The State of Nevada, through the Governor’s Office of Economic Development (GOED), offers a variety of incentives to help qualifying companies make the decision to do business in the state, including sales tax abatements on capital equipment purchases, sales and use tax deferral on capital equipment purchases, abatements on personal and modified business taxes, real property tax abatements for recycling, assistance with the cost of intellectual property development, and employee training grants. The State offers abatements on aviation parts and data centers, as well.
- Sales and Use Tax Abatement - Sales and use tax abatement on qualified capital equipment purchases, with reductions in the rate to as low as 2%.
- Modified Business Tax Abatement - An abatement of 50 percent of the 1.378% rate on quarterly wages exceeding $50,000.
- Personal Property Tax Abatement - An abatement on personal property not to exceed 50% over a maximum of 10 years.
- Real Property Tax Abatement for Recycling - Up to 50% abatement for up to 10 years on real and personal property for qualified recycling businesses. Further information available here.
Qualifying Criteria for Tax Abatements:
To qualify for Standard Tax Abatements, a company needs to meet two out of three criteria:
- Average Wage (Statewide average wage) – must meet average wage*
- Capital Investment or
- Number of Primary Jobs created
- Additionally, the company has to offer a medical insurance plan and pay at least 65% of the plan’s premium costs.
- Maintain the business in Nevada for 5 years
- Register pursuant to the laws of Nevada
- Generate more than 50% of revenue from the project from outside of the State
Note: For the most current statewide average wage visit: https://nevadaworkforce.com/.
A partial abatement from personal property tax and sales and use tax are available to data center companies that locate or expand their business in Nevada. Abatements apply to collocated businesses of the data center.
Partial abatements from Personal Property and Sales & Use Taxes are available to aviation companies that locate or expand their business in Nevada.
Tax Abatement Application Process:
- Application Intake - A company works directly with the RDA (Regional Development Authority) to submit a Tax Abatement Application to GOED.
- Processing and Analyzing - GOED’s staff processes applications to determine eligibility and qualifications, as well as perform an economic analysis of the qualifying application.
- Board Meeting - Applications are presented to the GOED Board members who determine abatements.
- Abatement Agreement and Tax Abatement Package - When approved, companies will enter into a contract with GOED. After signing the contract, Department of Taxation will provide the company with a Taxation Abatement Package, so that companies can use received abatements.
Applications should be submitted to GOED’s office ONLY through the appropriate Regional Development Authority.
- For GOED Board meeting dates and deadlines to submit application please check the GOED Board Meeting Calendar - 2022 below.
Incentive Guidance Documents: