Nev. Rev. Stat. § 360.754 — Partial abatement of certain taxes imposed on new or expanded data center: Powers and duties of Office of Economic Development, Nevada Tax Commission, applicant for abatement, business approved for abatement and county treasurer. [Effective through December 31, 2056.]

NRS  360.754    Partial abatement of certain taxes imposed on new or expanded
data center: Powers and duties of Office of Economic Development, Nevada Tax
Commission, applicant for abatement, business approved for abatement and county
treasurer. [Effective through December 31, 2056.]
1.  A person who intends to locate or
expand a data center in this State may apply to the Office of Economic
Development pursuant to this section for a partial abatement of one or more of
the taxes imposed on the new or expanded data center pursuant to chapter 361 or 374
of NRS.
2.  The Office of Economic Development
shall approve an application for a partial abatement pursuant to this section
if the Office makes the following determinations:
(a) The application 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 and any guidelines adopted by
the Executive Director of the Office to implement the State Plan for Economic
Development.
(b) Not later than 1 year after the date on which
the application was received by the Office, the applicant has executed an
agreement with the Office of Economic Development which must:
(1) Comply with the requirements of NRS 360.755 ;
(2) State the date on which the abatement
becomes effective, as agreed to by the applicant and the Office of Economic
Development, which must not be earlier than the date on which the Office
received the application and not later than 1 year after the date on which the
Office approves the application;
(3) State that the data center will, after
the date on which the abatement becomes effective, continue in operation in
this State for a period specified by the Office of Economic Development, which
must be at least 10 years, and will continue to meet the eligibility
requirements set forth in this subsection; and
(4) Bind the successors in interest of the
applicant for the specified period.
(c) The applicant 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 each county, city or town in which the data
center operates.
(d) If the applicant is seeking a partial
abatement for a period of not more than 10 years, the applicant meets the
following requirements:
(1) The data center will, by not later
than the date that is 5 years after the date on which the abatement becomes
effective, have or have added 10 or more full-time employees who are residents
of Nevada and who will be employed at the data center and will continue to
employ 10 or more full-time employees who are residents of Nevada at the data
center until at least the date which is 10 years after the date on which the
abatement becomes effective.
(2) Establishing or expanding the data
center will require the data center or any combination of the data center and
one or more colocated businesses to make in each county in this State in which
the data center is located, by not later than the date which is 5 years after
the date on which the abatement becomes effective, a cumulative capital
investment of at least $25,000,000 in capital assets that will be used or
located at the data center.
(3) The average hourly wage that will be
paid by the data center to its employees in this State is at least 100 percent
of the average statewide hourly wage 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 data center will, by not
later than the date which is 2 years after the date on which the abatement
becomes effective, provide a health insurance plan for all employees employed
at the data center that includes an option for health insurance coverage for
dependents of the employees; and
(II) The health care benefits
provided to employees employed at the data center will meet the minimum
requirements for health care benefits established by the Office of Economic
Development by regulation pursuant to subsection 13.
(4) At least 50 percent of the employees
engaged in the construction of the data center are residents of Nevada, unless
waived by the Executive Director of the Office of Economic Development upon
proof satisfactory to the Executive Director of the Office of Economic
Development that there is an insufficient number of residents of Nevada
available and qualified for such employment.
(e) If the applicant is seeking a partial
abatement for a period of 10 years or more but not more than 20 years, the
applicant meets the following requirements:
(1) The data center will, by not later
than the date that is 5 years after the date on which the abatement becomes
effective, have or have added 50 or more full-time employees who are residents
of Nevada and who will be employed at the data center and will continue to
employ 50 or more full-time employees who are residents of Nevada at the data
center until at least the date which is 20 years after the date on which the
abatement becomes effective.
(2) Establishing or expanding the data
center will require the data center or any combination of the data center and
one or more colocated businesses to make in each county in this State in which
the data center is located, by not later than the date which is 5 years after
the date on which the abatement becomes effective, a cumulative capital
investment of at least $100,000,000 in capital assets that will be used or
located at the data center.
(3) The average hourly wage that will be
paid by the data center to its employees in this State is at least 100 percent
of the average statewide hourly wage 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 data center will, by not
later than the date which is 2 years after the date on which the abatement
becomes effective, provide a health insurance plan for all employees employed
at the data center that includes an option for health insurance coverage for
dependents of the employees; and
(II) The health care benefits
provided to employees employed at the data center will meet the minimum
requirements for health care benefits established by the Office of Economic
Development by regulation pursuant to subsection 13.
(4) At least 50 percent of the employees
engaged in the construction of the data center are residents of Nevada, unless
waived by the Executive Director of the Office of Economic Development upon
proof satisfactory to the Executive Director of the Office of Economic
Development that there is an insufficient number of residents of Nevada
available and qualified for such employment.
(f) The applicant has provided in the application
an estimate of the total number of new employees which the data center
anticipates hiring in this State if the Office of Economic Development approves
the application.
(g) If the applicant is seeking a partial
abatement of the taxes imposed by the Local School Support Tax Law, the
application has been approved by a vote of at least two-thirds of the members
of the Board of Economic Development created by NRS 231.033 .
3.  Notwithstanding the provisions of
subsection 2, the Office of Economic Development:
(a) Shall not consider an application for a
partial abatement pursuant to this section unless the Office of Economic
Development has requested a letter of acknowledgment of the request for the
abatement from each affected county, school district, city or town.
(b) Shall consider the level of health care
benefits provided to employees employed at the data center, the projected
economic impact of the data center and the projected tax revenue of the data
center after deducting projected revenue from the abated taxes.
(c) May, if the Office of Economic Development
determines that such action is necessary:
(1) Approve an application for a partial
abatement pursuant to this section by a data center that does not meet the
requirements set forth in paragraph (d) or (e) of subsection 2;
(2) Make the requirements set forth in
paragraphs (d) and (e) of subsection 2 more stringent; or
(3) Add additional requirements that an
applicant must meet to qualify for a partial abatement pursuant to this
section.
4.  If the Office of Economic Development
approves an application for a partial abatement pursuant to this section, the
Office shall immediately forward a certificate of eligibility for the abatement
to:
(a) The Department;
(b) The Nevada Tax Commission; and
(c) If the partial abatement is from the property
tax imposed pursuant to chapter 361 of NRS,
the county treasurer of each county in which the data center is or will be
located.
5.  If the Office of Economic Development
approves an application for a partial abatement pursuant to this section, the
Office may also approve a partial abatement of taxes for each colocated
business that enters into a contract to use or occupy, for a period of at least
2 years, all or a portion of the new or expanded data center. Each such
colocated business shall obtain a state business license issued by the
Secretary of State. The percentage amount of a partial abatement approved for a
colocated business pursuant to this subsection must not exceed the percentage
amount of the partial abatement approved for the data center. The duration of a
partial abatement approved for a colocated business pursuant to this subsection
must not exceed the duration of the contract or contracts entered into between
the colocated business and the data center, including the duration of any
contract or contracts extended or renewed by the parties. If a colocated
business ceases to meet the requirements set forth in this subsection, the
colocated business shall repay the amount of the abatement that was allowed in
the same manner in which a data center is required by subsection 8 to repay the
Department or a county treasurer. If a data center ceases to meet the
requirements of subsection 2 or ceases operation before the time specified in
the agreement described in paragraph (b) of subsection 2, any partial abatement
approved for a colocated business ceases to be in effect, but the colocated
business is not required to repay the amount of the abatement that was allowed
before the date on which the abatement ceases to be in effect. A data center
shall provide the Executive Director of the Office and the Department with a
list of the colocated businesses that are qualified to receive a partial
abatement pursuant to this subsection and shall notify the Executive Director
within 30 days after any change to the list. The Executive Director shall
provide the list and any updates to the list to the Department and the county
treasurer of each affected county.
6.  An applicant for a partial abatement
pursuant to this section or a data center whose partial abatement is in effect
shall, upon the request of the Executive Director of the Office of Economic
Development, furnish the Executive Director with copies of all records
necessary to verify that the applicant meets the requirements of subsection 2.
7.  If an applicant for a partial abatement
pursuant to this section fails to execute the agreement described in paragraph
(b) of subsection 2 within 1 year after the date on which the application was
received by the Office, the applicant shall not be approved for a partial
abatement pursuant to this section unless the applicant submits a new
application.
8.  If a data center whose partial
abatement has been approved pursuant to this section and is in effect ceases:
(a) To meet the requirements set forth in
subsection 2; or
(b) Operation before the time specified in the
agreement described in paragraph (b) of subsection 2,
Ê the data
center shall repay to the Department or, if the partial abatement was from the
property tax imposed pursuant to chapter 361
of NRS, to the county treasurer, the amount of the partial abatement that was
allowed pursuant to this section before the failure of the data center to
comply unless the Nevada Tax Commission determines that the data center has
substantially complied with the requirements of this section. Except as
otherwise provided in NRS 360.232 and 360.320 , the data center shall, in addition
to the amount of the partial abatement required to be repaid 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.  A county treasurer:
(a) Shall deposit any money that he or she
receives pursuant to subsection 5 or 8 in one or more of the funds established
by a local government of the county pursuant to NRS 354.6113 or 354.6115 ; and
(b) May use the money deposited pursuant to
paragraph (a) only for the purposes authorized by NRS 354.6113 and 354.6115 .
10.  An applicant for a partial abatement
pursuant to this section who is aggrieved by a final decision of the Office of
Economic Development may petition for judicial review in the manner provided in
chapter 233B of NRS.
11.  For an employee to be considered a
resident of Nevada for the purposes of this section, a data center must
maintain the following documents in the personnel file of the employee:
(a) A copy of the current and valid Nevada
driver’s license of the employee or a current and valid identification card for
the employee issued by the Department of Motor Vehicles;
(b) If the employee is a registered owner of one
or more motor vehicles in Nevada, a copy of the current motor vehicle
registration of at least one of those vehicles;
(c) Proof that the employee is a full-time
employee; and
(d) Proof that the employee is covered by the
health insurance plan which the data center is required to provide pursuant to
sub-subparagraph (I) of subparagraph (3) of paragraph (d) of subsection 2 or
sub-subparagraph (I) of subparagraph (3) of paragraph (e) of subsection 2.
12.  For the purpose of obtaining from the
Executive Director of the Office of Economic Development any waiver of the
requirements set forth in subparagraph (4) of paragraph (d) of subsection 2 or
subparagraph (4) of paragraph (e) of subsection 2, a data center must submit to
the Executive Director of the Office of Economic Development written
documentation of the efforts to meet the requirements and documented proof that
an insufficient number of Nevada residents is available and qualified for
employment.
13.  The Office of Economic Development:
(a) Shall adopt regulations relating to the
minimum level of health care benefits that a data center must provide to its
employees to meet the requirement set forth in paragraph (d) or (e) of
subsection 2;
(b) May adopt such other regulations as the
Office determines to be necessary to carry out the provisions of this section;
and
(c) Shall not approve any application for a
partial abatement submitted pursuant to this section which is received on or
after January 1, 2036.
14.  The Nevada Tax Commission:
(a) Shall adopt regulations regarding:
(1) The capital investment necessary to
meet the requirement set forth in paragraph (d) or (e) of subsection 2; and
(2) Any security that a data center is
required to post to qualify for a partial abatement pursuant to this section.
(b) May adopt such other regulations as the
Nevada Tax Commission determines to be necessary to carry out the provisions of
this section.
15.  As used in this section, unless the
context otherwise requires:
(a) “Colocated business” means a person who
enters into a contract with a data center that is qualified to receive an
abatement pursuant to this section to use or occupy all or part of the data
center.
(b) “Data center” means one or more buildings
located at one or more physical locations in this State which house a group of
networked server computers for the purpose of centralizing the storage,
management and dissemination of data and information pertaining to one or more
businesses and includes any modular or preassembled components, associated
telecommunications and storage systems and, if the data center includes more
than one building or physical location, any network or connection between such
buildings or physical locations.
(c) “Full-time employee” means a person who is in
a permanent position of employment and works an average of 30 hours per week
during the applicable period set forth in paragraph (d) or (e) of subsection 2.