Cost of Doing Business
Nevada offers a very competitive cost of doing business and is attracting more and more companies each day from higher-cost regions. Nevada has:
- An abundance of economical commercial real estate
- Competitive utility rates for commercial operations
- Low-cost startup, regulatory, licensing and annual fees
- Proximity to west coast/California markets and businesses, reducing shipping and storage costs
- Excellent air cargo costs for shipping by air out of Nevada
Excellent tax advantages:
- No personal income tax
- No corporate income tax
- No unitary tax
- No franchise tax
Nevada business incentives
- Tax abatements for job creation, capital investment and intellectual property development
- Workforce development training grants
- Catalyst Fund to support new business or expansion in state
More on low costs of distribution to West Coast markets:
The combination of our zero inventory tax, a rich transportation infrastructure, and the geographic location of the state’s two largest urban centers are prime reasons that top brands like Amazon, Wal-Mart, Levi Strauss & Co., Barnes & Noble, Urban Outfitters, and others choose Nevada to stage their warehousing and distribution strategies.
Collectively, the cities of Las Vegas, Reno, Sparks, Carson City and surrounding towns are less than one day’s drive over arterial Interstate highways to nearly 60 million consumers as well as to the major U.S. deep water seaports serving the Pacific Rim. Major Union Pacific and Southern Pacific rail connections in Las Vegas and Reno, too, play an essential role in carrying the world’s freight from the Pacific Coast to America’s Heartland and beyond.
Globally, McCarran International Airport in Las Vegas has been a Top 20 airport for more than five years, annually serving more than 40 million and handling more than 189 million pounds of cargo. More important, the airport is served by nonstop flights to and from nearly all major metropolitan areas in the United States as well as several important global centers in Europe, Asia and Latin America.
In the north, Reno Tahoe International Airport consistently earns recognition as one of the most efficient and friendly airports, serving more than 3.8 million passengers and receiving more than 114 million pounds of cargo annually. The airport serves more than a dozen cities with nonstop flights, and more than 35 cities with a single stop.
More on Nevada’s tax advantages:
Nevada ranks a very favorable third in the Tax Foundation’s 2012 Business Tax Climate Index, an independent ranking of states in five areas of taxation: corporate taxes; individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property.
The Tax Climate Index comparison to neighboring states is significant: California ranks 48th, Arizona 27th, Idaho 21st, Oregon 13th and Utah 10th.
In addition to the Tax Climate Index, Nevada ranks second in the nation for lowest state and local tax burden – an estimated 7.5% of income.
Unlike nearly all other states, Nevada has no Corporate or Personal Income Tax – what you earn is what you keep and what you have available to re-invest.
The state’s historically strong logistics and distribution business sector is as much a statement of tax policy – no Inventory Tax – as it is of the excellence of its air, rail and highway arterial infrastructure and proximity to major markets and ports.
There is also no Franchise Tax or Unitary Tax, which means you don’t pay for the privilege of being in business in Nevada, or for being in Nevada and operating components of your business elsewhere.
Finally, Nevada has no Estate or Inheritance Tax, which makes it attractive to retirees and others with substantial estates.
More on statewide business incentives:
For businesses in key industries willing to make multi-year commitments to jobs and capital investments, Nevada offers an attractive package of incentives through the Governor’s Office of Economic Development. The incentives include:
- Catalyst Fund, a $10 million fund that was created by the 2011 Nevada Legislature to aid with business relocation and expansion. Applications for consideration are available through the state’s regional development authorities.
- Sales and use tax abatements on qualified capital equipment purchases, with reductions in the rate to as low as 2%.
- Sales and use tax deferrals on qualified capital equipment purchases.
- Modified business tax abatements of 50 percent of the 1.17% rate on quarterly wages exceeding $62,500.
- Personal property tax abatements, not to exceed 50% over a maximum of 10 years.
- Real and personal property tax abatements of up to 50% for up to 10 years for qualified recycling businesses.
- Intellectual property development abatements of sales and use tax, modified business tax, and personal property tax for up to 10 years.
- “Train Employees Now” matching grants of up to 25% for training programs for eligible employees.
- Employee hiring incentives under the Silver State Works program, of up to $2,000 for each state-qualified employee hired.
We welcome you to contact the Governor’s Office of Economic Development to find out specifically how your company might reduce its costs of doing business by expanding, relocating or creating a start up operation in Nevada.