On May 2, the Nevada Senate passed an emergency measure temporarily suspending property tax breaks for private commercial projects achieving a LEED rating amid concerns over a projected $110-million state budget shortfall. Assembly Bill 3, which was passed into law in 2005, gives projects up to a 50%, 10-year tax break for achieving a Silver LEED certification or higher. The law, which could result in millions of dollars in lost revenue, caused a flood of new LEED projects currently totaling over 63 million sq ft of building space. Yet only one building, a distribution center in Reno, has been approved for the state tax abatement. Gov. Jim Gibbons (R) is seeking a legal opinion on the bill amid fears of lawsuits from developers. Possible solutions include a maximum annual limit on the tax abatements or a grandfather clause for LEED projects under way.
Las Vegas Balks on Tax Breaks
May 16, 2007