Business Tax Abatement - An OverviewA new business can qualify in the state of Nevada for a partial business tax abatement exemption under certain conditions. One condition is that a new business requires 25 or more than 25 full time employees who have an average per hour wage equal to a minimum of 100 percent of the average statewide per hour wage. In addition, it has an investment capital of $250,000 or more than $250,000 in a city or county, whose population is less than 50,000. Alternatively, it has an investment capital in a city or county whose population is 50,000 or more. Another condition is that a new business requires 75 or more than 75 full time employees with an average per hour wage equal to a minimum of 100 percent of the average statewide per hour wage. In addition, it makes an investment of $1 million or more than $1 million.An existing business can qualify for a partial business tax abatement exemption if it is able to meet at the minimum 2 of the 3 requirements given below.Employ the greater of minimum 6 employees or 110% of the employees working in the immediately preceding financial year. Make an investment of capital nature in this state equal to minimum twenty percent of the assessed value of the tangible property possessed by the business in the previous financial year. An average per hour wage equal to a minimum of hundred percent of the average statewide per hour wage needs to be paid to its new employees by the existing business. Businesses consistent with the Commission on Economic Development plan for economic development and diversification and which meet at the minimum 2 of the above 3 requirements can qualify for a partial business tax abatement exemption. This will be to the extent of 80 percent in the first year of operation, 60 percent in the second year, 40 percent in the third year, and 20 percent in the fourth year. Some states such as Oregon may provide two business tax abatement investment incentive programs. These are the Strategic Investment Program and the Enterprise Zone Program. These programs provide business investment incentive through property tax abatement. They may even allow income tax credits besides property tax benefits, as business investment incentives. Properties located in sparsely populated places, in which the issue of chronic employment has reared its head, as well as those in non-urban enterprise zone properties will be only included under the program. New and diversifying businesses in Nevada can obtain partial exemptions from business tax that meet the overall goals of the State's plan, Focus 2000. A number of commission criteria and statutory requirements must be met to qualify for partial exemption. These include creation of a minimum number of jobs, fringe benefit and wage requirements, and a minimum capital investment. Not only can the goal of economic development be met through an effective business tax abatement program, but it may help resolve even some tax issues. |