Section 360.830 - Certificate of eligibility: Application; priorities for approval; reasons for denial1. Transferable tax credits may not be applied to any of the fees and taxes specified in NRS 360.759 unless the Office has issued a certificate of eligibility.2. To obtain a certificate of eligibility, a production company must: (a) Submit to the Office, before the start of principal photography or principal development of the qualified production, whichever is applicable, an application for a certificate of eligibility. The application must be on a form prescribed by the Office and, in addition to the information required by NRS 360.759, contain the following information: (1) The name of the qualified production;(2) A description of the qualified production;(3) A summary budget for the entire qualified production, including, without limitation, separate in-state and out-of-state subtotals for: (I) Wages and salaries, including fringe benefits, for above-the-line personnel;(II) Wages and salaries, including fringe benefits, for below-the-line personnel;(III) Qualified expenditures and costs, as determined in accordance with NRS 360.7591 and NAC 360.855 and 360.860 and section 3; and(IV) Unless otherwise included in the information provided pursuant to sub-subparagraphs (I), (II) and (III), the maximum compensation payable to any employee or independent contractor paid a wage, salary or fee as compensation for providing labor or services on the production of the qualified production and included as a basis for calculating the amount of transferable tax credit pursuant to NRS 360.7591 to 360.7594, inclusive, and NAC 360.855 and 360.860;(4) A job summary for the qualified production, including, without limitation: (I) An estimate of the number of jobs that will be created in this State by the qualified production;(II) The total anticipated terms of employment for the estimated number of jobs that will be created in this State by the qualified production;(III) The total anticipated wages to be paid for the estimated number of jobs that will be created in this State by the qualified production; and(IV) The total anticipated fringe benefits to be provided for the estimated number of jobs that will be created in this State by the qualified production;(5) The capital investment in this State proposed to be made in connection with the qualified production, if applicable;(6) The anticipated location of real property and equipment and other tangible personal property in this State, if applicable;(7) An acknowledgment of audit procedures on a form prescribed by the Office;(8) An acknowledgment of the requirements of paragraph (g) of subsection 3 of NRS 360.759; and(9) Any other information required by the application form prescribed by the Office.(b) Provide with the application for a certificate of eligibility proof satisfactory to the Office that: (1) The qualified production is in the economic interest of this State, as determined pursuant to subsection 5 of NAC 360.835;(2) Seventy percent or more of the funding for the qualified production has been obtained in a manner approved by the Office, or that the production company has a corporate credit rating of "lower medium grade" or higher from a credit rating agency found suitable by the Office; and(3) At least 60 percent of the total qualified expenditures and production costs for the production, including:(III) If any direct production expenditures for postproduction will be incurred in this State, postproduction, will be incurred in this State.3. In considering applications for certificates of eligibility, the Office will give priority to qualified productions that will: (a) Be in the economic interest of this State, as determined pursuant to subsection 5 of NAC 360.835.(b) Promote tourism in this State.4. The Office will deny an application for a certificate of eligibility if: (a) The applicant does not commence principal photography or principal development of the qualified production, whichever is applicable, within 90 days after submitting the application to the Office, which period may not be extended by more than 90 days.(b) Approval of the application would cause the total amount of transferable tax credits to exceed: (1) The amount of transferable tax credits available for approval during the current fiscal year, as determined pursuant to NRS 360.7594.(2) The portion of the amount of transferable tax credits available for approval during the current fiscal year that has been apportioned by the Office to the current period of that fiscal year pursuant to NAC 360.850.(c) The qualified production is not eligible for transferable tax credits pursuant to this section and NRS 360.759.(d) The production contains material determined by the Office to be obscene or sexually explicit.5. As used in this section:(a) "Principal development" means the phase of a production that constitutes a qualified production pursuant to NAC 360.825 in which sound, video, images, text or animation is integrated into a digital product.(b) "Principal photography" means the phase of a film, television, video or other qualified production in which the production is filmed, videotaped or otherwise recorded using production equipment with actors on set or location.Nev. Admin. Code § 360.830
Added to NAC by Office of Economic Dev. by R120-13, eff. 12-23-2013; A by R062-22A, eff. 2/13/2023