Nevada Administrative Code Chapter 231A - Nevada New Markets Jobs Act
Here’s a detailed overview of NAC Chapter 231A – Nevada New Markets Jobs Act:
📘 Purpose & Authority
NAC 231A establishes regulations to implement the Nevada New Markets Jobs Act, a state-level counterpart to the federal New Markets Tax Credit program, aimed at directing tax‑credit-supported private investment into low-income, economically distressed areas in Nevada (leg.state.nv.us, business.nv.gov).
🧩 Key Sections (NAC 231A)
§ 231A.010 – Duties of Department & Director
Defines administrative roles and authority of the Dept. of Business & Industry in overseeing the program (business.nv.gov).
§ 231A.020 – Application Requirements
Outlines necessary contents for applications seeking certification of a Qualified Equity Investment (QEI), including investment details, fee schedules, cooperation with federal NMTCs, and process-related documentation (regulations.justia.com).
§ 231A.030 – Changes in Credit Users
Requires QEI issuers to notify the Department if credit-holding entities change due to transfers (business.nv.gov).
§ 231A.040 – Proof of Investment
Mandates submission of documentation verifying cash investment (e.g., bank statements) to confirm compliance (law.cornell.edu).
§ 231A.050 – Single CDE Investment Rule
Prevents a low-income business from accepting qualifying investments from multiple CDEs—unless prior written approval is granted by the Department within 28 days (deemed approved if no response) (law.cornell.edu).
§ 231A.060 – Investment Notice
Requires issuers to notify the Department when QEI funds are deployed as loans or equity in targeted businesses (law.cornell.edu).
§ 231A.070 – “Cash Proceeds” Defined
Clarifies that “cash proceeds” means the actual funds received for QEI purposes (regulations.justia.com).
§ 231A.080–.090 – Recapture Mechanics
Specifies when and how tax credits may be rescinded if issuers fail to comply, including detailed notice requirements (law.cornell.edu).
§ 231A.100–.110 – Recapture Interpretations
Interprets statutory provisions limiting issuer investments to 25% of QEI in any single business. Updated interpretive guidance allows cumulative investments across entities up to that cap—even after transfers . Additionally, § 231A.Sec. 2 (effective April 19, 2024) adds recapture rules specific to impact-qualified equity investments, making any recapture proportional to post‑qualification investment amounts (law.cornell.edu).
§ 231A.120 – Annual Reporting
Certified issuers must provide six years of annual reports (Oct 1–31 each year), detailing:
Investment evidence (bank statements, certifications)
Job creation/retention statistics (including projections)
Impact on minority-, veteran-, or LGBTQ‑owned businesses .
§ 231A.130 – Director’s Contact Info
Specifies the official address and electronic submission methods for filings (business.nv.gov).
🔁 Relationship With NRS Chapter 231A
NAC 231A fleshes out procedures under NRS 231A, including:
Definitions (QEI, CDE, active low-income business)
Certification processes (§ 231A.020)
Tax credit eligibility and usage
Recapture mechanics (§ 231A.080–.110)
Reporting requirements (§ 231A.120)
These administrative regulations support the statutory mandates for structuring, monitoring, and enforcing the tax‑credit investment program (law.justia.com, novoco.com).
✅ Why It Matters
Aspect
Summary
Transparency & Oversight
Details required disclosures and documentation to ensure accountability
Investment Protections
Caps individual business exposure to QEI funds; enforces recaptures when issuers fall short
Administrative Clarity
Timing rules (annual reports, 28‑day approvals), definitions, and process standards provide certainty for participating entities
✅ In Summary
NAC 231A provides the administrative framework making Nevada’s New Markets Jobs Act operable—covering applications, certifications, deployment, oversight, recapture, and reporting. By defining key thresholds and procedural workflows, these rules ensure the state can steward significant private investment into low-income communities while maintaining compliance and accountability.
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