Gov. Steve Sisolak, at a recent Nevada Governor’s Office of Economic Development (GOED) board meeting, said he will reevaluate how Nevada uses tax abatement incentives to entice businesses to relocate or expand in the state to ensure that it does not adversely impact funding for schools.
“We have an incredible opportunity to make Nevada a place with a robust economy without sacrificing education,” Sisolak said in a statement. “Education and investment in education, I believe, is the single greatest economic development force this state can harness. I believe we can prioritize our education system and still remain a strong, pro-business state.”
Details were provided in a recent news release.
Sisolak said there is a need for a closer review of incentives to ensure that the companies receiving them are bringing quality, high-paying jobs that provide health care and hire Nevadans. He also urged that there be more information shared with the board and the public in the application process.
“Nevada continues to be a desirable location for businesses looking to relocate and expand their operations,” said Kris Sanchez, interim executive director of the Governor’s Office of Economic Development. “I share Gov. Sisolak’s vision of ensuring that we use incentives strategically to enhance Nevada’s workforce to create sustainable jobs.”
Sisolak and the Governor’s Office of Economic Development board on June 27 moved forward with the applications of 10 businesses that are going to relocate to Nevada or expand their in-state operations, creating 1,148 jobs. These companies started the application process months ago.
The companies’ applications that were approved represent a wide range of businesses in Southern, Northern and rural Nevada. They include a large machine tool builder in Henderson, a fire-suppression aviation company in Reno and a mechanical monitoring device manufacturer in Minden.
The 10 companies are expected to bring more than $150 million in capital investment to the state within the next two years.
The applications approved provide incentives based on performance. Companies must hit certain employment and investment levels before any of the incentives mature. The state audits the companies’ progress after two years and five years, and if the goals have not been reached a company would have to pay back all the tax incentives.
The Governor’s Office of Economic Development board is made up of Sisolak, Lt. Gov. Kate Marshall, Secretary of State Barbara Cegavske, six business leaders and two non-voting members, chancellor of the Nevada System of Higher Education and director of the Nevada Department of Employment, Training and Rehabilitation. Information about the meeting and materials on the companies is available at diversifynevada.com
Created during the 2011 session of the Nevada Legislature, the Governor’s Office of Economic Development is the result of a collaborative effort between the Nevada Legislature and the Governor’s Office to restructure economic development in the state.
The Governor’s Office of Economic Development’s role is to promote a robust, diversified and prosperous economy in Nevada, to stimulate business expansion and retention, encourage entrepreneurial enterprise, attract new businesses and facilitate community development.
More information on the Governor’s Office of Economic Development can be viewed at diversifynevada.com