Nev. Admin. Code § 360.830 — 360.830

NAC 360.830    Certificate of eligibility: Application; priorities for approval;
reasons for denial. ( NRS
360.759 )
1.  Transferable tax credits may not be
applied to any of the fees and taxes specified in NRS 360.759 unless the Office has
issued a certificate of eligibility.
2.  To obtain a certificate of eligibility, a
producer must:
(a) Submit to the Office an application for a
certificate of eligibility. The application must be on a form prescribed by the
Office and, in addition to the information required by NRS 360.759 , contain the following
information:
(1) The name of the qualified production;
(2) A description of the qualified production;
(3) The planned rating for the qualified
production from a nationally recognized rating association or board, including,
without limitation, a rating from the Motion Picture Association of America, or
its successor organization, or the Entertainment Software Rating Board, or its
successor organization, if applicable;
(4) A detailed budget for the entire qualified
production, including, without limitation, separate in-state and out-of-state
subtotals for:
(I) Wages and salaries, including fringe
benefits, for above-the-line personnel;
(II) Wages and salaries, including fringe
benefits, for below-the-line personnel;
(III) Qualified expenditures and costs,
as determined in accordance with NRS
360.7591 and NAC 360.855 and 360.860 ; and
(IV) Unless otherwise included in the
information provided pursuant to sub-subparagraphs (I), (II) and (III), the
maximum compensation payable to any employee or independent contractor paid a
wage, salary or fee as compensation for providing labor or services on the
production of the qualified production and included as a basis for calculating
the amount of transferable tax credit pursuant to NRS 360.7591 to 360.7594 , inclusive, and NAC 360.855 and 360.860 ;
(5) A job summary for the qualified
production, including, without limitation:
(I) An estimate of the number of jobs
that will be created in this State by the qualified production;
(II) The anticipated term of employment
of each such job;
(III) The anticipated wage to be paid for
each such job; and
(IV) The fringe benefits provided to
employees for each such job;
(6) The capital investment in this State
proposed to be made in connection with the qualified production;
(7) The anticipated location of real property
and equipment and other tangible personal property in this State;
(8) An acknowledgment of audit procedures on a
form prescribed by the Office; and
(9) Any other information required by the
application form prescribed by the Office.
(b) Provide with the application for a certificate
of eligibility proof satisfactory to the Office that:
(1) The qualified production is in the
economic interest of this State, as determined pursuant to subsection 5 of NAC 360.835 ;
(2) Fifty percent or more of the funding for
the qualified production has been placed in an escrow account or trust account
for the benefit of the qualified production, or that the producer has a
corporate credit rating of “lower medium grade” or higher from a credit rating
agency found suitable by the Office; and
(3) At least 60 percent of the total qualified
expenditures and production costs for the production, including preproduction
and postproduction, will be incurred in this State.
(c) Not later than 30 days after the completion of
the qualified production, provide the Office with:
(1) A declaration of residency on a form
prescribed by the Office for any above-the-line personnel and below-the-line
personnel whom the producer of the qualified production claims to be Nevada
residents; and
(2) An audit of the qualified production, in a
form approved by the Office, which includes an itemized report of qualified
expenditures and production costs and which:
(I) Shows that the qualified production
incurred qualified expenditures and production costs in this State of $500,000
or more; and
(II) Is certified by an independent
certified public accountant in this State who is approved by the Office.
3.  In considering applications for
certificates of eligibility, the Office will give priority to qualified
productions that will:
(a) Be in the economic interest of this State, as
determined pursuant to subsection 5 of NAC
360.835 .
(b) Promote tourism in this State.
4.  The Office will deny an application for a
certificate of eligibility if:
(a) The application is received by the Office on or
after January 1, 2018.
(b) The applicant does not commence principal
photography or principal development of the qualified production, whichever is
applicable, within 90 days after submitting the application to the Office.
(c) Approval of the application would cause the
total amount of transferable tax credits to exceed:
(1) The amount of transferable tax credits
available for approval during the current fiscal year, as determined pursuant
to NRS 360.7594 .
(2) The portion of the amount of transferable
tax credits available for approval during the current fiscal year that has been
apportioned by the Office to the current period of that fiscal year pursuant to
NAC 360.850 .
(d) Production of the qualified production is not
completed within 1 year after the date of the commencement of principal
photography or principal development of the qualified production, whichever is
applicable.
(e) The qualified production is not eligible for
transferable tax credits pursuant to this section and NRS 360.759 .
5.  As used in this section:
(a) “Principal development” means the phase of a
production that constitutes a qualified production pursuant to NAC 360.825 in which sound, video, images,
text or animation is integrated into a digital product.
(b) “Principal photography” means the phase of a
film, television, video or other qualified production in which the production
is filmed, videotaped or otherwise recorded using production equipment with
actors on set or location.
(Added to NAC by Office of Economic Dev. by R120-13,
eff. 12-23-2013)