Lombardo’s economic development bill targets childcare services, high -tech companies, rural housing

Governor Joe Lombardo has unveiled his long -awaited economic development proposal which grants up to $ 12 million in tax credits to childcare services and would offer reductions to companies related to clean energy, advanced manufacturing and defense while the State tries to move away from its high dependence on tourism.

SB461One of the five political bills that Lombardo will present this session, also removes a requirement that companies have a workforce plan to be eligible for certain state subsidies.

The bench of these programs would require the use of public funds. THE Estimation of initial costs From the governor’s office, $ 124 million in the next biennial – including $ 49 million in the General State Fund – a heavy sum given the precarious financial situation of the State. The only program with an amount in dollars attached to it was that linked to childcare services, which sets a ceiling of $ 12 million on the annual credits provided.

The bill was officially presented last Wednesday with little fanfare and without a press conference.

“This legislation positions Nevada as a leader of innovation and economic growth by addressing the development of labor, investment of infrastructure, environmental sustainability, new child care tax credits and the diversification of industry,” said Elizabeth Ray, spokesperson for Lombardo.

His introduction came the day before the Economic forum – A group of five economists in the private sector whose projections determine the size of the state budget – predicted that the State will bring back much less tax revenue than what it is planned throughout the next two -year budgetary cycle, launching a series of potential budget cuts and the death probably of the legislation with price labels.

Lombardo in the past has launched the bill to diversify the Nevada economy beyond the game and tourism industries, a long-standing objective of state representatives. These industries could be particularly affected by the economic policies of the Trump administration and the consumers released on discretionary expenses – the state tourism industry has seen a significant slowdown Among travelers – and a more diverse economy would allow the State to better resist economic uncertainty.

This is the first time that Lombardo has used one of its five bills to focus on economic development, although tax abatements have been a broader part of the Lombardo platform.

“We have to find ways to compete, and we do so by incentives,” said Lombardo during a March engagement at the National Automobile Museum.

Below, we dive into the main provisions of the bill.

• Build children’s childcare services: The state would address up to $ 12 million in annual transferable tax credits for the creation or expansion of childcare services.
  • Goed would supervise the program, determining the beneficiaries according to factors such as the feasibility and economic benefits of the establishment, as well as its role in the fight against childcare shortages.
  • The amount that an installation receives will not exceed 60% of operating costs. Credits will expire five years after their show.
  • Lombardo alluded to these tax credits in its state state speech in January: “Target tax credits for childcare services, for example, help workers’ families but also support companies to create a stronger and more inclusive workforce,” he said.
    • Breaks could help develop the inadequate childcare system in Nevada, which faces disastrous shortages. More than 70% of children In the state, lack access to the authorized daycare services in 2023.

• Improvements for high -tech companies: The bill would size tax reductions to clean energy companies, defense technology or defense companies, health technology groups and manufacturing organizations, such as those related to electric batteries and robotics.
  • The standard amount of the deduction would be 10% of business support taxes, property or local schools. Companies would be eligible for more deductions to provide higher wages, having a high share of employees who are residents of Nevada or Nevada High School graduates, by collaborating with higher education state establishments or providing housing assistance to their workers, among other factors.
    • The deductions would be capped at 60% of taxes due in a single year and could not exceed 90% when combined with other reductions.
  • To be eligible for credits, companies must operate in Nevada for the next decade and offer employees health insurance and wages at least as high as the average hourly wages of the State.
  • Such transactions have already been examined. In 2023, after Tesla received a $ 330 million in tax alterLegislators have introduced legislation to curb the government’s power by distributing tax reductions, but it Finally failed And faces a strong opposition from industry.
• Infrastructure financing: The measurement establishes a program to help finance infrastructure projects and rural housing initiatives.
  • The initiative would favor programs that deal with “eliminating obstacles to infrastructure”, ranging from a wastewater treatment center to public service projects, and rural areas with a “need for critical housing”.
• No diversity plans: Under the existing state law, companies must provide a diversity plan to be eligible for certain GOED subsidies aimed at defraying the costs of certain labor and labor programs. However, the Lombardo bill would eliminate this requirement and replace it with a mandate for a workforce development plan.
  • The requirement was part of a bill on the development of workforce that the Legislative Assembly was adopted during a special session in 2015.
  • The proposed deletion also occurs as the programs of diversity, equity and inclusion been targeted Since President Donald Trump took office.
• Build a talent pipeline: The bill would also encourage “industry professionals” to pursue part -time education in vocational and technical education.
  • This would create a program that provides allowances to employers in order to reimburse employees for the time they spend teaching. The bill did not specify an amount in specific dollars for this program.
  • Under the bill, school districts would be required to train “talent pipeline agreements” with local businesses to support internships and learning.
• Promote continuing education: This would also create a reimbursement program for people continuing higher education in a trade area.
• New energy sources: This bill would also authorize partial abaults to companies working with biofuels, biomass or other fuels from recycled materials used in energy production or contributing to renewable energies.
  • The partial reduction would not be authorized to exceed 50% of the annual taxes that a company pays for property.