The Nevada tax structure is perfectly designed to draw in businesses.

There are countless reasons why moving to Nevada is a great choice from the gorgeous landscapes to the gourmet local food scene, its proximity to stunning Lake Tahoe and the dynamic way of life that comes with the territory. One such reason is the exceptional Nevada tax break.

Nevada residents enjoy:

• No personal income tax
• Low property taxes
• No corporate income tax
• No tax on corporate shares issued while living in Nevada
• No tax on sale or transfer of shares
• No inheritance tax

Parc Forêt at Montrêux residents enjoy the perks of being on the tax-friendly side of Tahoe.

If these individual tax breaks aren’t convincing enough, there are even more tax break incentives for business owners looking to relocate! The Governor’s Office of Economic Development of the State of Nevada offers such incentives from sales tax abatement to modified business tax abatement, and even outside the realm of taxes. Incentives carry over into employee hiring and training as well. Read these six incentives used by the State of Nevada to make moving your business here even more enticing.

Sales and Use Tax Abatement

Eligible receipts for use, storage or consumption of capital equipment can abate sales and use taxes for a qualifying business. Whereas sales and use tax rates vary by county here in Nevada, this abatement will reduce the rate to 2 percent which works out to a tax reduction between 6.1 and 4.85 percent. Approved businesses can experience this tax reduction for two years once the business’ abatement begins.

Modified Business Tax Abatement

The modified business tax is a 1.17 percent tax appointed to businesses that pay over $85,000 in wages each quarter, but if said business also pays their employees’ health benefits then they may deduct that amount from the taxation. This abatement applies to new qualified businesses and can reduce the modified business tax by up to 50 percent during the business’ first four years.

Personal Property Tax Abatement

Personal property taxes on equipment and machinery used by a business are eligible for this tax abatement (you can find the machinery information here). This partial abatement of personal property tax can be up to 50 percent of taxes for 10 years. A business that is new to Nevada or is expanding within Nevada must apply for this abatement within one year of hoping to receive the benefits.

Real Property Tax Abatement for Recycling

Businesses “must be in the primary trade of recycling at least 50 percent of raw material or an intermediate product onsite” (NRS 701A.210), or must be converting said recyclable material into electricity. Businesses that are compliant with the measures of this statute are able to enjoy up to a 50 percent tax break for a maximum of 10 years.

Train Employees Now (TEN)

New or growing companies can take advantage of this program that will aid in growth and development through short and intensive skills-based training of their employees, whether that means hiring, recruiting, or job training (employees must be NV residents). The program is designed and specified for each company by the firm and agency. Benefits of the program are based on the goals and objectives determined by the employer, and include, but are not limited to:

• Development of job applicant list
• Aid in employee screening
• Programming
• Materials
• Classroom training
• Reimbursement of direct costs of training

The company must hire a minimum of 10 Nevada resident employees in order to be eligible.

Silver State Works Employee Hiring Incentive

Designed to help stimulate and build Nevada’s economy, this incentive allows businesses to collect up to $2,000 per new-hire-employee if hired from the Silver State Works selection of pre-screened, qualified workers. The goal behind this program is to strengthen the Nevadan workforce as well as the economy. The success of this program depends on the business’ willingness to participate by taking advantage of a trained workforce.

For more information on Nevada’s tax advantages, head over to our tax blog to get first-rate advice from Ashley Quinn, CPAs.

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For real estate inquiries, stop by the beautiful Montrêux Welcome Center at 16475 Bordeaux Dr. in Reno, NV or call us at 775.849.9444. The Welcome Center is open 7 days a week, from 9:00 am – 5:00 pm.