AB 594 — Revises provisions relating to taxation. (BDR 32-1130)

or - 83rd Session (2025) – 4 – (b) Approve the application but for a lesser amount, or otherwise place conditions on the approval of the abatement, partial abatement or transferable tax credits.

In determining whether granting the full amount of an best interests of the State for the purposes of subsection 1, thee Board of Economic Development may consider the following factors, with respect to the business that is the subject of the application:

(a) The projected water consumption of the business, particularly if the business is or will be located in a region with limited water resources, with the goal of promoting the sustainable use of the water supplies in this State.

(b) The alignment of the business with the social objectives of the State, including, without limitation, the promotion of equity, education and community well-being.

(c) The potential environmental impact of the business, including, without limitation, the likelihood of a significant adverse effect on air quality, water quality or local ecosystems.

(d) The alignment of the business with the economic objectives of the State, including, without limitation, the creation of jobs, the diversification of the economy of the State and the long-term economic development of the State.

(e) The anticipated impact of the business on local communities, including, without limitation, the impact on traffic, infrastructure and community resources.

(f) The financial stability and viability of the business, may pose a risk to state investments.of financial instability that 3.

The Board of Economic Development may consider the factors listed in subsection 2 with respect to any other decision which the Board is authorized to make with respect to an application for an abatement, partial abatement or transferable tax credits, including, without limitation, the duration of the abatement, partial abatement or transferable tax credits.

Sec.

2.

- 83rd Session (2025) – 5 – 3.

Sec.

3.

NRS 360.5975 is hereby amended to read as follows:

Whenever any person fails to comply with anyanyows: provision of chapter 372, 374 or 377 of NRS relating to the taxes imposed by those chapters or any regulation of the Department relating to the taxes imposed by chapters 372, 374 and 377 of NRS, the Department, after a hearing of which the person was given prior notice of at least 10 days in writing specifying the time and place of the hearing and requiring the person to show cause as to why his or her permit or permits should not be revoked or suspended, may revoke or suspend any one or more of the permits held by the person.

provision of chapter 372, 374 or 377 of NRS relating to the taxes imposed by those chapters or any regulation of the Department relating to the taxes imposed by chapters 372, 374 and 377 of NRS, the Department, after a hearing of which the person was given prior notice of at least 10 days in writing specifying the time and place of the hearing and requiring the person to show cause as to why his or her permit or permits should not be revoked or suspended, may revoke or suspend any one or more of the permits held by the person.

- *AB594_R1* – 4 – 3.

The Department shall not issue a new permit after the revocation of a permit unless it is satisfied that the former holder of the permit will comply with the provisions of chapters 372, 374 and 377 of NRS relating to the taxes imposed by those chapters and the regulations of the Department.

Chapter 363C of NRS is hereby amended by adding theretothe1.to aExcept newas otherwise provided in this section and unless the context otherwise requires, for the purposes of this chapter, references to readthe as“North follows:American Industry Classification System” or “NAICS” are to the most recent edition of the North American Industry Classification System published by the Bureau of the Census of the United States Department of Commerce.

1.

Except as otherwise provided in this section and unless the context otherwise requires, for the purposes of this chapter, references to the “North American Industry Classification System” or “NAICS” are to the most recent edition of the North American Industry Classification System published by the Bureau of the Census of the United States Department of Commerce.

If the Department determines that the adoption of the new edition would cause a business entity to be categorized in a different business category set forth in NRS 363C.310 to 363C.550, inclusive, or would cause a business entity categorized in the unclassified business category pursuant to NRS 363C.560 to - 83rd Session (2025) – 6 – be categorized in a business category set forth in NRS 363C.310 to 363C.550, inclusive:

and (b) The new edition of the North American Industry Classification System must not become effective unless legislation adopting the new edition is enacted by the Legislature and approved by the Governor.

(b) Publishing, except on the Internet, including, without limitation, the publishing of newspapers, magazines, other - *AB594_R1* – 5 – periodicals and books, as well as directory and mailing list and software publishing;

and (d) Data processing, hosting and related services, including, withoutdata limitation,processing theservices.rovision provision of infrastructure for hosting and data2. processing services.

2.

374.360 Except as otherwise provided in NRS 374.385 or required by the Department pursuant to NRS 360B.200, the taxes imposed by this chapter are due and payable to the Department monthly- on83rd orSession before(2025) the– 7 – succeeding each month.he [last day] 20th day of the month next succeedingSec. each month.

7.5.

NRS 701A.210 is hereby amended to read as follows:

701A.210 1.

Except as otherwise provided in this section, the Office of Economic Development may grant a business a partial abatement from the taxes imposed on real property pursuant to chapter 361 of NRS if :

[a:] (a) [Business that engages] The business:

(1) 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] (2) Includes as a primary component a facility for the generation of electricity from recycled material [,  is found by the Office of Economic Development to have] or a fuels from recycled material to produce energy;

orr other primary (3) Primarily engages in the recycling or repurposing of materials that were used to produce or store renewable energy, including, without limitation, materials used in solar panels or waste materials resulting from the extraction of minerals;

(b) The Office finds that the business has as a primary purpose the conservation of energy , [or] the substitution of other sources of energy for fossil sources of energy [and] or the advancement of the environmental sustainability and energy goals of this State;

(c) The business obtains certification from the Office [of Economic Development] pursuant to NRS 360.750 [, the Office may, if the] ;

and (d) 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 2.aptIf 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 - 83rd Session (2025) – 8 – NRS 360.750.e administered and carried out in the manner set forth in (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 bef4.e tAs used in this section [, “facility] :

(a) “Anaerobic digestion” means the breaking down of organic waste using anaerobic bacteria to create biofuel.

(b) “Biofuel” means any alcohol, ether, ester or other chemical compound made from herbaceous plants, woody plants or organic waste.

(c) “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

(1) Agricultural crops and agriculture wastes and residues;

(2) Wood and wood wastes and residues;

(3) Animal wastes;

(4) Municipal wastes;

and (5) Aquatic plants.

(d) “Facility for the generation of electricity from recycled material” means a facility for the generation of electricity that uses rec[(a)] (1) 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)] (2) Agricultural crops, whether terrestrial or aquatic, and agricultural waste, such as manure and residue from crops;

and [(c)] (3) Municipal waste, such as sewage and sludge.

 The term includes all the equipment in the facility used to process and convert into electricity the energy derived from a recycled - 83rd Session (2025) – 9 – through modified microbial fuel cells.he generation of electricity (e) “Facility for the production of biofuels, biomass or other primary fuels from recycled material” means a facility for the production of biofuels, biomass or other primary fuels that uses recycled material to produce biofuels, biomass or other primary fuels for use in the generation of energy, including material from:

(1) 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;

(2) Agricultural crops, whether terrestrial or aquatic, and agricultural waste, such as manure and residue from crops;

and (3) Municipal waste, such as sewage and sludge.

 The term includes all the equipment in the facility used to process and convert into biofuels, biomass or other primary fuels the energy derived from a recycled material and a facility for the production of biofuels, biomass or other primary fuels through from landfills or triboelectric devices.gestion, the recovery of gas (f) “Gasification and pyrolysis” means the use of heat to convert waste into synthesis gas.

(g) “Modified microbial fuel cell” means the use of microorganisms to convert the chemical energy in organic waste into electricity while simultaneously treating wastewater.

(h) “Recycled material” includes, without limitation, critical materials, waste materials from the extraction of minerals and products for the production or storage of renewable energy that are recycled or repurposed.

(i) “Renewable energy” means biomass.

The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy.

(j) “Triboelectric device” means a device that converts energy from ambient vibrations into electricity.

8.

(Deleted by amendment.) Sec.

9.

(Deleted by amendment.) Sec.

10.

(Deleted by amendment.) Sec.

11.

(Deleted by amendment.) Sec.

12.

(Deleted by amendment.) Sec.

- 83rd Session (2025) – 10 – Sec.

This section, sections 1 to 5, inclusive, and sections 87.5 to 13, inclusive, of this act and subsection 1 of section 14 of this act becomesbecome effective on July 1, 2025.

-~~~~~ *AB594_R1*25 –- 683rd –Session TEXT(2025) OF REPEALED SECTION 363C.060 “North American Industry Classification System” and “NAICS” defined.

“North American Industry Classification System” or “NAICS” means the 2012 North of the Census of the United States Department of Commerce.ureau H - *AB594_R1*