§ 360.759 — Eligibility; application; taxes to which credit may be applied; powers and duties of Office of Economic Development, Nevada Tax Commission, Nevada Gaming Commission and production company; regulations

Nevada § 360.759

• Jurisdiction: Nevada
• Title 32: REVENUE AND TAXATION
• Ch. 360: General

Text

1. A production company that produces a qualified production in this State in whole or in part may apply to the Office of Economic Development for a certificate of eligibility for transferable tax credits for any qualified direct production expenditures. The transferable tax credits may be applied to:
(a) Any tax imposed by chapters 363A and 363B of NRS;
(b) The gaming license fees imposed by the provisions of NRS 463.370 ;
(c) Any tax imposed pursuant to chapter 680B of NRS; or
(d) Any combination of the fees and taxes described in paragraphs (a), (b) and (c).
2. The Office may approve an application for a certificate of eligibility for transferable tax credits if the Office finds that the production company producing the qualified production qualifies for the transferable tax credits pursuant to subsection 3. If the Office approves the application, the Office shall calculate the estimated amount of the transferable tax credits pursuant to NRS 360.7592 , 360.7593 and 360.7594 .
3. To be eligible for transferable tax credits pursuant to this section, a production company must:
(a) Submit an application that meets the requirements of subsection 4;
(b) Provide proof satisfactory to the Office that the qualified production is in the economic interest of the State;
(c) Provide proof satisfactory to the Office that 70 percent or more of the funding for the qualified production has been obtained;
(d) Provide proof satisfactory to the Office that at least 60 percent of the direct production expenditures for:
(1) Preproduction;
(2) Production; and
(3) If any direct production expenditures for postproduction will be incurred in this State, postproduction,
Ê of the qualified production will be incurred in this State as qualified direct production expenditures;
(e) Not later than 270 days after the completion of principal photography of the qualified production or, if any direct production expenditures for postproduction will be incurred in this State, not later than 270 days after the completion of postproduction, unless the Office agrees to extend this period by not more than 90 days, provide the Office with an audit of the qualified production that includes an itemized report of qualified direct production expenditures which:
(1) Shows that the qualified production incurred qualified direct production expenditures of $500,000 or more; and
(2) Is certified by an independent certified public accountant in this State who is approved by the Office;
(f) Pay the cost of the audit required by paragraph (e);
(g) Enter into a written agreement with the Office that requires the production company to include:
(1) In the end screen credits of the qualified production, a logo of this State provided by the Office which indicates that the qualified production was filmed or otherwise produced in Nevada; or
(2) If the qualified production does not have end screen credits, another acknowledgment in the final version of the qualified production which indicates that the qualified production was filmed or otherwise produced in Nevada; and
(h) Meet any other requirements prescribed by regulation pursuant to this section.
4. An application submitted pursuant to subsection 3 must contain:
(a) A script, storyboard or synopsis of the qualified production;
(b) The names of the production company, producer, director and proposed cast;
(c) An estimated timeline to complete the qualified production;
(d) A summary of the budgeted expenditures for the entire production, including projected expenditures to be incurred outside of Nevada;
(e) Details regarding the financing of the project, including, without limitation, any information relating to a binding financing commitment, loan application, commitment letter or investment letter;
(f) An insurance certificate, binder or quote for general liability insurance of $1,000,000 or more;
(g) The business address of the production company;
(h) Proof that the qualified production meets any applicable requirements relating to workers’ compensation insurance;
(i) Proof that the production company has secured all licenses and registrations required to do business in each location in this State at which the qualified production will be produced; and
(j) Any other information required by regulations adopted by the Office pursuant to subsection 8.
5. If the Office approves an application for a certificate of eligibility for transferable tax credits pursuant to this section, the Office shall immediately forward a copy of the certificate of eligibility which identifies the estimated amount of the tax credits available pursuant to NRS 360.7592 to:
(a) The applicant;
(b) The Department; and
(c) The Nevada Gaming Control Board.
6. Within 60 business days after receipt of an audit provided by a production company pursuant to paragraph (e) of subsection 3 and any other accountings or other information required by the Office, the Office shall determine whether to certify the audit and make a final determination of whether a certificate of transferable tax credits will be issued. If the Office certifies the audit, determines that all other requirements for the transferable tax credits have been met and determines that a certificate of transferable tax credits will be issued, the Office shall notify the production company that the transferable tax credits will be issued. Within 30 days after the receipt of the notice, the production company shall make an irrevocable declaration of the amount of transferable tax credits that will be applied to each fee or tax set forth in subsection 1, thereby accounting for all of the credits which will be issued. Upon receipt of the declaration, the Office shall issue to the production company a certificate of transferable tax credits in the amount approved by the Office for the fees or taxes included in the declaration of the production company. The production company shall notify the Office upon transferring any of the transferable tax credits. The Office shall notify the Department and the Nevada Gaming Control Board of all transferable tax credits issued, segregated by each fee or tax set forth in subsection 1, and the amount of any transferable tax credits transferred.
7. An applicant for transferable tax credits pursuant to this section shall, upon the request of the Executive Director of the Office, furnish the Executive Director with copies of all records necessary to verify that the applicant meets the requirements of subsection 3.
8. The Office:
(a) Shall adopt regulations prescribing:
(1) Any additional requirements to receive transferable tax credits;
(2) Any additional qualified expenditures or production costs that may serve as the basis for transferable tax credits pursuant to NRS 360.7591 ;
(3) Any additional information that must be included with an application pursuant to subsection 4;
(4) The application review process;
(5) Any type of qualified production which, due to obscene or sexually explicit material, is not eligible for transferable tax credits; and
(6) The requirements for notice pursuant to NRS 360.7595 ; and
(b) May adopt any other regulations that are necessary to carry out the provisions of NRS 360.758 to 360.7598 , inclusive.
9. The Nevada Tax Commission and the Nevada Gaming Commission:
(a) Shall adopt regulations prescribing the manner in which transferable tax credits will be administered.
(b) May adopt any other regulations that are necessary to carry out the provisions of NRS 360.758 to 360.7598 , inclusive.

Legislative History

(Added to NRS by 2013, 3091 ; A 2015, 1101 , 1109 ; 2021, 280 )