Revises provisions relating to economic development. (BDR 32-690)

2025 Regular Session Introduced by Erica Mosca

AB 226 would require GOED incentive applicants to certify they will work with the local community and submit a community benefits agreement within 2 years of approval; vetoed.

Vetoed by the Governor.

Main purpose

AB 226 would have required businesses applying for certain Nevada economic incentives (partial tax abatements and transferable tax credits administered by the Governor’s Office of Economic Development — GOED) to commit to working with their local community and to submit a community benefits agreement to GOED within two years of incentive approval. The measure was intended to standardize expectations about community investment tied to state economic incentives.

Key provisions

Certification requirement: Applications for specified transferable tax credits and tax abatements must include a certification that, if approved, the business will (1) collaborate with the local community and (2) submit a community benefits agreement to GOED not later than 2 years after approval.

Scope: The requirement was applied across a range of GOED programs described in bill analyses, including standard partial abatements (NRS 360.750), aviation abatements, data center abatements, large capital‑investment incentive packages (e.g., $1B / $3.5B programs), catalyst transferable tax credits, and abatements for certain economic development zones. The film transferable tax credit program was explicitly exempted.

Amendment history: The original bill language required incorporation of a detailed community benefits plan in incentive agreements and authorized GOED enforcement (investigations and repayment with interest for non‑compliance). A later, author‑led amendment substantially scaled back the approach to a certification/checkbox on GOED applications and a two‑year deadline for submitting the community benefits agreement; enforcement/repayment provisions were removed in that amendment.

Effective date/timing: The reprint and amendment made the certification requirement applicable to applications submitted on or after July 1, 2025 (per the bill text).

Who would be affected

Primary: Businesses applying for the named GOED‑administered tax abatements or transferable tax credits (large employers, data centers, aviation manufacturers, major capital projects, etc.).

Secondary: GOED (administration and compliance tracking); local communities that would be party to community benefits agreements.

Local governments: bill analyses indicated no direct fiscal effect on local government.

Fiscal & procedural notes

Fiscal: Analyses identified a state fiscal effect (the Fiscal Analysis Division marked the bill as eligible for exemption on 2/20/2025).

Legislative trajectory: The bill was heard in committee (e.g., May 29, 2025), was amended during the session (notably Assembly Amendment No. 373), but was vetoed by the Governor on June 10, 2025.

Practical effect if enacted

AB 226 (as amended) would have added a standard, application‑level commitment to produce a community benefits agreement within two years of incentive approval, creating an expectation (but not—after amendment—automatic contractual enforcement mechanisms) that incentive recipients more formally coordinate and report community investment outcomes.

Bill