Gov. Joe Lombardo recently unveiled his proposed Senate Bill 461, whichaims to bring more childcare facilities and tax abatements to the state.
The bill, which is Lombardo’s first to focus on economic development, covers seven distinct topics. The governor’s office provided a cost estimate of the bill, which totals $124M. This includes $49M being allocated from Nevada’s general fund.
Lombardo’s spokesperson, Elizabeth Ray, claimed the bill is targeted toward diversifying the economy through workforce development, infrastructure improvements, environmental sustainability and childcare improvements. It is intended to set the foundation for long-term growth and economic resilience.
Childcare Facilities
One of the core components of the bill, the efforts to improve childcare was the only portion of the bill that had a specific dollar amount, being $12M. The $12M would serve as annual transferable tax credits to create and expand childcare developments.
The Governor’s Office of Economic Development would oversee the program and determine eligible recipients. Eligibility is to be determined through a combination of feasibility, overall economic benefit and its usefulness in combatting childcare shortage.
Recipients are to receive no more than 60% of operating costs, with credits set to expire after five years.
Tax Abatements for Incoming Businesses
Another portion of SB461 is to provide tax abatements for large businesses focusing on clean energy, aerospace, defense technology, health care technology and manufacturing.
The bill stipulates a standard deduction would be 10% of the business, property or local school support taxes. Businesses are to be eligible for further tax breaks if they provide high wages, employ many Nevada residents, collaborate with higher education institutions, or create or provide housing solutions to workers. Deductions are capped at 60% of taxes owed over the course of a year.
Businesses are required to operate in the Silver State for at least a decade. Employees are required to receive health insurance and wages that meet the State’s average hourly wage.
Infrastructure Improvements
SB461 includes a program that aims at funding infrastructure and rural housing projects. Programs that “eliminate infrastructure barriers” are to be prioritized. This will include anything from developing utilities to creating housing opportunities in rural areas.
Eliminating Diversity Requirements
Current state laws require businesses to have a diversity plan to be eligible to receive GOED grants. This plan is to be replaced with a workforce development plan.
Creation of a Talent Pipeline
Another program will be created that will award industry professionals who pursue part-time teaching in career and technical education.
Employers are to receive stipends to reimburse employees for teaching. School districts are also to be required to form agreements with businesses to support internships and apprenticeships.
Higher Education Reimbursement Plan
Another program will be created to reimburse people who pursue higher education in specialty trades.
Energy Tax Abatements
A separate variety of tax abatements are included for businesses that work with biofuels, biomass and other fuels sourced from recycling. These abatements capped at 50% of what a business pays for property. (Source)