Large district projects may have to help pay local service costs

A lead participant must make agreed payments toward local services and infrastructure if the local government requires an agreement. This applies to qualified projects in economic diversification districts and the local governments where those projects are located. The agreement applies when the project is in an economic diversification district and the city, county, or fire protection district requires it. Total payments under all such agreements cannot exceed the lower of 10 percent of the approved property and local sales and use tax abatements or the amount needed to cover local costs while pledged money is used. The rule applies to applications submitted on or after October 1, 2025. The relevant provisions expire June 30, 2032, for applications under NRS 360.889 and June 30, 2036, for applications under NRS 360.945.

The Office of Economic Development must notify local governments about covered applications and seek acknowledgment letters before considering them. This covers applications under the $1 billion and $3.5 billion project programs and local governments where the projects will be located. The Office must request acknowledgment letters from entities it finds may face a direct economic effect. The Office may consider an application without a requested letter if it has not arrived within 30 days. A city, county, or fire protection district requiring a service-cost agreement must say so in its letter. The notice is due within 15 days after the Office receives an application. These provisions apply to applications submitted on or after October 1, 2025, and expire June 30, 2032, for NRS 360.889 applications or June 30, 2036, for NRS 360.945 applications.

A fire protection district may reduce or waive permitting or licensing fees for a participant in a qualified project. This applies to fire protection districts where a qualified project is located and participants in that project. Before granting a fee reduction, the district must adopt a regulation establishing a pilot project. A district that grants a reduction must report each year on covered projects, fee reductions, jobs, and wages. The relevant provisions take effect October 1, 2025, and expire June 30, 2032, under section 5 or June 30, 2036, under section 9.