Foreign Direct Investment

(1)

F

oreign

D

irect

I

nvestment

Information

WHY NEVADA ???

Nevada consistently ranks at the top of business surveys as one of the most

business-friendly states in the United States. It is not surprising that entrepreneurs choose to

start up in Nevada and CEOs of multi-national companies choose to incorporate or

place operations in Nevada.

(2)

Table of Contents

Section 1………..… Nevada - Your Business Opportunity

Section 2………..…………. Taxes & Incentives

Section 3……….…..…… Foreign Trade

Section 4………..…. Immigrant Investor Program

Section 5……….….… Foreign Companies in NV

(3)

Section 1

(4)

(5)

Nevada

’

s Business Case

“In the end, the business basics are what really matter:

proximity to suppliers

and strong linkages,

proximity to customers

,

an adequate supply of

skilled labor

, adoption of technological

innovation

, and

(6)

Nevada

-

Your Business Opportunity:

Advantages that make Nevada popular for business opportunities:

1.

Corporate/Business Advantages



Tax structure, consistent tax & business policies



Low cost to incorporate and business friendly environment



Incentive programs

2.

Geographic Location & Resources



Proximity to large markets (megaregions)



Excellent infrastructure (transportation & logistics)



Natural resources

3.

Education, Workforce and Lifestyle



Excellent education system that collaborates with the business

sector

(7)

Tax Structure Comparison

–

Major Tax Categories:

State

Corporate

Income

Tax

Personal

Income

Tax

Sales

Tax

Nevada

No



California



Arizona



Utah



Oregon



Idaho



Washington

No



New Mexico



Texas

No



Florida



No



North

Carolina



Tennessee



No



Michigan



Nevada vs. Representative States in the Region:

Western Region Mid-West Region Eastern Region

(8)

Nevada

’

s Corporate & Business Advantages:

5

9

10

11

14

17

18

22

23

39

48

4

28

Ne vada Flo rida Was hingt on Utah Texa s Ore gon Mic higa n Ida ho Tenne ssee Ne w M exi co Ari zona Nort h Ca rolin a Calif orn ia

State of Nevada was ranked

# 4

best state

in the Tax

Foundation’s

2011 State

Business Tax Climate Index.

Nevada’s Tax Structure

is one of the least burdensome

in the nation:



NO Corporate Income Tax



NO Personal Income Tax



NO Inventory Tax



NO Unitary Tax



NO Franchise Tax



NO Inheritance Tax

(9)

Best & Worst U.S. States for Doing Business:

Name of State:

Nevada

Ranking

5

Gross State Product

($ per capita)

127,213

Civilian Labor Force

1,375,100

Employment

1,196,600

Population Growth Rate

1.04%

State of Nevada was

ranked

# 5

based on given

criteria.

Chief Executive's

sixth annual survey asked 543

CEOs to grade each state based on the following

criteria:



Taxation & Regulation,



Workforce Quality



Living Environment.

(10)

Entrepreneur Friendly States:

Source: Small Business & Entrepreneurship Council. Factors in ranking included taxes and regulatory cost, government spending,

property rights, health cares, energy cost, among others -2010.

South Dakota

No. 1

Texas

No. 2

Nevada

No. 3

Wyoming

No. 4

Washington

No. 5

California

No. 49 New Jersey

No.50

D.C.

No.51

Most

Friendly

(11)

State Incentive Programs:



Sales & Use Tax Abatement – on eligible machinery and equipment;

under abatement rate would be 2%



Sales Tax Deferral – setting up interest free payment plan for taxes in

the equal monthly payments over 60 months period (5Yrs)



Modified Business Tax (Payroll Tax) Abatement

–50% for 4 Yrs on

new jobs



Personal Property Tax Abatement – up to 50% abatement of personal

property tax for up to 10 years on eligible equipment

In addition to tax incentives, the State of Nevada offers training program

incentives:



Train Employees Now (TEN)

- training administered and conducted in

partnership with Nevada’s community colleges



On the Job Training –

administered by Nevada Department of

Employment Training and Rehabilitation (DETR

)



Job Placement - Nevada Job Connect recruitment and employee

(12)

International Service

–

Foreign Trade Zones:

FTZ are restricted-access sites considered outside the U.S. Customs territory,

but physically located in the U.S.

Benefits of FTZ:



Allows foreign and domestic merchandise to be admitted for operations such

as storage, exhibition, assembly, manufacture and processing, without being

subject to formal U.S. Customs entry procedures, duties or excise taxes.



With no inventory, corporate income, or personal income taxes, Nevada’s

FTZ offers an attractive incentives.

Nevada’s Foreign Trade Zones:



FTZ Northern Nevada, Reno/Sparks:

-

at nearly 1,300 acres is one of the

largest in the nation and has been approved for Alternative Site Framework

which allows most of the metro region to be designated an FTZ in

approximately 30 days.



FTZ Southern Nevada, Las Vegas:

-

is one of the most cost-effective and

(13)

International Service

–

EB5 Visa Program:

The immigrant investor, or EB-5, program is a highly beneficial permanent residence

option for foreign investors.

Basic Criteria:

The foreign investor may invest:



in a commercial enterprise – owned by investor or by other parties, or



in a government approved Regional Center

that will create/preserve 10 full time jobs for US workers.

The amount of investment is:



$500,000 in targeted rural or high unemployment areas



$1 million in other areas

Important Note:

Investor has to be able to document the lawful source of investment funds, whether his or her own or funds given to him or her as a

gift. The permanent residence obtained by the investor is conditional for two years and can be made permanent upon satisfying

USCIS at the end of the two years that the investment proceeds have not been withdrawn and the requisite jobs have been created.

For detailed information and program criteria, contact a local Regional Center - Nevada EB5 Regional Center: Clark County, Nevada

Regional Economic Development Center (NREDC), or Las Vegas Regional Center .

(14)

Geographic Location

-

Proximity to Major Markets

Denver

Salt Lake City

Location:



Centrally located to major western cities

including San Francisco, Portland, Salt Lake

City, Las Vegas, and Los Angeles.

Megaregions:



As a part of

Northern California

and

Southern California Megaregion

Nevada has

easy access to California's markets without

California's tax burden.

•

combined 12% of US GDP is

represented in these two regions.



Because of it’s central location, Nevada also

has access to megaregions of northwest –

Cascadia

,

Arizona Sun Corridor

and

Front

Range

megaregion.

Northern California

Mega Region

(Megaregions - metropolitan area that expanded

creating interlocking economic systems)

Source: http://www.america2050.org/

Arizona Sun

Corridor

Cascadia

Front Range

Southern California

Mega Region

Las

Vegas

Reno

(15)

Infrastructure

–

Transportation Network

Highway Structure:



I-80 corridor

– servicing east-west traffic



US 395 corridor

– servicing north-south

traffic



US 50 corridor

- connects to the US 395

corridor



US 95 corridor

– connecting the I-80 corridor

and the US50 corridor and the I-15



Electric Highway

– an existing network of

chargers along I-80 to get EVs from the Bay

Area to Tahoe. NV Energy is working to

extend this electric highway into Reno.

Nevada is strategically located with an extensive transportation network

Airports:



McCarran Intl. Airport (Las Vegas)

6th busiest airport in the Northern America



Reno-Tahoe Intl. Airport

strategically located between major ports

of San Francisco and Los Angeles, this

airport is an official diversion airport for all CA

Bay Area airports.

Railroad:



Transcontinental Railroad –

has quick access

to the ports in the San Francisco Bay area and

provides efficient rail cargo distribution.

(16)

Infrastructure

–

Logistics & Distribution Network:



The logistics industry provides a complete transportation network, and international logistics

services support to key business sectors.



More than 50 carriers serve Nevada, offering transcontinental, fast-freight and van-line

shipping to major markets that are within one or two day truck transit range:

City

Reno

Las Vegas

Highway Miles Highway Miles

Denver, CO

1,044

745

Los Angeles, CA

475

271

Phoenix, AZ

753

289

Portland, OR

586

1,189

Sacramento, CA

135

562

Salt Lake City, UT

526

423

San Diego, CA

575

327

San Francisco, CA

231

570

Seattle, WA

721

1,261

Las Vegas area:

Las Vegas is a

“net-importer”

more freight arrives than

leaves, making the shipping

cost to other cities very low.

Reno area:

Logistics and distribution

are the largest segment of

the Greater Reno-Tahoe

economy and it’s ranked

“4-Star Logistics Metro”

by

2006 Logistics Quotient,

Expansion Management

and Logistics today.

One and two day trucking service from

Nevada to major markets

(17)

Workforce & Employment:

Nevada is a Right to Work State:

Right to Work Law secures the right of employees to decide for themselves

whether or not to join or financially support a union. However, employees who

Work in the railway or airline industries are not protected by a Right to Work law,

And employees who work on a federal enclave may not be.



Policy on Union Membership, Organization, etc.

-

No person shall be denied the opportunity to obtain or retain employment

because of non-membership in a labor organization.



Prohibited Activity

- Agreements prohibiting employment because of non-membership in labor

organization; strike or picketing to force or induce employer to make

agreement; compelling person to join labor organization, strike, or leave

employment; conspiracy to cause discharge or denial of employment or to

induce refusal of work on basis of membership

(18)

Nevada law requires all business owners to obtain and maintain

workers’ compensation coverage:



Employers may obtain workers’ compensation insurance

from a private insurance company

authorized to provide

workers’ compensation in Nevada by the Division of Insurance

(DOI).



If qualified, an employer

may be self-insured

through an

approval process overseen by the DOI.



For smaller businesses there are

associations of

self-insured employers

- groups of employers (generally in the

same type of business) which are members of the association

.

Workers

(19)

Education

–

Key to Success:



Excellent public & private K-12 education:

- include several charter schools

such as

Davidson Academy

, and

Carrier Technical Academies

and

Advanced

Technologies Academy



Higher education:

– Individuals* who relocate to Nevada for the primary

purpose of fulltime employment are eligible for in-state registration fees at the

Nevada System of Higher Education:



University of Nevada, Reno



University of Nevada, Las Vegas



College of Southern Nevada



Nevada State College



Truckee Meadows Community College



Western Nevada College



Sierra Nevada College



Millennium Scholarship Program:

Qualifying high school graduates in Nevada

are eligible to receive the scholarship towards their cost of education at any

Nevada public college or university, as well as certain Nevada not-for-profit

universities.

(20)

Education

-

Quality K

-

12 Education:

The Davidson Academy of Nevada:



A free public school for profoundly gifted middle and high school students.



The mission of The Davidson Academy is to provide an advanced educational

opportunity matched to their abilities, strengths and interests.



Located on the University of Nevada, Reno campus gives the opportunity for

students to access university courses for advanced studies.



To learn more visit:

http://www.davidsonacademy.unr.edu/



Advanced Technologies Academy:



A Clark County School District Magnet School.



Magnets have their roots in the concept of district-wide specialty schools.



Academy is based upon the concept of Academics plus Technology where

students are attending A-TECH study one of eight specialized program areas

based upon the integration and use of technology.

(21)

Higher Education

–

University of Nevada Reno (UNR):

The College of Engineering:



Developed nationally recognized research and outreach programs



One of the best graduate schools in the nation and also ranks in the top 5% of the

4,000 four-year colleges and universities

(U.S. News and World Report).

Research and Facilities:

- maintains a number of laboratories and research centers, including

Computer Networking Laboratory , Software Engineering Laboratory, Electric Drives Lab,

Sustainable Energy Laboratory, Renewable Energy Center

Department of Mechanical Engineering:



Accredited by the Engineering Accreditation Commission of the Accreditation

Board for Engineering Technology (ABET), Inc.

The Great Basin Center for Geothermal Energy :



Conducting research on geothermal energy as viable energy source

Renewable Energy Center, UNR and College of Engineering, UNR are conducting

research in collaboration with Sierra Nevada Co. and Desert Research Institute to

develop a transportable, renewable-energy, power generating system to produce and

supply energy.

(http://www.unr.edu/silverandblue/archive/2010/fall/NSB_Fall_2010_16-25_Web.pdf)

(22)

Higher Education

–

University of Nevada, Las Vegas

(UNLV):

The Howard R. Hughes College of Engineering:



Provides research and academic programs to more than 1,600 undergraduate and

graduate students.

Research and Facilities:

- maintains a number of laboratories and research centers, including

maintains a number of laboratories and research centers, including Center for Energy

Research, Center for Materials and Structures, Energy Materials Interaction Technology

Initiative of Nevada.

The Harry Reid Center for Environmental Studies:



Provides support multi-disciplinary research teams, provide expertise to solve

complex environmental problems, and develop innovative environmental

monitoring technology.

UNLV and a number of committed community members are developing a

Solar Solution Center that will establish UNLV as a national center of

excellence –

a solar research hub

of the Southwest.

(23)

Higher Education

–

Desert Research Institute (DRI):



Conducts cutting-edge applied research in

air

,

land and life

, and

water

quality

across Nevada, the United States and on every continent.



For higher education students, DRI provides a learning environment strongly

focused on collaborative, interdisciplinary research:



Atmospheric Sciences Graduate Program



Graduate Program of Hydrologic Sciences at UNR (rank top 10 by US News & World

Report



GreenPower Program and more



DRI is also committed to Nevada's K-12 education system and the professional

development of its teachers. DRI emphasizes "teaching the teachers" so they can

bring real world knowledge back into their classrooms.

The DRI Clean Technologies and Renewable Energy Center is

focused on wind energy application, bio-mass energy systems

research and development

(24)

Millennium Scholarship Program:

Qualifying high school graduates in Nevada are eligible to receive the

scholarship towards their cost of education at any Nevada public

college or university, as well as certain Nevada not-for-profit

universities.

In 1999, the Governor Guinn Millennium

Scholarship initiative was enacted into law by

the Nevada Legislature, creating the

Millennium Scholarship trust fund to be

administered by the State Treasurer.

(25)

World Class Research Institutes:

Nevada has some of the world finest research

institutes:



UNLV Harry Reid Research & Technology Park



Nevada Cancer Institute



Cleveland Clinic Lou Ruvo Center for Brain Health



The Nevada Neuroscience Institute



Desert Research Institute (DRI)

(26)

Why Nevada?

Corporate Advantages

:



It is one of the top states in which to operate because of its well-established

reputation for business-friendly laws and tax structure, an accessible

regulatory environment, legal system that works in favor of business, and

economic development incentive programs

.

Geographic Location

-

Proximity to Major Markets



Nevada has easy access to California's markets, a superior infrastructure –

logistic & distribution network, telecommunications and utilities.

Lifestyle Advantages

:



Strong quality educational institutions, available professional and

cost-effective workforce.



Fast-paced cities, comfortable, family-based communities, arts, culture,

(27)

www.DiversifyNevada.com

(800) 336

-

1600

808 West Nye Lane

Carson City, NV 89703

Phone (775) 687

–

9900

Fax (775) 687

-

9925

555 E. Washington Avenue, Suite 5400

Las Vegas, NV 89101

Phone (702) 486

-

2700

Fax (702) 486

-

2701

Nevada Commission on Economic Development

(28)

Section 2

(29)

Low Tax Environment

TAX CLIMATE

The outstanding tax climate in Nevada is one of the best reasons to do business

in the state. This tax structure also clearly distinguishes Nevada as offering a

business environment very few states can match.

In Nevada there is:



No

Corporate Income Tax



No

Personal Income Tax



No

Franchise Tax on Income



No

Inheritance or Gift Tax



No

Unitary Tax



No

Estate Tax



Competitive Sales and Property Tax Rates



Minimal Employer Payroll Tax

STATE INCENTIVES

In addition to the minimal tax environment, Nevada has programs to reduce the

amount of taxes that it does impose. We offer sales tax abatement and deferral

programs, payroll tax abatements and property tax abatements to qualifying

companies. Since the state doesn’t collect corporate income taxes, we don’t offer

complicated and misleading tax credits like many other states.

(30)

For more detailed information about these programs, please see

the following overviews:

Sales and Use Tax Abatement

Sales and use tax abatements are available for purchases of capital

equipment. An application for abatement must be made in advance

to the Commission or, if the purchase has been made, within 60

days after the date on which the tax was due. If application for

abatement is approved, the taxpayer is eligible for a refund of the

tax paid (NRS 372.297 (2)).

Sales and Use Tax Deferral

Sales and use tax deferrals are available for purchases of capital

equipment. An application for deferral must be made in advance to

the Commission or, if the purchase has been made, within 60 days

after the date on which the tax was due. If the application for a

deferment is approved, the taxpayer is eligible for a refund of the

tax paid (NRS 372.397(2)).

Personal Property Tax Abatement

Partial abatement from personal property taxes is available to

companies who locate or expand their business in Nevada. The

applicant must apply for abatement not more than one year before

the business begins to develop for expansion or operation in

Nevada. Applications are due at least 15 working days prior to the

Commission meeting.

Modified Business Tax Abatement

A modified business tax (excise tax) is imposed on each employer at

the rate of 0.63 percent of the wages as defined in NRS 612.190,

paid by the employer during a calendar quarter with respect to

employment. Effective July 1, 2005, a partial abatement of tax

(31)

during the initial period of operation is available. Qualifying

employers may apply for an abatement of 50 percent of the tax

otherwise due during the first four years of its operations.

Train Employees Now (TEN)

The Nevada Train Employees Now Program provides short-term,

skills based intensive job training to assist new and expanding firms

to reach productivity quickly. A customized program is designed

covering recruitment, hiring and job training for Nevada residents. It

is the State's policy to support firms demonstrating a

human-relations commitment through a meaningful wage and fringe benefit

policy.

Property Tax Abatement for Recycling

Partial abatement for real property taxes for recycling is available to

the business begins to develop for expansion or operation in

Nevada. Applications are due at least 15 working days prior to the

Commission meeting.

Intellectual Property Development

Partial abatement of sales tax, modified business tax and personal

property tax is available to intellectual property development

the business begins to develop for expansion or operation in

Nevada. Applications are due at least 30 working days prior to the

Commission meeting.

Source: Nevada Commission on Economic Development, January

2011

(32)

Incentives

All links open in Adobe Acrobat in a new window



Minimum State Requirements for Urban Areas



Minimum State Requirements for Rural Areas



Minimum State Requirements for Expansions



Minimum State Requirements for Urban Recycling and

Intellectual Property



Minimum State Requirements for Rural Recycling and

Intellectual Property



Financial Incentives for Energy Efficiency

- This summary

table provides a snapshop of government and utility financial

incentives that promote energy efficiency in the United States.



Financial Incentives for Renewable Energy

- This summary

table provides a snapshot of government, utility, and non-profit

financial incentives that promot e renewables in the United

States.

Property Taxes

Nevada Property Tax Rates by County

Calculating Real Property Taxes

The formula for calculating real property tax is as follows:

Taxable Value x Level of Assessment = Assessed Value

Assessed Value x Tax Rate = Total Real Property Tax

For more information, please see

How Property Taxes are

Calculated.

(33)

Using the Cost Conversion Factor tables in the

Personal Property

Manual

, use the following formula to calculate the assessed value.

The assessed value is the value on which taxes are calculated.

Actual Cost x Cost Index (for appropriate year) = Cost of

Replacement

Cost of Replacement x Percent Good = Taxable Value

Taxable Value x .35 = Assessed Value

Assessed Value x Tax Rate = Total Personal Property Tax

For more information on state incentives or taxes, contact our

Economic Development Department at

1.800.824.8856

.

Comparisons

Tax Comparisons



Arizona vs Nevada

o

Based on $25 million in net profit

o

Based on $50 million in net profit

o



California vs Nevada

o



Colorado vs Nevada

o



Idaho vs Nevada

o

(34)

o



New Mexico vs Nevada

o



Oregon vs Nevada

o

Based on $50 million in net profit

o



Utah vs Nevada

o



Washington vs Nevada

Company Paid Taxes

Payroll taxes

Effective July 1, 2009 -

SB429 changes the tax rate for general

business employers and created a tiered system.



If the sum of all taxable wages, after health care deductions,

paid by the employer does not exceed $62,500 for the

calendar quarter, the amount of tax is 0.5% of the sum of

those wages (0.005).



If the sum of all the wages paid by the employer exceeds

$62,500 for the calendar quarter, the tax is $312.50 plus

1.17% of the amount the wage exceeds $62,500.

For example: if the sum of all wages for the 12/09 quarter is

$101,000. The tax is $312.50 plus $450.45 (0.0117 x $38,500 which

(35)

is the amount exceeding $62,500) = total tax due is $762.95. For

more information please visit the

Nevada Department of Taxation.

Inventory Tax

Nevada has NO Inventory Tax on inventories held for sale within

Nevada or for interstate transit.

Company Paid Unemployment

New employers pay Unemployment Insurance (UI) taxes at a rate of

3 percent of taxable wages until they are eligible for experience

rating. The employer retains this rate for a period of 14 to 17

calendar quarters (depending on the quarter in which he becomes

subject to the law), after which his rate will be determined under the

"Experience Rating" system.

Once you are eligible for experience rating, your rate is determined

by two factors:



Your reserve ratio, which is a measure of your previous

experience with unemployment (See page 17 of the Nevada

Unemployment Compensation Program employer handbook);

and



The reserve ratio schedule in effect. The administrator

establishes, by regulation, the schedule to be in effect for

each calendar year. Changes to the schedule are made

according to the trust fund balance, economic conditions, and

forecasts. The law provides for an annual test of the trust fund

for a guideline. The balance should be sufficient to pay

benefits for one full year, disregarding any additional income

(Department of Labor recommends sufficient funds to pay

benefits for 1-2 years).

(36)

Business Tax Climate Index Rankings

State

Overall

Rank

Index Rank

Corporate

Tax

Individual

Income

Tax

Sales

Tax

Unemployment

Insurance Tax

Property

Tax

Nevada

4

3

6

43

40

17

Arizona 34

22

23

48 2

6

California 49

33

48

49 14

16

Colorado 15

12

16

29 17

15

Idaho 18 17

29

12

48

2

New

Mexico

33 31

20 45

16

1

Oregon 14

45

46

4 37

5

Utah 9 6

13 27

24

3

Washington 11

32

1

50

25

19

Source:

Tax Foundation's State Business Tax Climate Index,

2011 rankings

Note: Rankings do not average across to total

Business Tax Index

State

State Tax

Score

State Rankings

Rank

Tax

Score

Personal

Income Tax

Ranking/Rate

Capital

Gains Tax

Ranking/Rate

Corporate

Income Tax

Ranking/Rate

Corporate

Capital Gains

Tax

Ranking/Rate

Nevada

3

12.257

1/0.000

Arizona 17

33.286

16/4.540 17/4.540 25/6.968 26/6.968

California 48 50.126

48/10.550 49/10.550 42/8.840 43/8.840

Colorado 10 26.855

17/4.630

18/4.630 8/4.630 10/4.630

Idaho 39

42.710

41/7.800 42/7.800 29/7.600 30/7.600

New

Mexico

25 35.846

19/4.900

9/2.450 29/7.600

30/7.600

Oregon 43

45.833

50/11.000 51/11.000 32/7.900 33/7.900

Utah 23

35.330

20/5.000

21/5.000 9/5.000 11/5.000

Washington 5

15.570 1/0.000 1/0.000 1/0.000 1/0.000

State

State Rankings

State & Local Property Tax

Ranking/Rate

Adjusted Unemployment Tax

Ranking/Rate

Nevada

19/2.82

40/3.25

(37)

California 16/2.74

2/0.80

Colorado 20/2.84

12/1.11

Idaho 11/2.34

48/4.98

New Mexico 5/1.67

37/2.81

Oregon 26/3.01

43/4.02

Utah 14/2.56

51/6.39

Washington 17/2.77

44/4.04

(38)

Partial sales and use tax abatements are available for purchases of capital equipment. The

abatement reduces the applicable tax rate to 2%.

An application for abatement must be

made in advance to the Commission or, if the purchase has been made, within 60 days

after the date on which the tax was due. If the application for abatement is approved, the

taxpayer is eligible for a refund of the tax paid (NRS 372.297 (2)).

Eligible Goods

are capital goods which an allowance for depreciation is authorized

pursuant to the US Internal Revenue code, Section 179, as described in Publication 534,

Depreciation under “Qualifying Property,” and which directly provides jobs within the

State of Nevada as a result of the use of the capital goods by the purchaser.

Ineligible Goods

are capital goods purchases including, but not limited to: buildings or

their structural components, equipment utilized by a public utility, equipment used for

medical treatment, and machinery and equipment used in construction, gaming, and

mining industries.

Objectives.

The purchases are consistent with the Commission’s State Plan for Industrial

Development and Diversification. The overall objectives of the State Plan for Economic

Diversification and Development include:



Diversification from the gaming and hospitality industry;



Exporting a majority of goods or services outside the economic region;



Attraction of basic industries such as manufacturing, warehousing and distribution, and

back-office operations—all of which shall create primary jobs as defined in the NAC;



Attraction of business facilities and services such as corporate headquarters, research

and development operations, and producer services—all of which shall create primary

jobs as defined in the NAC; and



Expansion of existing basic businesses and industries as described above.

The Company’s Responsibilities.

The company will provide a medical insurance plan

for all employees including an option for dependent health insurance coverage. The

company will also pay at least 25% of the employee premium cost. The business is

expected to register pursuant to the laws of Nevada and to obtain all licenses and permits

required by Nevada and the county, city or town in which the business operates. The

applicant commits to maintaining the business in Nevada for 5 years. Abatement is

voidable if business fails to comply with any of the terms of the agreement. Audits will be

done by the Nevada Department of Taxation after 2 and 5 years to ensure compliance.

Eligibility.

The Commission on Economic Development will look for the following

criteria when reviewing the applicant’s eligibility for abatement. Two of the following

three criteria must be met

Wage Requirement.

The company’s average hourly wage at the Nevada facility

must equal or exceeds 100% of the county average hourly wage or statewide

average hourly wage, whichever is less. The statewide average hourly wage

established for FY 2012 is $19.83. The FY 2012 countywide average wages are

available in a separate document.

Sales and Use Tax Abatement

S t a t e o f N e v a d a

NRS 360.750, 374.357

Criteria (2 of 3):

The average hourly wage for the fiscal year.

The number of full-time permanent jobs by the fourth quarter of operation in Nevada, and continue to employ the minimum.

The capital investment required for the type of business or expansion based on county/city population.

www.DiversifyNevada.com

Mission:

The Nevada Commission on Economic Development promotes a robust, diversified and prosperous economy, enriching the quality of life for Nevada citizens by stimulating business expansion and retention, encouraging entrepreneurial enterprise, attracting new businesses and facilitating community development to enable economic growth and prosperity.

(39)

808 West Nye Lane Carson City, Nevada 89703

775-687-9900

Fax: 775-687-9924 / 775-687-9925 www.DiversifyNevada.com

Number of Jobs Required

.

For counties or cities with a population of more than

100,000 or 60,000 respectively requires a minimum of 75 full-time permanent jobs in

Nevada by the fourth quarter of operation and continue to employ at least the

minimum. For counties or cities with a population of less than 100,000 or 60,000

respectively requires a minimum of 15 full-time permanent jobs in Nevada by the

fourth quarter of operation and continue to employ at least the minimum. For an

expansion, the company must increase the number of employees on the payroll by 10%

or six employees, whichever is greater.

Capital Investment Requirement.

For counties or cities with a population of more

than 100,000 or 60,000 respectively a capital investment of $1 million is required. For

counties or cities with a population of less than 100,000 or 60,000 respectively a capital

investment of $250,000 is required.

As a condition of approval, applicant agrees in writing to supply upon request copies of all

necessary records for the Commission’s director to verify the applicant meets all

requirements.

The Commission on Economic Development reserves the right to grant or deny

certification on a case-by-case basis.

If an applicant is approved, the taxpayer is eligible for tax abatements for two years. The

start date begins when the first piece of equipment is delivered to the designated facility or

taxes are paid on the equipment.

If a business is not maintained in this state for five years after tax abatement approval, the

company will repay to the Department of Taxation the amount of the abatement allowed

before the failure to comply. Interest will be repaid on the amount due at the rate most

recently established pursuant to NRS 99.040, or portion thereof, from the last day of the

month following the period payment would have been made had the abatement not been

granted, until the date of the actual tax payment. The Nevada Department of Taxation can

determine the business has substantially complied with the requirements.

Applicant should allow a minimum of 30 working days prior to the next regularly

scheduled Commission meeting for application processing. Those requiring special review

and consideration may require a longer period of time to complete the certification process.

The applicant will register with the Department of Taxation on a separate form if an

account has not been established.

Upon certification, the Commission will immediately forward the application for abatement

to the Nevada Department of Taxation – the administrator for tax abatements. The Tax

Department’s Revenue Division will determine what purchases qualify for abatement,

verify the sale, the price paid, and the date of sale.



S a l e s a n d U s e T a x A b a t e m e n t

P a g e 2

Vision: Founded on principles of innovation, sustainability and inclusiveness, Nevada’s economic platform will be driven by renewable energy, future-based

technology and human ingenuity to promote new business opportunity in every community.

(40)

Sales and use tax deferrals are available for purchases of capital equipment. An application

for deferral must be made in advance to the Commission or, if the purchase has been made,

within 60 days after the date on which the tax was due. If the application for a deferment is

approved, the taxpayer is eligible for a refund of the tax paid (NRS 372.397(2)).

Eligible Goods

are capital goods that an allowance for depreciation is authorized pursuant to

the U.S. Internal Revenue Code, Section 179, as described in Publication 534, Depreciation

under "Qualifying Property," and will directly provide jobs within the State of Nevada as a

result of the use of the capital goods by the purchaser.

Ineligible Goods

are capital goods purchases including, but not be limited to: buildings or

their structural components, equipment utilized by a public utility, equipment used for

medical treatment, and machinery and equipment used in gaming or mining.

Objectives.

The purchases are consistent with the Commission's State Plan for industrial

development and diversification. The overall objectives of the State Plan for Economic



Diversification of the gaming and hospitality industry;



Exporting a majority of goods or services outside the economic region;



Attraction of business facilities and services such as corporate headquarters, research and

development operations, and producer services—all of which shall create primary jobs as

defined in the NAC; and



Expansion of businesses and industries as described above. Expansions must include

increase in the number of employees and increase in the square footage of existing facility.

for all employees including an option for dependent health insurance coverage. The

expected to register pursuant to the laws of Nevada and to obtain all licenses and permits

voidable if business fails to comply with any of the terms of the agreement. Audits will

be done by the Nevada Department of Taxation after 2 and 5 years to ensure compliance.

Eligibility.

The Commission on Economic Development shall certify the applicant's

eligibility for deferment if:

Number of Jobs Required.

The purchase will provide a minimum of 10

permanent jobs in Nevada.

Wage Requirement.

The company's average hourly wage for employees at the

Sales and Use Tax Deferral

NRS 360.750, 372.397

Criteria (2 of 3):

www.DiversifyNevada.com

Mission:

(41)

Nevada facility will equal or exceed 80% of the average statewide hourly wage

established by the Nevada Department of Employment, Training and Rehabilitation.

The average hourly wage established for FY 2012 is $19.83 and 80% is $15.86.

Minimum Purchase.

A minimum of $100,000 capital equipment purchase is

required for a tax deferral.

If the sales price is:



At least $100,000 but less than $350,000, the tax must be paid within 12 months



At least $350,000 but less than $600,000, the tax must be paid within 24 months



At least $600,000 but less than $850,000, the tax must be paid within 36 months



At least $850,000 but less than 1,000,000, the tax must be paid within 48 months



$1,000,000 or more, the tax must be paid within 60 months

The Commission on Economic Development reserves the right to grant or deny certification

on a case-by-case basis.

Applicant should allow a minimum of 30 working days prior to the next regularly scheduled

Commission meeting for application processing. Those requiring special review and

consideration may be granted a longer period of time to complete the certification process.

Upon certification, the commission will immediately forward the application for deferment to

the Nevada Department of Taxation – the administrator for tax deferrals. The Tax

Department’s Revenue Division will determine what purchases qualify for deferral, verify the

sale, the price paid, the date of sale, and assign the applicable period for payment of the

deferred tax. A security bond equal to the tax deferred is required.

account has not been established.

to the Nevada Department of Taxation



S a l e s a n d U s e T a x D e f e r r a l

P a g e 2

Vision: Founded on principles of innovation, sustainability and inclusiveness, Nevada’s economic platform will be driven by renewable energy, future-based technology and human ingenuity to promote new business opportunity in every community.

808 West Nye Lane Carson City, Nevada 89703 775-687-9900

(42)

Partial abatement from personal property taxes is available to companies who locate or

expand their business in Nevada. The abatement can be up to 50% of the taxes due for up

to 10 years. The applicant must apply for abatement not more than one year before the

business begins to develop for expansion or operation in Nevada. Applications are due at

least 30 working days prior to the Commission meeting.

Objectives.

The company is consistent the Commission on Economic Development’s

State Plan for Industrial Development and Diversification. The overall objectives of the

State Plan for Economic Diversification and Development include:



Exporting a majority of goods or services outside the economic region;



jobs as defined in the NAC; and



Eligible Goods

are capital goods which an allowance for depreciation is authorized

pursuant to the US Internal Revenue code, Section 179, as described in Publication 534,

Depreciation under “Qualifying Property,” and which directly provides jobs within the

State of Nevada as a result of the use of the capital goods by the purchaser.

Ineligible Goods

are capital goods purchases including, but not limited to: buildings or

their structural components, equipment utilized by a public utility, equipment used for

medical treatment, and machinery and equipment used in construction, gaming, and

mining industries.

The company will provide a medical insurance plan

expected to register pursuant to the laws of Nevada and to obtain all licenses and permits

applicant commits to maintaining the business in Nevada for 5 years. Abatement is

Eligibility.

The Commission on Economic Development will look for the following criteria

when reviewing applicant's eligibility for abatement. Two of the following three criteria are

required:

Wage Requirement.

must equal or exceeds 100% of the county average hourly wage or statewide

Personal Property Tax Abatement

NRS 360.750, 361.0687

Criteria:

www.DiversifyNevada.com

Mission:

(43)

average hourly wage, whichever is less. The statewide average hourly wage

established for FY 2012 is $19.83 The FY 2012 countywide average wages are

available in a separate document. For new businesses, compliance with this criteria

is required.

Number of Jobs Required

.

For counties/cities with a population of more than

100,000/60,000 a minimum of 75 full-time permanent jobs in Nevada is required

by the fourth quarter of operation and continues to employ at least the minimum.

For counties/cities with a population of less than 100,000/60,000 a minimum of 15

full-time permanent jobs in Nevada in required by the fourth quarter of operation

and continues to employ at least the minimum. For an expansion, the company

must increase the number of employees on the payroll by 10% or six employees,

whichever is greater.

For counties/cities with a population of more

than 100,000/60,000, the business will make a capital investment of $50 million if

the business is an industrial or manufacturing business or at least $5 million if the

business is not an industrial or manufacturing business. For counties/cities with a

population of less than 100,000/60,000, the business will make a capital investment

of $5 million if the business is an industrial or manufacturing business or at least

$500,000 if the business is not an industrial or manufacturing business. For new

businesses, the parameter is required. In cases of expansion, the capital investment

must equal at least 20% of the value of tangible property possessed by the business.

If a business is not maintained at the approved level in this state for 5 years after tax

abatement approval, the company will repay to the Department of Taxation the amount of

the abatement allowed before the failure to comply. Interest will be repaid on the amount

due at the rate most recently established pursuant to NRS 99.040, or portion thereof, from

the last day of the month following the period payment would have been made had the

abatement not been granted, until the date of the actual tax payment. The Nevada

Department of Taxation will determine if the business has substantially complied with the

requirements.

necessary records for the Commission’s director to verify the applicant meets all

requirements.

The Commission on Economic Development reserves the right to grant or deny

P e r s o n a l P r o p e r t y T a x A b a t e m e n t

P a g e 2

(7/11)

808 West Nye Lane Carson City, Nevada 89703 775-687-9900

(44)

A modified business tax is imposed on each employer at the rate of 1.17% on wages over

$62,500 after health care deductions per quarter. Wages are as defined in NRS 612.190,

paid by the employer during a calendar quarter with respect to employment.

A partial abatement of the tax during the initial period of operation is available.

Qualifying employers may apply for an abatement of 50 percent of the tax otherwise due

during the first four years of its operations.

Objectives.

The business is consistent with the Commission’s State Plan for Industrial

Development and Diversification. The overall objectives of the State Plan for Economic



Exporting a majority of goods or services outside the economic region;



jobs as defined in the NAC; and



expected to register pursuant to the laws of Nevada and to obtain all licenses and permits

Eligibility.

The Commission on Economic Development will review the following

criteria when regarding the applicant’s eligibility for abatement. Two of the follow three

criteria must be met:

Wage Requirement.

must equal or exceed 100% of the county average hourly wage or statewide

average hourly wage, whichever is less. The statewide average hourly wage

established for FY 2012 is $19.83. The FY 2012 countywide average wages are

available in a separate document.

Number of Jobs Required

.

For counties or cities with a population of more than

100,000 or 60,000 respectively requires a minimum of 75 full-time permanent jobs

in Nevada by the fourth quarter of operation and continue to employ at least the

minimum. For counties or cities with a population of less than 100,000 or 60,000

respectively requires a minimum of 15 full-time permanent jobs in Nevada by the

Modified Business Tax Abatement

NRS 363B.120

Criteria—

2 of 3 required

:

The number of full-time permanent jobs by the fourth quarter of operation in Nevada, and continue to employ the minimum.

www.DiversifyNevada.com

Mission:

(45)

fourth quarter of operation and continue to employ at least the minimum. For an

expansion, the company must increase the number of employees on the payroll by

10% or six employees, whichever is greater.

For counties or cities with a population of more

than 100,000 or 60,000 respectively a capital investment of $1 million is required. For

counties or cities with a population of less than 100,000 or 60,000 respectively a capital

investment of $250,000 is required.

necessary records for the Commission’s director to verify the applicant meets all

requirements.

The Commission on Economic Development reserves the right to grant or deny

If an applicant is approved, the taxpayer is eligible for tax abatements for four years. The

start date begins when the first qualified employee is hired at the designated facility.

If a business is not maintained at the approved level in this state for five years after tax

abatement approval, the company will repay to the Department of Taxation the amount of

the abatement allowed before the failure to comply. Interest will be repaid on the amount

due at the rate most recently established pursuant to NRS 99.040, or portion thereof, from

the last day of the month following the period payment would have been made had the

abatement not been granted, until the date of the actual tax payment. The Nevada

Department of Taxation may determine the business has substantially complied with the

requirements.

Applicant should allow a minimum of 30 working days prior to the next regularly

scheduled Commission meeting for application processing. Those requiring special review

and consideration may require a longer period of time to complete the certification process.

to the Nevada Department of Taxation – the administrator for tax abatements.



M o d i f i e d B u s i n e s s T a x A b a t e m e n t

P a g e 2

(7/11)

808 West Nye Lane Carson City, Nevada 89703 775-687-9900

(46)

Train Employees Now

NRS 231.068, 231.147

Criteria:

www.DiversifyNevada.com

Mission:

The Nevada Train Employees Now Program provides short-term, skills-based intensive

job training to assist new and expanding firms to reach productivity quickly. A

customized program is designed covering recruitment, hiring and job training for Nevada

residents.

Each training program is designed jointly by the firm and state agencies. Major elements of

the program include the development of a job applicant list, programming, materials, and

classroom training. State agencies involved are the Commission on Economic Development,

Department of Employment, Training and Rehabilitation (DETR) and the Nevada System of

Higher Education. Training providers include local community colleges, private

post-secondary institutions, or others identified by the applicant.

Program Benefits

1. Assistance with employee screening;

2. The employer determines the goals and objectives of the training;

3. Most direct training costs are eligible for reimbursement, including:



Consumable materials and equipment;



Rental of tools and equipment;



Rental of training site;



Instructor salaries and benefits;



Travel and per diem for limited number of instructors and trainees (if applicable).

Eligibility



Businesses must hire a minimum of 10 trainees to participate. Trainees must be Nevada

residents. Generally the ceiling expenditure per trainee is $1,000.



Wages for jobs considered for training must exceed 80% of the statewide average annual

hourly wage (Current statewide average hourly wage is $19.83 and 80% equals $15.86)



Businesses must provide health insurance with option for dependents.



Training is provided only for full-time, primary jobs created by companies locating or

undertaking a significant expansion in Nevada.



Existing businesses must prove growth by significantly increased employment or other

factors indicating new investment and job creation.



Grants are available for short-term customized training for new employees.



Classroom training is limited to 30 days of training, with the exception of published

community college courses, and must be completed within a 180-day period.



Training must commence within the first 90 days after approval by the Commission, with

a written request to the executive director, an extension maybe granted up to an additional

90 days. If the deadline is not met, the Commission, after review and reconsideration,

may reallocate the monies to other companies seeking funding during the fiscal year.



The program can fund up to 75% of total eligible costs. The company is required to