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Tax Abatements Programs Fiscal Years 2017 and 2018

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Tax Abatements Programs Fiscal Years 2017 and 2018 Tax Abatements Programs Fiscal Years 2017 and 2018 Nevada Governor’s Office of ENERGY The mission of the Governor’s Office of Energy is to ensure the wise The partial abatement taxes must not apply during any period in which development of Nevada’s energy resources in harmony with local the facility is receiving another abatement or exemption from taxes. economic needs and to position Nevada to lead the nation in renewable energy production, energy conservation, and the exportation of energy. The Governor’s Office of Energy reviews the partial tax abatement applications, conducts public hearings to determine eligibility, and reviews Summary of Programs: annual compliance reports after tax abatements have been granted. Renewable Energy Tax Abatements: The Governor’s Office of Energy has approved a total of 37 tax abatement applications since 2011, for large scale solar photovoltaic, The Governor’s Office of Energy administers Nevada’s Renewable solar thermal, biomass, geothermal, and wind projects throughout the Energy Tax Abatements (RETA) program in an effort to incentivize State, including one in fiscal year 17 and five in fiscal year 18. To date, the development of renewable energy in Nevada. Renewable energy the total benefit to the State of Nevada including capital investment, development is a way to utilize Nevada’s domestic energy resources, payroll and taxes paid, is $7.2 billion. The total amount abated in create jobs, and bring large investments into the State. The renewable property taxes and sales and use taxes is $817 million. This represents energy projects in the program must make a capital investment of at approximately a 9 to 1 return on investment for the State of Nevada. least $3 million or $10 million, dependent on the location of the project, and employ a minimum of 50 Nevadans during project construction. The RETA program awards partial sales and use tax and partial real and person property tax abatements to eligible renewable energy facilities. The partial abatement of real and personal property taxes is for a duration of the 20 fiscal years immediately following the date of approval of the application equal to 55% of the taxes on real and personal property payable by the facility each year. The partial abatement of local sales and use taxes is for a duration of 3 fiscal years immediately following the date of approval of the application at the rate of 2.6%. EXECUTIVE BUDGET 2019-2021 TAX INCENTIVES - 11 TAX INCENTIVES Tax Abatement Summary by Project – Fiscal Year 2017 10-Yr Total Tax 10-Yr Total Partial 10-Yr Annual Wage FY 17 Tax 10-Yr Economic 10-Yr New Tax $ per 10-Yr Economic Impact No. Date Company Without Partial 10-Yr New Taxes Tax Abatements Impact** Abatement Impact Abatement $ $ per Abatement $ Abatements* Granted*** 1 8/26/2010 Jersey Valley No $10,396,717.00 $5,892,720.00 $4,503,997.00 $32,231,066.40 $351,719.05 $125,295,063.40 $0.76 $21.26 2 9/3/2010 Apex No $12,933,970.00 $8,863,746.50 $4,070,223.50 $4,139,054.40 $332,083.89 $110,026,677.90 $0.46 $12.41 3 11/10/2010 Spring Valley Wind No $38,459,806.50 $26,192,777.50 $12,267,029.00 $5,496,660.00 $1,106,867.91 $240,856,473.00 $0.47 $9.20 4 2/14/2011 Silver State North No $18,689,528.50 $11,578,399.50 $7,111,129.00 $9,321,140.40 $551,655.98 $137,843,188.40 $0.61 $11.91 5 3/18/2011 CC Landfill No $4,135,381.00 $2,482,597.50 $1,652,783.50 $3,301,084.80 $72,472.13 $39,996,127.30 $0.67 $16.11 6 8/16/2011 Enel/Stillwater No $10,752,733.00 $6,425,962.50 $4,326,770.50 $4,852,255.20 $372,103.46 $79,620,105.70 $0.67 $12.39 7 8/24/2011 Crescent Dunes No $125,855,365.00 $72,658,228.00 $53,197,137.00 $47,097,024.00 $3,333,039.41 $101,399,961.00 $0.73 $1.40 8 3/5/2012 Copper Mountain 2 No $75,169,386.00 $45,361,185.50 $29,808,200.50 $6,698,749.20 $1,680,132.23 $526,161,248.70 $0.66 $11.60 9 3/27/2012 OnLine No $62,408,554.50 $35,591,039.50 $26,817,515.00 $20,953,108.80 $708,989.30 $557,697,468.80 $0.75 $15.67 10 7/20/2012 Spectrum Solar No $12,993,170.50 $7,928,901.50 $5,064,269.00 $5,116,082.40 $261,117.43 $133,150,147.40 $0.64 $16.79 11 10/1/2012 Patua No $19,609,929.00 $15,718,382.50 $3,891,546.50 $19,885,226.40 $421,230.88 $374,446,321.90 $0.25 $23.82 12 11/5/2013 Silver State South No $64,101,489.00 $39,011,089.00 $25,090,400.00 $18,246,696.00 $1,021,635.22 $777,150,674.00 $0.64 $19.92 13 12/30/2013 Copper Mountain 3 No $71,767,497.00 $43,303,328.00 $28,464,169.00 $12,572,773.20 $2,568,482.05 $657,626,282.20 $0.66 $15.19 14 1/30/2014 Wild Rose No $11,022,091.50 $8,997,320.00 $2,024,771.50 $22,040,304.00 $554,454.67 $107,065,075.50 $0.23 $11.90 15 3/5/2014 Mountain View Solar No $7,611,854.00 $4,665,110.00 $2,946,744.00 $4,195,588.80 $250,116.42 $70,159,696.80 $0.63 $15.04 16 3/31/2014 Tuscarora No $1,710,511.50 $1,066,128.50 $644,383.00 $38,703,568.80 In Litigation $126,547,951.80 $0.60 $118.70 17 3/31/2014 McGinness Hills No $24,556,730.50 $14,267,252.50 $10,289,478.00 $37,215,594.00 $1,872,042.76 $166,905,072.00 $0.72 $11.70 18 6/2/2014 McGinness Hills II No $15,553,414.50 $8,988,728.00 $6,564,686.50 $40,292,928.00 Duplicate**** $160,344,344.65 $0.73 $17.84 N-2 19 7/31/2014 Searchlight Solar No $5,111,705.50 $2,795,964.00 $2,315,741.50 $7,808,954.40 Not Available $57,216,024.90 $0.83 $20.46 20 2/3/2015 Wild Rose II No $11,022,091.50 $8,997,320.00 $2,024,771.50 $20,846,748.00 $221,027.40 $82,721,519.50 $0.23 $9.19 21 5/1/2015 Nellis No $7,122,369.50 $4,233,204.50 $2,889,165.00 $7,740,720.00 Not Available $64,629,885.00 $0.68 $15.27 22 6/12/2015 Copper Mountain 4 No $24,729,864.50 $15,151,046.00 $9,578,818.50 $11,343,384.00 $943,623.04 $245,623,560.50 $0.63 $16.21 23 10/8/2015 Playa Solar 2 No $26,806,337.00 $19,459,171.00 $7,347,166.00 $22,162,608.00 Not Available $235,509,774.00 $0.38 $12.10 Nevada Valley Solar 24 11/9/2015 No $5,003,098.00 $4,364,490.00 $638,608.00 $3,998,404.80 Not Available $36,817,677.80 $0.15 $8.44 Solitions II 25 1/6/2016 Boulder Solar No $24,715,575.50 $15,169,616.50 $9,545,959.00 $15,343,239.60 Not Available $241,271,198.60 $0.63 $15.90 Abatement not in 26 1/22/2016 Luning No $19,368,728.00 $11,159,290.00 $8,209,438.00 $9,243,327.60 $123,567,062.60 $0.74 $11.07 effect 27 2/24/2016 Playa Solar 1 No $21,054,229.50 $12,981,509.00 $8,072,720.50 $16,760,203.20 Not Available $187,832,923.70 $0.62 $14.47 28 3/15/2016 Tungsten No $12,338,946.50 $10,540,877.00 $1,798,069.50 $22,491,190.80 $42,386.12 $99,130,257.30 $0.17 $9.40 29 6/13/2016 Boulder Solar II No $13,303,672.50 $8,174,190.50 $5,129,482.00 $16,944,096.00 Not Available $125,573,578.00 $0.63 $15.36 Abatement not in 30 4/20/2017 Brady Yes $14,821,237.00 $8,283,085.50 $6,538,151.50 $4,984,761.60 $37,022,913.10 $0.79 $4.47 effect Totals for FY 2017 $773,125,984.00 $480,302,660.50 $292,823,323.50 $492,026,542.80 $16,665,179.35$ 6,029,208,255.45 $0.58 $17.17 Footnotes: * This includes 3 years of direct sales tax revenue only and 10 years of property tax revenue. Additonal revenue made by the sales taxes paid by the facility are not calculated/tracked after the 3-year abatement expiration. ** Wages calculated for NV residents only *** Granted during FY 2018 ****Total taxes abated included in Tax Abatement for McGinness Hills. Assessment is calculated as one for McGinness Hills and McGinness Hills II. +This project did not report any direct operational employee wages Date = Date the partial abatement was approved EXECUTIVE BUDGET 2019-2021 TAX INCENTIVES - 12 TAX INCENTIVES Tax Abatement Summary by Project – Fiscal Year 2018 10-Yr Total Tax 10-Yr Total Partial 10-Yr New 10-Yr Annual FY 18 Tax 10-Yr Economic 10-Yr New Tax $ 10-Yr Economic Impact No.
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