[Rev. 2/11/2015 12:28:47
PM--2014R2]
CHAPTER 701A - ENERGY-RELATED TAX
INCENTIVES
GREEN BUILDINGS
NRS 701A.100 Adoption
of Green Building Rating System; requirements and limitations.
NRS 701A.110 Partial
abatement of certain property taxes for buildings or structures that meet
certain standards under Green Building Rating System; requirements and
limitations; regulations.
NRS 701A.115 Partial
abatement of certain property taxes for certain buildings or structures which
are renovated for use by manufacturer and which meet certain standards under
Green Building Rating System; requirements and limitations; regulations.
[Repealed.]
CERTAIN BUSINESSES, FACILITIES, SYSTEMS AND DEVICES
NRS 701A.200 Exemption
from certain property taxes for qualified energy systems; requirements and
limitations; regulations.
NRS 701A.210 Partial
abatement of certain property taxes for businesses and facilities using
recycled material; requirements and limitations.
CERTAIN RENEWABLE ENERGY FACILITIES
General Provisions
NRS 701A.300 Definitions.
[Effective through June 30, 2049.]
NRS 701A.305 “Biomass”
defined. [Effective through June 30, 2049.]
NRS 701A.315 “Director”
defined. [Effective through June 30, 2049.]
NRS 701A.320 “Facility
for the generation of electricity from renewable energy” defined. [Effective
through June 30, 2049.]
NRS 701A.325 “Facility
for the generation of process heat from solar renewable energy” defined.
[Effective through June 30, 2049.]
NRS 701A.330 “Fuel
cell” defined. [Effective through June 30, 2049.]
NRS 701A.335 “Local
sales and use taxes” defined. [Effective through June 30, 2049.]
NRS 701A.340 “Renewable
energy” defined. [Effective through June 30, 2049.]
NRS 701A.345 “Wholesale
facility for the generation of electricity from renewable energy” defined.
[Effective through June 30, 2049.]
Partial Abatement of Certain Taxes
NRS 701A.360 Application
for partial abatement; ineligible facilities; required notices; public hearing
on application. [Effective through June 30, 2049.]
NRS 701A.365 General
requirements for approval of application; specific requirements for certain
geothermal facilities; exceptions; additional requirements. [Effective through
June 30, 2032.]
NRS 701A.365 General
requirements for approval of application; specific requirements for certain
geothermal facilities; exceptions; additional requirements. [Effective July 1,
2032, through June 30, 2049.]
NRS 701A.370 Duration,
amount and other terms of partial abatement; notice of abatement; distribution
of certificate of eligibility by Director. [Effective through June 30, 2015.]
NRS 701A.370 Duration,
amount and other terms of partial abatement; notice of abatement; distribution
of certificate of eligibility by Director. [Effective July 1, 2015, through
June 30, 2049.]
NRS 701A.375 Publication
of fiscal notes; distribution of certificate of eligibility by Department of
Taxation. [Effective through June 30, 2049.]
NRS 701A.380 Termination
of partial abatement for noncompliance; opportunity to cure noncompliance;
required notices; repayment of taxes after termination. [Effective through June
30, 2049.]
NRS 701A.385 Allocation
of certain taxes collected from facilities receiving partial abatement.
[Effective through June 30, 2049.]
NRS 701A.390 Regulations;
Director authorized to charge and collect fee for application for partial
abatement. [Effective through June 30, 2049.]
RENEWABLE ENERGY ACCOUNT
NRS 701A.450 Creation;
administration; interest and income; use of money; regulations. [Effective
through June 30, 2049.]
_________
GREEN BUILDINGS
NRS 701A.100 Adoption of Green Building Rating System; requirements and
limitations.
1. The Director of the Office of Energy
shall adopt a Green Building Rating System for the purposes of determining the
eligibility of a building or other structure for a tax abatement pursuant to NRS 701A.110.
2. The Green Building Rating System must
include standards and ratings equivalent to the standards and ratings provided
pursuant to the Leadership in Energy and Environmental Design Green Building
Rating System or an equivalent rating system, except that the standards adopted
by the Director:
(a) Except as otherwise provided in paragraphs
(b) and (c), must not include:
(1) Any standard that has not been
included in the Leadership in Energy and Environmental Design Green Building
Rating System or the equivalent rating system for at least 2 years; or
(2) Standards for homes;
(b) Must provide reasonable exceptions based on
the size of the area occupied by the building or other structure; and
(c) Must require a building or other structure to
obtain:
(1) At least 5 points in the Optimize
Energy Performance credit, or its equivalent, to meet the equivalent of the
silver level;
(2) At least 7 points in the Optimize
Energy Performance credit, or its equivalent, to meet the equivalent of the
gold level; and
(3) At least 11 points in the Optimize
Energy Performance credit, or its equivalent, to meet the equivalent of the
platinum level.
3. As used in this section, “home” means a
building or other structure for which the principal use is as a residential
dwelling for not more than four families.
(Added to NRS by 2007, 3375; A 2011, 1653;
2013, 3185)
NRS 701A.110 Partial abatement of certain property taxes for buildings or
structures that meet certain standards under Green Building Rating System;
requirements and limitations; regulations.
1. Except as otherwise provided in this
section, the Director, in consultation with the Office of Economic Development,
shall grant a partial abatement from the portion of the taxes imposed pursuant
to chapter 361 of NRS, other than any taxes
imposed for public education, on a building or other structure that is
determined to meet the equivalent of the silver level or higher by an
independent contractor authorized to make that determination in accordance with
the Green Building Rating System adopted by the Director pursuant to NRS 701A.100, if:
(a) No funding is provided by any governmental
entity in this State for the acquisition, design, construction or renovation of
the building or other structure or for the acquisition of any land therefor.
For the purposes of this paragraph:
(1) Private activity bonds must not be
considered funding provided by a governmental entity.
(2) The term “private activity bond” has
the meaning ascribed to it in 26 U.S.C. § 141.
(b) The owner of the property:
(1) Submits an application for the partial
abatement to the Director. If such an application is submitted for a project
that has not been completed on the date of that submission and there is a
significant change in the scope of the project after that date, the application
must be amended to include the change or changes.
(2) Except as otherwise provided in this
subparagraph, provides to the Director, within 48 months after applying for the
partial abatement, proof that the building or other structure meets the
equivalent of the silver level or higher, as determined by an independent
contractor authorized to make that determination in accordance with the Green
Building Rating System adopted by the Director pursuant to NRS 701A.100. The Director may, for good cause shown,
extend the period for providing such proof.
(3) Files a copy of each application and
amended application submitted to the Director pursuant to subparagraph (1) with
the:
(I) Chief of the Budget Division of
the Department of Administration;
(II) Department of Taxation;
(III) County assessor;
(IV) County treasurer;
(V) Office of Economic Development;
(VI) Board of county commissioners;
and
(VII) City manager and city council,
if any.
(c) The abatement is consistent with the State
Plan for Economic Development developed by the Executive Director of the Office
of Economic Development pursuant to subsection 2 of NRS 231.053.
2. The Director shall not approve an
application for a partial abatement of the taxes imposed pursuant to chapter 361 of NRS submitted pursuant to this
section by the owner of the property unless the application is approved or
deemed approved by the board of county commissioners pursuant to this
subsection. The board of county commissioners of a county must provide notice
to the Director that the board intends to consider an application and, if such
notice is given, must approve or deny the application not later than 30 days
after the board receives a copy of the application. The board of county
commissioners:
(a) Shall, in considering an application pursuant
to this subsection, make a recommendation to the Director regarding the
application;
(b) May, in considering an application pursuant
to this subsection, deny an application only if the board of county
commissioners determines, based on relevant information, that:
(1) The projected cost of the services
that the local government is required to provide to the building or other
structure for which the abatement is received will exceed the amount of tax
revenue that the local government is projected to receive as a result of the
abatement; or
(2) The projected financial benefits that
will result to the county from any employment resulting from the use of the
building or other structure and from capital investments by the owner of the
building or other structure in the county will not exceed the projected loss of
tax revenue that will result from the abatement; and
(c) May, without regard to whether the board has
provided notice to the Director of its intent to consider the application, make
a recommendation to the Director regarding the application.
Ê If the board
of county commissioners does not approve or deny the application pursuant to this
subsection within 30 days after the board receives a copy of the application,
the application shall be deemed approved.
3. As soon as practicable after the
Director receives the application and proof required by subsection 1, the
Director, in consultation with the Office of Economic Development, shall
determine whether the building or other structure is eligible for the abatement
and, if so, forward a certificate of eligibility for the abatement to the:
(a) Department of Taxation;
(b) County assessor;
(c) County treasurer; and
(d) Office of Economic Development.
4. The Director may, with the assistance
of the Chief of the Budget Division and the Department of Taxation, publish a
fiscal note that indicates an estimate of the fiscal impact of the partial
abatement on the State and on each affected local government. If the Director
publishes a fiscal note that estimates the fiscal impact of the partial
abatement on local government, the Director shall forward a copy of the fiscal
note to each affected local government. As soon as practicable after receiving
a copy of a certificate of eligibility pursuant to subsection 3, the Department
of Taxation shall forward a copy of the certificate to each affected local
government.
5. The partial abatement for:
(a) A building or other structure must, except as
otherwise provided in paragraph (b), be for a duration of not more than 10
years and in an annual amount that equals, for a building or other structure
that meets the equivalent of:
(1) The silver level, 25 percent of the
portion of the taxes imposed pursuant to chapter
361 of NRS, other than any taxes imposed for public education, that would
otherwise be owed for the building or other structure, excluding the associated
land;
(2) The gold level, 30 percent of the
portion of the taxes imposed pursuant to chapter
361 of NRS, other than any taxes imposed for public education, that would
otherwise be owed for the building or other structure, excluding the associated
land; or
(3) The platinum level, 35 percent of the
portion of the taxes imposed pursuant to chapter
361 of NRS, other than any taxes imposed for public education, that would
otherwise be owed for the building or other structure, excluding the associated
land.
(b) A building or other structure that qualifies
for an abatement under the Leadership in Energy and Environmental Design
“Existing Buildings: Operations and Maintenance” rating system, or its
equivalent, must be for a duration of not more than 5 years and in an annual
amount that equals, except as otherwise provided in subsection 6, for a
building or other structure that meets the equivalent of:
(1) The silver level, 25 percent of the
portion of the taxes imposed pursuant to chapter
361 of NRS, other than any taxes imposed for public education, that would
otherwise be owed for the building or other structure, excluding the associated
land;
(2) The gold level, 30 percent of the
portion of the taxes imposed pursuant to chapter
361 of NRS, other than any taxes imposed for public education, that would
otherwise be owed for the building or other structure, excluding the associated
land; or
(3) The platinum level, 35 percent of the
portion of the taxes imposed pursuant to chapter
361 of NRS, other than any taxes imposed for public education, that would
otherwise be owed for the building or other structure, excluding the associated
land.
6. The Director shall not grant a partial
abatement of more than $100,000 in any year for a building or other structure
that qualifies for an abatement pursuant to paragraph (b) of subsection 5.
7. A partial abatement granted pursuant to
this section:
(a) Does not apply during any period in which the
owner of the building or other structure is receiving another abatement or
exemption pursuant to this chapter or NRS
361.045 to 361.159, inclusive, from
the taxes imposed pursuant to chapter 361 of
NRS.
(b) Terminates upon any determination by the
Director that the building or other structure has ceased to meet the equivalent
of the silver level or higher. The Director shall provide notice and a
reasonable opportunity to cure any noncompliance issues before making a determination
that the building or other structure has ceased to meet that standard. The
Director shall immediately provide notice of each determination of termination
to the:
(1) Department of Taxation, who shall
immediately notify each affected local government of the determination;
(2) County assessor;
(3) County treasurer; and
(4) Office of Economic Development.
8. If a partial abatement terminates
pursuant to paragraph (b) of subsection 7, the owner of the property to which
the partial abatement applied shall repay to the county treasurer the amount of
the exemption that was allowed pursuant to this section before the date of that
termination. The owner shall, in addition to the amount of the exemption
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.
9. The Director, in consultation with the
Office of Economic Development, shall adopt regulations:
(a) Establishing the qualifications and methods
to determine eligibility for and the duration of the abatement;
(b) Prescribing such forms as will ensure that
all information and other documentation necessary to make an appropriate
determination is filed with the Director; and
(c) Prescribing the criteria for determining when
there is a significant change in the scope of a project for the purposes of
subparagraph (1) of paragraph (b) of subsection 1,
Ê and the
Department of Taxation shall adopt such additional regulations as it determines
to be appropriate to carry out the provisions of this section.
10. The Director shall:
(a) Cooperate with the Office of Economic
Development in carrying out the provisions of this section; and
(b) Submit to the Office of Economic Development
an annual report, at such a time and containing such information as the Office
may require, regarding the partial abatements granted pursuant to this section.
11. The Director may charge and collect a
fee from each applicant who submits an application for a partial abatement
pursuant to this section. The amount of the fee must not exceed the actual cost
to the Director for processing the application and evaluating the proof submitted
by the applicant pursuant to subsection 1 and making the determination
concerning eligibility for the partial abatement required by subsection 3.
12. As used in this section:
(a) “Building or other structure” does not
include any building or other structure for which the principal use is as a
residential dwelling for not more than four families.
(b) “Director” means the Director of the Office
of Energy appointed pursuant to NRS 701.150.
(c) “Taxes imposed for public education” means:
(1) Any ad valorem tax authorized or
required by chapter 387 of NRS;
(2) Any ad valorem tax authorized or
required by chapter 350 of NRS for the
obligations of a school district, including, without limitation, any ad valorem
tax necessary to carry out the provisions of subsection 5 of NRS 350.020; and
(3) Any other ad valorem tax for which the
proceeds thereof are dedicated to the public education of pupils in kindergarten
through grade 12.
(Added to NRS by 2007, 3375; A 2009, 988; 2011, 1654,
2067, 3474; 2013, 3186,
3197)
NRS 701A.115 Partial abatement of certain property taxes for certain
buildings or structures which are renovated for use by manufacturer and which
meet certain standards under Green Building Rating System; requirements and
limitations; regulations. Repealed.
(See chapter 502, Statutes of Nevada 2013, at page 3190.)
CERTAIN BUSINESSES, FACILITIES, SYSTEMS AND DEVICES
NRS 701A.200 Exemption from certain property taxes for qualified energy
systems; requirements and limitations; regulations.
1. For purposes of the assessment of
property pursuant to chapter 361 of NRS:
(a) Except as otherwise provided in paragraph
(b), a qualified system is exempt from taxation.
(b) A qualified system is not exempt from
taxation:
(1) During any period in which the
qualified system is subject to another abatement or exemption pursuant to this
chapter or NRS 361.045 to 361.159, inclusive, from the taxes imposed
pursuant to chapter 361 of NRS; or
(2) If the system is constructed after
July 1, 2009, and is part of a facility which is eligible for a partial
abatement of taxes pursuant to NRS 701A.360.
2. The Nevada Tax Commission shall adopt
such regulations as it determines to be necessary for the administration of
this section.
3. As used in this section, “qualified
system” means any system, method, construction, installation, machinery,
equipment, device or appliance which is designed, constructed or installed in
or adjacent to one or more buildings or an irrigation system in an agricultural
operation to heat or cool the building or buildings or water used in the
building or buildings, or to provide electricity used in the building or
buildings or irrigation system regardless of whether the owner of the system,
building or buildings or irrigation system participates in net metering
pursuant to NRS 704.766 to 704.775, inclusive, by using:
(a) Energy from the wind or from solar devices;
(b) Geothermal resources;
(c) Energy derived from conversion of solid
wastes; or
(d) Waterpower,
Ê which
conforms to standards established by regulation of the Nevada Tax Commission.
(Added to NRS by 2007, 3379; A 2011, 2070)
NRS 701A.210 Partial abatement of certain property taxes for businesses and
facilities using recycled material; requirements and limitations.
1. Except as otherwise provided in this
section, if a:
(a) Business that engages in the primary trade of
preparing, fabricating, manufacturing or otherwise processing raw material or
an intermediate product through a process in which at least 50 percent of the
material or product is recycled on-site; or
(b) Business that includes as a primary component
a facility for the generation of electricity from recycled material,
Ê is found by
the Office of Economic Development to have as a primary purpose the
conservation of energy or the substitution of other sources of energy for
fossil sources of energy and obtains certification from the Office of Economic
Development pursuant to NRS 360.750,
the Office may, if the business additionally satisfies the requirements set
forth in subsection 2 of NRS 361.0687,
grant to the business a partial abatement from the taxes imposed on real
property pursuant to chapter 361 of NRS.
2. If a partial abatement from the taxes
imposed on real property pursuant to chapter 361
of NRS is approved by the Office of Economic Development pursuant to NRS 360.750 for a business described in
subsection 1:
(a) The partial abatement must:
(1) Be for a duration of at least 1 year
but not more than 10 years;
(2) Not exceed 50 percent of the taxes on
real property payable by the business each year; and
(3) Be administered and carried out in the
manner set forth in NRS 360.750.
(b) The Executive Director of the Office of
Economic Development shall notify the county assessor of the county in which
the business is located of the approval of the partial abatement, including,
without limitation, the duration and percentage of the partial abatement that
the Office granted. The Executive Director shall, on or before April 15 of each
year, advise the county assessor of each county in which a business qualifies
for a partial abatement during the current fiscal year as to whether the
business is still eligible for the partial abatement in the next succeeding
fiscal year.
3. The partial abatement provided in this
section applies only to the business for which certification was granted
pursuant to NRS 360.750 and the
property used in connection with that business. The exemption does not apply to
property in this State that is not related to the business for which the
certification was granted pursuant to NRS
360.750 or to property in existence and subject to taxation before the
certification was granted.
4. As used in this section, “facility for
the generation of electricity from recycled material” means a facility for the
generation of electricity that uses recycled material as its primary fuel,
including material from:
(a) Industrial or domestic waste, other than
hazardous waste, even though it includes a product made from oil, natural gas
or coal, such as plastics, asphalt shingles or tires;
(b) Agricultural crops, whether terrestrial or
aquatic, and agricultural waste, such as manure and residue from crops; and
(c) Municipal waste, such as sewage and sludge.
Ê The term
includes all the equipment in the facility used to process and convert into
electricity the energy derived from a recycled material fuel.
(Added to NRS by 2007, 3378; A 2011, 3477)
CERTAIN RENEWABLE ENERGY FACILITIES
General Provisions
NRS 701A.300 Definitions. [Effective through June 30, 2049.] As used in NRS
701A.300 to 701A.390, inclusive, unless the
context otherwise requires, the words and terms defined in NRS 701A.305 to 701A.345,
inclusive, have the meanings ascribed to them in those sections.
(Added to NRS by 2009, 2004)
NRS 701A.305 “Biomass” defined. [Effective through June 30, 2049.] “Biomass” means any organic matter that is
available on a renewable basis, including, without limitation:
1. Agricultural crops and agricultural
wastes and residues;
2. Wood and wood wastes and residues;
3. Animal wastes;
4. Municipal wastes; and
5. Aquatic plants.
(Added to NRS by 2009, 2004)
NRS 701A.315 “Director” defined. [Effective through June 30, 2049.] “Director” means the Director of the Office of
Energy appointed pursuant to NRS 701.150.
(Added to NRS by 2009, 2004)
NRS 701A.320 “Facility for the generation of electricity from renewable
energy” defined. [Effective through June 30, 2049.]
1. “Facility for the generation of
electricity from renewable energy” means a facility for the generation of
electricity that:
(a) Uses renewable energy as its primary source
of energy; and
(b) Has a generating capacity of at least 10
megawatts.
2. The term does not include a facility
that is located on residential property.
(Added to NRS by 2009, 2004)
NRS 701A.325 “Facility for the generation of process heat from solar
renewable energy” defined. [Effective through June 30, 2049.] “Facility for the generation of process heat
from solar renewable energy” means a facility that:
1. Uses solar renewable energy to generate
process heat; and
2. Has an output capacity of at least 25,840,000
British thermal units per hour.
(Added to NRS by 2009, 2004)
NRS 701A.330 “Fuel cell” defined. [Effective through June 30, 2049.] “Fuel cell” means a device or contrivance
which, through the chemical process of combining ions of hydrogen and oxygen,
produces electricity and water.
(Added to NRS by 2009, 2004)
NRS 701A.335 “Local sales and use taxes” defined. [Effective through June 30,
2049.] “Local sales and use taxes”
means any 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 any political subdivision of this State, except the taxes imposed
by the Sales and Use Tax Act.
(Added to NRS by 2009, 2004)
NRS 701A.340 “Renewable energy” defined. [Effective through June 30, 2049.]
1. “Renewable energy” means:
(a) Biomass;
(b) Fuel cells;
(c) Geothermal energy;
(d) Solar energy;
(e) Waterpower; or
(f) Wind.
2. The term does not include coal, natural
gas, oil, propane or any other fossil fuel or nuclear energy.
(Added to NRS by 2009, 2004;
A 2013,
3203, 3500)
NRS 701A.345 “Wholesale facility for the generation of electricity from
renewable energy” defined. [Effective through June 30, 2049.]
1. “Wholesale facility for the generation
of electricity from renewable energy” means a facility for the generation of
electricity from renewable energy that, except as otherwise provided in
paragraph (b) of subsection 2, does not sell the electricity to the end user of
the electricity.
2. The term includes:
(a) All the machinery and equipment that is used in
the facility to collect and store the renewable energy and to convert the
renewable energy into electricity.
(b) A facility that is owned, leased or otherwise
controlled by an entity that has authority to sell electricity and provide
transmission services or distribution services, or both.
(Added to NRS by 2009, 2004)
Partial Abatement of Certain Taxes
NRS 701A.360 Application for partial abatement; ineligible facilities;
required notices; public hearing on application. [Effective through June 30,
2049.]
1. A person who intends to locate a
facility for the generation of process heat from solar renewable energy or a wholesale
facility for the generation of electricity from renewable energy in this State
may apply to the Director for a partial abatement of the local sales and use
taxes, the taxes imposed pursuant to chapter 361
of NRS, or both local sales and use taxes and taxes imposed pursuant to chapter 361 of NRS. An applicant may submit a
copy of the application to the board of county commissioners at any time after
the applicant has submitted the application to the Director.
2. A facility that is owned, operated,
leased or otherwise controlled by a governmental entity is not eligible for an
abatement pursuant to NRS 701A.300 to 701A.390, inclusive.
3. As soon as practicable after the
Director receives an application for a partial abatement, the Director shall forward
a copy of the application to:
(a) The Chief of the Budget Division of the
Department of Administration;
(b) The Department of Taxation;
(c) The board of county commissioners;
(d) The county assessor;
(e) The county treasurer; and
(f) The Office of Economic Development.
4. With the copy of the application
forwarded to the county treasurer, the Director shall include a notice that the
local jurisdiction may request a presentation regarding the facility. A request
for a presentation must be made within 30 days after receipt of the
application.
5. The Director shall hold a public
hearing on the application. The hearing must not be held earlier than 30 days
after all persons listed in subsection 3 have received a copy of the
application.
(Added to NRS by 2009, 2004;
A 2011,
2070, 3478;
2013, 3203,
3500)
NRS 701A.365 General requirements for approval of application; specific
requirements for certain geothermal facilities; exceptions; additional
requirements. [Effective through June 30, 2032.]
1. The Director, in consultation with the
Office of Economic Development, shall approve an application for a partial
abatement pursuant to NRS 701A.300 to 701A.390, inclusive, if the Director, in consultation
with the Office of Economic Development, makes the following determinations:
(a) The applicant has executed an agreement with
the Director which must:
(1) State that the facility will, after
the date on which the abatement becomes effective, continue in operation in
this State for a period specified by the Director, which must be at least 10
years, and will continue to meet the eligibility requirements for the
abatement; and
(2) Bind the successors in interest in the
facility for the specified period.
(b) The facility 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
facility operates.
(c) No funding is or will be provided by any
governmental entity in this State for the acquisition, design or construction
of the facility or for the acquisition of any land therefor, except any private
activity bonds as defined in 26 U.S.C. § 141.
(d) If the facility will be located in a county
whose population is 100,000 or more or a city whose population is 60,000 or more,
the facility meets the following requirements:
(1) There will be 75 or more full-time
employees working on the construction of the facility during the second quarter
of construction, including, unless waived by the Director for good cause, at
least 50 percent who are residents of Nevada;
(2) Establishing the facility will require
the facility to make a capital investment of at least $10,000,000 in this State
in capital assets that will be retained at the location of the facility until
at least the date which is 5 years after the date on which the abatement
becomes effective;
(3) The average hourly wage that will be
paid by the facility to its employees in this State is at least 110 percent of
the average statewide hourly wage, excluding management and administrative
employees, as established by the Employment Security Division of the Department
of Employment, Training and Rehabilitation on July 1 of each fiscal year; and
(4) Except as otherwise provided in
subsection 6, the average hourly wage of the employees working on the
construction of the facility will be at least 175 percent of the average
statewide hourly wage, excluding management and administrative employees, as
established by the Employment Security Division of the Department of Employment,
Training and Rehabilitation on July 1 of each fiscal year and:
(I) The employees working on the
construction of the facility must be provided a health insurance plan that is
provided by a third-party administrator and includes health insurance coverage
for dependents of the employees; and
(II) The cost of the benefits
provided to the employees working on the construction of the facility will meet
the minimum requirements for benefits established by the Director by regulation
pursuant to NRS 701A.390.
(e) If the facility will be located in a county
whose population is less than 100,000 or a city whose population is less than
60,000, the facility meets the following requirements:
(1) There will be 50 or more full-time
employees working on the construction of the facility during the second quarter
of construction, including, unless waived by the Director for good cause, at
least 50 percent who are residents of Nevada;
(2) Establishing the facility will require
the facility to make a capital investment of at least $3,000,000 in this State
in capital assets that will be retained at the location of the facility until
at least the date which is 5 years after the date on which the abatement
becomes effective;
(3) The average hourly wage that will be
paid by the facility to its employees in this State is at least 110 percent of
the average statewide hourly wage, excluding management and administrative
employees, as established by the Employment Security Division of the Department
of Employment, Training and Rehabilitation on July 1 of each fiscal year; and
(4) Except as otherwise provided in
subsection 6, the average hourly wage of the employees working on the
construction of the facility will be at least 175 percent of the average
statewide hourly wage, excluding management and administrative employees, as established
by the Employment Security Division of the Department of Employment, Training
and Rehabilitation on July 1 of each fiscal year and:
(I) The employees working on the
construction of the facility must be provided a health insurance plan that is provided
by a third-party administrator and includes health insurance coverage for
dependents of the employees; and
(II) The cost of the benefits
provided to the employees working on the construction of the facility will meet
the minimum requirements for benefits established by the Director by regulation
pursuant to NRS 701A.390.
(f) The financial benefits that will result to
this State from the employment by the facility of the residents of this State
and from capital investments by the facility in this State will exceed the loss
of tax revenue that will result from the abatement.
(g) The facility is consistent with the State
Plan for Economic Development developed by the Executive Director of the Office
of Economic Development pursuant to subsection 2 of NRS 231.053.
2. The Director shall not approve an
application for a partial abatement of the taxes imposed pursuant to chapter 361 of NRS submitted pursuant to NRS 701A.360 by a facility for the generation of
process heat from solar renewable energy or a wholesale facility for the
generation of electricity from renewable energy unless the application is
approved or deemed approved pursuant to this subsection. The board of county
commissioners of a county must provide notice to the Director that the board
intends to consider an application and, if such notice is given, must approve
or deny the application not later than 30 days after the board receives a copy
of the application. The board of county commissioners:
(a) Shall, in considering an application pursuant
to this subsection, make a recommendation to the Director regarding the
application;
(b) May, in considering an application pursuant
to this subsection, deny an application only if the board of county
commissioners determines, based on relevant information, that:
(1) The projected cost of the services
that the local government is required to provide to the facility will exceed
the amount of tax revenue that the local government is projected to receive as
a result of the abatement; or
(2) The projected financial benefits that
will result to the county from the employment by the facility of the residents
of this State and from capital investments by the facility in the county will
not exceed the projected loss of tax revenue that will result from the
abatement;
(c) Must not condition the approval of the
application on a requirement that the facility agree to purchase, lease or
otherwise acquire in its own name or on behalf of the county any
infrastructure, equipment, facilities or other property in the county that is
not directly related to or otherwise necessary for the construction and
operation of the facility; and
(d) May, without regard to whether the board has
provided notice to the Director of its intent to consider the application, make
a recommendation to the Director regarding the application.
Ê If the board
of county commissioners does not approve or deny the application within 30 days
after the board receives from the Director a copy of the application, the
application shall be deemed approved.
3. Notwithstanding the provisions of
subsection 1, the Director, in consultation with the Office of Economic
Development, may, if the Director, in consultation with the Office, determines
that such action is necessary:
(a) Approve an application for a partial
abatement for a facility that does not meet the requirements set forth in
paragraph (d) or (e) of subsection 1; or
(b) Add additional requirements that a facility
must meet to qualify for a partial abatement.
4. The Director shall cooperate with the
Office of Economic Development in carrying out the provisions of this section.
5. The Director shall submit to the Office
of Economic Development an annual report, at such a time and containing such
information as the Office may require, regarding the partial abatements granted
pursuant to this section.
6. The provisions of subparagraph (4) of
paragraph (d) of subsection 1 and subparagraph (4) of paragraph (e) of
subsection 1 concerning the average hourly wage of the employees working on the
construction of a facility do not apply to the wages of an apprentice as that
term is defined in NRS 610.010.
7. As used in this section, “wage” or
“wages” has the meaning ascribed to it in NRS
338.010.
(Added to NRS by 2009, 2004;
A 2011,
2071, 3479;
2013, 3203,
3501; 2013, 27th
Special Session, 27)
NRS 701A.365 General requirements for
approval of application; specific requirements for certain geothermal
facilities; exceptions; additional requirements. [Effective July 1, 2032,
through June 30, 2049.]
1. The Director, in consultation with the
Office of Economic Development, shall approve an application for a partial
abatement pursuant to NRS 701A.300 to 701A.390, inclusive, if the Director, in consultation
with the Office of Economic Development, makes the following determinations:
(a) The applicant has executed an agreement with
the Director which must:
(1) State that the facility will, after
the date on which a certificate of eligibility for the abatement is issued
pursuant to NRS 701A.370, continue in operation in
this State for a period specified by the Director, which must be at least 10
years, and will continue to meet the eligibility requirements for the
abatement; and
(2) Bind the successors in interest in the
facility for the specified period.
(b) The facility 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
facility operates.
(c) No funding is or will be provided by any
governmental entity in this State for the acquisition, design or construction
of the facility or for the acquisition of any land therefor, except any private
activity bonds as defined in 26 U.S.C. § 141.
(d) If the facility will be located in a county
whose population is 100,000 or more or a city whose population is 60,000 or
more, the facility meets the following requirements:
(1) There will be 75 or more full-time
employees working on the construction of the facility during the second quarter
of construction, including, unless waived by the Director for good cause, at
least 50 percent who are residents of Nevada;
(2) Establishing the facility will require
the facility to make a capital investment of at least $10,000,000 in this
State;
(3) The average hourly wage that will be
paid by the facility to its employees in this State is at least 110 percent of
the average statewide hourly wage, excluding management and administrative
employees, as established by the Employment Security Division of the Department
of Employment, Training and Rehabilitation on July 1 of each fiscal year; and
(4) Except as otherwise provided in
subsection 6, the average hourly wage of the employees working on the
construction of the facility will be at least 175 percent of the average
statewide hourly wage, excluding management and administrative employees, as
established by the Employment Security Division of the Department of
Employment, Training and Rehabilitation on July 1 of each fiscal year and:
(I) The employees working on the
construction of the facility must be provided a health insurance plan that is
provided by a third-party administrator and includes health insurance coverage
for dependents of the employees; and
(II) The cost of the benefits
provided to the employees working on the construction of the facility will meet
the minimum requirements for benefits established by the Director by regulation
pursuant to NRS 701A.390.
(e) If the facility will be located in a county
whose population is less than 100,000 or a city whose population is less than
60,000, the facility meets the following requirements:
(1) There will be 50 or more full-time
employees working on the construction of the facility during the second quarter
of construction, including, unless waived by the Director for good cause, at
least 50 percent who are residents of Nevada;
(2) Establishing the facility will require
the facility to make a capital investment of at least $3,000,000 in this State;
(3) The average hourly wage that will be
paid by the facility to its employees in this State is at least 110 percent of
the average statewide hourly wage, excluding management and administrative
employees, as established by the Employment Security Division of the Department
of Employment, Training and Rehabilitation on July 1 of each fiscal year; and
(4) Except as otherwise provided in
subsection 6, the average hourly wage of the employees working on the
construction of the facility will be at least 175 percent of the average
statewide hourly wage, excluding management and administrative employees, as
established by the Employment Security Division of the Department of
Employment, Training and Rehabilitation on July 1 of each fiscal year and:
(I) The employees working on the
construction of the facility must be provided a health insurance plan that is
provided by a third-party administrator and includes health insurance coverage
for dependents of the employees; and
(II) The cost of the benefits
provided to the employees working on the construction of the facility will meet
the minimum requirements for benefits established by the Director by regulation
pursuant to NRS 701A.390.
(f) The financial benefits that will result to
this State from the employment by the facility of the residents of this State
and from capital investments by the facility in this State will exceed the loss
of tax revenue that will result from the abatement.
(g) The facility is consistent with the State
Plan for Economic Development developed by the Executive Director of the Office
of Economic Development pursuant to subsection 2 of NRS 231.053.
2. The Director shall not approve an
application for a partial abatement of the taxes imposed pursuant to chapter 361 of NRS submitted pursuant to NRS 701A.360 by a facility for the generation of
process heat from solar renewable energy or a wholesale facility for the
generation of electricity from renewable energy unless the application is
approved or deemed approved pursuant to this subsection. The board of county
commissioners of a county must provide notice to the Director that the board
intends to consider an application and, if such notice is given, must approve
or deny the application not later than 30 days after the board receives a copy
of the application. The board of county commissioners:
(a) Shall, in considering an application pursuant
to this subsection, make a recommendation to the Director regarding the
application;
(b) May, in considering an application pursuant
to this subsection, deny an application only if the board of county commissioners
determines, based on relevant information, that:
(1) The projected cost of the services
that the local government is required to provide to the facility will exceed
the amount of tax revenue that the local government is projected to receive as
a result of the abatement; or
(2) The projected financial benefits that
will result to the county from the employment by the facility of the residents
of this State and from capital investments by the facility in the county will
not exceed the projected loss of tax revenue that will result from the
abatement;
(c) Must not condition the approval of the
application on a requirement that the facility agree to purchase, lease or
otherwise acquire in its own name or on behalf of the county any
infrastructure, equipment, facilities or other property in the county that is
not directly related to or otherwise necessary for the construction and
operation of the facility; and
(d) May, without regard to whether the board has
provided notice to the Director of its intent to consider the application, make
a recommendation to the Director regarding the application.
Ê If the board
of county commissioners does not approve or deny the application within 30 days
after the board receives from the Director a copy of the application, the
application shall be deemed approved.
3. Notwithstanding the provisions of
subsection 1, the Director, in consultation with the Office of Economic
Development, may, if the Director, in consultation with the Office, determines
that such action is necessary:
(a) Approve an application for a partial
abatement for a facility that does not meet the requirements set forth in
paragraph (d) or (e) of subsection 1; or
(b) Add additional requirements that a facility
must meet to qualify for a partial abatement.
4. The Director shall cooperate with the
Office of Economic Development in carrying out the provisions of this section.
5. The Director shall submit to the Office
of Economic Development an annual report, at such a time and containing such
information as the Office may require, regarding the partial abatements granted
pursuant to this section.
6. The provisions of subparagraph (4) of
paragraph (d) of subsection 1 and subparagraph (4) of paragraph (e) of
subsection 1 concerning the average hourly wage of the employees working on the
construction of a facility do not apply to the wages of an apprentice as that
term is defined in NRS 610.010.
7. As used in this section, “wage” or
“wages” has the meaning ascribed to it in NRS
338.010.
(Added to NRS by 2009, 2004;
A 2011,
2071, 3479;
2013, 3203,
3501; 2013, 27th
Special Session, 27, effective July 1, 2032)
NRS 701A.370 Duration, amount and other terms of partial abatement; notice of
abatement; distribution of certificate of eligibility by Director. [Effective
through June 30, 2015.]
1. If the Director approves an application
for a partial abatement pursuant to NRS 701A.300
to 701A.390, inclusive, of:
(a) Property taxes imposed pursuant to chapter 361 of NRS, the partial abatement must:
(1) Be for a duration of the 20 fiscal
years immediately following the date of approval of the application;
(2) Be equal to 55 percent of the taxes on
real and personal property payable by the facility each year; and
(3) Not apply during any period in which
the facility is receiving another abatement or exemption from property taxes
imposed pursuant to chapter 361 of NRS, other
than any partial abatement provided pursuant to NRS 361.4722.
(b) Local sales and use taxes:
(1) The partial abatement must:
(I) Be for the 3 years beginning on
the date of approval of the application;
(II) Be equal to that portion of the
combined rate of all the local sales and use taxes payable by the facility each
year which exceeds 0.6 percent; and
(III) Not apply during any period in
which the facility is receiving another abatement or exemption from local sales
and use taxes.
(2) The Department of Taxation shall issue
to the facility a document certifying the abatement which can be presented to
retailers at the time of sale. The document must clearly state that the
purchaser is only required to pay sales and use taxes imposed in this State at
the rate of 2.6 percent.
2. Upon approving an application for a
partial abatement pursuant to NRS 701A.300 to 701A.390, inclusive, the Director shall immediately
forward a certificate of eligibility for the abatement to:
(a) The Department of Taxation;
(b) The board of county commissioners;
(c) The county assessor;
(d) The county treasurer; and
(e) The Office of Economic Development.
(Added to NRS by 2009, 2004;
A 2009,
2010; 2011,
2073, 2896,
3481; 2013, 3427)
NRS 701A.370 Duration, amount and
other terms of partial abatement; notice of abatement; distribution of
certificate of eligibility by Director. [Effective July 1, 2015, through June
30, 2049.]
1. If the Director approves an application
for a partial abatement pursuant to NRS 701A.300
to 701A.390, inclusive, of:
(a) Property taxes imposed pursuant to chapter 361 of NRS, the partial abatement must:
(1) Be for a duration of the 20 fiscal
years immediately following the date of approval of the application;
(2) Be equal to 55 percent of the taxes on
real and personal property payable by the facility each year; and
(3) Not apply during any period in which
the facility is receiving another abatement or exemption from property taxes
imposed pursuant to chapter 361 of NRS, other
than any partial abatement provided pursuant to NRS 361.4722.
(b) Local sales and use taxes:
(1) The partial abatement must:
(I) Be for the 3 years beginning on
the date of approval of the application;
(II) Be equal to that portion of the
combined rate of all the local sales and use taxes payable by the facility each
year which exceeds 0.25 percent; and
(III) Not apply during any period in
which the facility is receiving another abatement or exemption from local sales
and use taxes.
(2) The Department of Taxation shall issue
to the facility a document certifying the abatement which can be presented to
retailers at the time of sale. The document must clearly state that the
purchaser is only required to pay sales and use taxes imposed in this State at
the rate of 2.25 percent.
2. Upon approving an application for a
partial abatement pursuant to NRS 701A.300 to 701A.390, inclusive, the Director shall immediately
forward a certificate of eligibility for the abatement to:
(a) The Department of Taxation;
(b) The board of county commissioners;
(c) The county assessor;
(d) The county treasurer; and
(e) The Office of Economic Development.
(Added to NRS by 2009, 2004;
A 2009,
2010; 2011,
2073, 2896,
3481; 2013, 3427,
effective July 1, 2015)
NRS 701A.375 Publication of fiscal notes; distribution of certificate of
eligibility by Department of Taxation. [Effective through June 30, 2049.]
1. The Director may, with the assistance
of the Chief of the Budget Division of the Department of Administration and the
Department of Taxation, publish a fiscal note that indicates an estimate of the
fiscal impact of the partial abatement on the State and on each affected local
government. If the Director publishes a fiscal note that estimates the fiscal
impact of the partial abatement on local government, the Director shall forward
a copy of the fiscal note to each affected local government and to the Office
of Economic Development.
2. As soon as practicable after receiving
a copy of a certificate of eligibility pursuant to NRS
701A.370, the Department of Taxation shall forward a copy of the
certificate to each affected local government.
(Added to NRS by 2009, 2004;
A 2011,
2074, 3482)
NRS 701A.380 Termination of partial abatement for noncompliance; opportunity
to cure noncompliance; required notices; repayment of taxes after termination.
[Effective through June 30, 2049.]
1. A partial abatement approved by the
Director pursuant to NRS 701A.300 to 701A.390, inclusive, terminates upon any
determination by the Director that the facility has ceased to meet any
eligibility requirements for the abatement.
2. The Director shall provide notice and a
reasonable opportunity to cure any noncompliance issues before making a
determination that the facility has ceased to meet those requirements.
3. The Director shall immediately provide
notice of each determination of termination to:
(a) The Department of Taxation, which shall
immediately notify each affected local government of the determination;
(b) The board of county commissioners;
(c) The county assessor;
(d) The county treasurer; and
(e) The Office of Economic Development.
4. A facility whose partial abatement is
terminated pursuant to this section shall repay to:
(a) The county treasurer the amount of the
exemption from property taxes imposed pursuant to chapter
361 of NRS; and
(b) The Department of Taxation the amount of the
exemption from local sales and use taxes,
Ê that was
allowed pursuant to this section before the date of that termination. Except as
otherwise provided in NRS 360.232 and 360.320, the facility shall, in addition
to the amount of the exemption 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.
(Added to NRS by 2009, 2004;
A 2011, 102,
2074, 3482)
NRS 701A.385 Allocation of certain taxes collected from facilities receiving
partial abatement. [Effective through June 30, 2049.] Notwithstanding
any statutory provision to the contrary, if the Director approves an
application for a partial abatement pursuant to NRS
701A.300 to 701A.390, inclusive, of local
sales and use taxes, the State Controller shall allocate, transfer and remit an
amount equal to all the sales and use taxes imposed in this State and collected
from the facility for the period of the abatement in the same manner as if that
amount consisted solely of the proceeds of taxes imposed by NRS 374.110 and 374.190.
(Added to NRS by 2009, 2004;
A 2009,
2010; 2011,
2074; 2013,
2767, 3206)
NRS 701A.390 Regulations; Director authorized to charge and collect fee for
application for partial abatement. [Effective through June 30, 2049.] The Director:
1. Shall adopt regulations:
(a) Prescribing the minimum level of benefits
that a facility must provide to its employees if the facility is going to use
benefits paid to employees as a basis to qualify for a partial abatement
pursuant to NRS 701A.300 to 701A.390, inclusive;
(b) Prescribing such requirements for an
application for a partial abatement pursuant to NRS
701A.300 to 701A.390, inclusive, as will
ensure that all information and other documentation necessary for the Director,
in consultation with the Office of Economic Development, to make an appropriate
determination is filed with the Director;
(c) Requiring each recipient of a partial
abatement pursuant to NRS 701A.300 to 701A.390, inclusive, to file annually with the
Director such information and documentation as may be necessary for the
Director to determine whether the recipient is in compliance with any
eligibility requirements for the abatement; and
(d) Regarding the capital investment that a
facility must make to meet the requirement set forth in paragraph (d) or (e) of
subsection 1 of NRS 701A.365; and
2. May adopt such other regulations as the
Director determines to be necessary to carry out the provisions of NRS 701A.300 to 701A.390,
inclusive; and
3. May charge and collect a fee from each
applicant who submits an application for a partial abatement pursuant to NRS 701A.300 to 701A.390,
inclusive. The amount of the fee must not exceed the actual cost to the
Director for processing and approving the application.
(Added to NRS by 2009, 2004;
A 2011,
2075, 3483;
2013, 3206)
RENEWABLE ENERGY ACCOUNT
NRS 701A.450 Creation; administration; interest and income; use of money;
regulations. [Effective through June 30, 2049.]
1. The Renewable Energy Account is hereby
created in the State General Fund.
2. The Director of the Office of Energy
appointed pursuant to NRS 701.150 shall
administer the Account.
3. The interest and income earned on the
money in the Account must be credited to the Account.
4. Not less than 75 percent of the money
in the Account must be used to offset the cost of electricity to or the use of
electricity by retail customers of a public utility that is subject to the
portfolio standard established by the Public Utilities Commission of Nevada pursuant
to NRS 704.7821.
5. Any money remaining in the Account at
the end of a fiscal year does not revert to the State General Fund, and the
balance in the Account must be carried forward to the next fiscal year.
6. The Director of the Office of Energy
may establish other uses of the money in the Account by regulation.
(Added to NRS by 2009, 2009;
A 2011,
2075; 2013,
2768, 3207)
