SB21 - Revises provisions relating to economic development. (BDR 32-136)

S.B. 21 - *SB21* SENATE BILL NO. 21–COMMITTEE ON REVENUE AND ECONOMIC DEVELOPMENT (ON BEHALF OF THE OFFICE OF ECONOMIC DEVELOPMENT IN THE OFFICE OF THE GOVERNOR) PREFILED OCTOBER 28, 2026 ____________ Referred to Committee on Revenue and Economic Development SUMMARY—Revises provisions relating to economic development. (BDR 32-136) 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; defining the term “primary job” for the purpose of provisions relating to certain transferrable tax credits, partial abatements of certain taxes and certain other programs for economic development; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law authorizes the Office of Economic Development to approve partial 1 abatements of certain property taxes, business taxes and sales and use taxes and 2 certain transferable tax credits applicable to certain business taxes, gaming license 3 fees or insurance premium taxes. For a business to receive such a partial abatement 4 of taxes or such transferable credits, existing law requires the business, in addition 5 to meeting certain other requirements, to offer primary jobs. (NRS 360.750, 6 360.889) Existing regulations define a “primary job” for the purposes of certain 7 transferable tax credits as a permanent position of employment at a location in this 8 State where the employee works an average of 30 hours per week and a majority of 9 the revenue generated at the location is derived from exports to locations outside 10 this State. (NAC 231.363) This bill defines the term “primary job” for the purposes 11 of all partial abatements of taxes, transferable tax credits and other programs of 12 economic development administered by the Office. Specifically, in addition to 13 including such export-oriented jobs, section 3 of this bill defines the term “primary 14 job” for these purposes to include a job at a physical location of a business in this 15 State that substitutes for goods or services imported into this State. Under section 3, 16 – 2 – - *SB21* a “primary job” is: (1) a location that generates not less than half of its revenue 17 from exports to locations outside of this State; or (2) a business that operates in 18 certain sectors of the economy, manufactures, produces or sells certain goods or 19 services that are imported into this State in significant quantities and closes gaps in 20 supply chains, promotes local production or reduces the outflow of capital from this 21 State. Section 5 of this bill similarly defines the term “primary job” for the purpose 22 of certain other programs for economic development administered by the Office as 23 well as certain reports required to be prepared and submitted to the Legislature by 24 the Office. (NRS 231.0685, 231.1467) Sections 2 and 6 of this bill apply the 25 definitions set forth in sections 3 and 5, respectively, to the provisions of law 26 governing transferrable tax credits, partial abatement of taxes and certain other 27 programs for economic development administered by the Office. Section 4 of this 28 bill makes a conforming change that is necessary because sections 2 and 3 will 29 cause more than one term to be defined for chapter 360 of NRS. 30 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 360 of NRS is hereby amended by adding 1 thereto the provisions set forth as sections 2 and 3 of this act. 2 Sec. 2. As used in this chapter, unless the context otherwise 3 requires, the words and terms defined in NRS 360.005 and section 4 3 of this act have the meanings ascribed to them in those sections. 5 Sec. 3. “Primary job” means a permanent position of 6 employment at a physical location in this State, if the employee 7 filling that position works an average of at least 30 hours per week 8 and: 9 1. Not less than half of the revenue generated at that location 10 is derived from exports to locations outside of this State; or 11 2. The business: 12 (a) Manufactures, produces or sells goods or services that are 13 imported into this State in significant quantities, as determined by 14 the Office of Economic Development; 15 (b) Operates in a sector of the economy that the Office of 16 Economic Development determines to be critical to the economic 17 security of this State, including, without limitation, critical 18 mineral processing, battery production and health care; and 19 (c) Closes gaps in supply chains, promotes local production or 20 reduces the outflow of capital from this State. 21 Sec. 4. NRS 360.005 is hereby amended to read as follows: 22 360.005 [As used in this chapter, “retailer”] “Retailer” has the 23 meaning ascribed to it in NRS 372.055. 24 Sec. 5. Chapter 231 of NRS is hereby amended by adding 25 thereto a new section to read as follows: 26 “Primary job” has the meaning ascribed to it in section 3 of 27 this act. 28 – 3 – - *SB21* Sec. 6. NRS 231.002 is hereby amended to read as follows: 1 231.002 As used in this chapter, unless the context otherwise 2 requires, the words and terms defined in NRS 231.003 to 231.0095, 3 inclusive, and section 5 of this act have the meanings ascribed to 4 them in those sections. 5 Sec. 7. 1. This section becomes effective upon passage and 6 approval. 7 2. Sections 1 to 6, inclusive, of this act become effective: 8 (a) Upon passage and approval for the purpose of adopting any 9 regulations and performing any other preparatory administrative 10 tasks that are necessary to carry out the provisions of this act; and 11 (b) On July 1, 2027, for all other purposes. 12 H