§ 360.7591 — Calculation of amount of credit: Expenditures and costs eligible to serve as basis for calculation; ineligible expenditures and costs; regulations

Nevada § 360.7591

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

Text

1. Qualified direct production expenditures must be for purchases, rentals or leases of tangible personal property or services from a Nevada business during the period in which a qualified production is produced, must be customary and reasonable and must relate to:
(a) Set construction and operation;
(b) Wardrobe and makeup;
(c) Photography, sound and lighting;
(d) Filming, film processing and film editing;
(e) The rental or leasing of facilities, equipment and vehicles;
(f) Food and lodging;
(g) Editing, sound mixing, special effects, visual effects and other postproduction services;
(h) The payroll for Nevada residents or other personnel who provided services in this State;
(i) Payment for goods or services provided by a Nevada business;
(j) The design, construction, improvement or repair of property, infrastructure, equipment or a production or postproduction facility;
(k) State and local government taxes to the extent not included as part of another cost reported pursuant to this section;
(l) Fees paid to a producer who is a Nevada resident; and
(m) Any other transaction, service or activity authorized in regulations adopted by the Office of Economic Development pursuant to NRS 360.759 .
2. Expenditures and costs:
(a) Related to:
(1) The acquisition, transfer or use of transferable tax credits;
(2) Marketing and distribution;
(3) Financing, depreciation and amortization;
(4) The payment of any profits as a result of the qualified production;
(5) The payment for the cost of the audit required by NRS 360.759 ; and
(6) The payment for any goods or services that are not directly attributable to the qualified production;
(b) For which reimbursement is received, or for which reimbursement is reasonably expected to be received;
(c) Which are paid to a joint venturer or a parent, subsidiary or other affiliate of the production company, unless the amount paid represents the fair market value of the purchase, rental or lease of the property or services for which payment is made;
(d) Which provide a pass-through benefit to a person who is not a Nevada resident; or
(e) Which have been previously claimed as a basis for transferable tax credits,
Ê are not qualified direct production expenditures and are not eligible to serve as a basis for transferable tax credits issued pursuant to NRS 360.759 .
3. If any tangible personal property is acquired by a Nevada business from a vendor outside this State for immediate resale, rental or lease to a production company that produces a qualified production, expenditures incurred by the production company for the purchase, rental or lease of the property are qualified direct production expenditures if:
(a) The Nevada business regularly deals in property of that kind;
(b) The expenditures are otherwise qualified direct production expenditures under the provisions of this section; and
(c) Not more than 50 percent of the property purchased, rented or leased by the production company for the qualified production is acquired and purchased, rented or leased in the manner described in this subsection. In making the calculation required by this paragraph, the cost of any property that remains an asset of the Nevada business after production of the qualified production has ended must not be included in the calculation as property purchased, rented or leased in the manner described in this subsection.
4. If any tangible personal property is acquired by the production company as an asset, the calculation of the costs of the tangible personal property that constitute a qualified direct production expenditure must be performed in the manner prescribed by the Office of Economic Development by regulation.

Legislative History

(Added to NRS by 2013, 3093 ; A 2015, 1104 , 1109 ; 2021, 282 )