[Rev. 5/25/2022 11:37:33 AM]
[NAC-701A Revised Date: 9-16]
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.063 “GG-CIEB” defined.
701A.065 “GG-NC” defined.
701A.067 “Green Globes standard” 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 LEED Green Building Rating System: Exclusions and modifications; use of independent third-party commissioning firm by applicant for partial tax abatement.
701A.213 Green Globes standards: Adoption by reference; review and effect of new or updated standards.
701A.215 Green Globes standards: Exclusions and modifications; use of third-party assessor by applicant for partial tax abatement.
701A.217 Equivalencies between LEED Green Building Rating System and Green Globes standards.
701A.220 Application for partial tax abatement; notification by Director.
701A.225 Fee for review and approval of application.
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 requirements of applicable standard; 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 or Green Building Initiative.
701A.290 Waiver of requirements by Director.
GREEN BUILDINGS: LOCAL ADMINISTRATION OF PARTIAL TAX ABATEMENT
701A.300 Definitions.
701A.303 “Abatement” defined.
701A.307 “Abatement percentage” defined.
701A.310 “Department” defined.
701A.320 “Eligible building or other structure” 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.
RENEWABLE ENERGY FACILITIES: PARTIAL ABATEMENT OF TAXES
701A.500 Definitions.
701A.505 “Abatement agreement” defined.
701A.510 “Applicant” defined.
701A.515 “Application” defined.
701A.520 “Facility” defined.
701A.525 “Generating capacity” defined.
701A.530 “Owner” defined.
701A.535 “Partial abatement of taxes” defined.
701A.540 “Project” defined.
701A.545 “Significant change” defined.
701A.550 “Wages” defined.
701A.555 Submission of application.
701A.560 Procedure upon receipt of application; provision of copies to local governments; amended application following substantive change.
701A.565 Confidentiality of application and related information.
701A.570 Fiscal note not to include information determined to be confidential.
701A.575 Approval of application by board of county commissioners; processing of application.
701A.580 Hearing on application; execution of abatement agreement upon determination of eligibility.
701A.585 Parties to hearing; notice of intent to participate.
701A.590 Criteria for determining eligibility for priority of application.
701A.595 Final decision on eligibility; abatement to be prospective only.
701A.600 Reapplication after denial of application.
701A.605 Qualification of tangible property for partial abatement of sales and use taxes.
701A.610 Qualification of real and personal property for partial abatement of property taxes.
701A.615 Duties of applicant: Maintenance of certain records; payment of taxes abated resulting from noncompliance of applicant or other person working on project or facility.
701A.620 Annual compliance report; notice of compliance to certain governmental entities.
701A.625 Determination of ineligibility or noncompliance: Required notices; hearing; on-site inspection; audit.
701A.630 Payment of taxes abated during period of noncompliance of project or facility with abatement agreement.
701A.635 Attestation to documents by owner.
701A.640 Sale, assignment or transfer of interest in project or facility.
701A.645 Director to establish fee; administration of Renewable Energy Account; disbursement of money.
701A.650 Fees: Amounts; payment by applicant; review of amounts by Director; deposit and use.
701A.655 Petition for adoption, filing, amendment or repeal of regulation: Filing; contents; action by Director.
701A.660 Petition for declaratory order or advisory opinion: Filing; contents; action by Director.
RENEWABLE ENERGY ACCOUNT: REPAYMENT OF LOAN MADE TO OFFICER OR EMPLOYEE OF THE STATE
701A.700 Definitions.
701A.710 “Account” defined.
701A.720 “Director” defined.
701A.730 “Participant” defined.
701A.740 Agreement with Director; provision of certain information for payroll deduction.
701A.750 Repayment; suspension of payments under certain circumstances; unpaid balance due upon separation from service.
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; A by R127-13, 6-23-2014)
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 or the Green Building Initiative.
(Added to NAC by Office of Energy by R116-07, eff. 12-4-2007; A by R127-13, 6-23-2014)
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.063 “GG-CIEB” defined. (NRS 701A.100, 701A.110) “GG-CIEB” means the Green Globes standard for Continual Improvement of Existing Buildings.
(Added to NAC by Office of Energy by R127-13, eff. 6-23-2014)
NAC 701A.065 “GG-NC” defined. (NRS 701A.100, 701A.110) “GG-NC” means the Green Globes standard for New Construction.
(Added to NAC by Office of Energy by R127-13, eff. 6-23-2014)
NAC 701A.067 “Green Globes standard” defined. (NRS 701A.100, 701A.110) “Green Globes standard” means a standard for energy efficiency developed by the Green Building Initiative and adopted for use in this State by the Director pursuant to NAC 701A.213.
(Added to NAC by Office of Energy by R127-13, eff. 6-23-2014)
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 certification under the applicable LEED standard or Green Globes standard 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; A by R127-13, 6-23-2014)
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, Archives and Public Records 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 LEED Green Building Rating System: Exclusions and modifications; 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 5 points in the Optimize Energy Performance credit to meet the equivalent of the silver level;
(2) At least 7 points in the Optimize Energy Performance credit to meet the equivalent of the gold level; and
(3) At least 11 points in the Optimize Energy Performance credit 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; A by R127-13, 6-23-2014)
NAC 701A.213 Green Globes standards: Adoption by reference; review and effect of new or updated standards. (NRS 701A.100, 701A.110)
1. Except as otherwise provided in this subsection and NAC 701A.215:
(a) The Director hereby adopts for use in this State the following Green Globes standards which are in effect on June 23, 2014:
(1) GG-NC; and
(2) GG-CIEB.
(b) If the Green Building Initiative adopts a new or updated Green Globes standard after June 23, 2014, the Director will determine whether the new or updated standard is appropriate for use in this State and, if the Director determines that the new or updated standard:
(1) Is appropriate in this State:
(I) The new or updated standard becomes effective on such a date as may be determined by the Director; and
(II) The Director will post a notice of approval and the effective date thereof at the State Library, Archives and Public Records and the Office of Energy, and on the Internet website of the Office of Energy; or
(2) Is not appropriate in this State, the Green Globes 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.
2. The Director will review, evaluate and consider any new and updated Green Globes standard at least once each year.
(Added to NAC by Office of Energy by R127-13, eff. 6-23-2014)
NAC 701A.215 Green Globes standards: Exclusions and modifications; use of third-party assessor by applicant for partial tax abatement. (NRS 701A.100, 701A.110)
1. In accordance with the provisions of NRS 701A.100, the Green Globes standards adopted pursuant to NAC 701A.213:
(a) Do not include any Green Globes standard:
(1) That has not been a Green Globes standard 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 a rating of two globes or higher under the Green Globes standard; or
(2) For homes.
(b) Shall be deemed to require a building or other structure to obtain:
(1) At least 32 points for energy conservation under the Energy Performance standard of a Green Globes standard, to meet the equivalent of a rating of two globes;
(2) At least 40 points for energy conservation under the Energy Performance standard of a Green Globes standard, to meet the equivalent of a rating of three globes; and
(3) At least 56 points for energy conservation under the Energy Performance standard of a Green Globes standard, to meet the equivalent of a rating of four globes.
2. An applicant for a partial tax abatement:
(a) Must use a third-party assessor, assigned by the Green Building Initiative, to review and verify the information submitted by the applicant and approve the project for the purpose of obtaining certification by the Green Building Initiative.
(b) Shall submit to the Director with his or her application a copy of the report and findings of the assessor as the result of the assessment conducted pursuant to paragraph (a).
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 R127-13, eff. 6-23-2014)
NAC 701A.217 Equivalencies between LEED Green Building Rating System and Green Globes standards. (NRS 701A.100, 701A.110) For the purposes of determining whether a building or other structure is eligible for a tax abatement pursuant to NRS 701A.110 and NAC 701A.010 to 701A.290, inclusive:
1. A rating of two globes under a Green Globes standard shall be deemed to be equivalent to the silver level of the LEED Green Building Rating System.
2. A rating of three globes under a Green Globes standard shall be deemed to be equivalent to the gold level of the LEED Green Building Rating System.
3. A rating of four globes under a Green Globes standard shall be deemed to be equivalent to the platinum level of the LEED Green Building Rating System.
(Added to NAC by Office of Energy by R127-13, eff. 6-23-2014)
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, LEED-CS or GG-NC, 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 be based on a LEED standard other than LEED-NC or LEED-CS or based on GG-CIEB, 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 or the Green Building Initiative, as applicable.
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 or the Green Building Initiative, as applicable;
(8) The applicable LEED standard or Green Globes standard on which the certification of the building or other structure will be based;
(9) A statement containing the level or rating and number of points of the applicable LEED standard or Green Globes standard at which the applicant expects the building or other structure to be certified, in the form of a checklist identifying the specific credits or points that the project team intends to achieve under the applicable LEED standard or Green Globes standard;
(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, construction or renovation 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 professional accredited by the U.S. Green Building Council or the Green Building Initiative and 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 certification under the applicable LEED standard or Green Globes standard;
(k) If the project is registered with the U.S. Green Building Council or the Green Building Initiative 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 Office of Finance;
(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) Office of 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 or the Green Building Initiative.
(Added to NAC by Office of Energy by R116-07, eff. 12-4-2007; A by R127-13, 6-23-2014)
NAC 701A.225 Fee for review and approval of application. (NRS 701A.100, 701A.110)
1. An applicant shall pay to the Director a fee in the amount of $1,750 for the review and approval of an application submitted pursuant to NRS 701A.110. An applicant shall pay the fee concurrently with the submission of his or her application. The Director will not approve an application for which the fee has not been timely paid pursuant to this subsection.
2. The Director will review each fee prescribed by subsection 1 on or before December 31 of each even-numbered year to ensure that the amount of the fee reflects the actual cost to the Office of Energy in carrying out the duties described in subsection 1.
3. The fees collected pursuant to subsection 1 must be deposited by the Director into an interest-bearing account. The money deposited pursuant to this subsection and any interest earned on such money must be used only to pay the costs incurred by the Office of Energy in carrying out the duties described in subsection 1.
(Added to NAC by Office of Energy by R127-13, eff. 6-23-2014)
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 Office of Finance;
(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) Office of Economic Development.
(Added to NAC by Office of Energy by R116-07, eff. 12-4-2007; A by R127-13, 6-23-2014)
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:
(1) Meets the silver level or higher of the LEED Green Building Rating System adopted by the Director pursuant to NAC 701A.200; or
(2) Obtains a rating of two globes or higher under a Green Globes standard adopted by the Director pursuant to NAC 701A.213; 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 Office of Finance;
(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) Office of 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 Office of Finance;
(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) Office of 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 5 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 or her 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 Office of Finance;
(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) Office of Economic Development.
Ê The Director will include as part of the certificate of ineligibility his or her 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; A by R127-13, 6-23-2014)
NAC 701A.250 Required proof that building meets requirements of applicable standard; 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 submitted pursuant to paragraph (a) of subsection 1 of NAC 701A.240:
(a) An original or certified copy of a letter from:
(1) The U.S. Green Building Council informing the applicant that the building or other structure meets the LEED silver level or higher; or
(2) The Green Building Initiative informing the applicant that the building or other structure qualifies for a rating of two globes or higher under a Green Globes standard;
(b) Official documentation issued by the U.S. Green Building Council or Green Building Initiative setting forth the number of points obtained by the building or other structure under the applicable LEED standard or Green Globes standard; 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 or a Green Globes standard, as applicable.
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 or Green Building Initiative, as applicable, to obtain points for water efficiency under the LEED Green Building Rating System or a Green Globes standard;
(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 or Green Building Initiative, as applicable, to obtain points under the LEED Green Building Rating System or a Green Globes standard, 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 or a Green Globes standard, as applicable.
(Added to NAC by Office of Energy by R116-07, eff. 12-4-2007; A by R127-13, 6-23-2014)
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 of the LEED Green Building Rating System or a Green Globes standard, as applicable;
(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 other documentation that, in the judgment of the Director, demonstrates compliance with the LEED Green Building Rating System or a Green Globes standard, as applicable; and
(c) Must submit to the Director as prescribed in subsection 3 written recertification from a third-party commissioning firm or third-party assessor, as applicable, 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 or third-party assessor, as applicable, providing the recertification letter should typically be the same firm or assessor that provided the original fundamental building systems commissioning or assessment or existing building commissioning or assessment 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 or her 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 Office of Finance;
(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) Office of 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 or the rating of two globes or higher under a Green Globes standard, 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 or her name and address to the Director.
(Added to NAC by Office of Energy by R116-07, eff. 12-4-2007; A by R127-13, 6-23-2014)
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 or her 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 or Green Building Initiative. (NRS 701A.110)
1. 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 under the LEED standard for LEED-NC or LEED-CS, or that meets the equivalent of the rating of two globes or higher under the Green Globes standard for GG-NC, 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 or Green Building Initiative, as applicable, for energy conservation in the Optimize Energy Performance credit or Energy Performance section under the applicable LEED standard or Green Globes standard as provided in the following table:
|
LEED or Green Globes Certification Level |
5-6 points in the Optimize Energy Performance credit category (LEED) or 32-39 points in the Energy Performance section (Green Globes) |
7-10 points in the Optimize Energy Performance credit category (LEED) or 40-55 points in the Energy Performance section (Green Globes) |
11-12 points in the Optimize Energy Performance credit category (LEED) or 56-63 points in the Energy Performance section (Green Globes) |
13-14 points in the Optimize Energy Performance credit category (LEED) or 64-71 points in the Energy Performance section (Green Globes) |
15-16 points in the Optimize Energy Performance credit category (LEED) or 72-79 points in the Energy Performance section (Green Globes) |
17-21 points in the Optimize Energy Performance credit category (LEED) or 80-100 points in the Energy Performance section (Green Globes) |
|
Silver level or 2 globes |
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 level or 3 globes |
25 percent abatement for 5 years |
30 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 level or 4 globes |
25 percent abatement for 5 years |
30 percent abatement for 6 years |
35 percent abatement for 7 years |
35 percent abatement for 8 years |
35 percent abatement for 9 years |
35 percent abatement for 10 years |
2. 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 under the LEED standard for LEED-EB, or that meets the equivalent of the rating of two globes or higher under the Green Globes standard for GG-CIEB, 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 or Green Building Initiative, as applicable, for energy conservation in the Optimize Energy Performance credit or Energy Performance section under the applicable LEED standard or Green Globes standard as provided in the following table:
|
LEED or Green Globes Certification Level |
5-6 points in the Optimize Energy Performance credit category (LEED) or 32-39 points in the Energy Performance section (Green Globes) |
7-10 points in the Optimize Energy Performance credit category (LEED) or 40-55 points in the Energy Performance section (Green Globes) |
11-12 points in the Optimize Energy Performance credit category (LEED) or 56-63 points in the Energy Performance section (Green Globes) |
13-14 points in the Optimize Energy Performance credit category (LEED) or 64-71 points in the Energy Performance section (Green Globes) |
15-16 points in the Optimize Energy Performance credit category (LEED) or 72-79 points in the Energy Performance section (Green Globes) |
17-21 points in the Optimize Energy Performance credit category (LEED) or 80-100 points in the Energy Performance section (Green Globes) |
|
Silver level or 2 globes |
25 percent abatement for 5 years |
25 percent abatement for 5 years |
25 percent abatement for 5 years |
25 percent abatement for 5 years |
25 percent abatement for 5 years |
25 percent abatement for 5 years |
|
Gold level or 3 globes |
25 percent abatement for 5 years |
30 percent abatement for 5 years |
30 percent abatement for 5 years |
30 percent abatement for 5 years |
30 percent abatement for 5 years |
30 percent abatement for 5 years |
|
Platinum level or 4 globes |
25 percent abatement for 5 years |
30 percent abatement for 5 years |
35 percent abatement for 5 years |
35 percent abatement for 5 years |
35 percent abatement for 5 years |
35 percent abatement for 5 years |
(Added to NAC by Office of Energy by R116-07, eff. 12-4-2007; A by R127-13, 6-23-2014)
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.303 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; A by Office of Energy by R127-13, 6-23-2014)
NAC 701A.303 “Abatement” defined. (NRS 701A.110) “Abatement” means the partial abatement of certain property taxes authorized by NRS 701A.110.
(Added to NAC by Office of Energy by R127-13, eff. 6-23-2014)
NAC 701A.307 “Abatement percentage” defined. (NRS 701A.110) “Abatement percentage” means the applicable percentage determined pursuant to paragraph (a) of subsection 5 of NRS 701A.110 for any eligible building or other structure.
(Added to NAC by Office of Energy by R127-13, eff. 6-23-2014)
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 abatement.
(Added to NAC by Tax Comm’n by R003-08, eff. 6-17-2008; A by Office of Energy by R127-13, 6-23-2014)
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 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 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 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 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 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 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 abatement, as indicated pursuant to subparagraph (3) of paragraph (a).
(d) Calculate the weighted average abatement percentage for the property by adding all the weighted abatement percentages determined for the property pursuant to paragraph (c).
(e) Calculate the applicable 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 abatement must be determined by multiplying the weighted average 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 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 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 abatement for the property among the eligible buildings and other structures by:
(1) Dividing the weighted abatement percentage for each eligible building or other structure determined pursuant to paragraph (c) by the weighted average abatement percentage for the property determined pursuant to paragraph (d); and
(2) Multiplying the result determined pursuant to subparagraph (1) by the total 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 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 abatement applies to:
(1) Zero percent of the net taxable value of any land; and
(2) Zero percent of the net taxable value of any building or other structure that is not eligible for the abatement.
(b) The abatement percentage for any land and for any building or other structure that is not eligible for the abatement is zero percent.
(c) The weighted abatement percentage for any land and for any building or other structure that is not eligible for the abatement is zero percent.
(Added to NAC by Tax Comm’n by R003-08, eff. 6-17-2008; A by Office of Energy by R127-13, 6-23-2014)
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 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 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 abatement;
(c) The total amount of any reduction in billable property taxes as a result of the application of the 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 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 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 abatement;
(c) The total amount of any reduction in billable property taxes as a result of the application of the 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; A by Office of Energy by R127-13, 6-23-2014)
RENEWABLE ENERGY FACILITIES: PARTIAL ABATEMENT OF TAXES
REVISER’S NOTE.
The regulation of the Office of Energy filed with the Secretary of State on February 26, 2014 (LCB File No. R065-13), contains the following provision not included in NAC:
“Sec. 30. The provisions of section 2 of this regulation [NAC 701A.500] and sections 2 to 36, inclusive, of LCB File No. R094-10 [NAC 701A.500 to 701A.660, inclusive], as amended by this regulation, do not apply to an application which has been submitted to the Director of the Office of Energy for approval on or before June 30, 2013.”
NAC 701A.500 Definitions. (NRS 701A.390) As used in NAC 701A.500 to 701A.660, inclusive, the words and terms defined in NRS 701A.300 to 701A.345, inclusive, and NAC 701A.505 to 701A.550, inclusive, have the meanings ascribed to them in those sections.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R064-13, 12-23-2013; R065-13, 2-26-2014)
NAC 701A.505 “Abatement agreement” defined. (NRS 701A.390) “Abatement agreement” means an agreement executed by the Director and an applicant upon the issuance of a final decision by the Director that the applicant is eligible for a partial abatement of taxes.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.510 “Applicant” defined. (NRS 701A.390) “Applicant” means an owner who submits an application for a partial abatement of taxes.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.515 “Application” defined. (NRS 701A.390) “Application” means an application for a partial abatement of taxes and includes, without limitation, the completed application form and all supporting documents.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010)
NAC 701A.520 “Facility” defined. (NRS 701A.390) “Facility” means:
1. A facility for the generation of electricity from renewable energy in this State.
2. A wholesale facility for the generation of electricity from renewable energy in this State.
3. A facility for the transmission of electricity if:
(a) The facility is interconnected to a facility described in subsection 1 or 2; or
(b) The facility contributes to the capability of the electrical grid to accommodate and transmit electricity produced from a facility described in subsection 1 or 2.
4. A facility for the generation of process heat from solar renewable energy in this State.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.525 “Generating capacity” defined. (NRS 701A.390) “Generating capacity” means the nameplate capacity of a facility.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010)
NAC 701A.530 “Owner” defined. (NRS 701A.390) “Owner” means a person who holds an ownership interest in a project or facility or a possessory interest in public lands, or his or her successor in interest.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010)
NAC 701A.535 “Partial abatement of taxes” defined. (NRS 701A.390) “Partial abatement of taxes” means an abatement of a portion of:
1. Local sales and use taxes;
2. The property taxes imposed pursuant to chapter 361 of NRS; or
3. Both local sales and use taxes and the property taxes imposed pursuant to chapter 361 of NRS,
Ê authorized by NRS 701A.360 and approved by the Director in a final decision issued pursuant to NAC 701A.580.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.540 “Project” defined. (NRS 701A.390) “Project” means all the necessary purchasing and construction that will result in a facility for which an applicant applies for a partial abatement of taxes.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010)
NAC 701A.545 “Significant change” defined. (NRS 701A.390) “Significant change” means a substantial and material change in the size or scope of a project or facility from that described in an application and includes, without limitation:
1. A change of more than 10 percent in:
(a) The size or location of the land on which the project or facility is located;
(b) The size of a building or ancillary structure;
(c) The generating capacity of the facility or the output capacity for a facility for the generation of process heat from solar renewable energy;
(d) The estimated cost of any building or ancillary structure or other property to which the partial abatement of taxes would be applicable;
(e) The amount of the partial abatement of taxes which the applicant is seeking; and
(f) The ownership of or any ownership interest in the project or facility.
2. A substantial and material change in the schedule or ability to meet the time commitments established in the application.
3. Any similar substantial and material change in the information upon which an applicant relies in establishing eligibility for a partial abatement of taxes.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.550 “Wages” defined. (NRS 701A.390) “Wages” has the meaning ascribed to it in NRS 338.010.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.555 Submission of application. (NRS 701A.390) To apply for a partial abatement of taxes, an applicant must submit electronically an application to the Director on the form and in the manner prescribed by the Director.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.560 Procedure upon receipt of application; provision of copies to local governments; amended application following substantive change. (NRS 701A.390)
1. The Director will assign an application filing number to an applicant not later than 2 business days after the Director receives the completed application. The application filing number must appear on all correspondence and other documents related to the application which are submitted by the applicant to the Director.
2. The application filing number of an application expires if the application is rejected by the Director.
3. Upon receipt of an application, the Director will review the application for timeliness and completeness. An application is timely filed if the Director receives a completed application on or before the date on which commercial operation of the facility will commence. If the Director determines that an application is not timely filed and the Director determines that the application was filed in bad faith or that the timing of the filing frustrates the purposes of NAC 701A.500 to 701A.660, inclusive, the Director may reject the application. If the Director rejects an application pursuant to this subsection, the Director will provide written notice of the rejection to the applicant. The Director is not required to expedite the processing of any application which is not timely filed. If the Director determines that an application is incomplete, the Director will provide written notice to the applicant that the application is incomplete and will identify in the notice the information which is necessary to complete the application. An applicant shall, not later than 10 business days after the receipt of a notice that an application is incomplete, provide to the Director the information necessary to complete the application. If the applicant does not provide the information within the specified period, the Director will reject the application and provide written notice of the rejection to the applicant.
4. After submitting an application pursuant to NAC 701A.555, the applicant may submit a copy of the application to the board of county commissioners of the county in which the project or facility is proposed for location.
5. In addition to the requirements of subsection 3 of NRS 701A.360, the Director will provide a copy of the application to the governing body of each city or town in which the project or facility is proposed for location.
6. An applicant shall, not later than 15 business days after any substantive change to the information provided in an application, submit an amended application. The Director will provide a copy of the amended application in accordance with subsection 5 of this section and subsection 3 of NRS 701A.360.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.565 Confidentiality of application and related information. (NRS 701A.390)
1. In accordance with the provisions of chapter 239 of NRS, all information relating to an application which is submitted to the Director and which is not otherwise declared by law to be confidential is a public record. If an applicant believes that information contained in the application is confidential and should be redacted and protected from publication, the applicant must:
(a) Submit with the original application a redacted copy of the application which clearly identifies each item in the application that the applicant believes is confidential and should be redacted and protected from publication; and
(b) Provide for each identified item a citation to the legal authority for and argument as to why the particular item is confidential and should be redacted and protected from publication.
2. As soon as practicable after receipt of copies of the original and redacted applications, the Director will, for each individual item which the applicant believes is confidential and should be redacted and protected from publication:
(a) Make a determination as to whether the item has been declared by law to be confidential and may be redacted from the application; and
(b) Provide the applicant with written notice regarding the Director’s determination.
3. Not later than 3 business days after an applicant receives the written notice of the Director’s determination made pursuant to subsection 2, the applicant shall indicate to the Director in writing with respect to each item which the Director has determined may not be redacted from the application:
(a) That the applicant consents to publication of the item; or
(b) That the applicant objects to publication of the item and indicate the legal basis, if any, and any argument in support of the applicant’s objection. If the Director again rejects the applicant’s argument that the item should not be made public, the applicant may withdraw the application or seek an order from a court of competent jurisdiction protecting the item from publication.
4. If the Director determines that one or more items in an application are confidential and should not be made public, or if a court of competent jurisdiction rules that one or more items in an application are confidential and must not be made public, the Director will prepare a copy of the application from which the items that will not be made public have been redacted. The Director will, as soon as practicable, provide a copy of the redacted application to:
(a) The Chief of the Budget Division of the Office of Finance;
(b) The Department of Taxation;
(c) The board of county commissioners of each county in which the project or facility is located;
(d) The county assessor of each county in which the project or facility is located;
(e) In addition to the notice required by subsection 4 of NRS 701A.360, the county treasurer of each county in which the project or facility is located;
(f) The governing body of each city or town in which the project or facility is located; and
(g) The Office of Economic Development.
5. If an applicant submits an application which the applicant believes contains information that is confidential and should be redacted and protected from publication:
(a) A recipient of a copy of the original application:
(1) Shall not make any portion of the original application public before the Director has issued a written determination concerning the items which the applicant believes are confidential and should be redacted and protected from publication; and
(2) May make public only the information contained in the redacted application prepared by the Director; and
(b) A recipient of a redacted application may make public only the information contained in the redacted application prepared by the Director.
6. Any of the persons or governmental entities listed in subsection 4 may request in writing that the Director additionally provide to the person or governmental entity any information which the Director has determined is confidential. The Director may, in his or her discretion, provide the requested information. If the Director provides any such information, the person or governmental entity to whom he or she provides the information must limit access to and use of the information only to those people for whom such information is necessary in the performance of their duties. The Director will provide written notice to an applicant before providing any confidential information pursuant to this subsection. Confidential information provided pursuant to this subsection must not be made public.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.570 Fiscal note not to include information determined to be confidential. (NRS 701A.390) In preparing a fiscal note pursuant to NRS 701A.375, the Chief of the Budget Division of the Office of Finance and the Department of Taxation shall ensure that:
1. Any information in the application which the Director has determined is confidential and must be redacted and protected from publication be viewed and used only by those persons who must have access to the redacted information for the purpose of preparing the fiscal note; and
2. The published fiscal note does not contain any information that the Director has determined is confidential and must be redacted and protected from publication.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.575 Approval of application by board of county commissioners; processing of application. (NRS 701A.390)
1. The Director will issue a final decision denying an application for a partial abatement of property taxes imposed pursuant to chapter 361 of NRS unless the Director receives written notice of approval of the application from the board of county commissioners of each county in which the facility is located or the application is deemed approved.
2. The Director will process an application for a requested partial abatement of sales and use taxes pursuant to the provisions of NAC 701A.500 to 701A.660, inclusive.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.580 Hearing on application; execution of abatement agreement upon determination of eligibility. (NRS 701A.390)
1. Upon receipt of the documents described in NAC 701A.570 and 701A.575, the Director will set a date for a hearing on an application. The Director will provide notice of the hearing to:
(a) The Chief of the Budget Division of the Office of Finance;
(b) The Department of Taxation;
(c) The board of county commissioners of each county in which the project or facility is located;
(d) The county assessor of each county in which the project or facility is located;
(e) The county treasurer of each county in which the project or facility is located;
(f) The governing body of each city or town in which the project or facility is located;
(g) The Office of Economic Development; and
(h) The applicant.
2. At a hearing conducted pursuant to this section, the applicant has the burden of proving by reasonable evidence that his or her application satisfies all the requirements for eligibility for a partial abatement of taxes.
3. At a hearing conducted pursuant to this section, the Director or the Director’s designee may ask questions of any witness.
4. If the Director takes any action authorized by subsection 3 of NRS 701A.365, the Director will do so at the hearing conducted pursuant to this section and will state on the record his or her reasons for so doing.
5. The Director will issue findings of facts, conclusions of law and a final decision regarding an application not later than 10 business days after the date on which the hearing is concluded. The Director may condition the approval of an application upon such terms as he or she determines are necessary. If the Director determines that an applicant is eligible for a partial abatement of taxes, the Director will execute an abatement agreement with the applicant as soon as practicable. The date on which the abatement agreement is executed by the Director is the date of the approval of the application for the purposes of NRS 701A.370.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.585 Parties to hearing; notice of intent to participate. (NRS 701A.390)
1. In addition to the applicant, any of the following persons or governmental entities may be a party to a hearing if the person or entity files a notice of intent to participate with the Director:
(a) The Chief of the Budget Division of the Office of Finance;
(b) The Department of Taxation;
(c) The board of county commissioners of any county in which the project or facility is located;
(d) The county assessor of any county in which the project or facility is located;
(e) The county treasurer of any county in which the project or facility is located;
(f) The governing body of any city or town in which the project or facility is located; and
(g) The Office of Economic Development.
2. A person or governmental entity described in paragraph (a), (b) or (g) of subsection 1 that files a notice of intent to participate pursuant to this section shall file the notice with the Director and provide a copy of the notice to the applicant not later than 5 business days after the date on which notice of the hearing is published. A person or governmental entity described in paragraph (c), (d), (e) or (f) of subsection 1 that files a notice of intent to participate pursuant to this section shall file the notice with the Director and provide a copy of the notice to the applicant not later than 15 business days after the date on which notice of the hearing is published. The notice of intent to participate must include, without limitation:
(a) A statement of whether the party intends to support or oppose all or any portion of the application;
(b) The legal arguments in support of the party’s position; and
(c) The identification of any witnesses or evidence that the party intends to present in support of the party’s position.
3. Except as otherwise provided in subsection 4, any person or governmental entity that files a notice of intent to participate may attend the hearing personally or may be represented at the hearing by an attorney, agent or other representative.
4. The Director may require any person who files a notice of intent to participate to appear personally at the hearing if the Director determines that the appearance will assist the Director in determining whether the applicant is qualified for a partial abatement of taxes.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.590 Criteria for determining eligibility for priority of application. (NRS 701A.390)
1. In determining whether an applicant has established that he or she has made the capital investment required by subparagraph (2) of paragraph (d) of subsection 1 of NRS 701A.365 or subparagraph (2) of paragraph (e) of subsection 1 of NRS 701A.365, the Director will consider:
(a) A capital investment to be any expenditure for an asset that qualifies as “section 1245 property,” as that term is defined in 26 U.S.C. § 1245, if the asset will be associated with and an integral part of the facility; and
(b) The amount paid for such an asset, including any capitalized interest, to be the amount of the capital investment for that asset. Any finance charge, tax or interest paid for the asset must not be included in the determination of the amount of the capital investment for that asset.
2. In determining whether an applicant has satisfied the requirements of subparagraph (1) of paragraph (d) of subsection 1 of NRS 701A.365 or subparagraph (1) of paragraph (e) of subsection 1 of NRS 701A.365, the Director will consider an employee:
(a) To be a full-time employee working on construction of the facility if the applicant establishes that the employee works or was regularly scheduled to work 40 or more hours per week engaged in activity that furthers construction of the facility.
(b) To be a resident of Nevada if the applicant establishes that the employee possesses a current and valid Nevada driver’s license or a current and valid identification card issued by the Department of Motor Vehicles.
3. In determining whether an applicant has satisfied the average hourly wage requirements of subparagraph (3) of paragraph (d) of subsection 1 of NRS 701A.365 or subparagraph (3) of paragraph (e) of subsection 1 of NRS 701A.365, the Director will consider a person to be an employee of the facility if the applicant establishes that the person works on the site of the facility and is engaged in work that furthers the maintenance or operation of the facility. The Director will consider an applicant to have satisfied those average hourly wage requirements if the applicant establishes that the average hourly wage paid to employees engaged in the maintenance and operation of the facility meets or exceeds 110 percent of the average statewide hourly wage, excluding management and administrative employees, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation as determined on a monthly basis and calculated as the total wages paid to all employees who performed maintenance and operation work on the facility for that month divided by the total number of hours worked by all employees who performed maintenance or operation work on the facility for that month, excluding management and administrative employees.
4. Except as otherwise provided in subsection 6 of NRS 701A.365, the Director will consider an applicant to have satisfied the average hourly wage requirements of subparagraph (4) of paragraph (d) of subsection 1 of NRS 701A.365 or subparagraph (4) of paragraph (e) of subsection 1 of NRS 701A.365 if the applicant establishes that the average hourly wage paid to employees engaged in the construction of a project meets or exceeds 175 percent of the average statewide hourly wage, excluding management and administrative employees, as established by the Employment Security Division of the Department of Employment, Training and Rehabilitation based on reports submitted on a weekly basis and calculated during the construction period as the total wages paid to all employees who performed construction work on the project during the course of the construction period.
5. To establish that an applicant has satisfied the requirements of sub-subparagraph (II) of subparagraph (4) of paragraph (d) of subsection 1 of NRS 701A.365 or sub-subparagraph (II) of subparagraph (4) of paragraph (e) of subsection 1 of NRS 701A.365, the applicant must establish through certification by a third party provider of insurance, or through other documentation which is approved by the Director, that the health insurance plan for an employee and the employee’s dependents during the construction of the project includes, without limitation:
(a) Emergency care;
(b) Inpatient and outpatient hospital services;
(c) Physicians’ services;
(d) Outpatient medical services;
(e) Laboratory services;
(f) Diagnostic testing services; and
(g) Except as otherwise provided in this paragraph, for an in-network provider, a minimum employer contribution of at least 80 percent of medical expenses after the employee’s deductible limit is met. The Director may approve a minimum employer contribution of less than 80 percent if an employer submits a written request stating reasonable grounds for such an exception.
6. An applicant may satisfy the average hourly wage requirements in subsection 3 or 4 if the applicant’s employees are paid:
(a) The correct adjusted wage commencing on August 1 of each year; and
(b) If the wage has been adjusted higher, an amount equivalent to the difference between the wage the employee was actually paid and the adjusted wage for all hours worked from July 1 through July 31. A payment made under this paragraph must be made not later than 30 days after publication of the average statewide hourly wage by the Employment Security Division of the Department of Employment, Training and Rehabilitation.
7. As used in this section, “provider of insurance” has the meaning ascribed to it in NRS 679A.118.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.595 Final decision on eligibility; abatement to be prospective only. (NRS 701A.390)
1. If the Director issues a final decision in which he or she determines that an applicant has satisfied all the requirements for eligibility for a partial abatement of taxes, the final decision must include:
(a) The terms of the partial abatement of taxes;
(b) A certificate of eligibility; and
(c) A copy of the abatement agreement executed by the Director and the applicant.
2. A partial abatement of taxes approved by the Director is prospective only and must not be applied retroactively to any tax imposed before the execution of the abatement agreement between the Director and the applicant.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.600 Reapplication after denial of application. (NRS 701A.390) If the Director issues a final decision denying an application for a partial abatement, the applicant whose application for a partial abatement has been denied may reapply for the partial abatement pursuant to NRS 701A.360.
(Added to NAC by Office of Energy by R065-13, eff. 2-26-2014)
NAC 701A.605 Qualification of tangible property for partial abatement of sales and use taxes. (NRS 701A.390)
1. If the Director issues a final decision in which he or she determines that an applicant has satisfied all the requirements for eligibility for a partial abatement of sales and use taxes, unless the certificate of eligibility and abatement agreement otherwise provide, the following tangible property which will be used exclusively for the construction, operation or maintenance of the facility qualifies for the partial abatement of sales and use taxes:
(a) Materials for any building that will be located on the site of the facility, including, without limitation, residential structures if employees at the facility will be required to reside at the site of the facility;
(b) Equipment, fixtures or furniture needed and used on the site of the facility;
(c) Materials for any road, parking lot or other structure that is not a building which will be located on the site of the facility;
(d) Materials to provide water, fuel or electrical power necessary for the facility, including, without limitation, the costs inherent in tie lines and transmission lines;
(e) Equipment, fixtures or other tangible items necessary for the generation of power on the site of the facility;
(f) Motor vehicles, if the motor vehicles are specifically purchased or leased for exclusive use on the site of the facility;
(g) Power tools and motorized heavy equipment, including, without limitation, bulldozers, graders, loaders and other similar equipment, if the power tools or motorized heavy equipment is specifically purchased for exclusive use on the site of the facility and will remain on the site of the facility throughout the construction of the project and operation of the facility;
(h) Mobile housing or office units, if the units will be located at the site of the facility throughout the construction of the project and operation of the facility;
(i) Materials, equipment, fixtures, components or other tangible items located at the site of the facility and necessary for the construction and operation of a facility for the transmission of electricity; and
(j) Materials for any road required for access along the site of a facility for the transmission of electricity that is specifically purchased for exclusive use on such roads.
2. If an applicant seeks a partial abatement of sales and use taxes for any tangible property other than the property described in subsection 1, the applicant’s application must specifically include a request that the Director determine whether the property for which the partial abatement is requested qualifies for the partial abatement of sales and use taxes. The Director will consult with the Department of Taxation before making any determination on an applicant’s request under this subsection. If the application includes a request pursuant to this subsection, the Director’s final decision must include a determination of whether the property qualifies for the partial abatement of sales and use taxes.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.610 Qualification of real and personal property for partial abatement of property taxes. (NRS 701A.390) If the Director issues a final decision in which he or she determines that an applicant has satisfied all the requirements for eligibility for a partial abatement of the property taxes imposed pursuant to chapter 361 of NRS, unless the certificate of eligibility and abatement agreement otherwise provide, all real and personal property that would be taxable pursuant to chapter 361 of NRS that was purchased or leased specifically for exclusive use on the site of the facility qualifies for the partial abatement of property taxes.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.615 Duties of applicant: Maintenance of certain records; payment of taxes abated resulting from noncompliance of applicant or other person working on project or facility. (NRS 701A.390)
1. An applicant who has executed an abatement agreement with the Director shall:
(a) Maintain a list of the names and contact information of each person, entity, contractor and subcontractor working on the construction of the project and operation of the facility who is authorized to claim the benefit of the partial abatement of taxes approved by the Director;
(b) Ensure that the information contained in the list maintained pursuant to paragraph (a) is complete, current and accurate;
(c) Ensure that the list maintained pursuant to paragraph (a) is available for inspection by the authorized employees or agents of the Director, the Department of Taxation, any county in which the facility is located and vendors during normal business hours; and
(d) Ensure that each person, entity, contractor or subcontractor who is named on the list maintained pursuant to paragraph (a) complies with the terms of the abatement agreement.
2. If the applicant or any other person, entity, contractor or subcontractor fails to comply with the terms of the abatement agreement, the applicant shall pay to the State of Nevada the amount of any sales and use taxes and the amount of any property taxes abated resulting from the noncompliance.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.620 Annual compliance report; notice of compliance to certain governmental entities. (NRS 701A.390)
1. Each applicant who executes an abatement agreement with the Director shall file an annual compliance report with the Director on the form prescribed by the Director. The applicant shall file the annual compliance report on or before the anniversary date of the abatement agreement. The annual compliance report must include all information and documentation required by the Director.
2. The Director will review each annual compliance report as soon as practicable after receipt of the annual compliance report from the applicant. An annual compliance report which is incomplete will be rejected and shall be deemed not to have been filed. If the Director determines that additional information is required to determine whether the applicant is in compliance with the terms of the abatement agreement, the Director may request additional information from the applicant.
3. If the Director determines that the annual compliance report and any additional information requested by the Director establish that the applicant is in compliance with the terms of the abatement agreement, the Director will notify the applicant of the determination in writing and provide a copy of the notice to:
(a) The Department of Taxation;
(b) The board of county commissioners of each county in which the project or facility is located;
(c) The county assessor of each county in which the project or facility is located; and
(d) The county treasurer of each county in which the project or facility is located.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.625 Determination of ineligibility or noncompliance: Required notices; hearing; on-site inspection; audit. (NRS 701A.390)
1. If, at any time or for any reason, the Director determines that an applicant has ceased to meet any eligibility requirement for a partial abatement of taxes or that the applicant or any other person, entity, contractor or subcontractor has failed to comply with the terms of the abatement agreement, the Director will notify the applicant in writing of the determination. The notice must include, without limitation:
(a) A statement of the facts upon which the determination is based;
(b) Identification of the provisions of NRS 701A.300 to 701A.390, inclusive, or NAC 701A.500 to 701A.660, inclusive, or the terms of the abatement agreement with which the applicant or other person, entity, contractor or subcontractor is not in compliance;
(c) A time by which the applicant must respond to the Director in writing;
(d) A time by which the applicant must remedy the noncompliance identified by the Director;
(e) A statement that the applicant may request a hearing before the Director; and
(f) Any other information that the Director believes will aid the applicant in remedying the noncompliance identified by the Director.
2. If an applicant requests a hearing pursuant to this section, the Director will set a date, time and place for the hearing and will provide written notice of the hearing to the applicant. The Director will issue written findings of fact, conclusions of law and an order after the conclusion of the hearing.
3. If, after a hearing conducted pursuant to this section and a reasonable opportunity to remedy any noncompliance, the Director determines that the applicant has ceased to meet the eligibility requirements for a partial abatement of taxes or that the applicant or other person, entity, contractor or subcontractor has failed to comply with the terms of the abatement agreement, the Director will immediately:
(a) Terminate the partial abatement of taxes; and
(b) In addition to the notice requirement of subsection 3 of NRS 701A.380, provide notice of the termination to:
(1) The Chief of the Budget Division of the Office of Finance;
(2) The Department of Taxation;
(3) The board of county commissioners of each county in which the project or facility is located;
(4) The county assessor of each county in which the project or facility is located;
(5) The county treasurer of each county in which the project or facility is located;
(6) The governing body of each city or town in which the project or facility is located;
(7) The Office of Economic Development; and
(8) The applicant.
4. The Director or his or her designee may conduct an on-site inspection of the project or facility and the applicant at any time to determine if the applicant is in compliance with the abatement agreement.
5. The Director or his or her designee, upon a request of the board of county commissioners of any county or governing body of any city or town in which the project or facility is located, will conduct an on-site inspection of the project or facility or audit of the applicant to determine if the applicant is in compliance with the abatement agreement and the terms of any distribution or funding received from the Renewable Energy Account pursuant to NRS 701A.450.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.630 Payment of taxes abated during period of noncompliance of project or facility with abatement agreement. (NRS 701A.390)
1. If the Director determines that a project or facility is not in compliance with the abatement agreement pursuant to NAC 701A.625, the applicant shall pay to the State of Nevada the amount of sales and use taxes and the amount of property taxes abated during the period in which the project or facility was not in compliance with the abatement agreement.
2. Payment to the State of Nevada must be made not later than 60 days after the date on which the applicant receives written notice from the Director pursuant to subsection 3 of NAC 701A.625.
3. The Director may take any action which is authorized by law and which he or she believes is reasonably necessary to enforce the provisions of this section.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.635 Attestation to documents by owner. (NRS 701A.390) The Director may require that any application, amendment, annual report or other document submitted to the Director be attested to by the owner.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.640 Sale, assignment or transfer of interest in project or facility. (NRS 701A.390)
1. If an applicant intends to sell, assign or otherwise transfer all or some of the interest of the applicant in the project or facility, the applicant must:
(a) If the sale, assignment or other transfer will occur before the hearing regarding the application of the applicant, amend the application to include information regarding the proposed successor in interest and the terms and conditions of the transaction.
(b) If the sale, assignment or other transfer will occur after the execution of an abatement agreement, provide written proof that the successor in interest has actual knowledge of and will fully comply with the abatement agreement.
2. Upon receipt of any of the information required by subsection 1, the Director will provide a copy of the information to:
(a) The Chief of the Budget Division of the Office of Finance;
(b) The Department of Taxation;
(c) The board of county commissioners of any county in which the project or facility is located;
(d) The county assessor of any county in which the project or facility is located;
(e) The county treasurer of any county in which the project or facility is located;
(f) The governing body of any city or town in which the project or facility is located; and
(g) The Office of Economic Development.
3. A successor in interest to an applicant is not eligible for or entitled to a partial abatement of taxes authorized by an abatement agreement executed pursuant to NAC 701A.500 to 701A.660, inclusive, until the Director has received all the information required by subsection 1.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.645 Director to establish fee; administration of Renewable Energy Account; disbursement of money. (NRS 701A.390, 701A.450)
1. The Director will establish, charge and collect a fee from each applicant who submits an application for a partial abatement pursuant to NRS 701A.300 to 701A.390, inclusive. The amount of the fee must not exceed the actual cost to the Director for processing and approving the application.
2. For projects approved on or before June 30, 2013, the State Controller shall, as soon as practicable, deposit all money in his or her possession that is subject to the provisions of NRS 701A.450 into the Renewable Energy Account in such an account or accounts as directed by the Director. All money received by the Director from the State Controller pursuant to NRS 701A.450 must be deposited by the Director into one or more interest-bearing accounts in financial institutions located in Nevada. All records related to the account or accounts are public records and must be maintained by the Director.
3. At least once every odd-numbered year, the Director will have the account or accounts audited by an independent auditor, and any report made by the auditor is a public record and must be maintained by the Director.
4. The Director will disburse from the account or accounts all of the money contained therein as follows:
(a) Seventy-five percent must be available to offset the cost of electricity to or the use of electricity by retail customers of a public utility pursuant to subsection 4 of NRS 701A.450; and
(b) Twenty-five percent must be dedicated solely to be used by the Director for the operation and staffing of his or her office and for purposes related to the Director’s duties and obligations pursuant to chapters 701 and 701A of NRS and NAC 701A.500 to 701A.660, inclusive.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.650 Fees: Amounts; payment by applicant; review of amounts by Director; deposit and use. (NRS 701A.365, 701A.390)
1. An applicant shall pay to the Director the following fees:
(a) For the review and approval of an application submitted pursuant to NRS 701A.360, $7,500. An applicant shall pay the fee concurrently with the submission of his or her application. The Director will not approve an application for which the fee has not been timely paid pursuant to this paragraph.
(b) For the review and approval of an annual compliance report submitted pursuant to NAC 701A.620, $250. An applicant shall pay the fee concurrently with the submission of his or her annual compliance report. The Director will deem incomplete pursuant to subsection 3 of NAC 701A.620 an annual compliance report for which the fee has not been timely paid pursuant to this paragraph.
(c) In addition to any other fee required by this subsection, if the review and approval of an application submitted pursuant to NRS 701A.360 or an annual compliance report submitted pursuant to NAC 701A.620 requires an on-site inspection, $500 per inspection.
2. The Director will review each fee prescribed by subsection 1 on or before December 31 of each even-numbered year to ensure that the amount of the fee reflects the actual cost to the Office of Energy in carrying out the duties described in subsection 1.
3. The fees collected pursuant to subsection 1 must be deposited by the Director into an interest-bearing account. The money deposited pursuant to this subsection and any interest earned on such money must be used only to pay the costs incurred by the Office of Energy in carrying out the duties described in subsection 1.
(Added to NAC by Office of Energy by R064-13, eff. 12-23-2013)
NAC 701A.655 Petition for adoption, filing, amendment or repeal of regulation: Filing; contents; action by Director. (NRS 701A.390)
1. An interested person who wishes to petition the Director for the adoption, filing, amendment or repeal of a regulation in this chapter must file with the Director the original and one copy of the petition.
2. The petition must include:
(a) The name and address of the petitioner;
(b) A clear and concise statement of the regulation to be adopted, filed, amended or repealed;
(c) The reason for the adoption, filing, amendment or repeal of the regulation; and
(d) The statutory authority for the adoption, filing, amendment or repeal of the regulation.
3. The Director may refuse to review a petition which requests the adoption, filing, amendment or repeal of a regulation if:
(a) The original petition is not accompanied by one copy of the petition; or
(b) The petition does not contain the information required by subsection 2.
4. The Director will notify the petitioner in writing of his or her decision within 30 days after the petition is filed.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
NAC 701A.660 Petition for declaratory order or advisory opinion: Filing; contents; action by Director. (NRS 701A.390)
1. Except as otherwise provided in subsection 4, an interested person may petition the Director to issue a declaratory order or advisory opinion concerning the applicability of a statute or regulation within the Director’s purview or jurisdiction. The original and one copy of the petition must be filed with the Director.
2. The petition must include:
(a) The name and address of the petitioner;
(b) The reason for requesting the order or opinion;
(c) A statement of facts that support the petition; and
(d) A clear and concise statement of the question to be decided by the Director and the relief sought by the petitioner.
3. An interested person may not file a petition for a declaratory order or an advisory opinion concerning a question or matter that is an issue in an administrative, civil or criminal proceeding in which the interested person is a party.
4. The Director may refuse to review a petition which requests that he or she issue a declaratory order or advisory opinion if:
(a) The original petition is not accompanied by one copy of the petition;
(b) The petition does not contain the information required by subsection 2; or
(c) The petition seeks a declaratory order or an advisory opinion prohibited by subsection 3.
5. The Director may:
(a) Conduct an informal hearing to determine issues of fact or to hear arguments relating to the petition and may enter reasonable orders that govern the conduct of such a hearing.
(b) Request that the petitioner provide additional information or arguments relating to the petition.
(c) Issue a declaratory order or an advisory opinion based upon the contents of the petition and any material submitted with the petition.
(d) Consider relevant decisions that have been issued by the Director which apply or interpret the statute, regulation or decision in question.
(e) Enter any reasonable order to assist his or her review of the petition.
6. The Director will maintain a record of the order or opinion that is indexed by subject matter and mail a copy of the order or opinion to the petitioner within 60 days after:
(a) The petition is filed;
(b) An informal hearing is conducted; or
(c) Any additional information or written argument is received by the Director,
Ê whichever occurs later.
7. The Director will not render an oral advisory opinion or respond over the telephone to a request for an advisory opinion. An oral response or a response given over the telephone by a member of the staff of the Director is not a decision or an advisory opinion of the Director.
(Added to NAC by Nev. Energy Comm’r by R094-10, eff. 8-13-2010; A by Office of Energy by R065-13, 2-26-2014)
RENEWABLE ENERGY ACCOUNT: REPAYMENT OF LOAN MADE TO OFFICER OR EMPLOYEE OF THE STATE
NAC 701A.700 Definitions. (NRS 701A.450) As used in NAC 701A.700 to 701A.750, inclusive, unless the context otherwise requires, the words and terms defined in NAC 701A.710, 701A.720 and 701A.730 have the meanings ascribed to them in those sections.
(Added to NAC by Office of Energy by R051-15, eff. 10-27-2015)
NAC 701A.710 “Account” defined. (NRS 701A.450) “Account” means the Renewable Energy Account created by NRS 701A.450.
(Added to NAC by Office of Energy by R051-15, eff. 10-27-2015)
NAC 701A.720 “Director” defined. (NRS 701A.450) “Director” means the Director of the Office of Energy appointed pursuant to NRS 701.150.
(Added to NAC by Office of Energy by R051-15, eff. 10-27-2015)
NAC 701A.730 “Participant” defined. (NRS 701A.450) “Participant” means an officer or employee of the State who receives a loan or other distribution of money from the Account and enters into an agreement with the Director pursuant to NAC 701A.740 to repay the loan or other distribution of money from the Account through payroll deductions from the paycheck of the officer or employee of the State.
(Added to NAC by Office of Energy by R051-15, eff. 10-27-2015)
NAC 701A.740 Agreement with Director; provision of certain information for payroll deduction. (NRS 218F.510, 281.129, 701A.450)
1. An officer or employee of the State who has received a loan or other distribution of money from the Account may submit to the Director, on a form approved by the Director, an application to enter into an agreement pursuant to which repayment of the loan or other distribution of money from the Account will be made through payroll deductions from the paycheck of the officer or employee.
2. If the Director approves an application submitted pursuant to subsection 1, the Director may enter into an agreement with the participant. An agreement entered into pursuant to this subsection must include:
(a) The amount of the loan or other distribution of money from the Account;
(b) The total amount to be repaid by the participant;
(c) The amount to be deducted from each paycheck of the participant;
(d) A description of each approved energy efficiency measure selected by the participant;
(e) Any waivers or consent requirements established by the Director;
(f) Provisions specifying that the participant may repay the loan or other distribution of money from the Account early without penalty; and
(g) Any other terms and conditions the Director determines necessary to ensure the repayment of the loan or other distribution of money from the Account.
3. Upon entering into an agreement with a participant pursuant to subsection 2, the Director will provide to the Department of Administration or the Legislative Fiscal Officer, as applicable, the information necessary to enable the Department of Administration or the Legislative Fiscal Officer, as applicable, to administer the payroll deduction set forth in the agreement, including:
(a) The name of the participant;
(b) The employee number of the participant;
(c) The amount of the payroll deduction authorized by the agreement;
(d) The frequency of the payroll deductions authorized by the agreement;
(e) The total amount of the loan or other distribution of money from the Account authorized by the agreement; and
(f) Any other information which the Department of Administration or the Legislative Fiscal Officer, as applicable, determines is necessary to administer the payroll deduction set forth in the agreement.
(Added to NAC by Office of Energy by R051-15, eff. 10-27-2015)
NAC 701A.750 Repayment; suspension of payments under certain circumstances; unpaid balance due upon separation from service. (NRS 701A.450)
1. The Director may suspend repayment pursuant to an agreement entered into pursuant to NAC 701A.740 of a loan or other distribution of money from the Account during any period other than when the participant is in paid status as that term is defined in NAC 284.0742. If the Director does not suspend repayment during such period:
(a) The Director will bill the participant for the payment due;
(b) Payment is due on the 20th day of each month during the period;
(c) Payment must be made not later than 15 days after the date on which the payment is due; and
(d) If payment is not received by the date on which it is due:
(1) The Director may provide notice to the participant by mail that the payment is past due; and
(2) The loan or other distribution of money from the Account may be subject to collection proceedings in accordance with the provisions of chapter 353C of NRS.
2. Upon a participant’s permanent separation from service, the entire unpaid balance of the loan or other distribution of money from the Account is deemed to be due in its entirety and may be withheld from the final paycheck of or other final payment of money by the State to the participant. Any unpaid balance remaining thereafter must be paid by the participant by check within 60 days after the participant’s date of permanent separation from service. If a participant fails to pay the unpaid balance remaining within 60 days after his or her date of permanent separation from service, the unpaid balance remaining is deemed to be past due and the Director will take action to collect the debt in accordance with the provisions of chapter 353C of NRS.
(Added to NAC by Office of Energy by R051-15, eff. 10-27-2015)