Tax Incentives in Nevada

The State of Nevada and in particular Northern Nevada and the greater Reno area, offers a variety of incentives to help qualifying companies make the decision to do business inNevada. Nevada lawmakers saw the opportunity after surrounding states continued to raise worker compensation and tax laws for business to make Nevada stand out and encourage new business.

Tax incentives include: sales tax abatements on capital equipment purchases, sales and use tax deferral on capital equipment purchases, abatements on personal and modified business taxes, real property tax abatements for recycling, assistance with the cost of intellectual property development, and employee training grants. The State now offers abatements on aviation parts and data centers, as well.

Property Tax Exemptions

The following are exempt from property tax:

Inventories held for sale within Nevada
All personal property stored, assembled or processed for interstate transit
All raw materials and supplies utilized in the manufacturing process
All real and personal property that qualifies and is used for the purpose of air and/or water pollution control
Others may be applicable depending on the company's situation.

Green building abatements are made available on real property which has a building or other structure certified as silver level or higher under the Leadership in Environmental Design Green Building Rating System adopted by Nevada's Office of Energy. Up to 35% of real property tax may be abated for up to ten consecutive years should the company commit to maintain operations in Nevada.

Companies in the renewable and alternative energy and energy storage segments are offered renewable and energy storage abatements that encompass sales and use tax and property tax.

The Nevada Hub Zone Development program extends sales and use tax and personal property tax abatements to businesses relocating or expanding in historically underutilized zones and enterprise communities. Additional incentives are available to qualified grocery stores and to businesses hiring dislocated workers.

The State of Nevada is authorized to use tax-exempt Industrial Development Bonds to provide low-interest financing of new construction, improvements, rehabilitation, or redevelopment of qualified projects, which include manufacturing facilities and other projects organized under Section 501 of the Internal Revenue Service code.

Northern Nevada goods-producers benefit from Made in Nevada, the State's official program to market and promote locally-produced products worldwide.