NEVADA ENERGY COMMISSIONER

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1 Compliance and Minimum Required Criteria for the State of Nevada Renewable Energy Tax Abatements NRS 701A.300 to 701A.390 (AB 522, Section 28 and Section 106.5) Effective through June 30, 2049 Potential applicant who is the facility owner must first submit a pre-application form to the Director of Nevada State Office of Energy (NSOE), at taxabatement@energy.nv.gov, at least 18 months before the facility construction starts 1. The pre-application form is posted on If the pre-application is complete, the NSOE will send a confirmation letter to the applicant and also forward a copy of the pre-application form to the Office of Nevada Energy Commissioner, State Department of Taxation, State Budget Division, Nevada Commission on Economic Development and Local Government (county treasurer, county assessors, and board of county commissioners). The facility owner, who has submitted a pre-application form and whose project is determined to be eligible for the renewable energy tax abatements, will receive a confirmation letter and an application package with a filing instruction from the Nevada Energy Commissioner. Successful pre-applications applicants must obtain an application filing number (AFN) by ing to energy@renewable.nv.gov with a subject line of AFN Request prior to filing an application package with the NSOE Application package must be submitted to the Director of NSOE, at taxabatement@energy.nv.gov, at least 10 weeks, but not earlier than 18 months 1, before the start of facility construction Application submitted to NSOE without an AFN assigned by the Nevada Energy Commissioner will not be accepted An incomplete or insufficient application will be rejected by NSOE. However, an applicant may re-submit an application once complete with a new filing number Partial Local Sales and Use Tax Abatement For the duration of 3 years beginning on the date of application approval Purchaser is only required to pay sales and use taxes imposed in Nevada at the rate of 2.6 % (effective through June 30, 2011) Purchaser is only required to pay sales and use taxes imposed in Nevada at the rate of 2.25 % (effective July 01, June 30, 2049) Purchaser is the facility owner, contractors, and/or the subcontractors who purchase taxable materials (related to the construction of the facility or on behalf of the facility owner) and report and remit tax to the Nevada Department of Taxation. All materials subject to the general sales and use tax laws that are associated and integral part of the facility will be eligible for the abatement Nevada Sales Tax Rates by County ( ) Partial Property Tax Abatement For the duration of 20 fiscal years immediately following the date of approval Equal to 55 percent of the taxes on real and personal property payable by the facility each year 1 Please see the NOTE 2 for the waiver of time requirements on 1

2 Eligible Facilities A facility that generates process heat from solar renewable energy and has an output capacity of at least 25,840,000 Btu per hour A wholesale facility that generates electricity from biomass, solar energy, water power, wind or fuel cells and does not sell the electricity to the end user of the electricity but includes a facility that is owned, leased or otherwise controlled by an entity that has authority to sell electricity and provide transmission services or distribution services or both o Uses renewable energy as its primary source of energy o Has a generating capacity of at least 10 MW A facility that generates electricity from geothermal resources o Nevada Energy Commissioner can not process the application without receiving approval for the facility from the board of the county commissioners A facility for the transmission of electricity produced from renewable energy or geothermal resources located in Nevada Local jurisdiction may request presentation regarding all eligible facilities within 30 days after receipt of the application from the Director of Nevada State Office of Energy Non Eligible Facilities A facility that is owned, operated, leased or otherwise controlled by a governmental entity A facility that is located on residential property A facility is receiving any funding from any Nevada governmental entity for the acquisition, design or construction of the facility or for the acquisition of any land, except any private activity bonds as defined in 26 U.S.C. 141 A facility is receiving another abatement or exemption from local sales and use taxes A facility is receiving another abatement or exemption from property taxes imposed pursuant to chapter 361 of NRS, other than any partial abatement provided pursuant to NRS General and Compliance Requirements A facility must continue in operation for at least 10 years Applicant must obtain a valid business license in Nevada Applicant must obtain all the permits required by the county, city or town in which the facility operates Capital investments o $ 10,000,000 or more (urban county/city populations > 100,000/60,000) o $ 3,000,000 or more (rural county/city populations < 100,000/60,000) 2

3 Number of full time construction employees, wages, and health insurance plan o 75 or more full-time employees during the second quarter of construction (urban county/city populations > 100,000/60,000) o 50 or more full-time employees during the second quarter of construction (rural county/city populations < 100,000/60,000) o At least 30 percent of the employees are residents of Nevada o The average hourly wage will be at least 150 % of the average statewide hourly wage 2 (exclude management and administrative employees) $ for fiscal year 2010 as established by the Employment Security Division of the Department of Employment, Training, and Rehabilitation ( o Health insurance plan (A) with an option for the coverage of dependents Wages of full time permanent employees o The average hourly wage will be at least 110 % of the average statewide hourly wage for each fiscal year (exclude management and administrative employees) $ for fiscal year 2010 as established by the Employment Security Division of the Department of Employment, Training, and Rehabilitation ( Compliance with any future regulations for the general and compliance requirements as may be enacted by the Nevada Energy Commissioner is a requirement of the renewable energy tax abatements Applicant executes an agreement with the Commissioner and continues to meet eligibility requirements for the abatement Executed agreement binds the successors of the facility Annual compliance filing with the Director of Nevada State Office of Energy is a requirement of the renewable energy tax abatements (A) Minimum Level of Health Insurance Benefits, Care, and Services Required for Construction Employees Health insurance plan must include basic medical and hospital care, including at least: 1. Emergency Care; 2. Inpatient and outpatient hospital services; 3. Physicians services; 4. Outpatient medical services; 5. Laboratory services; 6. X-ray services; and 7. Minimum employer contribution, at the level of 80% of medical expenses after the employee paid deduction is met. 2 Average statewide hourly wage for FY 2010 is $20.05 as established by the Employment Security Division of the Department of Employment, Training, and Rehabilitation ( 3

4 APPLICATION PROCESS Processing Time Line = 10 Weeks (Processing time line might be longer if an extensive legal investigation is required on the confidential information provided) APPLICANT 1 week Rejection notice for incomplete application (Memo to Nevada Energy Commissioner) Complete Application Package (Copy of the package to Nevada Energy Commissioner) Director Nevada State Office of Energy (NSOE) (Information and confidentiality verification and accepted application) a notice* Commission on State Budget Division County Treasurer Economic Development (State Fiscal impact note) County Assessors Board of County Commissioners (A request for a presentation by the applicant must be made within 30 business days after receipt of the application from NSOE 4 weeks 2 weeks 2 weeks Taxation (Local Government Fiscal Impact Note for sales & use tax and for centrally & locally assessed property) Director, NSOE (state/regional energy impact analysis and Briefing Memo) NRS 701A.365 (2) Approval or Denial notice for Geothermal facility for a partial property tax abatement (NRS 361) Nevada Energy Commissioner Public Hearing** Abatement Terms & Executed Agreement Director, NSOE Upon receiving Abatement Terms & Executed Agreement 1 week Local Sales and Use Tax Abatement Certification for the facility Taxation APPLICANT Commission on Economic Development Tax Abatements Board of County Commissioner and County Assessor Annual Compliance Filing with County Treasurer the Director, NSOE * With a copy of the application forwarded to the County Treasurer, The Director of NSOE shall include a notice that the local jurisdiction may request a presentation by the applicant regarding the facility - NRS 701A.360(4) ** Public hearing must NOT be held earlier than 30 business days after all entities have received a copy of the application - NRS 701A.360(5) 4

5 Nevada State Office of Energy Lorayn Walser Management Analyst II Phone: (775) ext 7308 POINTS OF CONTACT The Office of Nevada Energy Commissioner Kelly Munoz Executive Assistant to Nevada Energy Commissioner Phone: (775) Nevada Department of Taxation For Sales and Use Tax related questions Ray Lummus Tax Manager Compliance Division Nevada Department of Taxation Phone: (775) For Property Tax related questions Terry Rubald Chief, Division of Assessment Standards Phone: (775) OR Kelly Langley, CTP Supervisor, Centrally Assessed Properties Phone: (775) State of Nevada Department of Administration, Budget and Planning Division Cathy Gregg Budget Analyst IV Phone: (775)