Better Business Environment
Nevada’s incentive program is one-of-a-kind and one of the best reasons to do business in Nevada. Business owners and their employees keep more of what they earn than those in other states because Nevada offers one of the most attractive tax structures in the country.
- No Corporate Income Tax
- No State Personal Income Tax
- No Franchise Tax
- No Unitary Tax
- No Special Intangible Tax
- No Inventory Tax
- No Inheritance Tax
- No Estate Tax
- No Gift Tax
- Nominal Annual Fees
- Minimal Reporting Requirements
- Competitive Sales and Property Tax Rates
- Minimal Employer Payroll Tax (Modified Business Tax)
State Job Creation Incentives
- Sales & Use Tax Abatement – A partial sales/use tax abatement on capital equipment purchases of over $1,000,000
- Sales and Use Tax Deferral – Combined with the abatement in some cases with only $100,000 in capital equipment purchases required to qualify
- Personal Property Tax Abatement – For capital equipment purchases with a minimum investment of $50,000,0(Industrial), $5,000,000 (Non-Industrial)
- Modified Business Tax Abatement – An abatement of 50% for four (4) years
In additional to these tax incentives, the State of Nevada offers two training program incentives:
- Train Employees Now Grant (TEN) – A grant of $1,000 per trainee with a twenty-five percent (25%) company match with program training administered and conducted in partnership with the community college (Western Nevada College in our region).
- Nevada Department of Training, Employment and Rehabilitation’s (DETR)
- Employee Training Program – Pays 50 percent of employee’s labor cost for first six (6) weeks for new jobs, the cost of training provider and materials, and any special uniform or gear required.
Source: Nevada Commission on Economic Development (NCED)
State and Local Tax Summary:
Sales & Use Tax
As a percentage of goods purchased including equipment purchases. Washoe County rate is 7.725%.
Modified Business Use Tax
The Modified Business Tax is a quarterly payroll tax based on gross wages. If the sum of all taxable wages, after health care deductions, paid by the employer does not exceed $62,500 for the calendar quarter, the amount of tax is 0.5% of the sum of those wages (0.005). If the sum of all the wages paid by the employer exceeds $62,500 for the calendar quarter, the tax is $312.50 plus 1.17% of the amount the wage exceeds $62,500. For example: if the sum of all wages for the 12/09 quarter is $101,000. The tax is $312.50 plus $450.45 (0.0117 x $38,500 which is the amount exceeding $62,500) = total tax due of $762.95.
Personal and Real Property taxes are collected by the counties in Nevada. The assessment policies and procedures are.
Calculating Real Property Taxes:
The formula for calculating real property tax is as follows:
Taxable Value x Level of Assessment = Assessed Value
Assessed Value x Tax Rate = Total Real Property Tax
Calculating Personal Property Taxes:
Using the Cost Conversion Factor tables in the Personal Property Manual: Use the following formula to calculate the assessed value. The assessed value is the value on which taxes are calculated.
As a right-to-work state, Nevada protects the right for employees to choose for themselves whether or not they want to join or support a union. Plus, workman's compensation insurance rates are nearly seventy-five percent (75%) less than those in neighboring California for certain business classifications.
Many companies move to Greater Reno-Tahoe for their expansions due to the favorable business climate, the superb quality of life and the abundant activities available to their employees. In addition, the region offers great access to government where our elected officials still believe in business and will go out of their way to address any circumstance that may arise and who will work hard for your success.
Minimum Wage Requirements:
Minimum wage is $7.25 per hour, while the minimum wage for employees not receiving health benefits is $8.25 per hour.
2006-2010 Statistics for Washoe County
|Unemployment Rate (Local)||13.4||11.8||6.8||4.6||4.0|
Source: Department of Employment, Training and Rehabilitation (DETR)
Nevada’s Worker’s Compensation Program:
Nevada is a great place for business. Our workers’ comp programs are evidence of that fact. Many companies have moved to Nevada for just that reason. The workers comp rate is 7 percent less than California’s in many categories.
In addition, Greater Reno-Tahoe is home to two statewide self-insured coops. These programs dramatically reduce worker’s comp rates and put the premium profits back to the coop. No more paperwork than traditional plans and much less cost.
Pro Group Management is the premier administrator of self-insured groups for workers’ compensation in Nevada and is an approved Captive Manager specializing in alternative risk transfer solutions for businesses of all sizes and types. Pro Group manages five successful self-insured workers' comp groups and has achieved record growth continuously since 1995.
To learn more about their services, call (800) 359-3177 or visit http://www.pgmnv.com.
CHSI designs and manages self-insured workers' compensation programs that help clients be more competitive. To learn more about their services, please call (866) 924-8171 or visit http://www.chsi-nv.com.
Nevada is an exclusive remedy state. Exclusive remedy means that an injured employee, generally, cannot sue an employer for work related injuries if the employer has purchased workers’ compensation insurance as required by Nevada law. If an injured employee accepts benefits under workers’ compensation, the employer is protected from lawsuits.
Risk Management is up to the discretion of the employer. Questions regarding worker compensation may be directed to the Department of Employment, Training and Rehabilitation at (775) 687-3187.
You can review information for employer's about worker's compensation in Nevada.
The statutes are clear on the issue of employer coverage. Unless excluded by statute, “…Every person, firm, voluntary association and private corporation, including any public service corporation, which has in service any person under a contract of hire needs coverage.” (NRS 616A.230)
Worker Training Programs
Nevada JobConnect, a division of DETR the State’s labor department, offers many training programs and related free services in addition to standard and competitive training grant programs.
On‐the‐Job Training (OJT):
OJT is provided through JobConnect's Career Enhancement Program (CEP). Training is provided on-site by the employing company and can include funds for specialized gear. There is up to a 50 percent cost of labor reimbursement available for each individual hired on a full-time basis for which a contract is written for a six (6) week training period. Approximately 25 contracts may be written per company per year for jobs with a minimum starting salary of $10 plus per hour. For a company to be eligible for OJT contracts, they must be registered with the Secretary of State to do business; have obtained an Unemployment Insurance Account number; have the proper city/county business licenses; and have an I.R.S. Employer Identification Number.
Reimbursement and Incentives to Employers:
Train Employees Now (TEN) Grant is a grant of $1,000 per trainee with a 25 percent company match, with program training administered and conducted in partnership with the community college (Western Nevada College in our region). The TEN program is available as part of the state’s incentive program.
Assistance with Employment Related Advertising and Recruitment:
Nevada JobConnect Career Centers are user-friendly facilities located throughout the state that provide businesses and job seekers with personalized attention and a variety of valuable services, including job listings, job placement, work registration, labor market information, career information and guidance, assessment, information about education and training opportunities, unemployment insurance information, information on filing for unemployment insurance, resume preparation, referrals to other partner agency services, and more. Visit www.nevadajobconnect.com for more information.
Job Placement Assistance:
Nevada JobConnect services are available at no cost to the employer. In addition, once a staffing request has been placed with JobConnect, the information circulates nationwide and statewide appearing through www.americasjobexchange.com/nv.
Nevada — A Right‐to‐Work State — A Business Advantage
Nevada is a Right to Work state. Right to Work law secures the right of employees to decide for his or herself whether or not to join or financially support a union. However, employees who work in the railway or airline industries are not protected by a Right to Work law, and employees who work on a federal enclave may not be.
Any questions regarding rules and regulations are handled through the State Labor Commissioner’s office (775) 687-4850.