Nevada New Markets Jobs Act (NMJA) Program
*** NOTICE ***
Applications for 2023 Allocation
On July 1,
2024, the Director’s Office of the Nevada Department of Business and Industry
(B&I) will begin accepting applications from entities interested in having
an equity investment or long-term debt security designated as a qualified
equity investment or impact qualified equity investment and eligible for tax
credits under the Nevada New Markets Jobs Act (NRS 231A) as amended by Senate
Bill 240 of the 82nd Nevada Legislature (2023).
Application
forms are available for download on the right side of this webpage.
Please note the
Department intends to designate investments as qualified equity investments
separately from designating investments as impact qualified equity
investments. To ensure consideration, an entity must submit the correct
application for the investment category in which it is interested, along with
the respective nonrefundable application fee and refundable performance fee
required under NRS 231A.230.
Before
applying, interested parties are encouraged to review Nevada Revised Statutes
(NRS) 231A, Nevada Senate Bill 240 of the 82nd Nevada Legislature
(SB 240), Nevada Administrative Code (NAC) 231A, and Legislative Counsel Bureau
(LCB) File No. R036-23 for insight into the program and the respective
objectives and requirements of the qualified and impact qualified categories.
If you have any
questions, please contact Chris Weiss, Director’s Office, at 702-486-5320 or cweiss@business.nv.gov.
Nevada New Market Jobs Act (NMJA) Program Overview
Enacted
by the Nevada Legislature in 2013, the Nevada NMJA program represents a
public-private partnership to attract private investment to economically
distressed parts of the state and provide low-cost capital to small businesses
located in those areas. The program is
like a state-level version of the federal New Market Tax Credit (NMTC) Program
(26 USC § 45D) and its goal is to create jobs and stimulate economic growth in
underserved or disadvantaged communities.
For
the federal NMTC program, the U.S. Department of the Treasury certifies
specialized financial intermediaries called Community Development Entities
(CDEs). These entities are allocated federal tax credits to incentivize
private capital to invest in ventures in distressed or disadvantaged
communities. In return for their investment, the private investors
receive a tax credit against their federal income tax liability through the
IRS.
For
the Nevada NMJA program, the state allows insurance companies to receive a
credit against Nevada’s insurance premium tax in exchange for investing in a
CDE or similar entity authorized by statute.
That entity, in turn, must use the investment to make capital or equity
investments in Nevada businesses that satisfy certain criteria related to
conducting business in a low-income community.
It is
important to note that the businesses receiving the investment do NOT receive
tax credits; however, they do receive favorable terms and potential benefits
that help their business acquire the necessary cash to thrive and grow in
otherwise challenging locations. The funding currently available to
organizations in Nevada includes:
- Federal
NMTC – This program funds projects requiring over $5,000,000 in total equity
and funding. The federal CDFI recently announced an additional $5 billion in allocation to support
this program.
- Nevada NMJA –During the 2023 Legislative session, lawmakers approved another $170 million in allocation for qualified equity investments (which usually fund projects requiring from $300,000 to $3 million and up), as well as an additional $30 million in allocation for impact qualified equity investments (which are intended to fund manufacturing, retail trade, or minority owned projects requiring smaller amounts of capital). These allocations are anticipated to be ready for investment in late 2024 or 2025, and are in addition to $200 million in allocation for qualified equity investments previously authorized in 2019 an currently deployed.
- City of Las Vegas NMTC - for more information, visit www.lasvegasnevada.gov/Business/Economic-Development/Business-Incentives.
Eligibility
To be eligible to apply for Nevada NMJA funding, a business must meet the following criteria:
- Be located in a designated low-income community. Click here to check if your current or prospective location will qualify.
- Meet the SBA small business size standards.
- Have a substantial proportion of its business activity contained within a low-income zone.
- Cannot be engaged in the following business activities: massage parlor, bath house or hot tub facility, tanning salon, country club, liquor store, golf course, gambling facility, holding of intangibles for sale, or certain farming businesses.
- Cannot generate more than the 15% of its business revenue through retail or housing rental.
Are you ready to discuss your project with a Nevada NMJA program participant? Click "Contact Information for CDEs with Nevada allocation" on the right-hand side of this page under "NMJA and NMTC Funding Resources." You will be taken to a list of current allocatees you can review and contact directly.