Nevada Bill Would Boost QEI Amount for State NMTC Incentive
Nevada legislation would increase the overall amount of qualified equity investments and make other changes to the state new markets tax credit (NMTC) incentive. S.B. 240 would add $170 million in in QEI investments made after July 1, 2024, (for which tax credits could not be taken before July 1, 2026) to the total allocation amount and add a definition of “impact qualified active low-income community business” to mean certain types of manufacturing businesses or businesses in which the majority of owners are from certain historically disadvantaged groups. The Nevada NMTC is for 58% of the QEI, with 0% in the first two years, 12% annually in Years 3-5 and 11% annually in Years 6-7.
The role of state-level incentives in the NMTC will be discussed at the Novogradac 2023 New Markets Tax Credit Conference, June 8-9 in Washington, D.C.