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LAS VEGAS (AP) — Five new or expanding southern Nevada businesses were granted more than $25 million in tax abatements for programs that state officials say should reap rewards including creation of more than 230 jobs.
Abatements approved Thursday by the Governor's Office of Economic Development included $20.6 million for Las Vegas-based data storage center Switch Ltd., $2.9 million for Henderson battery manufacturing plant K2 Energy Solutions and $1.2 million for Las Vegas window films producer Erickson International. The move Thursday was overshadowed by action on a $1.3 billion incentive award to Tesla Motors.
Solid Landings Behavioral Health, a Southern California-based addiction, substance abuse and mental illness facility, received $382,000 in abatements toward a $3.6 million expansion including a new facility with 104 jobs in Las Vegas, the Las Vegas Review-Journal reported (http://bit.ly/1v3U9u4 ).
APAC Customer Services won $217,000 in sales, modified business and personal property tax abatements for a $1.6 million expansion, and a $40,000 grant to train 40 employees at its Las Vegas plant.
Board members were told the incentives for Switch will go toward a $225 million expansion that will create 34 new jobs paying an average of more than $24 an hour. The state estimates an economic impact of $9 per abated dollar and new tax revenue of $1.76 per abated dollar.
Rob Roy, CEO and founder of Switch, said the company may expand in the future to Reno and collaborate with the University of Nevada, Reno.
K2 Energy Solutions plans a $32 million expansion to provide lithium batteries for U.S. Navy electromagnetic railguns. Its 20,000-square-foot Henderson facility will expand to 150,000 square feet and will also produce batteries for medical, aerospace and electric vehicle markets. The expansion is expected to provide 29 new jobs paying more than $20 an hour. State officials projected an $18 economic impact per abated dollar and new tax revenue of $1.47 per abated dollar.
Erickson International plans a $13.4 million expansion and the creation of 28 new jobs paying $20 an hour. The state expects an economic impact of $75 per abated dollar and new tax revenue of $1.95 per abated dollar.
The state Legislature in September approved and Gov. Brian Sandoval signed an unprecedented package of incentives worth up to $1.3 billion to bring Tesla Motors' $5 billion battery factory to northern Nevada.
The electric car maker's "gigafactory" east of Sparks is expected to produce up to 22,000 jobs and inject up to $100 billion in Nevada's economy over the next 20 years.
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Information from: Las Vegas Review-Journal, http://www.lvrj.com
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