Data centers must pay the Local School Support Tax on taxable equipment and other tangible personal property used, stored, or consumed in Nevada. The rate is 2.25% plus an additional 0.35%, for a combined 2.60% tax, unless an exemption or abatement applies. NRS 374.190 and NRS 374.191

A data center may receive a partial tax abatement only after applying to the Office of Economic Development and obtaining approval under NRS 360.754. The abatement is limited to eligible machinery or equipment specifically necessary for the data center or a colocated business; vehicles, buildings, and structural components of buildings are excluded. The abatement period is limited to 10 years for qualifying applicants under NRS 360.754(2)(d) and 20 years for applicants under subsection 2(e). NRS 374.356

A new or expanded data center may apply to the Office of Economic Development for a partial abatement of Nevada local sales and use taxes on eligible machinery and equipment used at the data center.

The local sales and use tax abatement may last up to 10 years for the lower investment-and-employment tier or up to 20 years for the higher tier. The abatement is limited to eligible machinery or equipment and does not cover vehicles, buildings, or structural components of buildings.

A data center may receive a partial abatement of personal property taxes for eligible property located at the data center. The abatement may cover up to 75 percent of those taxes, for 1 to 10 years under the lower tier or 10 to 20 years under the higher tier.

Businesses that colocate at a qualifying data center may also receive a partial tax abatement if they contract to use or occupy all or part of the data center for at least two years. Their abatement cannot exceed the data center’s abatement and cannot last longer than their contract.

The Office of Economic Development must approve a data-center abatement application when it determines that the application satisfies the statutory requirements, including a State Plan consistency determination, an agreement with the Office, Nevada registration or a commitment to obtain required local licenses and permits, required employment and capital investment, and wage and health-benefit standards.

The measure creates two qualification tiers: a data center seeking an abatement of up to 10 years must reach at least 100 full-time employees and $100 million in cumulative in-state capital investment within five years, while a data center seeking an abatement of more than 10 and up to 20 years must reach at least 200 full-time employees and $250 million in cumulative in-state capital investment within five years.

The data center must pay employees an average hourly wage of at least 100 percent of Nevada’s statewide average hourly wage and provide qualifying health insurance, including dependent coverage, within one year after the abatement becomes effective.

An approved data center may receive the abatement only after entering an agreement requiring continued operation in Nevada for a period set by the Office of at least 10 years, continued compliance with eligibility requirements, and binding successors in interest.

The measure allows the data center to include modular or preassembled components, associated telecommunications and storage systems, and networks connecting multiple buildings or physical locations within the statutory definition of a data center.

A data center that stops operating or stops meeting the requirements may generally be required to repay the abatements, with interest, although the Nevada Tax Commission may determine that the data center substantially complied with the requirements.

The Office of Economic Development may approve colocated-business abatements alongside the data-center abatement, and must provide the Department of Taxation and affected county officials with the qualifying colocated-business list and updates.

Applications under the data-center abatement program may not be approved after January 1, 2036, and the program expires by limitation on December 31, 2056.

A data center seeking the personal-property-tax abatement must apply through the Governor’s Office of Economic Development under NRS 360.754 and obtain approval; the abatement is not automatic. The application process includes submission through a regional development authority, GOED review, and approval by the GOED Board. The application and approval requirements

To qualify for a 10-year data-center abatement, the applicant and its tenants must, within five years, employ at least 10 full-time Nevada residents, pay at least 100 percent of the statewide average wage, and make at least $25 million in cumulative capital expenditures.

To qualify for a 20-year data-center abatement, the applicant and its tenants must, within five years, employ at least 50 full-time Nevada residents, pay at least 100 percent of the statewide average wage, and make at least $100 million in cumulative capital expenditures.

The company must maintain its business in Nevada for at least 10 years as a condition of the data-center abatement.

The company must be registered under Nevada law to qualify for the data-center abatement.

The company must offer a medical-insurance plan and pay at least 65 percent of the plan’s premium costs.

At least 50 percent of all workers engaged in constructing the data center must be Nevada residents.

Beginning September 16, 2026, the applicant must satisfy the requirements identified in Executive Order 2026-005, including paying the school-support tax, complying with applicable location-specific water standards, paying the full incremental cost of electrical service, helping protect grid reliability by reducing load during declared emergencies when required, providing transparency and reporting, and remaining free of foreign-adversary ownership or control.

The personal-property-tax abatement is limited to no more than 75 percent of the applicable taxes. The standard pathway may last from one to 10 years, while the larger-investment pathway may last from 10 to 20 years and remains subject to any limitation in NRS 360.750. The statutory abatement limits

A data center receiving the abatement must remain eligible each succeeding fiscal year; the Executive Director of GOED must advise the county assessor by April 15 whether the data center and any colocated business remain eligible for the next fiscal year. The annual eligibility review

A new or expanding data center may apply to the Office of Economic Development for a partial abatement of Nevada personal-property taxes on property located at the data center. A person who intends to locate or expand a data center may apply

The personal-property tax abatement may reduce the data center’s annual personal-property taxes by up to 75%. A standard abatement may last 1 to 10 years, while an abatement under the longer-term program may last 10 to 20 years, subject to the requirements and limits of NRS 360.754 and NRS 360.750. Not exceed 75 percent of the taxes payable

The data-center personal-property abatement can apply to qualifying colocated businesses, allowing eligible tenants or other colocated operations to receive the benefit when the approval covers them. The applicability of the partial abatement to any colocated business

Data-center applicants may receive a sales-and-use-tax abatement for qualified capital-equipment purchases for up to 10 or 20 years, potentially reducing the rate to as low as 2%, if the GOED Board approves the reduction to 2% by a two-thirds vote. Sales and use tax abatement for up to 10 or 20 years

The 10-year data-center abatement requires, within five years, at least 10 Nevada-resident full-time employees, wages of at least 100% of the statewide average wage, and at least $25 million in cumulative capital expenditures by the applicant and tenants; the 20-year option requires 50 such employees and at least $100 million in cumulative capital expenditures. 10-year Abatements 20-year Abatements

Companies receiving data-center abatements must maintain the business in Nevada for 10 years, register under Nevada law, provide medical insurance while paying at least 65% of premiums, and ensure that at least 50% of workers constructing the data center are Nevada residents. Company applying for Data Center Tax Abatements also must meet

The abatement process provides a defined application and approval pathway: the company applies through the relevant Regional Development Authority, GOED analyzes eligibility and the economic impact, the GOED Board decides the application, and an approved company receives an abatement agreement and tax-abatement package. TAX ABATEMENT APPLICATION PROCESS

Excludes data-center plant or equipment producing, delivering or furnishing electricity at agreed-upon prices to people on the premises solely storing, processing or distributing data. The exclusion applies only to electric-service operations and incorporates the NRS 360.754 definition of data center.

These conditions govern access to a tax abatement, not a general ban on building or operating a data center. To qualify, an applicant must be registered in Nevada or commit to obtaining a valid business license and all permits required by each county, city, or town where the center operates.

For an abatement of up to 10 years, a data center generally must reach at least 10 full-time Nevada-resident employees by year 5 and maintain that level through year 10, and invest at least $25 million in qualifying capital assets in each county where it is located by year 5. For an abatement longer than 10 and up to 20 years, the thresholds are 50 employees maintained through year 20 and $100 million invested in each county by year 5.

Both abatement tracks generally require wages averaging at least 100% of Nevada’s statewide average hourly wage, qualifying health insurance with dependent coverage within two years, and at least 50% Nevada-resident construction workers. The construction-worker requirement may be waived if too few qualified Nevada residents are available.

An abatement agreement must require the data center to continue operating in Nevada for a period set by the Office of Economic Development of at least 10 years and to keep meeting eligibility requirements during that period. The agreement binds successors in interest.

The Office must request an acknowledgment letter from each affected county, school district, city, or town before considering an application. It must act at a public meeting and give affected local entities and the public at least 30 days’ notice.

An application seeking an abatement of Local School Support Tax requires approval by at least two-thirds of the Board of Economic Development.

The required agreement must be executed within one year after the Office receives the application; otherwise, the applicant must submit a new application.

The Office may impose stricter eligibility requirements or add requirements, though it may also approve an applicant that does not meet certain listed employment, investment, wage, or construction requirements.

The Nevada Tax Commission must adopt rules concerning qualifying capital investment and any security a data center must post, which may add a security cost.

The data center must provide records needed to verify eligibility when requested and keep specified employee records documenting residency, full-time status, and health-plan coverage.

If the data center stops meeting requirements or stops operating before the agreed term ends, it generally must repay the abatement with interest, unless the Nevada Tax Commission finds substantial compliance.

The abatement for eligible personal property taxes is capped at 75% of the taxes payable, limiting the tax relief available.

The Office may not approve an application received on or after January 1, 2036.

A qualifying new or expanded data center may receive partial property-tax and sales-and-use-tax abatements for up to 10 or 20 years. The personal-property-tax abatement is capped at 75%; the sales-and-use abatement applies to eligible equipment, not buildings or structural components. The 10-year tier generally requires at least 10 Nevada-resident full-time employees and $25 million in capital investment; the 20-year tier requires at least 50 employees and $100 million. Both tiers also have wage, health-benefit, and construction-workforce requirements, and the center must agree to operate for at least 10 years. Applications cannot be approved on or after January 1, 2036.

The sales-and-use-tax rate on eligible purchases may be reduced to 2% with approval by at least two-thirds of the Board of Economic Development; otherwise, the rate may be 4.6%. An abatement of Local School Support Tax also requires approval by at least two-thirds of the Board.

A qualifying business colocated at the data center may receive a partial tax abatement if it has a state business license and a contract to use or occupy part of the center for at least two years. Its abatement cannot exceed the data center’s percentage abatement or the contract term, and it ends if the center loses eligibility or ceases operation.

The Executive Director may waive the requirement that at least 50% of construction workers be Nevada residents if the data center documents that too few qualified Nevada residents are available.

An applicant may qualify by committing to obtain the required business license and local permits, rather than holding them when it applies.

The Office of Economic Development may approve an abatement even when a data center does not meet the standard employment and investment requirements, if the Office determines approval is necessary.

A data center in a qualifying large project may benefit from state general-obligation bonds for infrastructure identified in an approved economic-development financing agreement. Approval requires sufficient pledged revenues; bonds are limited to $175 million per agreement and $200 million outstanding in total.

A local government may abate permitting or licensing fees for a participant in a qualifying large project, which may include a data center. The local government must first establish a pilot project by ordinance or regulation.

A business with an approved sales-and-use-tax abatement may present a state-issued certificate to retailers. If it paid eligible tax before receiving the certificate, it may seek a refund; failing to present the certificate for at least half of eligible purchases can trigger a penalty.

Audit reports shared with the Office of Economic Development remain confidential and nonpublic while the business’s appeals are pending; afterward, trade secrets and other protected confidential proprietary information may be redacted.

The 2019 amendatory provisions do not apply to a data-center abatement granted, or an abatement application filed, before July 1, 2019.