Gov. Steve Sisolak’s Office of Economic Development (GOED) Board on Wednesday approved nine companies to receive $4.7 million in tax abatements over the next two years. It’s hoped the abatements will allow the companies to create about 1,325 permanent jobs over the course of the next five years and that the jobs created will have an average hourly wage of nearly $30.
“These companies will create more than 1,300 permanent jobs within the next five years and bring $116 million in capital investment and tax revenue to Nevada over the next 10 years,” Sisolak said in a statement. “Nevada’s return on investment is very high—resulting in job creation, new businesses, and business expansion that will help stimulate our economic recovery.”
During the first two years, the nine companies approved are expected to make $47.4 million in capital equipment investment.
In total, the companies are expected to generate $68.7 million in new tax revenue over 10 years.
Four of the companies are located within the region—one in Washoe County, two in Storey County and one in Carson City. The other five are located in White Pine and Clark counties.
In Washoe County, fintech company PayCertify, Inc., will receive nearly $300,000 in tax abatements over the next decade. It’s expected to create 100 jobs within five years of operation, starting with its client growth team, and capital equipment investments of $2.3 million within the first two years. It’s hoped it will generate $5.6 million in tax revenue over a decade.
PayCertify is a fintech platform designed to connect banking and business. The company says it is an all-in-one platform for fraud prevention, acquiring and card issuing.
In a press release issued by the Economic Development Authority of Western Nevada, PayCertify founder and CEO Chase Harmer said, “Moving the company has always been part of the plan for PayCertify. California taxes are extremely high and the state has become extremely crowded. We wanted to go to a place where they help businesses grow and thrive, and Reno, Nevada is a great place to do it. We want to be where the action is, and Reno is now becoming the new Silicon Valley.”
Plant Prefab, Inc., is a new prefabricated building and building component manufacturing company in Storey County. It will receive $1.6 million in tax abatements over 10 years. It is expected to create an estimated 100 new jobs in the first five years at an average hourly wage of $26.50. It’s also expected to make $16.6 million in capital equipment investment within the first two years and generate $4.2 million in tax revenue over 10 years.
Also in Storey County is ThyssenKrupp Industrial Solutions. The service and installation manufacturing center will receive $266,757 in tax abatements over 10 years. Of the companies approved in the region, it will create the fewest jobs—an expected 51—but they will pay an average hourly wage of more than $37. The company is expected to make $2.2 million in capital equipment investment within the first two years of operation and generate $2.2 million in tax revenue over a decade.
Redwood Materials, Inc.—an expansion of a recycling technology manufacturing and processing company in Carson City—will receive $411,599 in tax abatements over a decade. It will create an estimated 109 new jobs in the first five years of expansion at an average hourly wage of nearly $31 and make $5.1 million in capital equipment investment while generating an expected $3.7 million in tax revenue over a decade.
The Nevada Department of Employment, Training and Rehabilitation (DETR) recently announced that Nevada saw its tenth consecutive month of gains in employment in February, though it still has a ways to go before it can claim a full recovery. According to data from DETR, Northern Nevada had the strongest gains statewide since January, adding 3,300 jobs in Reno (a 1.4% gain) and 600 in Carson City (a 2% gain).
Statewide unemployment was reported at about 8.3%, largely impacted by job losses in southern Nevada. Reno’s unemployment rate was closer to 4.8% in January of this year—still above last year’s 3.4% reported prior to the onset of the pandemic.
Source: GOED
