Bill
AB 77
The bill expands partial tax abatements to include import substitution jobs, rural/specialty health care, biofuel and recycling-focused activities, raises employer leave thresholds
Status
- Introduced: December 17, 2024 (prefiled Nov. 20, 2024) — Committee on Revenue (on behalf of the Office of Economic Development, Office of the Governor)
- Passed Assembly: May 1, 2025 (Ayes 76, Noes 0). Transmitted to Senate.
- Senate committee approvals and placement on Consent Calendar followed; on June 27, 2025 the measure was ordered to the inactive file at the request of Senator Laird. The file indicates “Pursuant to Joint Standing Rule No. 14.3.1, no further action allowed.”
- Fiscal note included: Effect on Local Government: No. Effect on the State: No.
Purpose and intent
- To revise eligibility criteria, application review authority, and reporting/training provisions related to partial abatements (tax incentives) administered by the Office of Economic Development (OED) for businesses that locate or expand in the State. The changes aim to broaden the types of jobs and business activities that qualify for abatements (e.g., import substitution jobs, certain health-care providers, and businesses recycling materials or producing fuels from recycled inputs), and to give OED additional discretion in application approvals.
Key provisions — what the bill would change
- Defines the term “import substitution job” (new addition to Chapter 360).
- Expands eligible job categories for abatements (amends NRS 360.750):
- In addition to “primary jobs” (export-oriented), businesses offering “import substitution jobs” may qualify.
- Providers of specialty health care and providers of health care in rural areas may qualify (larger abatements for Medicaid service providers).
- Raises the paid family and medical leave policy threshold: businesses anticipated to have at least 500 full‑time employees (previously 50) must have a paid family/medical leave policy to qualify.
- Removes a prior prohibition that barred approval of abatements for an applicant who already received an abatement for expanding the same business — allowing multiple abatements for successive expansions.
- Authorizes OED discretion to deny an abatement application if denial is determined to be “in the best interests of the State” (Sections 2–4).
- Expands real‑property tax abatement eligibility (amendment to NRS 701A.210):
- Adds businesses whose primary component is production of biofuels, biomass, or other fuels from recycled material.
- Adds businesses primarily engaged in recycling or repurposing materials used to produce/store renewable energy (e.g., solar panel materials) or waste materials from mineral extraction.
- Reporting and workforce training changes:
- Reporting requirements for businesses receiving abatements are revised to require data on import substitution jobs and the newly eligible health-care jobs (Sections 7–9).
- Expands eligibility for certain workforce-training grants to include programs preparing workers for import substitution jobs and specialty/rural health-care positions (Section 10).
Who is affected
- Primary: Businesses that apply for partial abatements of property, business, and local sales/use taxes under existing statutes — especially manufacturers, recyclers, biofuel producers, and health‑care providers in rural/specialty areas.
- Secondary: Localities and workforce-training providers (new training categories eligible for grants); Office of Economic Development (expanded review discretion and reporting oversight).
- Fiscal: The bill’s preface indicates no anticipated fiscal effect on State or local government.
Potential impacts and considerations
- Broadens incentive eligibility to encourage on‑shore production (import substitution), renewable‑energy recycling, and biofuel production from recycled materials — policy aim likely to support manufacturing, circular‑economy activity, and rural health services.
- Gives OED greater discretion to deny incentives when judged contrary to State interests; may reduce automatic approvals and increase application review judgment.
- Reporting expansions increase administrative requirements for awardees and for OED monitoring.
- Fiscal note as provided reports no state or local fiscal effect, but actual impacts depend on future approvals and program administration.
(Notes: summary is based on the bill text and Digest as prefiled/introduced. Some bill text was truncated in source materials; the summary reflects the principal, complete provisions described in the bill Digest.)
Compiled from official sources — confirm details with the bill’s official record.
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