Nev. Rev. Stat. § 360.7591 — Calculation of amount of credit: Expenditures and costs eligible to serve as basis for calculation; ineligible expenditures and costs; regulations

NRS  360.7591    Calculation of amount of credit: Expenditures and costs eligible
to serve as basis for calculation; ineligible expenditures and costs;
regulations.
1.  Qualified direct production
expenditures must be for purchases, rentals or leases of tangible personal
property or services from a Nevada business during the period in which a
qualified production is produced, must be customary and reasonable and must
relate to:
(a) Set construction and operation;
(b) Wardrobe and makeup;
(c) Photography, sound and lighting;
(d) Filming, film processing and film editing;
(e) The rental or leasing of facilities,
equipment and vehicles;
(f) Food and lodging;
(g) Editing, sound mixing, special effects,
visual effects and other postproduction services;
(h) The payroll for Nevada residents or other
personnel who provided services in this State;
(i) Payment for goods or services provided by a
Nevada business;
(j) The design, construction, improvement or
repair of property, infrastructure, equipment or a production or postproduction
facility;
(k) State and local government taxes to the
extent not included as part of another cost reported pursuant to this section;
(l) Fees paid to a producer who is a Nevada
resident; and
(m) Any other transaction, service or activity
authorized in regulations adopted by the Office of Economic Development
pursuant to NRS 360.759 .
2.  Expenditures and costs:
(a) Related to:
(1) The acquisition, transfer or use of
transferable tax credits;
(2) Marketing and distribution;
(3) Financing, depreciation and
amortization;
(4) The payment of any profits as a result
of the qualified production;
(5) The payment for the cost of the audit
required by NRS 360.759 ; and
(6) The payment for any goods or services
that are not directly attributable to the qualified production;
(b) For which reimbursement is received, or for
which reimbursement is reasonably expected to be received;
(c) Which are paid to a joint venturer or a
parent, subsidiary or other affiliate of the production company, unless the
amount paid represents the fair market value of the purchase, rental or lease
of the property or services for which payment is made;
(d) Which provide a pass-through benefit to a
person who is not a Nevada resident; or
(e) Which have been previously claimed as a basis
for transferable tax credits,
Ê are not
qualified direct production expenditures and are not eligible to serve as a
basis for transferable tax credits issued pursuant to NRS 360.759 .
3.  If any tangible personal property is
acquired by a Nevada business from a vendor outside this State for immediate
resale, rental or lease to a production company that produces a qualified
production, expenditures incurred by the production company for the purchase,
rental or lease of the property are qualified direct production expenditures
if:
(a) The Nevada business regularly deals in
property of that kind;
(b) The expenditures are otherwise qualified
direct production expenditures under the provisions of this section; and
(c) Not more than 50 percent of the property
purchased, rented or leased by the production company for the qualified
production is acquired and purchased, rented or leased in the manner described
in this subsection. In making the calculation required by this paragraph, the
cost of any property that remains an asset of the Nevada business after
production of the qualified production has ended must not be included in the
calculation as property purchased, rented or leased in the manner described in
this subsection.
4.  If any tangible personal property is
acquired by the production company as an asset, the calculation of the costs of
the tangible personal property that constitute a qualified direct production
expenditure must be performed in the manner prescribed by the Office of
Economic Development by regulation.