Nrs: Chapter 701A - Energy-Related Tax Incentives

Link to law: https://www.leg.state.nv.us/NRS/NRS-701A.html
Published: 2015

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[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[Repealed.]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)