made by the: 10 (I) County assessor of the county in which the business 11 will expand, if the business is locally assessed; or 12 (II) Department, if the business is centrally assessed. 13 (i) The applicant has provided in the application an estimate of 14 the total number of new employees which the business anticipates 15 hiring in this State by the eighth calendar quarter following the 16 calendar quarter in which the abatement becomes effective if the 17 Office approves the application. 18 (j) Except as otherwise provided in subsection 3, if the business 19 will have at least 50 full-time employees on the payroll of the 20 business by the eighth calendar quarter following the calendar 21 quarter in which the abatement becomes effective, the business, by 22 the earlier of the eighth calendar quarter following the calendar 23 quarter in which the abatement becomes effective or the date on 24 which the business has at least 50 full-time employees on the payroll 25 of the business, has a policy for paid family and medical leave and 26 agrees that all employees who have been employed by the business 27 for at least 1 year will be eligible for at least 12 weeks of paid 28 family and medical leave at a rate of at least 55 percent of the 29 regular wage of the employee. The business will agree in writing 30 that if the Office approves the application, the business will not: 31 (1) Prohibit, interfere with or otherwise discourage an 32 employee from taking paid family and medical leave: 33 (I) For any reason authorized pursuant to the Family and 34 Medical Leave Act of 1993, 29 U.S.C. §§ 2601 et seq. 35 (II) To care for any adult child, sibling or domestic 36 partner of the employee. 37 (2) Discriminate, discipline or discharge an employee for 38 taking paid family and medical leave: 39 (I) For any reason authorized pursuant to the Family and 40 Medical Leave Act of 1993, 29 U.S.C. §§ 2601 et seq. 41 (II) To care for any adult child, sibling or domestic 42 partner of the employee. 43 (3) Prohibit, interfere with or otherwise discourage an 44 employee or other person from bringing a proceeding or testifying 45 – 6 – - *AB14* in a proceeding against the business for a violation of the policy for 1 paid family and medical leave that is required pursuant to this 2 paragraph. 3 3. For purposes of paragraph (j) of subsection 2, the Office of 4 Economic Development shall determine that a business meets the 5 requirements of that paragraph if the business has a policy for paid 6 family and medical leave for employees on the payroll of the 7 business outside of this State that meets or exceeds the requirements 8 for a policy for paid family and medical leave pursuant to that 9 paragraph and the business agrees in writing that its employees on 10 the payroll in this State are eligible for paid family and medical 11 leave under such policy. 12 4. Notwithstanding the provisions of subsection 2, the Office 13 of Economic Development: 14 (a) Shall not consider an application for a partial abatement 15 pursuant to this section unless the Office has requested a letter of 16 acknowledgment of the request for the abatement from any affected 17 county, school district, city or town. 18 (b) Shall consider the level of health care benefits provided by 19 [Text truncated for display. Full text available on LegiScan.]