Nevada’s Legislation Behind Tax Abatements and Credits
Nevada has long relied on two powerful economic-development tools, tax abatements and tax credits, to attract major investments and diversify its economy beyond gaming.
Tax abatements temporarily reduce the amount of tax a company owes. Tax credits, by contrast, provide a direct dollar-for-dollar offset against taxes owed, and some are transferable so the recipient can sell them to another taxpayer with greater liability. The Nevada Legislature creates the legal authority for these tools through statutes, while the Governor’s Office of Economic Development (GOED) Board reviews and approves most individual abatement packages for specific companies.
Both tools support similar policy goals. These include encouraging large companies to locate or expand in Nevada. The scale of the two approaches differs dramatically. In fiscal years 2023 and 2024 combined, tax abatements totaled nearly $3 billion, mostly from property-tax relief, while tax credits amounted to roughly $210 million.
The largest abatements flow through two specialized statutes designed for mega-projects. NRS 360.893 covers capital investments of at least $1 billion. NRS 360.965 applies to projects of $3.5 billion or more. First established through Senate Bill 1 of the 28th Special Session in 2013, these programs allow the state to offer deep, multi-year reductions, often 75% to 100% on key taxes for 10 to 20 years, that ordinary businesses cannot access.
Nevada’s biggest economic-development wins have come through exactly these frameworks. The original Tesla Gigafactory, later Tesla expansions including the Semi and battery plants, and Redwood Materials’ battery-recycling campus all relied on the $1 billion and $3.5 billion abatement programs. These incentives were central to landing the projects that transformed Storey County into a national hub for advanced manufacturing and battery technology.
In short, while tax credits support a wider range of smaller and specialized programs, tax abatements remain Nevada’s primary tool for competing for the largest private investments in the country.
