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IN BUSINESS TAX BREAKS GRANTED IF ENOUGH JOBS CREATED JOBS, FROM PAGE 7 future. Hill said there had been a significant increase in interest in locating in Nevada, which he attributed in part to real estate and assets being relatively inexpensive compared with the rest of the country. But he added that it was a welcome improvement after years of economic struggles. New companies moving to Nevada ranged from renewable energy and recycling businesses, manufacturers and distributors to financial services and consulting companies. A major dairy operation also is planning to move into Churchill County. To entice the companies, the commission, in separate unanimous votes, approved $10.1 million in tax abatements, $521,297 in sales tax deferrals and a total of $578,220 in Train Employees Now grants. But as in all economic development incentive efforts, the state looks at the long-term dividends. Over 10 years, the incentives approved March 20 are expected to generate $27.9 million in new taxes and have an estimated economic impact of $2.14 billion. Under Nevada's incentive program, the state doesn't issue money or property to an applicant, but enables it to pay just 2 percent in sales tax for a year, 50 percent of its modified business tax for four years, 50 percent of its personal property tax for 10 years and 50 percent of its real estate tax for 10 years if it delivers a certain level of new jobs paying above-average wages and a certain level of capital investment with different levels based on the type of industry the company is engaged in. A company also can seek a sales tax deferral, meaning it would pay the entire tax at a later date. Generally, companies apply for some, but not all of the incentives because they don't qualify for every type. The largest of the requests came from Quail Hollow LLC, a subsidiary of the Kansas City-based Dairy Farmers of America, which is developing a dairy foods processing plant to serve a cooperative from Fallon, east of Reno. The operation will add 44 jobs in Northern Nevada, and the company is investing $65 million in equipment and dairy cows. 8 | 2 APRIL 2012 |