[Rev. 3/27/2014 8:40:12 PM]

 

This chapter of NAC has changes which have been adopted but have not been codified; you can see those changes by viewing the following regulation(s) on the Nevada Register of Administrative Regulations: R094-10, R064-13, R065-13

[NAC-701A Revised Date: 11-08]

CHAPTER 701A - ENERGY-RELATED TAX INCENTIVES

GREEN BUILDINGS: ELIGIBILITY FOR PARTIAL ABATEMENT OF PROPERTY TAXES

701A.010           Definitions.

701A.020           “Applicable LEED standard” defined.

701A.030           “Building or other structure” defined.

701A.040           “Construction contract” defined.

701A.050           “Director” defined.

701A.060           “Funding” defined.

701A.070           “LEED” defined.

701A.080           “LEED accredited professional” defined.

701A.090           “LEED-CS” defined.

701A.100           “LEED-EB” defined.

701A.110           “LEED Green Building Rating System” defined.

701A.120           “LEED-NC” defined.

701A.130           “LEED standard” defined.

701A.140           “Local government approval” defined.

701A.150           “Partial tax abatement” defined.

701A.160           “Pre-2007 applicant” defined.

701A.170           “Pre-2007 Green Building Rating System” defined.

701A.180           “Preconstruction contract” defined.

701A.190           “Significant change in the scope of the project” defined.

701A.200           LEED Green Building Rating System: Adoption of certain portions by reference; review and effect of new or updated standards.

701A.210           Exclusions from and modifications to LEED Green Building Rating System; use of independent third-party commissioning firm by applicant for partial tax abatement.

701A.220           Application for partial tax abatement; notification by Director.

701A.230           Amendment of application after significant change in scope of project.

701A.240           Submission of required proof or application for extension; issuance and contents of certificate of eligibility or certificate of ineligibility; effective date of abatement.

701A.250           Required proof that building meets equivalent of silver level or higher of LEED Green Building Rating System; additional required documentation.

701A.260           Submission of information regarding receipt of another abatement or exemption; designation and duties of tax abatement coordinator for building; suspension of certificate of eligibility; issuance of certificate of termination or reduction of eligibility.

701A.270           Building included in construction project registered with Office of Energy before June 15, 2007: Submission and processing of application for partial tax abatement; provisions applicable to pre-2007 applicant.

701A.280           Duration of partial tax abatement based upon number of points awarded for energy conservation by U.S. Green Building Council.

701A.290           Waiver of requirements by Director.

GREEN BUILDINGS: LOCAL ADMINISTRATION OF PARTIAL TAX ABATEMENT

701A.300           Definitions.

701A.310           “Department” defined.

701A.320           “Eligible building or other structure” defined.

701A.330           “LEED abatement” defined.

701A.340           “LEED abatement percentage” defined.

701A.350           “Net taxable value” defined.

701A.360           Duties of county tax receiver regarding property that includes eligible building or other structure.

701A.370           Reports by county tax receiver.

 

 

 

GREEN BUILDINGS: ELIGIBILITY FOR PARTIAL ABATEMENT OF PROPERTY TAXES

      NAC 701A.010  Definitions. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)  As used in NAC 701A.010 to 701A.290, inclusive, unless the context otherwise requires, the words and terms defined in NAC 701A.020 to 701A.190, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.020  “Applicable LEED standard” defined. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)  “Applicable LEED standard” means the version of the LEED standard in effect at the time an applicant registers a project with the U.S. Green Building Council.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.030  “Building or other structure” defined. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)  “Building or other structure” means an improvement on real property that is being considered for or has been granted certification by the U.S. Green Building Council.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.040  “Construction contract” defined. (§ 15.5 of ch. 539, Stats. 2007)  “Construction contract” means a contract between an owner of real property or an affiliate or subsidiary of the owner, and a contractor or construction manager which:

     1.  Defines their respective roles and responsibilities for the construction of a project on the property;

     2.  Establishes the scope of work, the amount of money to be paid to the contractor or construction manager and the allowable time for the duration of the contract; and

     3.  Describes the terms and conditions of a construction project.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.050  “Director” defined. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)  “Director” means the Director of the Office of Energy within the Office of the Governor.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.060  “Funding” defined. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)  “Funding” includes, without limitation, equity, any form of indebtedness, any grant, any gift or anything else of value.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.070  “LEED” defined. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)  “LEED” means Leadership in Energy and Environmental Design.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.080  “LEED accredited professional” defined. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)  “LEED accredited professional” means a person who holds a LEED Accredited Professional Certificate issued by the U.S. Green Building Council.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.090  “LEED-CS” defined. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)  “LEED-CS” means the LEED Green Building Rating System for Core and Shell Development.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

 

      NAC 701A.100  “LEED-EB” defined. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)  “LEED-EB” means the LEED Green Building Rating System for Existing Buildings, Upgrades, Operations and Maintenance.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.110  “LEED Green Building Rating System” defined. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)  “LEED Green Building Rating System” means those portions of the Leadership in Energy and Environmental Design Green Building Rating System developed by the U.S. Green Building Council that are adopted by the Director pursuant to NAC 701A.200.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.120  “LEED-NC” defined. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)  “LEED-NC” means the LEED Green Building Rating System for New Construction & Major Renovations.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.130  “LEED standard” defined. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)  “LEED standard” means all versions of a specific rating system within the LEED Green Building Rating System, including, without limitation, LEED-NC, LEED-EB and LEED-CS.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.140  “Local government approval” defined. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)  “Local government approval” means any document which, in the judgment of the Director, demonstrates that the local government in which a construction project is located has granted approval to begin construction of the building or other structure that is the subject of an application for a partial tax abatement.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.150  “Partial tax abatement” defined. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)  “Partial tax abatement” means a partial abatement from the taxes imposed on real property by chapter 361 of NRS.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.160  “Pre-2007 applicant” defined. (§ 15.5 of ch. 539, Stats. 2007)  “Pre-2007 applicant” means an applicant for a partial tax abatement for a construction project that includes a building or other structure:

     1.  Which is constructed pursuant to a preconstruction or construction contract executed on or before December 31, 2005;

     2.  Which is part of a construction project for which the Office of Energy Project Registration Form was filed with and received by the Office of Energy pursuant to the provisions of former NAC 701.480; and

     3.  For which an opinion letter was issued by the Department of Taxation before February 1, 2007, stating that the project will qualify for a partial sales and use tax exemption under Assembly Bill No. 3 (Special Session 2005) if certain conditions are met.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.170  “Pre-2007 Green Building Rating System” defined. (§ 15.5 of ch. 539, Stats. 2007)  “Pre-2007 Green Building Rating System” means the LEED Green Building Rating System adopted by the Director pursuant to the provisions of former NRS 701.217, as that rating system existed before June 15, 2007, including the provisions of the regulations that are repealed by section 31 of this regulation.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

REVISER’S NOTE.

      The regulation of the Director of the Office of Energy filed with the Secretary of State on December 4, 2007 (LCB File No. R116-07), the source of this section, contains the following provision not included in NAC:

      “Sec. 31.  LCB File No. R025-06, which was codified as NAC 701.400, 701.410, 701.420, 701.430, 701.440, 701.450, 701.460, 701.470, 701.480 and 701.490, LCB File No. R170-06 and LCB File No. T006-06 are hereby repealed.”

 

      NAC 701A.180  “Preconstruction contract” defined. (§ 15.5 of ch. 539, Stats. 2007)  “Preconstruction contract” means a written and executed agreement that:

     1.  Precedes the construction of or the execution of a construction contract for a project for which a partial tax abatement is sought;

     2.  Clearly indicates a commitment to construct the project; and

     3.  Is entered into to provide at least one of the following services relating to the construction project:

     (a) Project financing;

     (b) Engineering;

     (c) Design;

     (d) Architecture;

     (e) Labor; or

     (f) Subcontracting.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.190  “Significant change in the scope of the project” defined. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)  “Significant change in the scope of the project” means:

     1.  A change by more than 10 percent in the gross square footage of any building or other structure for which a partial tax abatement is sought;

     2.  A change in the level of LEED certification being sought if the change will affect the amount of the partial tax abatement being sought; or

     3.  Any other change, including, without limitation, any change in the square footage or estimated costs of any building or other structure for which a partial tax abatement is sought, which will change the amount of the partial tax abatement being sought by more than 10 percent, except that changes resulting from increases in square footage, costs or any other factor affecting the amount of the partial tax abatement relating to the project as represented in the application therefor, including any amendments or disputed claims with a contractor or supplier relating to those costs, will not be considered a significant change in the scope of the project until they are reasonably final and known to the owner.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.200  LEED Green Building Rating System: Adoption of certain portions by reference; review and effect of new or updated standards. (NRS 701A.100, 701A.110, § 15.5 of ch. 539, Stats. 2007)

     1.  The LEED Green Building Rating System is adopted for use in this State with regard to certain buildings or other structures for the purposes of determining eligibility for partial tax abatements.

     2.  Except as otherwise provided in this subsection and NAC 701A.210:

     (a) The Director hereby adopts by reference all versions of the following LEED standards:

          (1) LEED-NC;

          (2) LEED-EB; and

          (3) LEED-CS.

     (b) If the U.S. Green Building Council adopts a new or updated version of a LEED standard after December 4, 2007, the Director will determine whether the new or updated version is appropriate for use in this State and, if the Director determines that the new or updated version:

          (1) Is appropriate for use in this State:

               (I) The new or updated version becomes effective on such a date as may be determined by the Director; and

               (II) The Director will post a notice of approval, a copy of the new or updated version and the effective date thereof at the State Library and Archives and the Office of Energy, and on the Internet website of the Office of Energy; or

          (2) Is not appropriate for use in this State, the version of the LEED standard that was most recently adopted by the Director or determined to be appropriate for use in this State pursuant to this subsection continues to be effective.

     3.  The Director will review, evaluate and consider new and updated versions of LEED standards at least once each year.

     4.  A copy of the LEED Green Building Rating System is available free of charge on the Internet website of the U.S. Green Building Council.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.210  Exclusions from and modifications to LEED Green Building Rating System; use of independent third-party commissioning firm by applicant for partial tax abatement. (NRS 701A.100, 701A.110, § 15.5 of ch. 539, Stats. 2007)

     1.  In accordance with the provisions of NRS 701A.100, the LEED Green Building Rating System adopted by the Director pursuant to NAC 701A.200:

     (a) Does not include any LEED standard:

          (1) That has not been included in the LEED Green Building Rating System for at least 2 years at the time the applicant provides proof to the Director pursuant to NAC 701A.240 and 701A.250 that the building or other structure meets the equivalent of the silver level or higher of the LEED Green Building Rating System adopted by the Director; or

          (2) For homes.

     (b) Shall be deemed to require a building or other structure to obtain:

          (1) At least 3 points for energy conservation under the LEED Green Building Rating System Energy and Atmosphere Credit 1 (Optimize Energy Performance), to meet the equivalent of the silver level;

          (2) At least 5 points for energy conservation under the LEED Green Building Rating System Energy and Atmosphere Credit 1 (Optimize Energy Performance), to meet the equivalent of the gold level; and

          (3) At least 8 points for energy conservation under the LEED Green Building Rating System Energy and Atmosphere Credit 1 (Optimize Energy Performance), to meet the equivalent of the platinum level.

     2.  An applicant for a partial tax abatement must utilize an independent third-party commissioning firm to facilitate the fundamental building systems commissioning or existing building commissioning, as applicable, required by the LEED Green Building Rating System Energy and Atmosphere Prerequisite 1.

     3.  As used in this section, “home” has the meaning ascribed to it in NRS 701A.100.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.220  Application for partial tax abatement; notification by Director. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)

     1.  A person who, with respect to a construction project involving a building or other structure, wishes to apply to the Director pursuant to this chapter and NRS 701A.110 for a partial tax abatement must, if the certification of the building or other structure:

     (a) Will be based on LEED-NC or LEED-CS, submit an application to the Office of Energy on a form prescribed by the Director within 120 days after receiving local government approval of the construction project; or

     (b) Will not be based on LEED-NC or LEED-CS, submit an application to the Office of Energy on a form prescribed by the Director within 120 days after registering the project with the U.S. Green Building Council.

     2.  The application must include:

     (a) The name, address and telephone number of the applicant;

     (b) The name and address of the owner of the affected real property, if the applicant is not the owner;

     (c) The address of the real property;

     (d) The address of the board of county commissioners of the county in which the real property is located;

     (e) If the real property is located in a city, the name and address of the city manager and the address of the city council, if any, of that city;

     (f) Any project title associated with the development or modification of the real property;

     (g) For each building or other structure included within the construction project:

          (1) The estimated gross square footage and number of floors of the building or other structure;

          (2) The proposed use of the building or other structure;

          (3) The estimated cost of the design and construction or retrofit, and maintenance and operation, of the building or other structure;

          (4) The actual or estimated date of the start of the construction or retrofit;

          (5) The expected date of occupancy of the building or other structure;

          (6) If applicable, a copy of each executed preconstruction or construction contract the applicant is relying upon to qualify as a pre-2007 applicant;

          (7) Proof that the building or other structure has been registered with the U.S. Green Building Council;

          (8) The applicable LEED standard on which the certification of the building or other structure will be based;

          (9) A statement containing the level and number of points of the applicable LEED standard at which the applicant expects the building or other structure to be certified, in the form of a checklist identifying the specific LEED credits that the project team intends to achieve;

          (10) A statement whether any funding for the acquisition, design or construction of the building or other structure, and associated land, is being provided by a governmental entity in this State;

          (11) A list of all sources of funding for the acquisition, design or construction of the building or other structure, and associated land, provided by a governmental entity in this State; and

          (12) A statement whether the building or other structure is receiving or is expected to receive any other abatement or exemption pursuant to NRS 361.045 to 361.159, inclusive, or chapter 701A of NRS from the taxes imposed on real property by chapter 361 of NRS;

     (h) The name and contact information of the LEED accredited professional assigned to the design team for the project or other person designated as the contact person on the application;

     (i) A statement whether the building or other structure, or any part thereof, is or is expected in the future to be exempt from the taxes imposed on real property by chapter 361 of NRS pursuant to any provision of law other than NRS 361.045 to 361.159, inclusive, or chapter 701A of NRS;

     (j) A list of any improvements in the project that are not expected to be considered for LEED certification;

     (k) If the project is registered with the U.S. Green Building Council in a campus or multibuilding setting, a list of the buildings or other structures on the affected real property and the construction phases of each building or other structure;

     (l) A copy of the local government approval of the construction project; and

     (m) Any other information requested by the Director.

     3.  Upon receipt of all information required by this section, the Director will:

     (a) Notify the applicant in writing acknowledging that the application has been received; and

     (b) In accordance with the provisions of NRS 701A.110, forward a copy of the application and the written notification provided to the applicant to the:

          (1) Chief of the Budget Division of the Department of Administration;

          (2) Department of Taxation;

          (3) County assessor;

          (4) County treasurer;

          (5) Board of county commissioners;

          (6) City manager and city council, if any; and

          (7) Commission on Economic Development.

     4.  The applicant must:

     (a) Identify any information included in the application which the applicant considers to be confidential; and

     (b) Promptly amend the application if there is a significant change in the scope of the project.

     5.  The Director will not accept an application pursuant to this section for a building or other structure that on the date the application is registered has been issued a certificate of occupancy and has been certified by the U.S. Green Building Council.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.230  Amendment of application after significant change in scope of project. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)

     1.  If an application for a partial tax abatement is submitted for a project that has not been completed on the date of that submission and there is a significant change in the scope of the project after that date, the applicant must amend the application to include the change within 60 days after the occurrence of the change. If the applicant fails to amend the application in a timely manner, the Director may, without limitation:

     (a) Allow a partial tax abatement of those portions of the project that were part of the original application, including timely amendments; or

     (b) For good cause shown, extend the time within which to amend the application.

     2.  Upon receipt of an amendment to an application for a partial tax abatement, the Director will forward a copy of the amendment to the:

     (a) Chief of the Budget Division of the Department of Administration;

     (b) Department of Taxation;

     (c) County assessor;

     (d) County treasurer;

     (e) Board of county commissioners;

     (f) City manager and city council, if any; and

     (g) Commission on Economic Development.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.240  Submission of required proof or application for extension; issuance and contents of certificate of eligibility or certificate of ineligibility; effective date of abatement. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)

     1.  Within 48 months after an application for a partial tax abatement is submitted to the Director pursuant to NAC 701A.220, or within such time as the Director, for good cause shown, extends the deadline, the applicant must submit to the Director:

     (a) Proof that the building or other structure meets the equivalent of the silver level or higher of the LEED Green Building Rating System adopted by the Director; or

     (b) An application to extend the period for providing such proof.

     2.  If an applicant has not submitted the proof or an application for extension required by subsection 1, the Director will consider the application abandoned and notify the:

     (a) Applicant;

     (b) Chief of the Budget Division of the Department of Administration;

     (c) Department of Taxation;

     (d) County assessor;

     (e) County treasurer;

     (f) Board of county commissioners;

     (g) City manager and city council, if any; and

     (h) Commission on Economic Development.

     3.  If the Director, after reviewing the proof submitted by the applicant pursuant to subsection 1, concludes that the building or other structure is eligible for a partial tax abatement, the Director will, not later than 120 days after receiving that proof, issue a certificate of eligibility for the abatement and provide a copy to the:

     (a) Applicant;

     (b) Chief of the Budget Division of the Department of Administration;

     (c) Department of Taxation;

     (d) County assessor;

     (e) County treasurer;

     (f) Board of county commissioners;

     (g) City manager and city council, if any; and

     (h) Commission on Economic Development.

     4.  The certificate of eligibility will include the duration and annual percentage of the partial tax abatement as provided in NAC 701A.280 and subsection 4 of NRS 701A.110, and identify each building or other structure to which the abatement should be applied. The Director may indicate that the abatement should be applied to an ancillary structure if the ancillary structure was specified in the application. The Director will include as part of the certificate of eligibility his findings of fact, conclusions of law and order explaining the reasons for issuing the certificate.

     5.  If the Director, after reviewing the proof submitted by the applicant pursuant to subsection 1, concludes that the building or other structure is not eligible for a partial tax abatement, the Director will, not later than 120 days after receiving that proof, issue a certificate of ineligibility for the abatement and provide a copy to the:

     (a) Applicant;

     (b) Chief of the Budget Division of the Department of Administration;

     (c) Department of Taxation;

     (d) County assessor;

     (e) County treasurer;

     (f) Board of county commissioners;

     (g) City manager and city council, if any; and

     (h) Commission on Economic Development.

Ê The Director will include as part of the certificate of ineligibility his findings of fact, conclusions of law and order explaining the reasons for issuing the certificate of ineligibility.

     6.  If a certificate of eligibility is issued:

     (a) On or after July 1 and on or before March 31 of a fiscal year, the abatement becomes effective on July 1 of the immediately following fiscal year. The Director will not issue a certificate of eligibility on or before March 31 of a fiscal year with respect to an application that is not submitted to the Director on or before February 1 of that fiscal year.

     (b) On or after April 1 and on or before June 30 of a fiscal year, the abatement becomes effective on July 1 of the fiscal year next following the immediately following fiscal year.

     7.  A certificate of eligibility or a certificate of ineligibility issued pursuant to this section is a final order of the Director for purposes of judicial review.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.250  Required proof that building meets equivalent of silver level or higher of LEED Green Building Rating System; additional required documentation. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)

     1.  Except as otherwise provided in subsection 2, the Director will accept as proof that a building or other structure for which a partial tax abatement is sought meets the equivalent of the silver level or higher of the LEED Green Building Rating System adopted by the Director:

     (a) An original or certified copy of a letter from the U.S. Green Building Council informing the applicant that the building or other structure meets the LEED silver level or higher;

     (b) Official documentation issued by the U.S. Green Building Council setting forth the number of LEED points obtained by the building or other structure; or

     (c) Any other information acceptable to the Director that, in the judgment of the Director, evidences compliance with the requirements of the LEED Green Building Rating System adopted by the Director.

     2.  In addition to the documentation required by subsection 1, the proof submitted pursuant to this section must include:

     (a) A statement whether any funding for the acquisition, design or construction of the building or other structure, and associated land, is being provided by a governmental entity in this State;

     (b) A statement whether the building or other structure is receiving or is expected to receive any other abatement or exemption pursuant to NRS 361.045 to 361.159, inclusive, or chapter 701A of NRS from the taxes imposed on real property by chapter 361 of NRS;

     (c) A statement whether the building or other structure, or any part thereof, is or is expected in the future to be exempt from the taxes imposed on real property by chapter 361 of NRS pursuant to any provision of law other than NRS 361.045 to 361.159, inclusive, or chapter 701A of NRS;

     (d) An overall project narrative;

     (e) The documentation submitted to the U.S. Green Building Council to obtain points for water efficiency under the LEED Green Building Rating System;

     (f) For pre-2007 applicants:

          (1) The documentation submitted to the U.S. Green Building Council to comply with the LEED Green Building Rating System Energy and Atmosphere Prerequisite 2 (Minimum Energy Performance); or

          (2) Any documentation that, in the judgment of the Director, demonstrates the energy efficiencies achieved through compliance with the LEED Green Building Rating System Energy and Atmosphere Prerequisite 2 (Minimum Energy Performance); and

     (g) For applicants other than pre-2007 applicants:

          (1) The documentation submitted to the U.S. Green Building Council to obtain points under the LEED Green Building Rating System Energy and Atmosphere Credit 1 (Optimize Energy Performance), including, without limitation, any pertinent information regarding general building energy model, energy performance, building energy performance baseline, baseline and proposed design input parameters, baseline performance, performance rating, percentage improvement and points achieved; or

          (2) Any documentation that, in the judgment of the Director, demonstrates the energy efficiencies achieved through compliance with the LEED Green Building Rating System Energy and Atmosphere Credit 1 (Optimize Energy Performance).

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.260  Submission of information regarding receipt of another abatement or exemption; designation and duties of tax abatement coordinator for building; suspension of certificate of eligibility; issuance of certificate of termination or reduction of eligibility. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)

     1.  The Director may require an applicant who has been issued a certificate of eligibility pursuant to NAC 701A.240 or the tax abatement coordinator for a building or other structure to which the certificate of eligibility relates to submit to the Director on an annual or other reasonable basis such information as the Director requires to determine whether the parcel on which the building or other structure is located is receiving another abatement or exemption pursuant to NRS 361.045 to 361.159, inclusive, or chapter 701A of NRS from the taxes imposed on real property by chapter 361 of NRS.

     2.  After a certificate of eligibility has been issued pursuant to NAC 701A.240, the tax abatement coordinator for a building or other structure to which the certificate of eligibility relates:

     (a) Shall:

          (1) Notify the Director if the building or other structure is sold during the term of the partial tax abatement; and

          (2) Provide the buyer of the building or other structure with written notice of the certificate of eligibility and a copy of the statutes and regulations regarding the owner’s rights and responsibilities relating to the certificate of eligibility;

     (b) Must submit to the Director as prescribed in subsection 3:

          (1) Documentation of energy performance which indicates the pertinent ENERGY STAR rating or equivalent ENERGY STAR rating, annual energy reduction, annual summer peak demand reduction and, if the applicant for that certificate of eligibility:

               (I) Qualified as a pre-2007 applicant, compliance with the requirements for the LEED Green Building Rating System Energy and Atmosphere Prerequisite 2 (Minimum Energy Performance); or

               (II) Did not qualify as a pre-2007 applicant, compliance with the requirements for the LEED Green Building Rating System Energy and Atmosphere Credit 1 (Optimize Energy Performance);

          (2) A summary of the annual utility bills, including the amount of cost and usage, for each type of energy used by the building or other structure;

          (3) A summary of the annual water bills, including the amount of cost and usage, for the building or other structure; and

          (4) Any documentation that, in the judgment of the Director, demonstrates compliance with the LEED Green Building Rating System; and

     (c) Must submit to the Director as prescribed in subsection 3 written recertification from a third-party commissioning firm stating that the energy systems of the building or other structure are still operating in general compliance with the original project requirements, with particular focus and emphasis on certifying that the energy conservation measures upon which the original certificate of eligibility was based are still being achieved. The third-party commissioning firm providing the recertification letter should typically be the same firm that provided the original fundamental building systems commissioning or existing building commissioning services on the project.

     3.  The documentation required by:

     (a) Paragraph (b) of subsection 2 must be submitted on or before March 15 of the third and each subsequent year after the certificate of eligibility was issued.

     (b) Paragraph (c) of subsection 2 must be submitted within 60 days after the end of the:

          (1) Third year after the certificate of eligibility was issued if the duration of the partial tax abatement is 5 or 6 years;

          (2) Third and fifth years after the certificate of eligibility was issued if the duration of the partial tax abatement is 7 or 8 years; and

          (3) Third, fifth and seventh years after the certificate of eligibility was issued if the duration of the partial tax abatement is 9 or 10 years.

     4.  Upon determining that the parcel on which the building or other structure is located is receiving another abatement or exemption pursuant to NRS 361.045 to 361.159, inclusive, or chapter 701A of NRS from the taxes imposed on real property by chapter 361 of NRS, the Director will notify the owner of the building or other structure and the Department of Taxation in writing that the certificate of eligibility relating to the building or other structure has been suspended, and indicate the term of the suspension.

     5.  Upon determining that the building or other structure may have ceased to qualify for the level of certification for which the partial tax abatement was issued, or that the owner of the building or other structure may have failed to comply with any conditions imposed by the Director in issuing the partial tax abatement, the Director will notify the owner of the building or other structure of the findings of the Director and provide the owner a reasonable opportunity to cure any noncompliance issues included in the findings. If the owner fails to cure the noncompliance issues within the time or in accordance with the terms provided by the Director, the Director will issue a certificate of termination or reduction of eligibility, including his findings of fact, conclusions of law and order, which declares that the building or other structure has ceased to meet the standard upon which the certificate of eligibility was based, specifies the areas of noncompliance, and terminates the partial tax abatement or reduces the partial tax abatement to the level of certification for which the building or other structure qualifies. The Director will provide a copy of the certificate of termination or reduction of eligibility to the:

     (a) Owner of the building or other structure;

     (b) Chief of the Budget Division of the Department of Administration;

     (c) Department of Taxation;

     (d) County assessor;

     (e) County treasurer;

     (f) Board of county commissioners;

     (g) City manager and city council, if any; and

     (h) Commission on Economic Development.

     6.  A certificate of termination or reduction of eligibility issued pursuant to this section is a final order of the Director for purposes of judicial review.

     7.  For the purposes of this section:

     (a) On or before the date of submission to the Director of proof that a building or other structure meets the equivalent of the silver level or higher of the LEED Green Building Rating System adopted by the Director, the applicant for a partial tax abatement shall designate a tax abatement coordinator for the building or other structure, and submit the name and address of the tax abatement coordinator to the Director; and

     (b) Within 60 days after:

          (1) The sale or other transfer of ownership of the building or other structure during the term of the partial tax abatement, the purchaser or other transferee shall designate a tax abatement coordinator for the building or other structure, and submit the name and address of the tax abatement coordinator to the Director; and

          (2) The designation of any successor tax abatement coordinator for the building or other structure during the term of the partial tax abatement, the successor shall submit his name and address to the Director.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.270  Building included in construction project registered with Office of Energy before June 15, 2007: Submission and processing of application for partial tax abatement; provisions applicable to pre-2007 applicant. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)

     1.  The owner of a building or other structure included in a construction project which was registered with the Office of Energy before June 15, 2007, for a partial tax abatement may submit an application to the Director pursuant to NAC 701A.220 upon providing proof to the Director that the owner qualifies as a pre-2007 applicant. Upon determining that the owner qualifies as a pre-2007 applicant, the Director will expedite the processing of the application and apply all the provisions of NAC 701A.010 to 701A.290, inclusive, except that:

     (a) The owner is not required to submit the application within 120 days after receiving local government approval of the construction project or registering the project with the U.S. Green Building Council;

     (b) The Director will base his determination of eligibility on the Pre-2007 Green Building Rating System;

     (c) Any partial tax abatement will be:

          (1) Based on the provisions of section 15.5 of chapter 539, Statutes of Nevada 2007; and

          (2) Limited to any building or other structure that, in the judgment of the Director, is reasonably related to any preconstruction or construction contracts submitted as proof that the owner qualifies as a pre-2007 applicant; and

     (d) For the purposes of NAC 701A.010 to 701A.290, inclusive, “funding” shall be deemed to mean any cash or cash equivalent, including any loan or bond, except a private activity bond.

 

 

     2.  The owner of a building or other structure included in a construction project which was registered with the Office of Energy before June 15, 2007, for a partial tax abatement that does not qualify as a pre-2007 applicant may submit an application to the Director pursuant to NAC 701A.220. The Director will expedite the processing of the application.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.280  Duration of partial tax abatement based upon number of points awarded for energy conservation by U.S. Green Building Council. (NRS 701A.110)  If the Director issues a certificate of eligibility pursuant to NAC 701A.240 for a building or other structure that meets the equivalent of the silver level or higher of the LEED Green Building Rating System adopted by the Director, the Director will set the duration of the partial tax abatement for the building or other structure, based upon the number of points awarded by the U.S. Green Building Council for energy conservation under the LEED Green Building Rating System Energy and Atmosphere Credit 1 (Optimize Energy Performance), as provided in the following table:

 

LEED Certification Level

1-2 points for Energy Conservation from U.S.G.B.C.

3 points for Energy Conservation

from U.S.G.B.C.

4 points for Energy Conservation

from U.S.G.B.C.

5 points for Energy Conservation

from U.S.G.B.C.

6 points for Energy Conservation

from U.S.G.B.C.

7 points for Energy Conservation

from U.S.G.B.C.

8-10 points for Energy Conservation

from U.S.G.B.C.

Silver

No

abatement

25 percent

abatement

for 5 years

25 percent

abatement

for 6 years

25 percent

abatement

for 7 years

25 percent

abatement

for 8 years

25 percent

abatement

for 9 years

25 percent

abatement

for 10 years

Gold

No abatement

25 percent

abatement

for 5 years

25 percent

abatement

for 6 years

30 percent

abatement

for 7 years

30 percent

abatement

for 8 years

30 percent

abatement

for 9 years

30 percent

abatement

for 10 years

Platinum

No abatement

25 percent

abatement

for 5 years

25 percent

abatement

for 6 years

30 percent

abatement

for 7 years

30 percent

abatement

for 8 years

30 percent

abatement

for 9 years

35 percent

abatement

for 10 years

 

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

      NAC 701A.290  Waiver of requirements by Director. (NRS 701A.110, § 15.5 of ch. 539, Stats. 2007)  The Director may waive one or more of the requirements of NAC 701A.010 to 701A.290, inclusive, applicable to an applicant for a partial tax abatement if:

     1.  The applicant would have been able to comply with the requirement on or after June 15, 2007, if the form for application pursuant to NAC 701A.010 to 701A.290, inclusive, had been available and the provisions of NAC 701A.010 to 701A.290, inclusive, had been effective on that date; and

     2.  In the judgment of the Director, the failure to waive the requirement would produce an unjust result.

     (Added to NAC by Office of Energy by R116-07, eff. 12-4-2007)

GREEN BUILDINGS: LOCAL ADMINISTRATION OF PARTIAL TAX ABATEMENT

      NAC 701A.300  Definitions. (NRS 360.090, 701A.110)  As used in NAC 701A.300 to 701A.370, inclusive, unless the context otherwise requires, the words and terms defined in NRS 701A.110 and NAC 701A.310 to 701A.350, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Tax Comm’n by R003-08, eff. 6-17-2008)

      NAC 701A.310  “Department” defined. (NRS 360.090, 701A.110)  “Department” means the Department of Taxation.

     (Added to NAC by Tax Comm’n by R003-08, eff. 6-17-2008)

      NAC 701A.320  “Eligible building or other structure” defined. (NRS 360.090, 701A.110)  “Eligible building or other structure” means a building or other structure which the Director determines to be eligible for the LEED abatement.

     (Added to NAC by Tax Comm’n by R003-08, eff. 6-17-2008)

      NAC 701A.330  “LEED abatement” defined. (NRS 360.090, 701A.110)  “LEED abatement” means the partial abatement of certain property taxes authorized by NRS 701A.110.

     (Added to NAC by Tax Comm’n by R003-08, eff. 6-17-2008)

      NAC 701A.340  “LEED abatement percentage” defined. (NRS 360.090, 701A.110)  “LEED abatement percentage” means the applicable percentage determined pursuant to paragraph (a) of subsection 4 of NRS 701A.110 for any eligible building or other structure.

     (Added to NAC by Tax Comm’n by R003-08, eff. 6-17-2008)

      NAC 701A.350  “Net taxable value” defined. (NRS 360.090, 701A.110)  “Net taxable value” means the taxable value of any property after deducting the taxable value of any portion of the property that is receiving any exemption from the taxable value otherwise determined pursuant to chapter 361 of NRS.

     (Added to NAC by Tax Comm’n by R003-08, eff. 6-17-2008)

      NAC 701A.360  Duties of county tax receiver regarding property that includes eligible building or other structure. (NRS 360.090, 701A.110)

     1.  Upon receiving a certificate of eligibility for the LEED abatement from the Director, a county tax receiver shall, with regard to the pertinent parcel or other taxable unit of property that includes an eligible building or other structure:

     (a) Obtain from the county assessor or the Department, as applicable, the following information:

          (1) The net taxable value of all the land and of each improvement on the land that comprises the property;

          (2) The LEED abatement percentage certified by the Director for each eligible building or other structure; and

          (3) The percentage of the net taxable value of each eligible building or other structure which is subject to the LEED abatement.

     (b) Calculate the percentage of the total net taxable value of the property attributable to:

          (1) Each eligible building or other structure;

          (2) Each building or other structure which is not eligible for the LEED abatement; and

          (3) The land that comprises the property.

Ê The sum of the percentages determined pursuant to this paragraph must equal 100 percent.

     (c) Calculate the weighted LEED abatement percentage for each eligible building or other structure by:

          (1) Multiplying the percentage of the total net taxable value of the property attributable to the building or other structure, as determined pursuant to subparagraph (1) of paragraph (b), by the LEED abatement percentage certified for the building or other structure by the Director; and

          (2) Multiplying the result determined pursuant to subparagraph (1) by the percentage of the net taxable value of the building or other structure which is subject to the LEED abatement, as indicated pursuant to subparagraph (3) of paragraph (a).

     (d) Calculate the weighted average LEED abatement percentage for the property by adding all the weighted LEED abatement percentages determined for the property pursuant to paragraph (c).

     (e) Calculate the applicable LEED abatement and net tax due for each category of taxing entity listed on the tax bill for the property, other than any category of taxing entity on behalf of which any taxes imposed for public education are being billed, as follows:

          (1) The applicable LEED abatement must be determined by multiplying the weighted average LEED abatement percentage for the property determined pursuant to paragraph (d) by the total amount of tax due to the taxing entity after the application of any partial abatement of taxes required by NRS 361.4722 or 361.4724; and

          (2) The net tax due must be determined by subtracting the applicable LEED abatement determined pursuant to subparagraph (1) from the total amount of tax due to the taxing entity after the application of any partial abatement of taxes required by NRS 361.4722 or 361.4724.

     (f) Calculate:

          (1) The total LEED abatement for the property by adding all the sums determined for the property pursuant to subparagraph (1) of paragraph (e); and

          (2) The total net tax due for the property by adding all the sums determined for the property pursuant to subparagraph (2) of paragraph (e).

     (g) Allocate the total LEED abatement for the property among the eligible buildings and other structures by:

          (1) Dividing the weighted LEED abatement percentage for each eligible building or other structure determined pursuant to paragraph (c) by the weighted average LEED abatement percentage for the property determined pursuant to paragraph (d); and

          (2) Multiplying the result determined pursuant to subparagraph (1) by the total LEED abatement for the property determined pursuant to subparagraph (1) of paragraph (f).

Ê The sum of all the amounts allocated pursuant to this paragraph must equal the total LEED abatement for the property determined pursuant to subparagraph (1) of paragraph (f).

     2.  A county tax receiver may use a worksheet provided by the Department to facilitate the calculations required by this section.

     3.  For the purposes of this section:

     (a) The LEED abatement applies to:

          (I) Zero percent of the net taxable value of any land; and

          (II) Zero percent of the net taxable value of any building or other structure that is not eligible for the LEED abatement.

     (b) The LEED abatement percentage for any land and for any building or other structure that is not eligible for the LEED abatement is zero percent.

     (c) The weighted LEED abatement percentage for any land and for any building or other structure that is not eligible for the LEED abatement is zero percent.

     (Added to NAC by Tax Comm’n by R003-08, eff. 6-17-2008)

      NAC 701A.370  Reports by county tax receiver. (NRS 360.090, 701A.110)  A county tax receiver shall, not later than:

     1.  June 1 of each year, submit to the Department and each taxing entity a summary report of the total amount of property taxes subject to the LEED abatement which are billed on behalf of each taxing entity for the current tax year for property on the unsecured tax roll. The report must separately state for each taxing entity:

     (a) The total number of parcels or other taxable units of property subject to the LEED abatement for which the property taxes were billed;

     (b) The total amount of the property taxes that would have been billed if not for the application of the LEED abatement;

     (c) The total amount of any reduction in billable property taxes as a result of the application of the LEED abatement; and

     (d) The total amount of property taxes actually billed.

     2.  September 1 of each year, submit to the Department and each taxing entity a summary report of the total amount of property taxes subject to the LEED abatement which are billed on behalf of each taxing entity for the current tax year for property on the secured tax roll. The report must separately state for each taxing entity:

     (a) The total number of parcels or other taxable units of property subject to the LEED abatement for which the property taxes were billed;

     (b) The total amount of the property taxes that would have been billed if not for the application of the LEED abatement;

     (c) The total amount of any reduction in billable property taxes as a result of the application of the LEED abatement; and

     (d) The total amount of property taxes actually billed.

     (Added to NAC by Tax Comm’n by R003-08, eff. 6-17-2008)