Nevada has firmly established itself as one of America's most developer-friendly states, offering a strategic mix of tax incentives, regulatory support, and targeted programs designed to stimulate private investment across both urban and rural communities. For commercial builders, affordable housing developers, and sustainable real estate investors, Nevada's comprehensive toolkit of developer incentives represents a significant opportunity to reduce costs and enhance ROI.
This article provides a detailed examination of key incentives currently available for developers operating in Nevada, with actionable insights on maximizing these benefits through specialized tax planning.
1. Statewide Tax Incentives from the Governor's Office of Economic Development (GOED)
Nevada's GOED administers powerful incentive programs for real estate development projects that meet specific job creation, wage, and capital investment thresholds.
Key Programs Include:
Sales and Use Tax Abatement
- Reduces sales tax rates on qualified capital equipment purchases to as low as 2% for up to two years
- Available for projects that meet minimum job creation, wage level, and capital investment requirements
- Requires approval by the Governor's Office of Economic Development (GOED) Board Nevada GOED
Modified Business Tax (MBT) Abatement
- Offers a 50% abatement on the 1.17% rate on quarterly wages exceeding $50,000 for four years
- Helps developers significantly reduce payroll tax burdens during critical early operational phases
- Companies must maintain business operations in Nevada for at least five years to retain benefits Nevada GOED
Personal Property Tax Abatement
- Provides up to 50% abatement on personal property taxes for up to 10 years
- Applies to qualifying business equipment, furnishings, and other depreciable assets
- Enhances the financial feasibility of large-scale developments Nevada GOED
Real Property Tax Abatement for Recycling Businesses
- Incentivizes sustainable developments by providing 50% tax relief on real property for up to 10 years
- Specifically targets businesses with primary operations in recycling or waste-to-energy conversion
- Requires that at least 50% of raw material or intermediate product is recycled onsite Nevada GOED
Large-Scale Investment Abatement Program
For qualifying projects exceeding $1 billion in capital investment, developers may receive extensive abatements including:
- Sales and Use Tax reduction ranging between 4.6% and 6.125% for 15 years
- 75% MBT abatement for 10 years
- 75% Property Tax (Real and Personal) abatement for 10 years
Projects exceeding $3.5 billion in capital investment can qualify for even more substantial benefits, including:
- Sales and Use Tax reduction ranging between 4.6% and 6.125% for 20 years
- 100% MBT abatement for 10 years
- 100% Property Tax (Real and Personal) abatement for 10 years Nevada GOED
2. Affordable Housing Incentives
To increase affordable housing stock, Nevada offers targeted benefits for developers focused on low-to-moderate income housing projects.
Notable Incentives Include:
Clark County Affordable Housing Density Bonuses
Projects that allocate units for households earning ≤80% of Area Median Income (AMI) may qualify for:
- Density bonuses for single-family, multi-family, and mixed-use affordable housing developments (subject to Special Use Permit approval)
- Reduced parking requirements (1 space per unit, with further 25% reduction if at least 25% of units are affordable)
- Development fee discounts and waivers
- Expedited permit processing Clark County Community Housing Office
Fee Reduction Structure
Clark County offers substantial development fee reductions based on affordable housing unit income thresholds:
- 50% reduction for units serving households at 61%-80% AMI
- 75% reduction for units serving households at 60% AMI and below
These reductions apply to numerous fees across multiple departments, including Building, Fire, Public Works, Planning, and Water Reclamation District fees Clark County Community Housing Office
Low-Income Housing Tax Credit (LIHTC)
This federal program provides dollar-for-dollar federal tax credits to developers constructing or rehabilitating affordable rental housing:
- Nevada Housing Division administers the allocation of tax credits
- Credits can be syndicated to generate substantial equity for affordable housing projects
- Projects must maintain affordability for at least 15-30 years
- Combined with Nevada's affordable housing incentives, LIHTC can dramatically improve project feasibility Nevada Housing Division
3. Local Redevelopment and Urban Incentives
Nevada municipalities, particularly in Las Vegas and Reno, offer tailored programs to stimulate growth in designated redevelopment zones.
Tools for Developers:
Tax Increment Financing (TIF)
- Rebates a portion of new property tax revenues generated by a project to help fund infrastructure or construction costs
- Available for qualifying projects within designated redevelopment areas
- Can provide up to 75% of the tax increment allocated to the Agency from specific parcels
- Annual rebates continue after completion and may extend up to 20 years (but not beyond the redevelopment agency's termination date)
- Eligible projects include office, high-rise residential, retail, hotels, and mixed-use developments City of Las Vegas Redevelopment Agency
Visual Improvement Program (Las Vegas)
- Offers matching grants (up to $25,000) for façade and signage improvements in redevelopment areas
- Designed to enhance visual appeal and economic vitality of targeted districts
- Improves project marketability and helps achieve higher occupancy rates
New Markets Tax Credits (NMTC)
- Facilitates access to capital for developments in low-income areas
- Can cover up to 20% of project costs through favorable financing terms
- Investors receive federal tax credits worth 39% of their investment, claimed over seven years
- Creates substantial financial incentives for developing in underserved communities IRS
4. Clean Energy and Sustainability Incentives
As demand grows for energy-efficient developments, Nevada offers robust clean energy incentives that integrate with federal initiatives.
Programs of Interest:
Nevada Clean Energy Fund: Multifamily Solar Support
- Provides grants and technical support for installing solar systems in affordable multifamily housing
- Helps reduce operating costs for affordable housing developers
- The program is designed to ensure energy benefits reach disadvantaged communities Nevada Clean Energy Fund
Residential Energy Storage Incentives (NV Energy)
- Offers incentives of up to $0.19 per watt-hour for customers on a Time-of-Use rate
- Maximum incentive of $3,000 for battery storage systems
- Particularly valuable for developments incorporating renewable energy systems NV Energy
Inflation Reduction Act (IRA) Tax Credits
Energy-efficient upgrades qualify for substantial federal tax credits:
- 30%–70% tax credits for solar, HVAC, insulation, and EV infrastructure
- Additional bonuses exist for projects in low-income or tribal communities
- Can be combined with state-level incentives to maximize financial benefits Energy.gov
5. Federal Tax Incentives & Grants ETS Can Help You Access
Engineered Tax Services (ETS) specializes in uncovering and securing federal and state-level incentives that real estate developers often overlook. These include:
Federal Tax Incentives
179D Energy-Efficient Commercial Buildings Deduction
- Up to $5.00 per square foot in federal tax deductions for qualifying energy-efficient designs in commercial, industrial, and multifamily (4+ stories) buildings
- Applies to energy-efficient improvements in lighting, HVAC, and building envelope
- Enhanced benefits under Inflation Reduction Act for projects meeting prevailing wage and apprenticeship requirements
- Can generate substantial tax savings when properly documented and certified IRS
45L Energy-Efficient Home Credit
- $2,500–$5,000 per eligible dwelling unit for developers of energy-efficient residential properties
- Applies to single-family homes, townhouses, and low-rise multifamily developments
- For homes and apartments acquired on or after January 1, 2023, certification to an eligible version of the ENERGY STAR program is required
- Credit is available to the property owner or developer who constructed or renovated the property ENERGY STAR
Historic Rehabilitation Tax Credit
- 20% credit for certified historic structures undergoing qualified rehabilitation
- Particularly valuable for adaptive reuse projects in Nevada's historic districts
- Can be combined with state incentives and accelerated depreciation strategies
- Properties must be certified by the Secretary of the Interior through the National Park Service National Park Service
Cost Segregation Studies
- Accelerate depreciation and increase cash flow by properly classifying real estate assets
- Identifies building components that can be depreciated over shorter periods (5, 7, or 15 years)
- Nevada property owners benefit by reducing taxable income through accelerated deductions
- Creates substantial savings for commercial developments in the early years of ownership IRS
State & Federal Grants for Developers
ETS also identifies and helps secure grants from:
Department of Housing and Urban Development (HUD)
- Programs such as HOME Investment Partnerships can support project financing for low- and moderate-income housing
- Community Development Block Grant (CDBG) funds available for qualifying projects in eligible areas
- Housing Trust Fund resources for extremely low-income housing development
- Strategic partnerships with local housing authorities can maximize access to these resources HUD
Department of Energy (DOE)
- Provides clean energy grants and rebates for retrofits, solar, and energy storage
- Technical assistance programs for implementing energy-efficient design strategies
- Competitive grant programs targeting innovative building technologies Energy.gov
Nevada Housing Division & Nevada Rural Housing Authority
- Offer loan guarantees, gap financing, and development incentives for both urban and rural projects
- Programs like “Home Is Possible” provide down payment assistance that can enhance project marketability
- Strategic allocation of tax-exempt bonding authority for affordable housing development Nevada Housing Division
EPA Brownfields Redevelopment Grants
- For developers revitalizing contaminated or underutilized properties
- Assessment grants help determine site contaminants and develop cleanup plans
- Cleanup grants provide direct funding for remediation activities
- Reduces development risk and opens new opportunities for previously overlooked sites EPA
Conclusion: Nevada + ETS = Smart, Tax-Efficient Development
For real estate developers, Nevada offers far more than just a favorable tax environment—it provides a comprehensive ecosystem designed to support profitable, impactful development. With its strategic mix of abatements, credits, grants, and energy incentives, the state creates exceptional opportunities for projects that align with economic and community development goals.
By partnering with Engineered Tax Services as your strategic tax and grant advisor, you can navigate this complex landscape of incentives with confidence. ETS's specialized expertise ensures you'll maximize every available federal, state, and local benefit—converting overlooked incentives into tangible financial returns that enhance your project's viability and profitability.
Contact Engineered Tax Services today to unlock your project's full financial potential and discover how Nevada's developer-friendly environment can accelerate your success.
