NRS: CHAPTER 701A - ENERGY-RELATED TAX INCENTIVES

[Rev. 6/29/2024 5:15:52 PM--2023]

CHAPTER 701A - ENERGY-RELATED TAX INCENTIVES

GREEN BUILDINGS

NRS 701A.100 Adoption of Green Building Rating System; requirements and limitations. [Effective through June 30, 2035.]

NRS 701A.110 Partial abatement of certain property taxes for buildings or structures that meet certain standards under Green Building Rating System; requirements and limitations; regulations. [Effective through June 30, 2035.]

CERTAIN BUSINESSES, FACILITIES, SYSTEMS AND DEVICES

NRS 701A.200 Exemption from certain property taxes for qualified energy systems: Requirements and limitations; regulations.

NRS 701A.210 Partial abatement of certain property taxes for businesses and facilities using recycled material: Requirements and limitations.

CERTAIN RENEWABLE ENERGY FACILITIES

General Provisions

NRS 701A.300 Definitions. [Effective through June 30, 2049.]

NRS 701A.305 “Biomass” defined. [Effective through June 30, 2049.]

NRS 701A.315 “Director” defined. [Effective through June 30, 2049.]

NRS 701A.317 “Energy storage technology” defined. [Effective through June 30, 2049.]

NRS 701A.320 “Facility for the generation of electricity from renewable energy” defined. [Effective through June 30, 2049.]

NRS 701A.325 “Facility for the generation of process heat from solar renewable energy” defined. [Effective through June 30, 2049.]

NRS 701A.327 “Facility for the storage of energy from renewable generation” defined. [Effective through June 30, 2049.]

NRS 701A.330 “Fuel cell” defined. [Effective through June 30, 2049.]

NRS 701A.333 “Hybrid renewable generation and energy storage facility” defined. [Effective through June 30, 2049.]

NRS 701A.335 “Local sales and use taxes” defined. [Effective through June 30, 2049.]

NRS 701A.340 “Renewable energy” defined. [Effective through June 30, 2049.]

NRS 701A.343 “Term of construction” defined. [Effective through June 30, 2049.]

NRS 701A.345 “Wholesale facility for the generation of electricity from renewable energy” defined. [Effective through June 30, 2049.]

Partial Abatement of Certain Taxes

NRS 701A.360 Application for partial abatement; ineligible facilities; required notices; public hearing on application. [Effective through June 30, 2049.]

NRS 701A.365 Requirements for approval of application; exceptions; submission of annual report to Office of Economic Development. [Effective through June 30, 2032.]

NRS 701A.365 Requirements for approval of application; exceptions; submission of annual report to Office of Economic Development. [Effective July 1, 2032, through June 30, 2049.]

NRS 701A.370 Duration, amount and other terms of partial abatement; notice of abatement; distribution of certificate of eligibility by Director. [Effective through June 30, 2049.]

NRS 701A.375 Publication of fiscal notes; distribution of certificate of eligibility by Department of Taxation. [Effective through June 30, 2049.]

NRS 701A.377 Recipient required to maintain certain records regarding employees. [Effective through June 30, 2049.]

NRS 701A.379 Recipient required to submit payroll report; form; contents; frequency. [Effective through June 30, 2049.]

NRS 701A.380 Termination of partial abatement for noncompliance; opportunity to cure noncompliance; required notices; repayment of taxes after termination. [Effective through June 30, 2049.]

NRS 701A.385 Allocation of certain taxes collected from facilities receiving partial abatement. [Effective through June 30, 2049.]

NRS 701A.390 Regulations; Director authorized to charge and collect fee for application for partial abatement. [Effective through June 30, 2049.]

RENEWABLE ENERGY ACCOUNT

NRS 701A.450 Creation; administration; interest and income; use of money; nonreversion; agreement for repayment of certain loans or distributions through payroll deductions; regulations. [Effective through June 30, 2049.]

_________

GREEN BUILDINGS

NRS 701A.100 Adoption of Green Building Rating System; requirements and limitations. [Effective through June 30, 2035.]

1. The Director of the Office of Energy shall adopt a Green Building Rating System for the purposes of determining the eligibility of a building or other structure for a tax abatement pursuant to NRS 701A.110. The Director shall not alter or amend the Green Building Rating System adopted pursuant to this section after July 1, 2021, and the standards and ratings in effect on that date shall remain in effect.

2. The Green Building Rating System must include standards and ratings equivalent to the standards and ratings provided pursuant to the Leadership in Energy and Environmental Design Green Building Rating System or an equivalent rating system, except that the standards adopted by the Director:

(a) Except as otherwise provided in paragraphs (b) and (c), must not include:

(1) Any standard that has not been included in the Leadership in Energy and Environmental Design Green Building Rating System or the equivalent rating system for at least 2 years; or

(2) Standards for homes;

(b) Must provide reasonable exceptions based on the size of the area occupied by the building or other structure; and

(1) At least 5 points in the Optimize Energy Performance credit, or its equivalent, to meet the equivalent of the silver level;

(2) At least 7 points in the Optimize Energy Performance credit, or its equivalent, to meet the equivalent of the gold level; and

(3) At least 11 points in the Optimize Energy Performance credit, or its equivalent, to meet the equivalent of the platinum level.

3. As used in this section, “home” means a building or other structure for which the principal use is as a residential dwelling for not more than four families.

(Added to NRS by 2007, 3375; A 2011, 1653; 2013, 3185; 2021, 2015; R 2021, 2020, effective July 1, 2035)

1. Except as otherwise provided in this section, the Director, in consultation with the Office of Economic Development, shall grant a partial abatement from the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, on a building or other structure that is determined to meet the equivalent of the silver level or higher by an independent contractor authorized to make that determination in accordance with the Green Building Rating System adopted by the Director pursuant to NRS 701A.100, if:

(a) No funding is provided by any governmental entity in this State for the acquisition, design, construction or renovation of the building or other structure or for the acquisition of any land therefor. For the purposes of this paragraph:

(1) Private activity bonds must not be considered funding provided by a governmental entity.

(2) The term “private activity bond” has the meaning ascribed to it in 26 U.S.C. § 141.

(b) The owner of the property:

(1) Submits an application for the partial abatement to the Director before July 1, 2021. If such an application 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 application must be amended to include the change or changes.

(2) Except as otherwise provided in this subparagraph, provides to the Director, within 48 months after applying for the partial abatement, proof that the building or other structure meets the equivalent of the silver level or higher, as determined by an independent contractor authorized to make that determination in accordance with the Green Building Rating System adopted by the Director pursuant to NRS 701A.100. The Director may, for good cause shown, extend the period for providing such proof.

(3) Files a copy of each application and amended application submitted to the Director pursuant to subparagraph (1) with the:

(I) Chief of the Budget Division of the Office of Finance;

(II) Department of Taxation;

(III) County assessor;

(IV) County treasurer;

(V) Office of Economic Development;

(VI) Board of county commissioners; and

(VII) City manager and city council, if any.

(c) The abatement is consistent with the State Plan for Economic Development developed by the Executive Director of the Office of Economic Development pursuant to subsection 2 of NRS 231.053.

2. The Director shall not approve an application for a partial abatement of the taxes imposed pursuant to chapter 361 of NRS submitted pursuant to this section by the owner of the property unless the application is approved or deemed approved by the board of county commissioners pursuant to this subsection. The board of county commissioners of a county must provide notice to the Director that the board intends to consider an application and, if such notice is given, must approve or deny the application not later than 30 days after the board receives a copy of the application. The board of county commissioners:

(a) Shall, in considering an application pursuant to this subsection, make a recommendation to the Director regarding the application;

(b) May, in considering an application pursuant to this subsection, deny an application only if the board of county commissioners determines, based on relevant information, that:

(1) The projected cost of the services that the local government is required to provide to the building or other structure for which the abatement is received will exceed the amount of tax revenue that the local government is projected to receive as a result of the abatement; or

(2) The projected financial benefits that will result to the county from any employment resulting from the use of the building or other structure and from capital investments by the owner of the building or other structure in the county will not exceed the projected loss of tax revenue that will result from the abatement; and

(c) May, without regard to whether the board has provided notice to the Director of its intent to consider the application, make a recommendation to the Director regarding the application.

Ê If the board of county commissioners does not approve or deny the application pursuant to this subsection within 30 days after the board receives a copy of the application, the application shall be deemed approved.

3. As soon as practicable after the Director receives the application and proof required by subsection 1, the Director, in consultation with the Office of Economic Development, shall determine whether the building or other structure is eligible for the abatement and, if so, forward a certificate of eligibility for the abatement to the:

(a) Department of Taxation;

(b) County assessor;

(d) Office of Economic Development.

4. The Director may, with the assistance of the Chief of the Budget Division and the Department of Taxation, publish a fiscal note that indicates an estimate of the fiscal impact of the partial abatement on the State and on each affected local government. If the Director publishes a fiscal note that estimates the fiscal impact of the partial abatement on local government, the Director shall forward a copy of the fiscal note to each affected local government. As soon as practicable after receiving a copy of a certificate of eligibility pursuant to subsection 3, the Department of Taxation shall forward a copy of the certificate to each affected local government.

5. The partial abatement for:

(a) A building or other structure must, except as otherwise provided in paragraph (b), be for a duration of not more than 10 years and in an annual amount that equals, for a building or other structure that meets the equivalent of:

(1) The silver level, 25 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be owed for the building or other structure, excluding the associated land;

(2) The gold level, 30 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be owed for the building or other structure, excluding the associated land; or

(3) The platinum level, 35 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be owed for the building or other structure, excluding the associated land.

(b) A building or other structure that qualifies for an abatement under the Leadership in Energy and Environmental Design “Existing Buildings: Operations and Maintenance” rating system, or its equivalent, must be for a duration of not more than 5 years and in an annual amount that equals, except as otherwise provided in subsection 6, for a building or other structure that meets the equivalent of:

6. The Director shall not grant a partial abatement of more than $100,000 in any year for a building or other structure that qualifies for an abatement pursuant to paragraph (b) of subsection 5.

7. A partial abatement granted pursuant to this section:

(a) Does not apply during any period in which the owner of the building or other structure is receiving another abatement or exemption pursuant to this chapter or NRS 361.045 to 361.159, inclusive, from the taxes imposed pursuant to chapter 361 of NRS.

(b) Terminates upon any determination by the Director that the building or other structure has ceased to meet the equivalent of the silver level or higher. The Director shall provide notice and a reasonable opportunity to cure any noncompliance issues before making a determination that the building or other structure has ceased to meet that standard. The Director shall immediately provide notice of each determination of termination to the:

(1) Department of Taxation, who shall immediately notify each affected local government of the determination;

(2) County assessor;

(3) County treasurer; and

(4) Office of Economic Development.

8. If a partial abatement terminates pursuant to paragraph (b) of subsection 7, the owner of the property to which the partial abatement applied shall repay to the county treasurer the amount of the exemption that was allowed pursuant to this section before the date of that termination. The owner shall, in addition to the amount of the exemption required to be paid pursuant to this subsection, pay interest on the amount due at the rate most recently established pursuant to NRS 99.040 for each month, or portion thereof, from the last day of the month following the period for which the payment would have been made had the partial abatement not been approved until the date of payment of the tax.

9. The Director, in consultation with the Office of Economic Development, shall adopt regulations:

(a) Establishing the qualifications and methods to determine eligibility for and the duration of the abatement;

(b) Prescribing such forms as will ensure that all information and other documentation necessary to make an appropriate determination is filed with the Director; and

(c) Prescribing the criteria for determining when there is a significant change in the scope of a project for the purposes of subparagraph (1) of paragraph (b) of subsection 1,

Ê and the Department of Taxation shall adopt such additional regulations as it determines to be appropriate to carry out the provisions of this section.

10. The Director shall:

(a) Cooperate with the Office of Economic Development in carrying out the provisions of this section; and

(b) Submit to the Office of Economic Development an annual report, at such a time and containing such information as the Office may require, regarding the partial abatements granted pursuant to this section.

11. The Director may charge and collect a fee from each applicant who submits an application for a partial abatement pursuant to this section. The amount of the fee must not exceed the actual cost to the Director for processing the application and evaluating the proof submitted by the applicant pursuant to subsection 1 and making the determination concerning eligibility for the partial abatement required by subsection 3.

12. As used in this section:

(a) “Building or other structure” does not include any building or other structure for which the principal use is as a residential dwelling for not more than four families.

(b) “Director” means the Director of the Office of Energy appointed pursuant to NRS 701.150.

(1) Any ad valorem tax authorized or required by chapter 387 of NRS;

(2) Any ad valorem tax authorized or required by chapter 350 of NRS for the obligations of a school district, including, without limitation, any ad valorem tax necessary to carry out the provisions of subsection 5 of NRS 350.020; and

(3) Any other ad valorem tax for which the proceeds thereof are dedicated to the public education of pupils in kindergarten through grade 12.

(Added to NRS by 2007, 3375; A 2009, 988; 2011, 1654, 2067, 3474; 2013, 3186, 3197; 2021, 2016; R 2021, 2020, effective July 1, 2035)

CERTAIN BUSINESSES, FACILITIES, SYSTEMS AND DEVICES

NRS 701A.200 Exemption from certain property taxes for qualified energy systems: Requirements and limitations; regulations.

1. For purposes of the assessment of property pursuant to chapter 361 of NRS:

(a) Except as otherwise provided in paragraph (b), a qualified system is exempt from taxation.

(b) A qualified system is not exempt from taxation:

(1) During any period in which the qualified system is subject to another abatement or exemption pursuant to this chapter or NRS 361.045 to 361.159, inclusive, from the taxes imposed pursuant to chapter 361 of NRS; or

(2) If the system is constructed after July 1, 2009, and is part of a facility which is eligible for a partial abatement of taxes pursuant to NRS 701A.360.

2. The Nevada Tax Commission shall adopt such regulations as it determines to be necessary for the administration of this section.

3. As used in this section, “qualified system” means any system, method, construction, installation, machinery, equipment, device or appliance which is designed, constructed or installed in or adjacent to one or more buildings or an irrigation system in an agricultural operation to heat or cool the building or buildings or water used in the building or buildings, or to provide electricity used in the building or buildings or irrigation system regardless of whether the owner of the system, building or buildings or irrigation system participates in net metering pursuant to NRS 704.766 to 704.776, inclusive, by using:

(a) Energy from the wind or from solar devices;

(b) Geothermal resources;

(d) Waterpower,

Ê which conforms to standards established by regulation of the Nevada Tax Commission.

(Added to NRS by 2007, 3379; A 2011, 2070; 2019, 1186)

NRS 701A.210 Partial abatement of certain property taxes for businesses and facilities using recycled material: Requirements and limitations.

1. Except as otherwise provided in this section, if a:

(a) Business that engages in the primary trade of preparing, fabricating, manufacturing or otherwise processing raw material or an intermediate product through a process in which at least 50 percent of the material or product is recycled on-site; or

(b) Business that includes as a primary component a facility for the generation of electricity from recycled material,

Ê is found by the Office of Economic Development to have as a primary purpose the conservation of energy or the substitution of other sources of energy for fossil sources of energy and obtains certification from the Office of Economic Development pursuant to NRS 360.750, the Office may, if the business additionally satisfies the requirements set forth in subsection 2 of NRS 361.0687, grant to the business a partial abatement from the taxes imposed on real property pursuant to chapter 361 of NRS.

2. If a partial abatement from the taxes imposed on real property pursuant to chapter 361 of NRS is approved by the Office of Economic Development pursuant to NRS 360.750 for a business described in subsection 1:

(a) The partial abatement must:

(1) Be for a duration of at least 1 year but not more than 10 years;

(2) Not exceed 50 percent of the taxes on real property payable by the business each year; and

(3) Be administered and carried out in the manner set forth in NRS 360.750.

(b) The Executive Director of the Office of Economic Development shall notify the county assessor of the county in which the business is located of the approval of the partial abatement, including, without limitation, the duration and percentage of the partial abatement that the Office granted. The Executive Director shall, on or before April 15 of each year, advise the county assessor of each county in which a business qualifies for a partial abatement during the current fiscal year as to whether the business is still eligible for the partial abatement in the next succeeding fiscal year.

3. The partial abatement provided in this section applies only to the business for which certification was granted pursuant to NRS 360.750 and the property used in connection with that business. The exemption does not apply to property in this State that is not related to the business for which the certification was granted pursuant to NRS 360.750 or to property in existence and subject to taxation before the certification was granted.

4. As used in this section, “facility for the generation of electricity from recycled material” means a facility for the generation of electricity that uses recycled material as its primary fuel, including material from:

(a) Industrial or domestic waste, other than hazardous waste, even though it includes a product made from oil, natural gas or coal, such as plastics, asphalt shingles or tires;

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

Ê The term includes all the equipment in the facility used to process and convert into electricity the energy derived from a recycled material fuel.

(Added to NRS by 2007, 3378; A 2011, 3477)

CERTAIN RENEWABLE ENERGY FACILITIES

General Provisions

NRS 701A.300 Definitions. [Effective through June 30, 2049.] As used in NRS 701A.300 to 701A.390, inclusive, unless the context otherwise requires, the words and terms defined in NRS 701A.305 to 701A.345, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2009, 2004; A 2021, 3775; 2023, 639)

NRS 701A.305 “Biomass” defined. [Effective through June 30, 2049.] “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

1. Agricultural crops and agricultural wastes and residues;

2. Wood and wood wastes and residues;

3. Animal wastes;

4. Municipal wastes; and

5. Aquatic plants.

(Added to NRS by 2009, 2004)

NRS 701A.315 “Director” defined. [Effective through June 30, 2049.] “Director” means the Director of the Office of Energy appointed pursuant to NRS 701.150.

(Added to NRS by 2009, 2004)

NRS 701A.317 “Energy storage technology” defined. [Effective through June 30, 2049.] “Energy storage technology” means technology that stores energy as potential, kinetic, chemical or thermal energy that can be released at a later time, including, without limitation, batteries, flywheels, electrochemical capacitors, compressed-air storage and thermal storage devices.

(Added to NRS by 2021, 3774)

NRS 701A.320 “Facility for the generation of electricity from renewable energy” defined. [Effective through June 30, 2049.]

1. “Facility for the generation of electricity from renewable energy” means a facility for the generation of electricity that:

(a) Uses renewable energy as its primary source of energy; and

(b) Has a generating capacity of at least 10 megawatts.

2. The term does not include a facility that is located on residential property.

(Added to NRS by 2009, 2004)

NRS 701A.325 “Facility for the generation of process heat from solar renewable energy” defined. [Effective through June 30, 2049.] “Facility for the generation of process heat from solar renewable energy” means a facility that:

1. Uses solar renewable energy to generate process heat; and

2. Has an output capacity of at least 25,840,000 British thermal units per hour.

(Added to NRS by 2009, 2004)

NRS 701A.327 “Facility for the storage of energy from renewable generation” defined. [Effective through June 30, 2049.]

1. “Facility for the storage of energy from renewable generation” means a facility that is constructed or installed for the purpose of storing electric energy received from a facility for the generation of electricity from renewable energy for release at a later time, including, without limitation, a facility that is designed to use energy storage technology.

2. The term does not include a facility that is located on a residential property.

(Added to NRS by 2021, 3775; A 2023, 3029)

NRS 701A.330 “Fuel cell” defined. [Effective through June 30, 2049.] “Fuel cell” means a device or contrivance which, through the chemical process of combining ions of hydrogen and oxygen, produces electricity and water.

(Added to NRS by 2009, 2004)

NRS 701A.333 “Hybrid renewable generation and energy storage facility” defined. [Effective through June 30, 2049.] “Hybrid renewable generation and energy storage facility” means a facility that includes both a wholesale facility for the generation of electricity from renewable energy and a facility for the storage of energy from renewable generation.

(Added to NRS by 2021, 3775)

NRS 701A.335 “Local sales and use taxes” defined. [Effective through June 30, 2049.] “Local sales and use taxes” means any taxes imposed on the gross receipts of any retailer from the sale of tangible personal property sold at retail, or stored, used or otherwise consumed, in any political subdivision of this State, except the taxes imposed by the Sales and Use Tax Act.

(Added to NRS by 2009, 2004)

NRS 701A.340 “Renewable energy” defined. [Effective through June 30, 2049.]

1. “Renewable energy” means:

(a) Biomass;

(b) Fuel cells;

(d) Solar energy;

(e) Waterpower; or

(f) Wind.

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

(Added to NRS by 2009, 2004; A 2013, 3203, 3500)

NRS 701A.343 “Term of construction” defined. [Effective through June 30, 2049.] “Term of construction” means the period which begins when a building permit is issued for the construction of a facility and ends:

1. When the facility goes online; or

2. At such other time as the Director may determine.

(Added to NRS by 2023, 639)

NRS 701A.345 “Wholesale facility for the generation of electricity from renewable energy” defined. [Effective through June 30, 2049.]

1. “Wholesale facility for the generation of electricity from renewable energy” means a facility for the generation of electricity from renewable energy that, except as otherwise provided in paragraph (b) of subsection 2, does not sell the electricity to the end user of the electricity.

2. The term includes:

(a) All the machinery and equipment that is used in the facility to collect and store the renewable energy and to convert the renewable energy into electricity.

(b) A facility that is owned, leased or otherwise controlled by an entity that has authority to sell electricity and provide transmission services or distribution services, or both.

(Added to NRS by 2009, 2004)

Partial Abatement of Certain Taxes

NRS 701A.360 Application for partial abatement; ineligible facilities; required notices; public hearing on application. [Effective through June 30, 2049.]

1. A person who intends to locate a facility for the generation of process heat from solar renewable energy, a wholesale facility for the generation of electricity from renewable energy, a facility for the storage of energy from renewable generation or a hybrid renewable generation and energy storage facility in this State may apply to the Director for a partial abatement of the local sales and use taxes, the taxes imposed pursuant to chapter 361 of NRS, or both local sales and use taxes and taxes imposed pursuant to chapter 361 of NRS. An applicant may submit a copy of the application to the board of county commissioners at any time after the applicant has submitted the application to the Director.

2. A facility that is owned, operated, leased or otherwise controlled by a governmental entity is not eligible for an abatement pursuant to NRS 701A.300 to 701A.390, inclusive.

3. As soon as practicable after the Director receives an application for a partial abatement, the Director shall forward a copy of the application to:

(a) The Chief of the Budget Division of the Office of Finance;

(b) The Department of Taxation;

(d) The county assessor;

(e) The county treasurer; and

(f) The Office of Economic Development.

4. With the copy of the application forwarded to the county treasurer, the Director shall include a notice that the local jurisdiction may request a presentation regarding the facility. A request for a presentation must be made within 30 days after receipt of the application.

5. The Director shall hold a public hearing on the application. The hearing must not be held earlier than 30 days after all persons listed in subsection 3 have received a copy of the application.

(Added to NRS by 2009, 2004; A 2011, 2070, 3478; 2013, 3203, 3500; 2021, 3775)

NRS 701A.365 Requirements for approval of application; exceptions; submission of annual report to Office of Economic Development. [Effective through June 30, 2032.]

1. The Director, in consultation with the Office of Economic Development, shall approve an application for a partial abatement pursuant to NRS 701A.300 to 701A.390, inclusive, if the Director, in consultation with the Office of Economic Development, makes the following determinations:

(a) The applicant has executed an agreement with the Director which must:

(1) State that the facility will, after the date on which the abatement becomes effective, continue in operation in this State for a period specified by the Director, which must be at least 10 years, and will continue to meet the eligibility requirements for the abatement; and

(2) Bind the successors in interest in the facility for the specified period.

(b) The facility is registered pursuant to the laws of this State or the applicant commits to obtain a valid business license and all other permits required by the county, city or town in which the facility operates.

(c) No funding is or will be provided by any governmental entity in this State for the acquisition, design or construction of the facility or for the acquisition of any land therefor, except any private activity bonds as defined in 26 U.S.C. § 141.

(d) Except as otherwise provided in paragraph (e), if the facility will be located in a county whose population is 100,000 or more or a city whose population is 60,000 or more, the facility meets the following requirements:

(1) There will be 75 or more full-time employees working on the construction of the facility during the second quarter of construction, including, unless waived by the Director for good cause, at least 50 percent who are residents of Nevada;

(2) Establishing the facility will require the facility to make a capital investment of at least $10,000,000 in this State in capital assets that will be retained at the location of the facility until at least the date which is 5 years after the date on which the abatement becomes effective;

(3) The average hourly wage that will be paid by the facility to its employees in this State is at least 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 on July 1 of each fiscal year; and

(4) Except as otherwise provided in subsection 6, the average hourly wage of the employees working on the construction of the facility will be at least 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 on July 1 of each fiscal year and:

(I) The employees working on the construction of the facility must be provided a health insurance plan that is provided by a third-party administrator and includes health insurance coverage for dependents of the employees; and

(II) The cost of the benefits provided to the employees working on the construction of the facility will meet the minimum requirements for benefits established by the Director by regulation pursuant to NRS 701A.390.

(e) If the facility will be located in a county whose population is less than 100,000, in an area of a county whose population is 100,000 or more that is located within the geographic boundaries of an area that is designated as rural by the United States Department of Agriculture and at least 20 miles outside of the geographic boundaries of an area designated as urban by the United States Department of Agriculture, or in a city whose population is less than 60,000, the facility meets the following requirements:

(1) There will be 50 or more full-time employees working on the construction of the facility during the second quarter of construction, including, unless waived by the Director for good cause, at least 50 percent who are residents of Nevada;

(2) Establishing the facility will require the facility to make a capital investment of at least $3,000,000 in this State in capital assets that will be retained at the location of the facility until at least the date which is 5 years after the date on which the abatement becomes effective;

(f) The financial benefits that will result to this State from the employment by the facility of the residents of this State and from capital investments by the facility in this State will exceed the loss of tax revenue that will result from the abatement.

(g) The facility is consistent with the State Plan for Economic Development developed by the Executive Director of the Office of Economic Development pursuant to subsection 2 of NRS 231.053.

2. The Director shall not approve an application for a partial abatement of the taxes imposed pursuant to chapter 361 of NRS submitted pursuant to NRS 701A.360 by a facility for the generation of process heat from solar renewable energy, a wholesale facility for the generation of electricity from renewable energy, a facility for the storage of energy from renewable generation or a hybrid renewable generation and energy storage facility unless the application is approved or deemed approved pursuant to this subsection. The board of county commissioners of a county must provide notice to the Director that the board intends to consider an application and, if such notice is given, must approve or deny the application not later than 30 days after the board receives a copy of the application. The board of county commissioners:

(a) Shall, in considering an application pursuant to this subsection, make a recommendation to the Director regarding the application;

(b) May, in considering an application pursuant to this subsection, deny an application only if the board of county commissioners determines, based on relevant information, that:

(1) The projected cost of the services that the local government is required to provide to the facility will exceed the amount of tax revenue that the local government is projected to receive as a result of the abatement; or

(2) The projected financial benefits that will result to the county from the employment by the facility of the residents of this State and from capital investments by the facility in the county will not exceed the projected loss of tax revenue that will result from the abatement;

(c) Must not condition the approval of the application on a requirement that the facility agree to purchase, lease or otherwise acquire in its own name or on behalf of the county any infrastructure, equipment, facilities or other property in the county that is not directly related to or otherwise necessary for the construction and operation of the facility; and

(d) May, without regard to whether the board has provided notice to the Director of its intent to consider the application, make a recommendation to the Director regarding the application.

Ê If the board of county commissioners does not approve or deny the application within 30 days after the board receives from the Director a copy of the application, the application shall be deemed approved.

3. Notwithstanding the provisions of subsection 1, the Director, in consultation with the Office of Economic Development, may, if the Director, in consultation with the Office, determines that such action is necessary:

(a) Approve an application for a partial abatement for a facility that does not meet any requirement set forth in subparagraph (1) or (2) of paragraph (d) of subsection 1 or subparagraph (1) or (2) of paragraph (e) of subsection 1; or

(b) Add additional requirements that a facility must meet to qualify for a partial abatement.

4. The Director shall cooperate with the Office of Economic Development in carrying out the provisions of this section.

5. The Director shall submit to the Office of Economic Development an annual report, at such a time and containing such information as the Office may require, regarding the partial abatements granted pursuant to this section.

6. The provisions of subparagraph (4) of paragraph (d) of subsection 1 and subparagraph (4) of paragraph (e) of subsection 1 concerning the average hourly wage of the employees working on the construction of a facility do not apply to the wages of an apprentice as that term is defined in NRS 610.010.

7. As used in this section, “wage” or “wages”:

(a) Means:

(1) The basic hourly rate of pay; and

(2) The amount of any hourly contribution made to a third-party administrator pursuant to a pension plan or vacation plan which is for the benefit of the employee.

(b) Except as otherwise provided in paragraph (a), does not include the amount of any health insurance plan, pension or other bona fide fringe benefits which are a benefit to the employee.

(Added to NRS by 2009, 2004; A 2011, 2071, 3479; 2013, 3203, 3501; 2013, 27th Special Session, 27; 2017, 3814; 2019, 1180; 2021, 3775)

NRS 701A.365 Requirements for approval of application; exceptions; submission of annual report to Office of Economic Development. [Effective July 1, 2032, through June 30, 2049.]

(a) The applicant has executed an agreement with the Director which must:

(1) State that the facility will, after the date on which a certificate of eligibility for the abatement is issued pursuant to NRS 701A.370, continue in operation in this State for a period specified by the Director, which must be at least 10 years, and will continue to meet the eligibility requirements for the abatement; and

(2) Bind the successors in interest in the facility for the specified period.

(2) Establishing the facility will require the facility to make a capital investment of at least $10,000,000 in this State;

(2) Establishing the facility will require the facility to make a capital investment of at least $3,000,000 in this State;

(g) The facility is consistent with the State Plan for Economic Development developed by the Executive Director of the Office of Economic Development pursuant to subsection 2 of NRS 231.053.

(a) Shall, in considering an application pursuant to this subsection, make a recommendation to the Director regarding the application;

(b) May, in considering an application pursuant to this subsection, deny an application only if the board of county commissioners determines, based on relevant information, that:

(d) May, without regard to whether the board has provided notice to the Director of its intent to consider the application, make a recommendation to the Director regarding the application.

(b) Add additional requirements that a facility must meet to qualify for a partial abatement.

4. The Director shall cooperate with the Office of Economic Development in carrying out the provisions of this section.

7. As used in this section, “wage” or “wages”:

(a) Means:

(1) The basic hourly rate of pay; and

(2) The amount of any hourly contribution made to a third-party administrator pursuant to a pension plan or vacation plan which is for the benefit of the employee.

(b) Except as otherwise provided in paragraph (a), does not include the amount of any health insurance plan, pension or other bona fide fringe benefits which are a benefit to the employee.

(Added to NRS by 2009, 2004, 2010; A 2011, 2071, 3479; 2013, 3203, 3501; 2013, 27th Special Session, 27; 2017, 3814; 2019, 1180; 2021, 3775, effective July 1, 2032)

NRS 701A.370 Duration, amount and other terms of partial abatement; notice of abatement; distribution of certificate of eligibility by Director. [Effective through June 30, 2049.]

1. If the Director approves an application for a partial abatement pursuant to NRS 701A.300 to 701A.390, inclusive, of:

(a) Property taxes imposed pursuant to chapter 361 of NRS, the partial abatement must:

(1) Be for a duration of the 20 fiscal years immediately following the date of approval of the application;

(2) Be equal to 55 percent of the taxes on real and personal property payable by the facility each year; and

(3) Not apply during any period in which the facility is receiving another abatement or exemption from property taxes imposed pursuant to chapter 361 of NRS, other than any partial abatement provided pursuant to NRS 361.4722.

(b) Local sales and use taxes:

(1) The partial abatement must:

(I) Be for the 3 years beginning on the date of approval of the application;

(II) Be equal to that portion of the combined rate of all the local sales and use taxes payable by the facility each year which exceeds 0.6 percent; and

(III) Not apply during any period in which the facility is receiving another abatement or exemption from local sales and use taxes.

(2) The Department of Taxation shall issue to the facility a document certifying the abatement which can be presented to retailers at the time of sale. The document must clearly state that the purchaser is only required to pay sales and use taxes imposed in this State at the rate of 2.6 percent.

2. Upon approving an application for a partial abatement pursuant to NRS 701A.300 to 701A.390, inclusive, the Director shall immediately forward a certificate of eligibility for the abatement to:

(a) The Department of Taxation;

(b) The board of county commissioners;

(d) The county treasurer; and

(e) The Office of Economic Development.

(Added to NRS by 2009, 2004, 2010; A 2009, 2010; 2011, 2073, 2896, 3481; 2013, 3427; 2015, 2955)

NRS 701A.375 Publication of fiscal notes; distribution of certificate of eligibility by Department of Taxation. [Effective through June 30, 2049.]

1. The Director may, with the assistance of the Chief of the Budget Division of the Office of Finance and the Department of Taxation, publish a fiscal note that indicates an estimate of the fiscal impact of the partial abatement on the State and on each affected local government. If the Director publishes a fiscal note that estimates the fiscal impact of the partial abatement on local government, the Director shall forward a copy of the fiscal note to each affected local government and to the Office of Economic Development.

2. As soon as practicable after receiving a copy of a certificate of eligibility pursuant to NRS 701A.370, the Department of Taxation shall forward a copy of the certificate to each affected local government.

(Added to NRS by 2009, 2004; A 2011, 2074, 3482)

NRS 701A.377 Recipient required to maintain certain records regarding employees. [Effective through June 30, 2049.] A recipient of a partial abatement of taxes pursuant to NRS 701A.300 to 701A.390, inclusive, shall keep or cause to be kept the records required to be kept by a contractor engaged on a public work pursuant to subsection 5 of NRS 338.070 for each employee who performed work on the construction of the facility, including, without limitation, the employee of any contractor or subcontractor who performed work on the facility, and for each employee of the facility.

(Added to NRS by 2019, 1180)

NRS 701A.379 Recipient required to submit payroll report; form; contents; frequency. [Effective through June 30, 2049.] A recipient of a partial abatement of taxes pursuant to NRS 701A.300 to 701A.390, inclusive, shall submit to the Office of Energy and the board of county commissioners of the county in which the facility is located a certified payroll report on a form or in a format prescribed by the Director. The certified payroll report must:

1. Be accompanied by a statement certifying the truthfulness and accuracy of the payroll report;

2. Include the information contained in the records required to be kept pursuant to NRS 701A.377; and

3. Be submitted quarterly during the term of construction of the facility and annually at all other times.

(Added to NRS by 2019, 1180; A 2023, 639)

NRS 701A.380 Termination of partial abatement for noncompliance; opportunity to cure noncompliance; required notices; repayment of taxes after termination. [Effective through June 30, 2049.]

1. A partial abatement approved by the Director pursuant to NRS 701A.300 to 701A.390, inclusive, terminates upon any determination by the Director that the facility has ceased to meet any eligibility requirements for the abatement.

2. The Director shall provide notice and a reasonable opportunity to cure any noncompliance issues before making a determination that the facility has ceased to meet those requirements.

3. The Director shall immediately provide notice of each determination of termination to:

(a) The Department of Taxation, which shall immediately notify each affected local government of the determination;

(b) The board of county commissioners;

(d) The county treasurer; and

(e) The Office of Economic Development.

4. A facility whose partial abatement is terminated pursuant to this section shall repay to:

(a) The county treasurer the amount of the exemption from property taxes imposed pursuant to chapter 361 of NRS; and

(b) The Department of Taxation the amount of the exemption from local sales and use taxes,

Ê that was allowed pursuant to this section before the date of that termination. Except as otherwise provided in NRS 360.232 and 360.320, the facility shall, in addition to the amount of the exemption required to be paid pursuant to this subsection, pay interest on the amount due at the rate most recently established pursuant to NRS 99.040 for each month, or portion thereof, from the last day of the month following the period for which the payment would have been made had the partial abatement not been approved until the date of payment of the tax.

(Added to NRS by 2009, 2004; A 2011, 102, 2074, 3482)

NRS 701A.385 Allocation of certain taxes collected from facilities receiving partial abatement. [Effective through June 30, 2049.] Notwithstanding any statutory provision to the contrary, if the Director approves an application for a partial abatement pursuant to NRS 701A.300 to 701A.390, inclusive, of local sales and use taxes, the State Controller shall allocate, transfer and remit an amount equal to all the sales and use taxes imposed in this State and collected from the facility for the period of the abatement in the same manner as if that amount consisted solely of the proceeds of taxes imposed by NRS 374.110 and 374.190.

(Added to NRS by 2009, 2004; A 2009, 2010; 2011, 2074; 2013, 2767, 3206)

NRS 701A.390 Regulations; Director authorized to charge and collect fee for application for partial abatement. [Effective through June 30, 2049.] The Director:

1. Shall adopt regulations:

(a) Prescribing the minimum level of benefits that a facility must provide to its employees;

(b) Prescribing such requirements for an application for a partial abatement pursuant to NRS 701A.300 to 701A.390, inclusive, as will ensure that all information and other documentation necessary for the Director, in consultation with the Office of Economic Development, to make an appropriate determination is filed with the Director;

(c) Requiring each recipient of a partial abatement pursuant to NRS 701A.300 to 701A.390, inclusive, to file with the Director, quarterly during the term of construction of a facility and annually at all other times, such information and documentation as may be necessary for the Director to determine whether the recipient is in compliance with any eligibility requirements for the abatement; and

(d) Regarding the capital investment that a facility must make to meet the requirement set forth in paragraph (d) or (e) of subsection 1 of NRS 701A.365; and

2. May adopt such other regulations as the Director determines to be necessary to carry out the provisions of NRS 701A.300 to 701A.390, inclusive; and

3. May 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 consist of:

(a) An amount that does not exceed the actual cost to the Director for processing and approving the application; and

(b) A reasonable amount established by a regulation adopted by the Director pursuant to this paragraph. The Office shall use the proceeds of the fee for activities of the Office that support and expand renewable energy development in this State and are specified in a regulation adopted by the Director pursuant to this paragraph. The Director shall adopt regulations specifying the amount of the fee described in this section and setting forth the specific activities of the Office that the proceeds of the fee will support and expand.

(Added to NRS by 2009, 2004; A 2011, 2075, 3483; 2013, 3206; 2019, 1183; 2023, 640)

RENEWABLE ENERGY ACCOUNT

1. The Renewable Energy Account is hereby created in the State General Fund.

2. The Director of the Office of Energy appointed pursuant to NRS 701.150 shall administer the Account.

3. The interest and income earned on the money in the Account must be credited to the Account.

4. The money in the Account must be used for such purposes as the Director of the Office of Energy may establish by regulation.

5. Any money remaining in the Account at the end of a fiscal year does not revert to the State General Fund, and the balance in the Account must be carried forward to the next fiscal year.

6. The Director may by regulation establish a procedure by which any officer or employee of the State to whom the Director has made a loan or other distribution of money from the Account may enter into an agreement with the Director pursuant to which repayment of the loan or other distribution of money may be made through payroll deductions.

(Added to NRS by 2009, 2009; A 2011, 2075; 2013, 2768, 3207; 2015, 1920; 2021, 3779)