Description
Nevadas Place In The Rankings
82
nation, battered property markets, and unemployment
with some of the most vexing economic challenges of any
state in the nation. However, these challenges come on the
heels of yet another decade of strong population growth
a turnaround have begun to emerge, with unemployment
rates dropping, state revenues increasing, and signs of
increased economic activity being reported in the state’s
large tourism and gaming industries.
A Complete Overhaul
As noted, Nevada entered the year facing one of the
previous budget. The state’s $1.5 billion shortfall was
equal to 45.2 percent of its FY2011 budget. As a result,
it was no surprise that newly elected Governor Brian
Sandoval made dealing with the budget one of his chief
priorities. Sandoval proposed cutting spending by 8 percent
compared to the previous biennium. He also pledged to
hold the line on taxes, stating that he will oppose attempts
by the legislature to raise revenue through tax increases.
Proposals for freezes in pay raises and across-the-board
pay cuts for state employees were also included in the
governor’s budget.
The governor has also proposed sweeping changes
to the state’s economic development and job creation
activities. Calling for a “complete overhaul” of existing
structures, Sandoval also proposed increasing funding
for the state’s Commission on Economic Development.
The administration has also proposed creation of new
public-private job creation effort, Nevada Jobs Unlimited,
organized along private sector lines but with cabinet
level status. The governor has also called for creation of
a Catalyst Fund for closing deals and funding needed
infrastructure upgrades for business recruitment.
Global Business Development
Nevada has been a national leader in export growth
over the past decade, and remains strong in this year’s
performance measures. In order to support trade activity
by Nevada companies, the state offers several programs
and support services through its division for Global
Business Development. The state maintains a network
of independent trade representatives around the globe,
in locations including Shanghai, Beijing, Hong Kong,
Germany, Brazil and Italy. The state is seeking to expand
the network to Spain and the United Kingdom, in order to
register increased trade with new markets. The independent
representatives work on contract with the state to support
outreach by Nevada companies in their countries, while
potential investment and expansion opportunities in
Nevada. The state also hosts inbound buying missions
where foreign buyers are brought to Nevada and connected
NEVADA
Nevada’s Place in the Rankings
1st Export Intensity Growth
1st Export Growth
2nd State and Local Tax Burden
2nd Small Business Survival Index
3rd STEM Job Growth
4th Business Birth Rate
4th Business Tax Climate
4th
5th Entrepreneurial Activity
9th Long-term Job Growth
9th Gross State Product Growth
9th Growth in Share of National Exports
14th High-tech Share of All Businesses
16th Economic Output Per Job
16th Small Business Lending
17th High School Advanced Placement
Intensity
18th Academic R&D Intensity
82 82 82
83
with local companies producing products they might be
interested in purchasing. The state also works with local
development agencies throughout the state to coordinate
efforts to attract foreign direct investment, working with
the federal government to identify and support foreign
companies interested in establishing operations in the state.
Efforts to designate a Las Vegas World Trade Center also
came to fruition early this year, giving the state a high-
region, potentially laying the foundation for increased trade
and associated job creation.
Nevada maintains two foreign trade zones, in Las Vegas
and Reno, in partnership with the federal government.
These zones allow businesses access to expedited customs
processing and decreased duties and excise taxes. Nevada
continues to promote access to foreign trade shows for
businesses in the state interested in export possibilities,
targeting markets in Asia, Europe, and the Middle East.
The state also hosts workshops designed to train Nevada
entrepreneurs about the challenges and opportunities faced
when accessing foreign markets. The Nevada District
Export Council
with the federal government, providing trade support
services to small and medium-sized businesses in the state.
The Council offers entrepreneurs access to trade-savvy
volunteers for one-on-one advisory services, offers training
sessions and seminars on trade-related issues, hosts trade
missions visiting the state, and helps businesses exploring
Nevada’s job creation efforts are supported by a set of tax
incentives and an enterprise-friendly tax code. Nevada has
no corporate income tax, personal income tax, franchise
tax on income, estate tax, or gift tax. While the state
collects a sales and use tax, businesses are eligible for sales
and use tax abatements and deferrals. The abatements
are applicable to purchases of capital equipment, offering
reduced taxes to companies that meet job creation and
wage provision thresholds. The sales tax deferrals also
apply to investments made in capital equipment, and allow
the company to put off paying taxes for a period of 12 to
60 months, depending on the size of capital investment.
Nevada has also targeted a tax abatement at intellectual
property development businesses. Under terms of the
program, such companies are eligible for breaks in sales,
meet job creation and investment requirements. In order to
support conservation of energy and adoption of substitutes
for fossil fuels in the state, Nevada also offers businesses
that recycle materials, including for power generation,
tax abatement incentives. This recycling property tax
abatement is available to eligible businesses that recycle
on-site and create a minimum of 10 new jobs, among
several other requirements.
Innovation and entrepreneurship-driven job creation is
also a point of focus for Nevada’s economic development
plans. The Nevada Center for Entrepreneurship and
Technology
programming and support services to entrepreneurs
throughout the state. NCET sponsors entrepreneurship
conferences, venture capital events, and an annual
business plan competition for entrepreneurial college
students, all designed to increase entrepreneurial activity,
commercialization efforts, and job creation in high-
tech industries. Small businesses in search of support
services are also served by the Nevada Microenterprise
Initiative. The NMI offers entrepreneurs access to
microloans for startup and expansion of businesses.
Loans of up to $35,000 are available, along with access to
entrepreneurship workshops and training course designed
to help budding businesspeople get up and running.
To support workforce training activities by Nevada
businesses, the state created the Train Employees Now
minimum of ten employees are eligible to receive funding
from the state in support of their employee screening
per employee, employees must be Nevada residents, and
positions created and offered training must meet certain
83 83 83
Clusters in Nevada
Largest Cluster: Arts, Entertainment, Recreation
& Visitor Industries, 249,354 jobs
Largest Growth Cluster: Business & Financial
Services, 54,533 new jobs since 2002
Most Competitive Cluster: Business &
Financial Services, 26,737 new or retained jobs due to
state competitive advantage
Most Concentrated Cluster: Arts,
Entertainment, Recreation & Visitor Industries, 5.07
times the national concentration level
doc_136737369.pdf
Nevadas Place In The Rankings
82
nation, battered property markets, and unemployment
with some of the most vexing economic challenges of any
state in the nation. However, these challenges come on the
heels of yet another decade of strong population growth
a turnaround have begun to emerge, with unemployment
rates dropping, state revenues increasing, and signs of
increased economic activity being reported in the state’s
large tourism and gaming industries.
A Complete Overhaul
As noted, Nevada entered the year facing one of the
previous budget. The state’s $1.5 billion shortfall was
equal to 45.2 percent of its FY2011 budget. As a result,
it was no surprise that newly elected Governor Brian
Sandoval made dealing with the budget one of his chief
priorities. Sandoval proposed cutting spending by 8 percent
compared to the previous biennium. He also pledged to
hold the line on taxes, stating that he will oppose attempts
by the legislature to raise revenue through tax increases.
Proposals for freezes in pay raises and across-the-board
pay cuts for state employees were also included in the
governor’s budget.
The governor has also proposed sweeping changes
to the state’s economic development and job creation
activities. Calling for a “complete overhaul” of existing
structures, Sandoval also proposed increasing funding
for the state’s Commission on Economic Development.
The administration has also proposed creation of new
public-private job creation effort, Nevada Jobs Unlimited,
organized along private sector lines but with cabinet
level status. The governor has also called for creation of
a Catalyst Fund for closing deals and funding needed
infrastructure upgrades for business recruitment.
Global Business Development
Nevada has been a national leader in export growth
over the past decade, and remains strong in this year’s
performance measures. In order to support trade activity
by Nevada companies, the state offers several programs
and support services through its division for Global
Business Development. The state maintains a network
of independent trade representatives around the globe,
in locations including Shanghai, Beijing, Hong Kong,
Germany, Brazil and Italy. The state is seeking to expand
the network to Spain and the United Kingdom, in order to
register increased trade with new markets. The independent
representatives work on contract with the state to support
outreach by Nevada companies in their countries, while
potential investment and expansion opportunities in
Nevada. The state also hosts inbound buying missions
where foreign buyers are brought to Nevada and connected
NEVADA
Nevada’s Place in the Rankings
1st Export Intensity Growth
1st Export Growth
2nd State and Local Tax Burden
2nd Small Business Survival Index
3rd STEM Job Growth
4th Business Birth Rate
4th Business Tax Climate
4th
5th Entrepreneurial Activity
9th Long-term Job Growth
9th Gross State Product Growth
9th Growth in Share of National Exports
14th High-tech Share of All Businesses
16th Economic Output Per Job
16th Small Business Lending
17th High School Advanced Placement
Intensity
18th Academic R&D Intensity
82 82 82
83
with local companies producing products they might be
interested in purchasing. The state also works with local
development agencies throughout the state to coordinate
efforts to attract foreign direct investment, working with
the federal government to identify and support foreign
companies interested in establishing operations in the state.
Efforts to designate a Las Vegas World Trade Center also
came to fruition early this year, giving the state a high-
region, potentially laying the foundation for increased trade
and associated job creation.
Nevada maintains two foreign trade zones, in Las Vegas
and Reno, in partnership with the federal government.
These zones allow businesses access to expedited customs
processing and decreased duties and excise taxes. Nevada
continues to promote access to foreign trade shows for
businesses in the state interested in export possibilities,
targeting markets in Asia, Europe, and the Middle East.
The state also hosts workshops designed to train Nevada
entrepreneurs about the challenges and opportunities faced
when accessing foreign markets. The Nevada District
Export Council
with the federal government, providing trade support
services to small and medium-sized businesses in the state.
The Council offers entrepreneurs access to trade-savvy
volunteers for one-on-one advisory services, offers training
sessions and seminars on trade-related issues, hosts trade
missions visiting the state, and helps businesses exploring
Nevada’s job creation efforts are supported by a set of tax
incentives and an enterprise-friendly tax code. Nevada has
no corporate income tax, personal income tax, franchise
tax on income, estate tax, or gift tax. While the state
collects a sales and use tax, businesses are eligible for sales
and use tax abatements and deferrals. The abatements
are applicable to purchases of capital equipment, offering
reduced taxes to companies that meet job creation and
wage provision thresholds. The sales tax deferrals also
apply to investments made in capital equipment, and allow
the company to put off paying taxes for a period of 12 to
60 months, depending on the size of capital investment.
Nevada has also targeted a tax abatement at intellectual
property development businesses. Under terms of the
program, such companies are eligible for breaks in sales,
meet job creation and investment requirements. In order to
support conservation of energy and adoption of substitutes
for fossil fuels in the state, Nevada also offers businesses
that recycle materials, including for power generation,
tax abatement incentives. This recycling property tax
abatement is available to eligible businesses that recycle
on-site and create a minimum of 10 new jobs, among
several other requirements.
Innovation and entrepreneurship-driven job creation is
also a point of focus for Nevada’s economic development
plans. The Nevada Center for Entrepreneurship and
Technology
programming and support services to entrepreneurs
throughout the state. NCET sponsors entrepreneurship
conferences, venture capital events, and an annual
business plan competition for entrepreneurial college
students, all designed to increase entrepreneurial activity,
commercialization efforts, and job creation in high-
tech industries. Small businesses in search of support
services are also served by the Nevada Microenterprise
Initiative. The NMI offers entrepreneurs access to
microloans for startup and expansion of businesses.
Loans of up to $35,000 are available, along with access to
entrepreneurship workshops and training course designed
to help budding businesspeople get up and running.
To support workforce training activities by Nevada
businesses, the state created the Train Employees Now
minimum of ten employees are eligible to receive funding
from the state in support of their employee screening
per employee, employees must be Nevada residents, and
positions created and offered training must meet certain
83 83 83
Clusters in Nevada
Largest Cluster: Arts, Entertainment, Recreation
& Visitor Industries, 249,354 jobs
Largest Growth Cluster: Business & Financial
Services, 54,533 new jobs since 2002
Most Competitive Cluster: Business &
Financial Services, 26,737 new or retained jobs due to
state competitive advantage
Most Concentrated Cluster: Arts,
Entertainment, Recreation & Visitor Industries, 5.07
times the national concentration level
doc_136737369.pdf