AN ACT relating to economic development; revising provisions governing abatements of certain taxes and transferable tax credits for certain businesses; authorizing the Office of Economic Development to approve a partial deduction of certain taxes for a person who intends to locate or expand a high-impact business in this State; authorizing the Board of Economic Development to deny an application for an abatement, deduction or transferable tax credits under certain circumstances; authorizing the Office to issue transferable tax credits for the location or expansion of a child care facility in this State; creating the Community Infrastructure Grant Program; revising provisions governing the State Plan for Economic Development; revising provisions governing programs of workforce recruitment, assessment and training; requiring the Office of Economic Development and the Department of Employment, Training and Rehabilitation to establish a program to reimburse certain expenses of certain students of the Nevada System of Higher Education; providing for the establishment of a program to provide stipends to certain employers whose employees teach in programs of career and technical education; revising provisions governing programs of career and technical education; authorizing businesses that recycle certain materials or produce certain fuels from recycled materials to apply to the Office for a partial abatement of certain taxes; and providing other matters properly relating thereto.
Sponsored By: Senate Committee on Revenue and Economic Development
Failed
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Bill Overview
Analyzed Economic Effects
18 provisions identified: 3 benefits, 3 costs, 12 mixed.
Trade students get repayable college help
Nevada creates expense reimbursement for trade-related undergraduate degrees or certificates at Nevada System of Higher Education institutions. Applicants must have completed a school-district career and technical education program and be current or former system students. Covered expenses include tuition, mandatory fees, living costs, supplies, and related expenses; no reimbursement amount is stated. Recipients must repay the money unless they finish the program and start trade-related work in a rural county within one year. They must maintain that employment for at least two years; rural counties have fewer than 100,000 residents.
Child care projects gain capped credits
Licensed child care projects in areas with critical workforce demand or scarce child care can receive transferable tax credits. Credits cover up to 60% of audited land, construction, equipment, and start-up costs, with approvals capped at $12 million yearly. Recipients and transferees together can use only 20% of their credits per fiscal year; credits expire after five years. Claims start July 1, 2026, and approvals stop for fiscal years beginning July 1, 2045. Applicants pay for an independent Nevada CPA audit due within 270 days after substantial completion, with extensions up to 90 days; employer-sponsored facilities must cap employee charges at 15% of salary per enrolled child.
Tax-supported employers must offer worker benefits
Covered partial-tax-abatement applicants must offer all employees a health plan with dependent coverage by the eighth calendar quarter. Plans must meet state minimum standards. Applicants reaching 50 full-time employees by that quarter, or earlier, must maintain paid family and medical leave. Workers with at least one year of service qualify for at least 12 weeks at 55% or more of regular wages. Employers cannot discourage leave or retaliate; an existing out-of-state policy qualifies if it meets these standards and covers Nevada workers.
Students gain school-to-work training partnerships
School districts offering career and technical education must partner with local businesses that meet state eligibility standards. Programs must include annual career experiences, counseling, work-based learning, and internships or apprenticeships that can be paid or unpaid. Businesses must prioritize participating graduates for hiring, but jobs are not guaranteed. Districts with active agreements can receive grants for equipment, shared training spaces, and program improvements. The law expands permitted workforce-account uses to support these education activities but states no new funding amount.
Businesses gain more tax break access
Businesses expanding in Nevada can apply for partial reductions in local sales and use taxes where they expand. This local-tax option excludes taxes under the Sales and Use Tax Act and the Local School Support Tax Law. Businesses can also seek another partial tax break in a county where they already received one. Remaining eligibility rules still apply, and the law does not state each business's savings.
Businesses must choose between incentive programs
Businesses receiving specified abatements or the new high-impact deduction cannot keep them and qualify for the covered low-income community investment categories. To preserve eligibility, they must waive the tax break and notify the economic development office by the first affected tax-payment deadline. A timely waiver voids the related agreement. Qualified active low-income community businesses must meet Small Business Administration size standards when the investment occurs. Impact-qualified businesses must have principal operations in Nevada and meet applicable industry or ownership criteria.
Low wages limit business tax breaks
Nevada cannot approve covered tax abatements when proposed average hourly wages fall below the applicable floor. With county unemployment at least 7%, that floor is 70% of the statewide average; otherwise it is 85%. For certain applications, personal property and specified business-tax abatements are capped at 25%. That cap applies below 85% of statewide average wages in counties with unemployment at least 7%, or below 100% elsewhere. Wage comparisons use the statewide average set each July 1.
Business tax refunds carry certificate penalties
Businesses entitled to sales and use tax relief can request refunds for eligible purchases taxed in full. This includes purchases made before receiving a certificate or without presenting it. A penalty applies when failure to present the certificate caused full tax payments on at least 50% of eligible purchases. The penalty equals 10% of the total abatement or deduction, and refunds earn no interest.
Tax-break recipients face reports and audits
Covered tax-break claimants must document compliance within 30 days after every calendar quarter when they claim an incentive. Applicable sales-tax reports also serve as returns and must include unremitted tax still owed. Covered recipients must report operations, workers, wages, taxes, fees, and investments by the end of each even-numbered year; state findings are due January 15 of odd-numbered years. Businesses must allow eligibility investigations and compliance audits; audit reports become public after appeals, with business secrets subject to redaction. The investigation deadline for certain project claims extends through June 30, 2033.
Employers gain help for worker teaching
The law establishes employer stipends for employees teaching career and technical education courses, subject to available workforce-department funding. Stipends reimburse up to 120 teaching hours yearly at a fixed rate set by the State Board. Employees must hold the proper teaching license, and employers must maintain their usual pay and benefits. Employers can donate the stipend to the school district; no hourly rate or total funding is stated.
Communities gain infrastructure and housing grants
Nevada creates competitive grants for infrastructure supporting business relocation or expansion and projects addressing critical rural housing shortages. Applicants include local governments, regional development authorities helping businesses, and entities with local-government agreements for rural housing. Eligible uses include utilities, transportation, broadband, wastewater, site preparation, renewable energy, and housing infrastructure. Rural areas include counties below 100,000 people or incorporated cities below 60,000. Rural housing can receive no more than 50% of account appropriations; no total funding or direct household payment is stated.
Nevada targets industries and qualifying jobs
Nevada must update its economic development plan at least every two years and target high-impact industries and reduced reliance on imports. Covered incentive programs count permanent jobs at physical Nevada locations averaging at least 30 work hours weekly. A location qualifies if at least half its revenue comes from exports outside Nevada. Alternatively, the business must sell goods or services imported in significant quantities, serve a state-designated critical sector, and address supply gaps, local production, or money leaving Nevada. The alternative test adds a route to eligibility, while these standards exclude jobs that do not qualify.
Workforce applicants face revised planning rules
Applicants and businesses in approved workforce programs must use a state-approved workforce development plan instead of a workforce diversity plan. Applications must project jobs in the state plan's target industries and their wages, rather than only primary jobs. Beginning July 1, 2025, the law repeals the former section prescribing diversity-plan commitments, goals, measures, and other contents. These changes revise application duties without guaranteeing training, jobs, or household payments.
Business incentives face broader state review
Nevada's economic development board can deny, reduce, or condition incentives that are not in the state's best interests. It can consider water use, economic and social goals, environmental effects, community impacts, and financial stability. Before considering partial abatements, the economic development office must seek acknowledgment from affected counties, school districts, cities, and towns. The office must consider health benefits, paid leave, economic impact, and tax revenue after abatements. It can waive specified employment or investment requirements, strengthen listed requirements, or add requirements when necessary.
Business project credits continue with caps
Nevada can approve transferable credits for qualified projects through June 30, 2033. Approvals are limited to $7.6 million per fiscal year and $38 million statewide overall. Unused annual approval authority can carry forward through June 30, 2033. Each credit expires four years after issuance to the lead participant and can be transferred only once.
Business tax savings come with commitments
Nevada offers selected high-impact industries a 10% tax deduction, with 10-percentage-point bonuses for wages, training, college partnerships, resident hiring, health premiums, housing, and development choices. The deduction lasts up to 10 years, is capped at 60% annually and overall, and expires June 30, 2045. Combined tax reductions cannot exceed 90% in a fiscal year. Businesses must operate in Nevada for 10 years, maintain at least 5 employees in smaller jurisdictions or 25 in larger ones, and pay new hires an average wage at least equal to the statewide average. They must offer dependent health coverage by the eighth calendar quarter and face repayment with interest for noncompliance, unless the Tax Commission finds substantial compliance.
Businesses get targeted investment tax breaks
Approved high-impact businesses can get personal property, business, and eligible equipment sales-tax deductions lasting 1 to 10 years. New businesses must invest within two years and keep that investment at the location for at least five years. In counties with at least 100,000 people or cities with at least 60,000, minimum investments are $5 million for manufacturing or industrial businesses and $1 million for others. In smaller jurisdictions or qualifying rural areas, those minimums are $1 million and $250,000. Equipment must qualify for federal Section 179 deductions; buildings, structural components, public-utility equipment, medical-treatment equipment, and mining or gaming equipment are excluded.
Recycling businesses gain limited property-tax relief
Beginning July 1, 2033, certified recycling and recycled-material energy or fuel businesses can receive real property tax relief. Eligible activities include processing with at least 50% recycled on-site, qualifying recycled-material energy or fuel facilities, and renewable-energy material recycling. The state must find that the business advances energy conservation, alternatives to fossil energy, or environmental sustainability goals. Relief covers up to 50% of annual real property taxes for 1 to 10 years, excluding property already taxable before certification. This authority ends June 30, 2045.
Sponsors & Cosponsors
Sponsor
Senate Committee on Revenue and Economic Development
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
Actions Timeline
(No further action taken.)
6/3/2025SenateFrom printer. To committee.
5/1/2025SenateTo printer.
4/30/2025SenateWaiver granted effective: March 20, 2025.
4/30/2025SenateRead first time. Referred to Committee on Revenue and Economic Development.
4/30/2025Senate
Bill Text
As Introduced
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