Tax Candi

Growing up in a household with a bona-fide inventor (my dad's got a couple of patents), intellectual property has always held my interest. (In fact, you can see my published dabblings at 7 CHI.-KENT J. INTELL. PROP. 95.) So, I do love it when my outside hobbies collide with my professional interest. For example...

Nevada's Intellectual Property Tax Abatements

The state of Nevada is hoping to entice companies who develop and refine intellectual property into commercial products. The IP is limited to patents and copyrights (I'm assuming software) since development of trademarks is called "capitalism."

Companies have to commit to staying in Nevada for at least 5 years and have to provide employees with medical insurance. Eligible companies must also meet 2 of the following 3:

1. Must pay employees over or above the average statewide wage (currently, $20.05 per hour);
2. Create at least 10 new jobs within a year (and maintain them for 5 years); or
3. Make a capital investment of at least $500,000.

Companies meeting these requirements are eligible for a partial abatement of sales tax, modified business tax and personal property taxes. Careful though--if the company fails to meet the minimum criteria under it was approved, a clawback, with interest, is triggered.

Interested parties should contact the State of Nevada's Commission on Economic Development.