Nevada Administrative Code Chapter 231A - Nevada New Markets Jobs Act
Nevada Administrative Code – Chapter 231A
Subject: Nevada New Markets Jobs Act
NAC Chapter 231A governs the administration of the Nevada New Markets Jobs Act, which is designed to stimulate economic development, job creation, and investment in targeted areas of Nevada. It provides incentives, eligibility criteria, and procedures for businesses and investors seeking to participate.
1. Eligibility for Incentives
What it covers:
NAC 231A defines which businesses and projects qualify for incentives under the New Markets Jobs Act.
Key points:
Eligible businesses must be located in designated “New Markets Areas” or economically distressed zones.
Projects must create new jobs or retain existing jobs.
Businesses must comply with state regulations and demonstrate financial viability.
Why it matters:
Ensures incentives are directed toward areas and businesses that truly stimulate economic growth.
Example Application:
A manufacturing company opens a facility in a rural Nevada town with high unemployment. By demonstrating that 50 new jobs will be created, the business qualifies for tax credits under NAC 231A.
2. Application and Approval Process
What it covers:
The NAC establishes procedures for applying for incentives and obtaining approval from state authorities.
Key points:
Applicants submit a formal application including business plans, job creation estimates, and financial projections.
The Governor’s Office of Economic Development or designated agency reviews applications.
Approval is based on compliance with program requirements and potential economic impact.
Why it matters:
Provides a transparent and standardized process.
Ensures only eligible projects receive benefits.
Example Application:
A technology startup applies for a New Markets Jobs Act grant to expand operations in a designated area. The agency reviews projected job creation and investment impact before issuing approval.
3. Incentive Types
What it covers:
NAC 231A details the types of incentives available to qualifying businesses.
Key points:
Tax credits: Reductions in state corporate income or business taxes based on jobs created.
Grants or reimbursements: Financial support for infrastructure or equipment.
Training subsidies: Funding to help train employees in new or specialized roles.
Why it matters:
Encourages businesses to invest in underdeveloped areas.
Reduces financial risk for job-creating projects.
Example Application:
A healthcare company receives a tax credit for creating 30 new positions in a rural county and also receives a grant to renovate a vacant building for its clinic.
4. Reporting Requirements
What it covers:
Businesses participating in the program must submit periodic reports on employment, wages, and project progress.
Key points:
Reports may be quarterly or annually, depending on the incentive.
Businesses must verify that jobs have been created or retained.
Non-compliance can result in loss of incentives or repayment obligations.
Why it matters:
Ensures accountability and verifies that public resources are used effectively.
Example Application:
A company that received a grant to expand operations submits annual reports confirming the creation of 50 full-time jobs and the average wage paid, meeting program requirements.
5. Compliance and Audits
What it covers:
NAC 231A allows the state to audit participating businesses to ensure compliance with program rules.
Key points:
Audits can include review of payroll, job creation, and financial statements.
Businesses must maintain records for a specified period.
Violations can trigger clawbacks or penalties.
Why it matters:
Protects taxpayer investment in economic development programs.
Ensures businesses adhere to commitments made during application.
Example Application:
During an audit, a state agency finds that a business over-reported the number of new jobs created. The company must repay a portion of the tax credits received.
6. Sunset and Program Limitations
What it covers:
NAC 231A establishes limits on the duration and scope of program benefits.
Key points:
Incentives may be provided for a limited number of years or until program funds are exhausted.
Certain caps apply to individual businesses or projects.
The state may review the program periodically to determine effectiveness.
Why it matters:
Ensures responsible allocation of public funds.
Allows adjustment of program parameters based on economic conditions.
Example Application:
A company receives tax credits for five years under the program. After the fifth year, the incentive ends, and the company must continue operations without further state subsidies.
7. Public Reporting and Transparency
What it covers:
NAC 231A requires public reporting on program impact to promote transparency.
Key points:
State agencies compile reports on jobs created, investment levels, and geographic distribution.
Reports are made available to legislators and the public.
Promotes accountability and encourages continued program improvement.
Why it matters:
Demonstrates value of public investment.
Informs policy decisions for future economic development programs.
Example Application:
The state publishes an annual report showing that 1,200 new jobs were created across five counties, highlighting the success of the program.
Summary Table
| Case/Area | Core Requirement | Purpose |
|---|---|---|
| Eligibility | Businesses in designated areas, job creation | Target incentives to stimulate economic growth |
| Application & Approval | Submission of plans, review by agency | Standardized, transparent process |
| Incentive Types | Tax credits, grants, training subsidies | Reduce risk and encourage investment |
| Reporting | Periodic employment and wage reports | Ensure accountability and track outcomes |
| Compliance & Audits | Verification of job creation, recordkeeping | Protect public funds and prevent misuse |
| Sunset & Limitations | Time-bound incentives, program caps | Responsible allocation of resources |
| Public Reporting | Annual program results | Promote transparency and evaluate effectiveness |
Key Takeaways
NAC Chapter 231A implements the Nevada New Markets Jobs Act, providing a structured framework for economic development incentives, job creation, and investment in targeted areas. It establishes eligibility criteria, application procedures, incentive types, reporting requirements, compliance measures, and transparency standards, ensuring that both businesses and the public benefit from the program.
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