AB 66 — Revises provisions relating to the abatement of certain taxes. (BDR 32-266)

(I) Except as otherwise provided in sub-subparagraph (II), a county whose population is 100,000 or more or a city whose population is 60,000 or more, the business will, by the eighth calendar quarter following the calendar quarter in which the abatement becomes effective, increase the number of employees on its payroll in that county or city by 10 percent more than it employed in the fiscal year immediately preceding the fiscal year in which the abatement becomes effective or by twenty-five employees, whichever is greater, who will be employed at the location of the business in that county or city until at least the date which is 5 years after the date on which the abatement becomes effective;(II) A county whose population is less than 100,000, an area of a county whose population is 100,000 or more that is located within the geographic boundaries of an area that is designated as rural by the United States Department of Agriculture and at least 20 miles outside of the geographic boundaries of an area designated as urban by the United States Department of Agriculture, or a city whose population is less than 60,000, the business will, by the eighth calendar quarter following the calendar quarter in which the abatement becomes effective, increase the number of employees on - *AB66_R1*81st Session (2021) – 6 – employed in the fiscal year immediately preceding the fiscal year in which the abatement becomes effective or by twenty-fivesix employees, whichever is greater, who will be employed at the location of the business in that county or city until at least the date which is 5 years after the date on which the abatement becomes effective;effective.

or (II) A county whose population is less than 100,000, an area of a county whose population is 100,000 or more that is located within the geographic boundaries of an area that is designated as rural by the United States Department of Agriculture and at least 20 miles outside of the geographic boundaries of an area designated as urban by the United States Department of Agriculture, or a city whose population is less than 60,000, the business will, by the eighth calendar quarter following the calendar quarter in which the abatement becomes effective, increase the number of employees on its payroll in that county or city by 10 percent more than it employed in the fiscal year immediately preceding the fiscal year in which the abatement becomes effective or by six employees, whichever is greater, who will be employed at the location of the business in that county or city until at least the date which is 5 years after the date on which the abatement becomes effective.

The determination of the value of the tangible property possessed by the business in the immediately preceding fiscal year must be madema(I) byCounty the:assessor of the county in which the business will expand, if the business is locally assessed;

(I) County assessor of the county in which the business will expand, if the business is locally assessed;

(a) Shall not consider an application for a partial abatement pursuant to this section unless the Office has requested a letter of - *AB66_R1* – 7 – acknowledgment of the request for the abatement from any affected county, school district, city or town.

(b) Shall consider the level of health care benefits provided by the business to its employees, the projected economic impact of the business and the projected tax revenue of the business after of the deducting projected revenue from the abated taxes.

or (3)- Add81st additionalSession requirements(2021) that– a7 business– must meet to qualify for a partial abatement pursuant to this section.section.t meet to 4.

4.

(b) The applicant intends to locate or expand in a county in which the rate of unemployment is less than 7 percent and the average hourly wage that will be paid by the applicant to its new employees in this State is less than 85 percent of the average statewide hourly wage, as established by the Employment Security DivisionRehabilitation ofon theJuly Department1 of Employment,each Trainingfiscal year.ining and Rehabilitation(c) onThe Julyapplicant 1intends ofto eachlocate fiscalin year.a county but has already received a partial abatement pursuant to this section for locating that business in that county.

(c) The applicant intends to locate in a county but has already received a partial abatement pursuant to this section for locating that business in that county.

- *AB66_R1* – 8 – (a) If the new or expanded business is located in a county in which the rate of unemployment is 7 percent or more and the average hourly wage that will be paid by the business to its new employees in this State is less than 85 percent of the average statewide hourly wage, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year, the Office shall not:

- 81st Session (2021) – 8 – (2) Approve an abatement of the taxes imposed pursuant to chapter 363B of NRS which exceeds 25 percent of the amount of tax otherwise due pursuant to NRS 363B.110.

(b) If the new or expanded business is located in a county in which the rate of unemployment is less than 7 percent and the average hourly wage that will be paid by the business to its new employees in this State is less than 100 percent of the average statewide hourly wage, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year, the Office shall not:

An applicant for a partial abatement pursuant to this section or an existing business whose partial abatement is in effect shall, upon the request of the Executive Director of the Office of Economic Development, furnish the Executive Director with copies of all records necessary to verify that the applicant meets thethes requirements of subsection 2.

If an applicant for a partial abatement pursuant to this section fails to enter into the agreement described in paragraph (b) of subsection 2 within 1 year after the date on which the application was received by the Office, the applicant shall not be - *AB66_R1* – 9 – approved for a partial abatement pursuant to this section unless the applicant submits a new application.

or (b) Operation before the time specified in the agreement described in paragraph (b) of subsection 2,  the business shall repay to the Department or, if the partial abatement was from the property tax imposed pursuant to chapter 361- of81st NRS,Session to(2021) the– county9 treasurer,– the amount of the partial abatement that was allowed pursuant to this section before the failure of the business to comply unless the Nevada Tax Commission determines that the business has substantially complied with the requirements of this section.

and (b) May use the money deposited pursuant to paragraph (a) only for the purposes authorized by NRS 354.6113 and 354.6115.354.6115.(a) only [10.] 11.

[10.] 11.

[12.]section 13.who is aggrieved by a final decision of the Office ofto this Economic Development may petition for judicial review in the manner provided in chapter 233B of NRS.

An applicant for a partial abatement pursuant to this section who is aggrieved by a final decision of the Office of - *AB66_R1* – 10 – Economic Development may petition for judicial review in the manner provided in chapter 233B of NRS.

Sec.- 81st Session (2021) – 10 – 360.752 1.NRS 3A person who intends to locate or expand as:

business in this State may apply to the Office of Economic Development pursuant to this section for a partial abatement of the tax imposed on the new or expanded business pursuant to chapter of NRS.

NRS 360.752 is hereby amended to read as follows:

360.752 1.

A person who intends to locate or expand a business in this State may apply to the Office of Economic Development pursuant to this section for a partial abatement of the tax imposed on the new or expanded business pursuant to chapter 361 of NRS.

2.

and (2)Office Anyto guidelinesimplement adoptedthe byState Plan for Economic Development.f the Executive(c) Director[The] ofNot later than 1 year after the Officedate toon implementwhich the Stateapplication Planwas forreceived Economicby Development.the Office, the applicant has executed an agreement with the Office which must:

(c) [The] Not later than 1 year after the date on which the application was received by the Office, the applicant has executed an agreement with the Office which must:

(5) State that the business will, after the date on which a certificate of eligibility for the abatement is issued pursuant to subsection 5, continue in operation in this State for a periodperiodt to specified by the Office, which must be at least 5 years, and will continue to meet the eligibility requirements set forth in this subsection;

and - *AB66_R1* – 11 – (6) Bind the successors in interest of the business for the specified period.

(d) The business is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and all other- permits81st requiredSession (2021) – 11 – business operates.ired by the county, city or town in which the (e) The business operates.does not receive:

(e) The business does not receive:

(g) The business will offer a health insurance plan for all full- time employees that includes an option for health insurance coverage for dependents of those employees, or will abide by all applicable provisions of the Patient Protection and Affordable Care Act, Public Law 111-148, or both, and the benefits the business offers to its employees in this State will meet the minimumminimumness requirements for benefits established by the Office.

(I) A letter of support from the institution in which the capital investment is made, which is signed by the chiefchiefn which the administrative officer of the institution and the director or chair of the program or the appropriate department, and which includes, without limitation, a summary of the financial and other resources the business will provide to the program and an agreement that the institution will provide to the Office periodic reports, at such times - *AB66_R1* – 12 – and containing such information as the Office may require, regarding the use of those resources;

and (II)- A81st letterSession of(2021) support– which12 is– signed by the chair of the board of directors of the regional economic development authorityauthorityf the within whose jurisdiction the institution is located and which includes, without limitation, a summary of the role the business will play in diversifying the economy and, if applicable, in achieving the broader goals of the regional economic development authority for economic development and diversification.

(3) The business will employ two or more students from the college or institution in which the capital investment is made on a full-time basis during years 2 through 5, inclusive, of the abatement.

and (II) A letter of support which is signed by the chair of the board of directors of the regional economic development authority within whose jurisdiction the college or institution is located and which includes, without limitation, a summary of the role the business will play in diversifying the economy and, if applicable, in achieving the broader goals of the regional economic development authority for economic development and diversification.

- *AB66_R1*81st –Session 13(2021) – (b)13 Shall– not consider an application for a partial abatement pursuant to this section unless the Office has requested a letter of acknowledgment of the request for the abatement from any affected county, school district, city or town.

4.application for a partial abatement pursuant to this section:

If the Office of Economic Development approves an application for a partial abatement pursuant to this section:

If the Office of Economic Development approves an application for a partial abatement pursuant to this section, the Office shall immediately forward a certificate of eligibility for the abatementaba(a) to:The Department;

(a) The Department;

An applicant for a partial abatement pursuant to this section or an existing business whose partial abatement is in effect shall, upon the request of the Executive Director of the Office of Economic Development, furnish the Executive Director with copies of- all81st recordsSession necessary(2021) to– verify14 – requirements of subsection 2.erify that the applicant meets the requirements7. of subsection 2.

- *AB66_R1* – 14 – 7.

(a) The business shall repay to the county treasurer the amount of the partial abatement that was allowed pursuant to this section before the failure of the business to comply unless the Nevada Tax Commission determines that the business has substantially complied within NRS 360.232 and 360.320, the requirementsbusiness shall, in addition to thed amount of the partial abatement required to be paid pursuant to this section.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.

Except as otherwise provided in NRS 360.232 and 360.320, the business shall, in addition to the amount of the partial abatement 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.

and (b) May use the money deposited pursuant to paragraph (a) only for the purposes authorized by NRS 354.6113 and 354.6115.354.6115.(a) only [9.] 10.

[9.] 10.

- 81st Session (2021) – 15 – (a) Shall adopt regulations regarding any security that a business is required to post to qualify for a partial abatement pursuant to this section;

and - *AB66_R1* – 15 – (b) May adopt such other regulations as the Nevada Tax Commissionof determinesthis section.mines to be necessary to carry out the provisions of[11.] this12. section.

[11.] 12.

and (b) The local sales and use taxes imposed on the purchase of tangible personal property used to operate, manufacture, service, maintain, test, repair, overhaul or assemble an aircraft or anyanye, component of an aircraft.

(3)- States81st thatSession the(2021) business– will,16 after– the date on which a certificate of eligibility for the partial abatement is issued pursuant to subsection 5, continue in operation in this State for a period specified by the Office, which must be not less than 5 years, and - *AB66_R1* – 16 – will continue to meet the eligibility requirements set forth in this subsection;

(d) The average hourly wage that will be paid by the business to its employees in this State during the period of partial abatement is not less than 100 percent of the average statewide hourly wage as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year;

or (2) An existing business, that it will increase its number of full-time employees on the payroll of the business in this State by 3 percent or three employees, whichever is greater, within 1 year after receiving its certificate of eligibility for a partial abatement;

(2)- The81st businessSession will(2021) maintain– and17 possess– in this State tangible personal property having a value of not less thanthanState $5,000,000 during the period of partial abatement;

and (h) If the application is for the partial abatement of the taxes imposed by the Local School Support Tax Law, the application has - *AB66_R1* – 17 – been approved by a vote of at least two-thirds of the members of the Board of Economic Development created by NRS 231.033.

(1) Consider an application for a partial abatement unless the Office has requested a letter of acknowledgment of the request for the partial abatement from any affected county, school district, city or town and has complied with the requirements of NRS 360.757;

ororcity (2) Approve a partial abatement for any applicant for a period of more than 10 years.

6.or an existing business whose partial abatement is in effect shall,on upon the request of the Executive Director of the Office of Economic Development, furnish the Executive Director with copies of all records necessary to verify that the applicant meets the requirements of subsection 2.

An applicant for a partial abatement pursuant to this section or an existing business whose partial abatement is in effect shall, upon the request of the Executive Director of the Office of Economic Development, furnish the Executive Director with copies of all records necessary to verify that the applicant meets the requirements of subsection 2.

If an applicant for a partial abatement pursuant to this section fails to enter into the agreement described in paragraph (a) of subsection 2 within 1 year after the date on which the application was received by the Office, the applicant shall not be approved- for81st aSession partial(2021) abatement– pursuant18 to– this section unless the applicant submits a new application.application.t to this section unless 8.

8.

or (b) Operation before the time specified in the agreement described in paragraph (a) of subsection 2,  the business shall repay to the Department or, if the partial abatement was from personal property taxes, to the appropriate - *AB66_R1* – 18 – county treasurer, the amount of the partial abatement that was allowed pursuant to this section before the failure of the business to comply unless the Nevada Tax Commission determines that the business has substantially complied with the requirements of this section.

Except as otherwise provided in NRS 360.232 and 360.320, the business shall, in addition to the amount of the partial abatement required to be repaid 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.

If the Office of Economic Development approves an application for a partial abatement of local sales and use taxes pursuant to this section, the Department shall issue to the business a document certifying the partial abatement which can be presented to retailers and customers of the business at the time of sale.

(b)- “Component81st Session (2021) – 19 – (b)(1) Element that makes up the physical structure of an aircraft”aircraft, meansor any:is affixed thereto;

(1) Element that makes up the physical structure of an aircraft, or is affixed thereto;

(c) “Full-time employee” means a person who is in a permanent position of employment and works an average of 30 hours per week - *AB66_R1* – 19 – during the applicable period set forth in subparagraph (3) of paragraph (a) of subsection 2.

(d) “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 SalesSal(e) and“Personal Useproperty Taxtaxes” Act.means any taxes levied on personal property by the State or a local government pursuant to chapter 361 of NRS.

(e) “Personal property taxes” means any taxes levied on personal property by the State or a local government pursuant to chapter 361 of NRS.

(a) The application 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 and any guidelines adopted by the Executive Director of the Office to implement the State Plan for Economic Development.

of the (b) [The] Not later than 1 year after the date on which the application was received by the Office, the applicant has executed an agreement with the Office of Economic Development which must:

(2) State the date on which the abatement becomes effective, as agreed to by the applicant and the Office of Economic Development, which must not be earlier than the date on which the Office- received81st theSession application(2021) [;]– and20 not– later than 1 year after the date on which the Office approves the application;

1 year after (3) State that the data center will, after the date on which the abatement becomes effective, continue in operation in this State for a period specified by the Office of Economic Development, which must be at least 10 years, and will continue to meet the eligibility requirements set forth in this subsection;

- *AB66_R1* – 20 – (d) If the applicant is seeking a partial abatement for a period of not more than 10 years, the applicant meets the following requirements:

(1) The data center will, by not later than the date that is 5 years after the date on which the abatement becomes effective, have or have added 10 or more full-time employees who are residents ofofve Nevada and who will be employed at the data center and will continue to employ 10 or more full-time employees who are residents of Nevada at the data center until at least the date which is 10 years after the date on which the abatement becomes effective.

(3) The average hourly wage that will be paid by the data center to its employees in this State is at least 100 percent of the average statewide hourly wage as established by the Employment SecurityRehabilitation Divisionon July 1 of theeach Departmentfiscal ofyear Employment,and:, Training and Rehabilitation(I) The data center will, by not later than the date which is years after the date on Julywhich 1the ofabatement eachbecomes fiscaleffective, yearprovide and:a health insurance plan for all employees employed at the data center that includes an option for health insurance coverage for dependents of the employees;

(I)and (II) The datahealth centercare will,benefits byprovided notto lateremployees thanemployed at the datedata whichcenter iswill 2meet years after the dateminimum onrequirements which the abatement becomes effective, provide a health insurance plan for all- employees81st employedSession at(2021) the– data21 center– thatDevelopment includesby anregulation optionpursuant forto healthsubsection insurance[12.] coverage13. for dependents of the employees;

and (II) The health care benefits provided to employees employed at the data center will meet the minimum requirements for health care benefits established by the Office of Economic Development by regulation pursuant to subsection [12.] 13.

(e) If the applicant is seeking a partial abatement for a period of 10 years or more but not more than 20 years, the applicant meets the following requirements:

(1) The data center will, by not later than the date that is 5 years after the date on which the abatement becomes effective, have or have added 50 or more full-time employees who are residents of Nevada and who will be employed at the data center and will - *AB66_R1* – 21 – continue to employ 50 or more full-time employees who are residentsyears after the date on which the abatement becomes effective.ich is (2) Establishing or expanding the data center will require the data center or any combination of Nevadathe atdata center and one or more colocated businesses to make in each county in this State in which the data center untilis atlocated, leastby not later than the date which is 205 years after the date on which the abatement becomes effective.effective, a cumulative capital investment of at least $100,000,000 in capital assets that will be used or located at the data center.

(2) Establishing or expanding the data center will require the data center or any combination of the data center and one or more colocated businesses to make in each county in this State in which the data center is located, by not later than the date which is 5 years after the date on which the abatement becomes effective, a cumulative capital investment of at least $100,000,000 in capital assets that will be used or located at the data center.

(I) The data center will, by not later than the date which is 2 years after the date on which the abatement becomes effective, provide a health insurance plan for all employees employed at the data center that includes an option for health insurance coverage for dependents of the employees;

(4) At least 50 percent of the employees engaged in the construction of the data center are residents of Nevada, unless waived by the Executive Director of the Office of Economic Development- upon81st proofSession satisfactory(2021) to– the22 Executive– Director of the Office of Economic Development that there is an insufficient number of residents of Nevada available and qualified for such employment.

(a) Shall not consider an application for a partial abatement pursuant to this section unless the Office of Economic Development has requested a letter of acknowledgment of the request for the abatementaba(b) fromShall eachconsider affectedthe county,level schoolof district,health citycare orbenefits town.provided to employees employed at the data center, the projected economic impact of the data center and the projected tax revenue of the data center after deducting projected revenue from the abated taxes.

- *AB66_R1* – 22 – (b) Shall consider the level of health care benefits provided to employees employed at the data center, the projected economic impact of the data center and the projected tax revenue of the data center after deducting projected revenue from the abated taxes.

If the Office of Economic Development approves an application for a partial abatement pursuant to this section, the Officeabatement shallto:immediately immediately forward a certificate of eligibility for the abatement(a) to:The Department;

(a) The Department;

If the Office of Economic Development approves an application for a partial abatement pursuant to this section, the Office may also approve a partial abatement of taxes for each colocated- business81st thatSession enters(2021) into– a23 contract– to use or occupy, for a period of at least 2 years, all or a portion of the new or expandedexpandedr a data center.

If a data center ceases to meet the requirements of subsection 2 or ceases operation before the time specified in the agreement described in paragraph (b) of subsection 2, any partial abatement approved for a colocatedcolocatedb) of business ceases to be in effect, but the colocated business is not - *AB66_R1* – 23 – required to repay the amount of the abatement that was allowed before the date on which the abatement ceases to be in effect.

An applicant for a partial abatement pursuant to this section or a data center whose partial abatement is in effect shall, upon the request of the Executive Director of the Office of Economic Development, furnish the Executive Director with copies of all recordsof necessarysubsection 2.y to verify that the applicant meets the requirements of7. subsection 2.

7.

(a)- To81st meetSession (2021) – 24 – (b) Operation before the requirementstime setspecified forthin the agreementor described in paragraph (b) of subsection 2;2,  the data center shall repay to the Department or, if the partial abatement was from the property tax imposed pursuant to chapter of NRS, to the county treasurer, the amount of the partial abatement that was allowed pursuant to this section before the failure of the data center to comply unless the Nevada Tax Commission determines that the data center has substantially complied with the requirements of this section.

orExcept (b)as Operationotherwise beforeprovided the time specified in theNRS agreement360.232 describedand in360.320, paragraph (b) of subsection 2,  the data center shallshall, repayin addition to the Departmentamount or,of if the partial abatement wasrequired fromto thebe propertyrepaid tax imposed pursuant to chapterthis 361subsection, ofpay NRS,interest toon the countyamount treasurer,due at the amountrate ofmost therecently partialestablished abatementpursuant thatto wasNRS allowed99.040 pursuantfor toeach thismonth, sectionor beforeportion thereof, from the failurelast day of the datamonth centerfollowing tothe complyperiod unlessfor which the Nevadapayment Taxwould Commissionhave determinesbeen thatmade had the datapartial centerabatement hasnot substantiallybeen compliedapproved withuntil the requirementsdate of thispayment section.of the tax[8.] 9.

Except as otherwise provided in NRS 360.232 and 360.320, the data center shall, in addition to the amount of the partial abatement required to be repaid 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.

[8.] 9.

(a) Shall deposit any money that he or she receives pursuant to subsection 5 or [7] 8 in one or more of the funds established by a - *AB66_R1* – 24 – local government of the county pursuant to NRS 354.6113 or 354.6115;

(a) A copy of the current and valid Nevada driver’s license of the employee orissued aby currentthe andDepartment validof identificationMotor cardVehicles;ard for the (b) If the employee issuedis bya registered owner of one or more motor vehicles in Nevada, a copy of the Departmentcurrent motor vehicle registration of Motorat Vehicles;least one of those vehicles;

(b) If the employee is a registered owner of one or more motor vehicles in Nevada, a copy of the current motor vehicle registration of at least one of those vehicles;

and (d) Proof that the employee is covered by the health insurance plan which the data center is required to provide pursuant to sub- subparagraph (I) of subparagraph (3) of paragraph (d) of subsection 2- or81st sub-subparagraphSession (2021) – 25 – subsection 2.aragraph (I) of subparagraph (3) of paragraph (e) of subsection[11.] 2.12.

[11.] 12.

(b) May adopt such other regulations as the Office determines to be necessary(c) toShall carrynot outapprove theany provisionsapplication offor a partial abatement submitted pursuant to this section;section which is received on or after January 1, 2036.

and (c) Shall not approve any application for a partial abatement submitted pursuant to this section which is received on or after January 1, 2036.

- *AB66_R1* – 25 – (1) The capital investment necessary to meet the requirement set forth in paragraph (d) or (e) of subsection 2;

(a) “Colocated business” means a person who enters into a contract with a data center that is qualified to receive an abatement pursuant to this section to use or occupy all or part of the datadatament center.

(b) “Data center” means one or more buildings located at one or more physical locations in this State which house a group of networked server computers for the purpose of centralizing the storage, management and dissemination of data and information pertaining to one or more businesses and includes any modular or preassembled components, associated telecommunications and storage systems and, if the data center includes more than one building- or81st physicalSession location,(2021) any– network26 – such buildings or physical locations.twork or connection between such(c) buildings“Full-time employee” means a person who is in a permanent position of employment and works an average of 30 hours per week during the applicable period set forth in paragraph (d) or physical(e) locations.of subsection 2.

(c) “Full-time employee” means a person who is in a permanent position of employment and works an average of 30 hours per week during the applicable period set forth in paragraph (d) or (e) of subsection 2.

(b) A partial abatement of property taxes, employer excise taxes or local sales and use taxes, or any combination of any of thosethosexes taxes.

- *AB66_R1* – 26 – (a) Submit an application that meets the requirements of subsection 5;

(c) Provide documentation satisfactory to the Office that the participants in the project collectively will make a total new capital investmentperiod immediately following approval of atthe leastapplication;e $110-year billion(d) inProvide thisdocumentation Statesatisfactory withinto the 10-yearOffice periodthat immediatelythe followingparticipants approvalin of the application;project are engaged in a common business purpose or industry;

(d) Provide documentation satisfactory to the Office that the participants in the project are engaged in a common business purpose or industry;

(f) Provide documentation satisfactory to the Office that each participant in the project is registered pursuant to the laws of this State- or81st commitsSession to(2021) obtaining– a27 valid– business license and all other permits required by the county, city or town in which the projectprojecther operates;

(j) Provide documentation satisfactory to the Office that each participant in the project provides a plan of health insurance and that each employee employed at the project by each participant is offered coverage under the plan of health insurance provided by his or her(k) employer;Provide documentation satisfactory to the Office that at least percent of the employees engaged in construction of the project and 50 percent of the employees employed at the project are residents of Nevada, unless waived by the Executive Director of the Office upon proof satisfactory to the Executive Director of the Office that there is an insufficient number of Nevada residents available and qualified for such employment;

(k)(l) ProvideAgree documentation satisfactory to provide the Office thatwith ata leastfull 50compliance percentaudit of the employeesparticipants engaged in construction of the project and 50 percent of the employees employed at the projectend are residents of Nevada,each unlessfiscal waivedyear bywhich: the Executive Director of the Office upon proof satisfactory to the Executive Director of the Office that there is an insufficient number of Nevada residents available and qualified for such employment;

- *AB66_R1* – 27 – (l) Agree to provide the Office with a full compliance audit of the participants in the project at the end of each fiscal year which:

(3) Shows the number of employees employed at the project by each participant and the number of those employees who are residents of Nevada;

andandthe number of those employees who are (4) Is certified by an independent certified public accountant in this State who is approved by the Office;

(1) Requires the lead participant to pay the cost of any engineering or design work necessary to determine the cost of infrastructure improvements required to be made by the governing body- pursuant81st toSession an(2021) economic– development28 financing– proposal approved pursuant to NRS 360.990;

andandent financing proposal (2) Requires the lead participant to seek reimbursement for any costs paid by the lead participant pursuant to subparagraph (1) from the proceeds of bonds issued pursuant to NRS 360.991;

(a) The initial project will have a total of 500 or more full-time employees employed at the site of the initial project and the average hourly wage that will be paid to employees of the initial project in this State is at least 120 percent of the average statewide hourly wage as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation on July 1 of each fiscal year;

and - *AB66_R1* – 28 – (2) If a participant owns, operates, manufactures, services, maintains, tests, repairs, overhauls or assembles an aircraft or any component of an aircraft, that the participant satisfies the applicable requirements of paragraph (f) or (g) of subsection 2 of NRS 360.753.

 If any participant is a data center, as defined in NRS 360.754, any capital investment by that participant must not be counted in determining whether the participants in the project collectively will make a total new capital investment of at least $1 billion in this State within the 10-year period immediately following approval of the application, as required by paragraph (c) of subsection 2.

Such a request may only be submitted by- the81st OfficeSession and(2021) only– after29 the– Office has approved the application submitted for the project pursuant to subsection 2.

The InterimInterimation Finance Committee may approve a request submitted pursuant to this subsection only if the Interim Finance Committee determines that approval of the request:

(a) A detailed description of the project, including a description of the common purpose or business endeavor in which the participantspar(b) inA detailed description of the location of the project, including a precise description of the geographic boundaries of the project aresite engaged;or sites;

(b) A detailed description of the location of the project, including a precise description of the geographic boundaries of the project site or sites;

- *AB66_R1* – 29 – (e) If the application includes one or more partial abatements, an agreement executed by the Office with the lead participant in the project not later than 1 year after the date on which the application was received by the Office which:

(2) States the date on which the partial abatement becomes effective, as agreed to by the applicant and the Office, which must not be earlier than the date on which the Office received the application [;] and not later than 1 year after the date on which the Office approves the application;

and (4)- Binds81st successorsSession in(2021) interest– of30 the– lead participant for the specified period;

andandessors in interest of the lead participant for the (f) Any other information required by the Office.

or (2) If the employee is a veteran of the Armed Forces of the United States, a current and valid Nevada driver’s license of the employee or a current and valid identification card for the employee issuediss(b) byIf the Departmentemployee is a registered owner of Motorone Vehicles;or more motor vehicles in Nevada, a copy of the current motor vehicle registration of at least one of those vehicles;

(b) If the employee is a registered owner of one or more motor vehicles in Nevada, a copy of the current motor vehicle registration of at least one of those vehicles;

For the purpose of obtaining from the Executive Director of the Office any waiver of the requirement set forth in paragraph (k) of subsection 2, the lead participant in the project must submit to the Executive Director of the Office written documentation of the efforts to meet the requirement and documented proof that an - *AB66_R1* – 30 – insufficient number of Nevada residents is available and qualified for employment.

The Executive Director of the Office shall make available to thethe(a) publicAny andrequest postfor ona waiver of the Internetrequirements websiteset forth in paragraph (k) of thesubsection Office:2;

(a) Any request for a waiver of the requirements set forth in paragraph (k) of subsection 2;

The Executive Director of the Office shall post a request for a waiver of the requirements set forth in paragraph (k) of subsection 2 on the Internet website of the Office within 3 days after receiving the request and shall keep the request posted on the Internet website for not less than 5 days.

The Executive Director of the Office shall ensure- that81st theSession Internet(2021) website– 31 – comments regarding the request.e allows members of the public to post comments10. regarding the request.

10.The Executive Director of the Office shall consider any comments posted on the Internet website concerning any request for a waiver of the requirements set forth in paragraph (k) of subsection before making a decision regarding whether to approve the request.

The Executive Director of the Office shall consider any comments posted on the Internet website concerning any request for a waiver of the requirements set forth in paragraph (k) of subsection 2 before making a decision regarding whether to approve the request.

Sec.360.945 1.NRS 3On behalf of a project, the lead participant in the project may apply to the Office of Economic Development for:

6.

NRS 360.945 is hereby amended to read as follows:

360.945 1.

On behalf of a project, the lead participant in the project may apply to the Office of Economic Development for:

For a project to be eligible for the transferable tax credits described in paragraph (a) of subsection 1 and abatement of the - *AB66_R1* – 31 – taxes described in paragraph (b) of subsection 1, the lead participant in the(a) projectSubmit must,an onapplication behalfthat ofmeets the project:requirements of subsection 3;

(a) Submit an application that meets the requirements of subsection 3;

(c) Provide documentation satisfactory to the Office that the participants in the project collectively will make a total new capital investment- of81st atSession least(2021) $3.5– billion32 in– thisperiod Stateimmediately withinfollowing approval of the application;the 10-year period(d) immediatelyProvide followingdocumentation approvalsatisfactory ofto the application;Office that the participants in the project are engaged in a common business purpose or industry;

(d) Provide documentation satisfactory to the Office that the participants in the project are engaged in a common business purpose or industry;

(h) Provide documentation satisfactory to the Office of the number of qualified employees employed or anticipated to be employedemp(i) atProvide documentation satisfactory to the Office that each employer engaged in the construction of the project byprovides a plan of health insurance and that each employee engaged in the participants;construction of the project is offered coverage under the plan of health insurance provided by his or her employer;

(i) Provide documentation satisfactory to the Office that each employer engaged in the construction of the project provides a plan of health insurance and that each employee engaged in the construction of the project is offered coverage under the plan of health insurance provided by his or her employer;

(k) Provide documentation satisfactory to the Office that at least 50 percent of the employees engaged in construction of the project and 50 percent of the employees employed at the project are residents of Nevada, unless waived by the Executive Director of the Office upon proof satisfactory to the Executive Director of the -available *AB66_R1*and –qualified 32for –such Officeemployment;of thatNevada thereresidents is(l) anAgree insufficientto numberprovide the Office with a full compliance audit of Nevadathe residentsparticipants availablein andthe qualifiedproject forat suchthe employment;end of each fiscal year which:

(l) Agree to provide the Office with a full compliance audit of the participants in the project at the end of each fiscal year which:

(3)- Shows81st theSession number(2021) of– employees33 employed– at the project by each participant and the number of those employees who areareect residents of Nevada;

and (o)3.) MeetMAn anyapplication othersubmitted requirementspursuant prescribedto bysubsection the2 Office.must include:

3.

An application submitted pursuant to subsection 2 must include:

(e) If the application includes one or more abatements, an agreement executed by the Office with the lead participant in the - *AB66_R1* – 33 – project not later than 1 year after the date on which the application was received by the Office which:

and (3)- Binds81st successorsSession in(2021) interest– of34 the– lead participant for the specified period;

andandessors in interest of the lead participant for the (f) Any other information required by the Office.

5.the Office any waiver of the requirement set forth in paragraph (k) of subsection 2, the lead participant in the project must submit to the Executive Director of the Office written documentation of the efforts to meet the requirement and documented proof that an insufficient number of Nevada residents is available and qualified for employment.

For the purpose of obtaining from the Executive Director of the Office any waiver of the requirement set forth in paragraph (k) of subsection 2, the lead participant in the project must submit to the Executive Director of the Office written documentation of the efforts to meet the requirement and documented proof that an insufficient number of Nevada residents is available and qualified for employment.

The Executive Director of the Office shall post a request for a waiver of the requirements set forth in paragraph (k) of subsection 2 on the Internet website of the Office within 3 days after receiving the request and shall keep the request posted on the Internet website for not less than 5 days.

The Executive Director of the Office shallshalle ensure that the Internet website allows members of the public to post comments regarding the request.

- *AB66_R1* – 34 – 8.

The Executive Director of the Office shall consider any comments posted on the Internet website concerning any request for a waiver of the requirements set forth in paragraph (k) of subsection 2 before making a decision regarding whether to approve the request.

If the Executive Director of the Office approves the request for a waiver, the Executive Director of the Office must post the approval- on81st theSession Internet(2021) website– of35 the– Office within 3 days and ensure that the Internet website allows members of the public to post comments regarding the approval.

Sec.Secs.

7.7 and 8.

8.

(Deleted by amendment.) Sec.

(a) A historically underutilized business zone, as defined in 15 U.S.C.

(c) An area eligible for a community development block grant pursuant to 24 C.F.R.

ororunity development block grant (d) An enterprise community established pursuant to 24 C.F.R.

As used in this subsection, “local sales and use taxes” means the 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 the political subdivision in which the business is located, except the taxestaxespolitical imposed by the Sales and Use Tax Act and the Local School Support Tax Law.

- *AB66_R1* – 35 – 2.

(b)- Issuing81st aSession certificate(2021) of– endorsement36 for– an application for such an abatement that is found to be beneficial for the economiceconomicr development of the county, city or town.

(1) The date on which the abatement becomes effective, as agreed to by the applicant and the Office, which must not be earlier than the date on which the Office received the application [;] andander not later than 1 year after the date on which the Office approves the application;

§ 632, redevelopment area created pursuant to chapter 279 of NRS, area eligible for a community development block grant pursuant to 24 C.F.R.

Part 570 or enterprise community established pursuant to 24 C.F.R.

 The agreement must bind successors in interest of the business forfor(c) The business is registered pursuant to the specifiedlaws period.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 business will operate.

(c)(d) The businessapplicant isinvested registeredor pursuantcommits to theinvest lawsa minimum of this$500,000 Statein orcapital theassets applicantthat commitswill tobe obtainretained aat validthe businesslocation licenseof andthe allbusiness otherin permitsthe requiredhistorically byunderutilized thebusiness county,zone, cityas ordefined town in which15 theU.S.C. business will operate.

(d)§ The632, applicantredevelopment investedarea orcreated commitspursuant to investchapter a minimum of $500,000NRS, inarea capitaleligible assetsfor thata willcommunity bedevelopment retainedblock atgrant the- location81st ofSession the(2021) business in the historically underutilized business zone, as defined - *AB66_R1* – 3637 – inpursuant 15to U.S.C.24 C.F.R.

§ 632, redevelopment area created pursuant to chapter 279 of NRS, area eligible for a community development block grant pursuant to 24 C.F.R.

If the Office of Economic Development approves an application for a partial abatement, the Office shall immediately forward a certificate of eligibility for the abatement to:to:diately (a) The Department of Taxation;

(a) The Department of Taxation;

(a) The partial abatement must be for a duration of not less than 1 year but not more than 5 years.

(a) To meet the eligibility requirements for the partial abatement;

orort the eligibility requirements for the partial (b) Operation before the time specified in the agreement described in paragraph (b) of subsection 3,  the business shall repay to the Department of Taxation or, if the partial abatement was from the property tax imposed pursuant to chapter 361 of NRS, to the county treasurer, the amount of the partial abatement that was allowed pursuant to this section before the failure of the business to comply unless the Nevada Tax Commission determines that the business has substantially complied with the requirements of this section.

Except as otherwise provided in NRS 360.232 and 360.320, the business shall, in addition to the amount of the partial abatement 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 - *AB66_R1*81st –Session 37(2021) – which38 the– payment would have been made had the partial abatement not been approved until the date of payment of the tax.tax.abatement [7.] 8.

[7.] 8.

(a) A historically underutilized business zone, as defined in 15 U.S.C.

or (d)Part An597, enterprise community established pursuant to 24 C.F.R.

Part 597,  may submit a request to the governing body of the county, city or town in which the business operates for an endorsement of an application by the person to the Office of Economic Development for a partial abatement of the local sales and use taxes imposed on capital equipment.

As used in this subsection, “local sales and use taxes” means the 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 the political subdivision in which the business is located, except the taxes imposed by the Sales and Use Tax Act and thethe2. Local School Support Tax Law.

2.

A person whose application has been endorsed by the governing body of the county, city or town, as applicable, pursuant to- this81st sectionSession may(2021) submit the application to the Office of Economic - *AB66_R1* – 3839 – Development.

The Office shall approve the application if the OfficeOfficec makes the following determinations:

and (2) That the business will, after the date on which the abatement becomes(I) effective:Continue in operation in the historically underutilized business zone, as defined in 15 U.S.C.

(I) Continue in operation in the historically underutilized business zone, as defined in 15 U.S.C.

(d) The applicant invested or commits to invest a minimum of $250,000 in capital equipment that will be retained at the location of the business in the historically underutilized business zone, as defined in 15 U.S.C.

4.- 81st Session (2021) – 40 – application for a partial abatement, the Office shall immediately forward a certificate of eligibility for the abatement to:

If the Office of Economic Development approves an application for a partial abatement, the Office shall immediately forward a certificate of eligibility for the abatement to:

and - *AB66_R1* – 39 – (b) The Nevada Tax Commission.

(a) The partial abatement must be for a duration of not less than 1 year but not more than 5 years.

If an applicant for a partial abatement pursuant to this section fails to enter into the agreement described in paragraph (b) of subsection 3 within 1 year after the date on which the application was received by the Office, the applicant shall not be approved for a partial abatement pursuant to this section unless the applicant submits a new request pursuant to subsection 1.1.ess 7.

7.

Except as otherwise provided in NRS 360.232 and 360.320, the business shall, in addition to the amount of the partial abatement 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 monthmonthor 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.

[8.]- 9.81st Session (2021) – 41 – final decision of the Office of Economic Development may petition for judicial review in the manner provided in chapter 233B of NRS.

An applicant for an abatement who is aggrieved by a final decision of the Office of Economic Development may petition for judicial review in the manner provided in chapter 233B of NRS.

Part 597 in this State may submit a request to the governing body of the county, city or town in which the business is located for an - *AB66_R1* – 40 – endorsement of an application by the person to the Office of Economic Development for a partial abatement of one or more of the taxes imposed pursuant to chapter 361 of NRS or the local sales and use taxes.

As used in this subsection, “local sales and use taxes” means the 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 the political subdivision in which the business is located, except the taxes imposed by the Sales and Use Tax Act and the Local School Support Tax Law.

The Office shall approve the application if the Office makesmak(a) theThe followingbusiness determinations:is consistent with:

(a) The business is consistent with:

(1)- The81st dateSession on(2021) which– the42 abatement– becomes effective, as agreed to by the applicant and the Office, which must not be earlier than the date on which the Office received the application [;] and not later than 1 year after the date on which the Office approves the application;

- *AB66_R1* – 41 –  The agreement must bind successors in interest of the business for the specified period.

(d) The(1) business:Employs one or more dislocated workers who reside in the enterprise community;

(1) Employs one or more dislocated workers who reside in the enterprise community;

(2)(3) TheIf Nevadathe Taxpartial Commission;abatement is from the property tax imposed pursuant to chapter 361 of NRS, the county treasurer of the county in which the business is located.

and (3) If the partial abatement is from the property tax imposed pursuant to chapter 361 of NRS, the county treasurer of the county in which the business is located.

(a) The partial abatement must be for a duration of not less than 1 year but not more than 5 years.

(b) If the abatement is from the property tax imposed pursuant to chapter 361 of NRS, the partial abatement must not exceed 75 - 81st Session (2021) – 43 – percent of the taxes on personal property payable by a business each year pursuant to that chapter.

If an applicant for a partial abatement pursuant to this section fails to enter into the agreement described in paragraph (b) of subsection 3 within 1 year after the date on which the application was received by the Office, the applicant shall not be approved for a partial abatement pursuant to this section unless the applicant submits a new request pursuant to subsection 1.

or - *AB66_R1* – 42 – (b) Operation before the time specified in the agreement described in paragraph (b) of subsection 3,  the business shall repay to the Department of Taxation or, if the partial abatement was from the property tax imposed pursuant to chapter 361 of NRS, to the county treasurer, the amount of the partial abatement that was allowed pursuant to this section before the failure of the business to comply unless the Nevada Tax Commission determines that the business has substantially complied with the requirements of this section.

Except as otherwise provided in NRS 360.232 and 360.320, the business shall, in addition to the amount of the partial abatement 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 notnot[7.] been8. approved until the date of payment of the tax.

[7.] 8.

the tax.

(c)- Has81st beenSession dependent(2021) on– the44 income– of another family member but is no longer supported by that income;income;r family (d) Has been self-employed but is no longer receiving an income from self-employment because of general economic conditions in the community or natural disaster;

(d) Has been self-employed but is no longer receiving an income from self-employment because of general economic conditions in the community or natural disaster;

H~~~~~ 21 - *AB66_R1*81st Session (2021)