Nev. Rev. Stat. § 360.759 — Eligibility; application; taxes to which credit may be applied; powers and duties of Office of Economic Development, Nevada Tax Commission, Nevada Gaming Commission and production company; regulations

NRS  360.759    Eligibility; application; taxes to which credit may be applied;
powers and duties of Office of Economic Development, Nevada Tax Commission,
Nevada Gaming Commission and production company; regulations.
1.  A production company that produces a
qualified production in this State in whole or in part may apply to the Office
of Economic Development for a certificate of eligibility for transferable tax
credits for any qualified direct production expenditures. The transferable tax
credits may be applied to:
(a) Any tax imposed by chapters 363A and 363B
of NRS;
(b) The gaming license fees imposed by the
provisions of NRS 463.370 ;
(c) Any tax imposed pursuant to chapter 680B of NRS; or
(d) Any combination of the fees and taxes
described in paragraphs (a), (b) and (c).
2.  The Office may approve an application
for a certificate of eligibility for transferable tax credits if the Office
finds that the production company producing the qualified production qualifies
for the transferable tax credits pursuant to subsection 3. If the Office approves
the application, the Office shall calculate the estimated amount of the
transferable tax credits pursuant to NRS
360.7592 , 360.7593 and 360.7594 .
3.  To be eligible for transferable tax
credits pursuant to this section, a production company must:
(a) Submit an application that meets the
requirements of subsection 4;
(b) Provide proof satisfactory to the Office that
the qualified production is in the economic interest of the State;
(c) Provide proof satisfactory to the Office that
70 percent or more of the funding for the qualified production has been obtained;
(d) Provide proof satisfactory to the Office that
at least 60 percent of the direct production expenditures for:
(1) Preproduction;
(2) Production; and
(3) If any direct production expenditures
for postproduction will be incurred in this State, postproduction,
Ê of the
qualified production will be incurred in this State as qualified direct
production expenditures;
(e) Not later than 270 days after the completion
of principal photography of the qualified production or, if any direct production
expenditures for postproduction will be incurred in this State, not later than
270 days after the completion of postproduction, unless the Office agrees to
extend this period by not more than 90 days, provide the Office with an audit
of the qualified production that includes an itemized report of qualified
direct production expenditures which:
(1) Shows that the qualified production
incurred qualified direct production expenditures of $500,000 or more; and
(2) Is certified by an independent
certified public accountant in this State who is approved by the Office;
(f) Pay the cost of the audit required by
paragraph (e);
(g) Enter into a written agreement with the
Office that requires the production company to include:
(1) In the end screen credits of the
qualified production, a logo of this State provided by the Office which
indicates that the qualified production was filmed or otherwise produced in
Nevada; or
(2) If the qualified production does not
have end screen credits, another acknowledgment in the final version of the
qualified production which indicates that the qualified production was filmed
or otherwise produced in Nevada; and
(h) Meet any other requirements prescribed by
regulation pursuant to this section.
4.  An application submitted pursuant to
subsection 3 must contain:
(a) A script, storyboard or synopsis of the
qualified production;
(b) The names of the production company,
producer, director and proposed cast;
(c) An estimated timeline to complete the
qualified production;
(d) A summary of the budgeted expenditures for
the entire production, including projected expenditures to be incurred outside
of Nevada;
(e) Details regarding the financing of the
project, including, without limitation, any information relating to a binding
financing commitment, loan application, commitment letter or investment letter;
(f) An insurance certificate, binder or quote for
general liability insurance of $1,000,000 or more;
(g) The business address of the production
company;
(h) Proof that the qualified production meets any
applicable requirements relating to workers’ compensation insurance;
(i) Proof that the production company has secured
all licenses and registrations required to do business in each location in this
State at which the qualified production will be produced; and
(j) Any other information required by regulations
adopted by the Office pursuant to subsection 8.
5.  If the Office approves an application
for a certificate of eligibility for transferable tax credits pursuant to this
section, the Office shall immediately forward a copy of the certificate of
eligibility which identifies the estimated amount of the tax credits available
pursuant to NRS 360.7592 to:
(a) The applicant;
(b) The Department; and
(c) The Nevada Gaming Control Board.
6.  Within 60 business days after receipt
of an audit provided by a production company pursuant to paragraph (e) of
subsection 3 and any other accountings or other information required by the
Office, the Office shall determine whether to certify the audit and make a
final determination of whether a certificate of transferable tax credits will
be issued. If the Office certifies the audit, determines that all other
requirements for the transferable tax credits have been met and determines that
a certificate of transferable tax credits will be issued, the Office shall
notify the production company that the transferable tax credits will be issued.
Within 30 days after the receipt of the notice, the production company shall
make an irrevocable declaration of the amount of transferable tax credits that
will be applied to each fee or tax set forth in subsection 1, thereby
accounting for all of the credits which will be issued. Upon receipt of the
declaration, the Office shall issue to the production company a certificate of
transferable tax credits in the amount approved by the Office for the fees or
taxes included in the declaration of the production company. The production
company shall notify the Office upon transferring any of the transferable tax
credits. The Office shall notify the Department and the Nevada Gaming Control
Board of all transferable tax credits issued, segregated by each fee or tax set
forth in subsection 1, and the amount of any transferable tax credits
transferred.
7.  An applicant for transferable tax
credits pursuant to this section shall, upon the request of the Executive
Director of the Office, furnish the Executive Director with copies of all
records necessary to verify that the applicant meets the requirements of
subsection 3.
8.  The Office:
(a) Shall adopt regulations prescribing:
(1) Any additional requirements to receive
transferable tax credits;
(2) Any additional qualified expenditures
or production costs that may serve as the basis for transferable tax credits
pursuant to NRS 360.7591 ;
(3) Any additional information that must
be included with an application pursuant to subsection 4;
(4) The application review process;
(5) Any type of qualified production
which, due to obscene or sexually explicit material, is not eligible for
transferable tax credits; and
(6) The requirements for notice pursuant
to NRS 360.7595 ; and
(b) May adopt any other regulations that are
necessary to carry out the provisions of NRS
360.758 to 360.7598 , inclusive.
9.  The Nevada Tax Commission and the
Nevada Gaming Commission:
(a) Shall adopt regulations prescribing the
manner in which transferable tax credits will be administered.
(b) May adopt any other regulations that are
necessary to carry out the provisions of NRS
360.758 to 360.7598 , inclusive.