Nevada Data Center Abatement Program Now Available

Companies opening data centers in Southern Nevada can now access a new abatement program. Passed during the 2015 legislative session, the partial abatement of property and local sales and use taxes are available to qualifying data centers for periods of 10 – 20 years.

“The Nevada Legislature passed Senate Bill 170 this year to promote data center development, and this program makes us highly competitive among Western states for data center locations,” said Jonas Peterson, President and Chief Executive Officer of the Las Vegas Global Economic Alliance. “We’ve already seen industry-leading data center companies like Switch take advantage of this abatement program to expand in Southern Nevada.”

For data centers with co-located clients, the State of Nevada may also grant data centers partial abatement of taxes for each co-located business as well.

Based on information from the Governor’s Office of Economic Development, the requirements for the abatement differ if companies are applying for the 10-year or 20-year abatement.

Abatement 10-year abatement requirements:

• A requirement of $25 million investment and 10 jobs for reduction of sales tax to 2% and 75% Personal Property Tax abatement

• Data center must, within 5 years of abatement approval, employ 10 or more full-time Nevada residents

• The data center must continue to employ 10 or more full-time Nevada resident employees for the full 10 years after abatement approval

• 50% of the construction workers for the data center must be Nevada residents

• Data Center must pay at least the state’s average wage and provide healthcare coverage.

20-year abatement requirements:

• A requirement of $100 million investment and 50 jobs for a reduction of sales tax to 2% and 75% Personal Property Tax abatement

• Data center must, within 5 years of abatement approval, employ 50 or more full-time Nevada residents

• 50 or more full-time Nevada resident employees must continue to be employed at the data center for the full 20 years after abatement approval

• 50% of the construction workers for the data center must be Nevada residents

• Data Center must pay at least the state’s average wage and provide healthcare coverage.