Nevada Legislature: Bill puts conditions on economic development tax breaks
The Nevada Senate on Friday gave unanimous approval to a bill designed to put some performance requirements on companies that get tax breaks for economic development projects.
SB74 makes a variety of changes to the current abatements statutes requiring applicants to offer “primary jobs” and estimate the number of new employees who will be hired by the end of two years. It then requires the business to meet those promises in order to keep the tax abatements
The abatements would be reduced when the number of employees hired falls short or when the average hourly wage is less than a set percentage of the average wage.
There have been some complaints taht there aren’t enough controls on companies once they get tax abatements from the state to bring their businesses to Nevada or to expand an existing business.
The legislation was sponsored by the Senate Committee on Revenue and Economic Development and approved 20-0 with Sen. Debbie Smith, D-Sparks, excused absent.
Steve Hill, head of the Governor’s Office of Economic Development, testified the bill will “narrow the amount of abatements available.”
It’s designed to provide accountability for those companies receiving abatements to ensure they are keeping the promises made to the GOED board headed by the governor.
The bill goes to the Assembly for consideration.