Nevada Tax Incentives

The tax climate in Nevada is one of the best reasons to do business in this state. This tax structure also clearly distinguishes Nevada as offering a business environment very few states can match. Nevada is friendly to businesses and in particular corporations.

In Nevada there is:

• No Corporate Income Tax
• No Admissions Tax
• No Personal Income Tax
• No Franchise Tax on Income
• No Inheritance or Gift Tax
• No Estate Tax*
• No Unitary Tax
• Competitive Sales and Property Tax Rates
• Minimal Employer Payroll Tax - 0.7% of gross wages with deductions for employer paid health insurance

(* A small assessed "pick-up tax" that cannot exceed the maximum allowable credit against the federal estate return.)

Let's take a look at Washoe County taxes in particular:

Sales and Use Tax Abatement

Sales and use tax abatements are available for purchases of capital equipment.

Sales and Use Tax Deferral

Sales and use tax deferrals are available for purchases of capital equipment.

Personal Property Tax Abatement

Partial abatement from personal property taxes is available to companies who locate or expand their business in Nevada.

Modified Business Tax Abatement

A modified business tax (excise tax) is imposed on each employer at the rate of 0.63 percent of the wages. Effective July 1, 2005, a partial abatement of tax during the initial period of operation is available. Qualifying employers may apply for an abatement of 50 percent of the tax otherwise due during the first four years of its operations.

Real Property Tax for Recycling

Partial abatement for real property taxes for recycling is available to companies who locate or expand their business in Nevada.

Property Tax Abatements for Renewable Energy

Partial abatement of real and personal property taxes for businesses that produce electricity from renewable energy, who locate or expand their business in Nevada. For more information visit  http://www.expand2nevada.com/Incentives/assets/08renewableenergy.pdf

Source: Nevada Commission on Economic Development, June 2008

Comparisons

Tax Comparisons

• Arizona vs Nevada
• California vs Nevada
• Colorado vs Nevada
• Idaho vs Nevada
• New Mexico vs Nevada
• Oregon vs Nevada
• Utah vs Nevada
• Washington vs Nevada

Company Paid Taxes

Payroll taxes

In Nevada payroll taxes are 0.65% on total gross wages less a qualified deduction for employee health insurance benefits paid by the employer. Total gross wages less paid benefits times .65% equals payroll tax.

Inventory Tax

Nevada has NO Inventory Tax on inventories held for sale within Nevada or for interstate transit.

Company Paid Unemployment

New employers pay Unemployment Insurance (UI) taxes at a rate of 3 percent of taxable wages until they are eligible for experience rating. The employer retains this rate for a period of 14 to 17 calendar quarters (depending on the quarter in which he becomes subject to the law), after which his rate will be determined under the "Experience Rating" system.

Once you are eligible for experience rating, your rate is determined by two factors:

• Your reserve ratio, which is a measure of your previous experience with unemployment (See page 17 of the Nevada Unemployment Compensation Program employer handbook); and

• The reserve ratio schedule in effect. The administrator establishes, by regulation, the schedule to be in effect for each calendar year. Changes to the schedule are made according to the trust fund balance, economic conditions, and forecasts. The law provides for an annual test of the trust fund for a guideline. The balance should be sufficient to pay benefits for one full year, disregarding any additional income (Department of Labor recommends sufficient funds to pay benefits for 1-2 years).

Business Tax Climate Index Rankings