1. 1. Except as otherwise provided in this section, the Office of Economic Development may grant a business a partial abatement from the taxes imposed on real property pursuant to chapter 361 of NRS if:

   1. (a) The business:

      1. (1) Engages in the primary trade of preparing, fabricating, manufacturing or otherwise processing raw material or an intermediate product through a process in which at least 50 percent of the material or product is recycled on-site;
      2. (2) Includes as a primary component a facility for the generation of electricity from recycled material or a facility for the production of biofuels, biomass or other primary fuels from recycled material to produce energy; or
      3. (3) Primarily engages in the recycling or repurposing of materials that were used to produce or store renewable energy, including, without limitation, materials used in solar panels or waste materials resulting from the extraction of minerals;
   2. (b) The Office finds that the business has as a primary purpose the conservation of energy, the substitution of other sources of energy for fossil sources of energy or the advancement of the environmental sustainability and energy goals of this State;
   3. (c) The business obtains certification from the Office pursuant to NRS 360.750; and
   4. (d) The business satisfies the requirements set forth in subsection 2 of NRS 361.0687.

2. 2. If a partial abatement from the taxes imposed on real property pursuant to chapter 361 of NRS is approved by the Office of Economic Development pursuant to NRS 360.750 for a business described in subsection 1:

   1. (a) The partial abatement must:

      1. (1) Be for a duration of at least 1 year but not more than 10 years;
      2. (2) Not exceed 50 percent of the taxes on real property payable by the business each year; and
      3. (3) Be administered and carried out in the manner set forth in NRS 360.750.
   2. (b) The Executive Director of the Office of Economic Development shall notify the county assessor of the county in which the business is located of the approval of the partial abatement, including, without limitation, the duration and percentage of the partial abatement that the Office granted. The Executive Director shall, on or before April 15 of each year, advise the county assessor of each county in which a business qualifies for a partial abatement during the current fiscal year as to whether the business is still eligible for the partial abatement in the next succeeding fiscal year.
3. 3. The partial abatement provided in this section applies only to the business for which certification was granted pursuant to NRS 360.750 and the property used in connection with that business. The exemption does not apply to property in this State that is not related to the business for which the certification was granted pursuant to NRS 360.750 or to property in existence and subject to taxation before the certification was granted.

4. 4. As used in this section:

   1. (a) “Anaerobic digestion” means the breaking down of organic waste using anaerobic bacteria to create biofuel.
   2. (b) “Biofuel” means any alcohol, ether, ester or other chemical compound made from herbaceous plants, woody plants or organic waste.

   3. (c) “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

      1. (1) Agricultural crops and agriculture wastes and residues;
      2. (2) Wood and wood wastes and residues;
      3. (3) Animal wastes;
      4. (4) Municipal wastes; and
      5. (5) Aquatic plants.

   4. (d) “Facility for the generation of electricity from recycled material” means a facility for the generation of electricity that uses recycled material as its primary fuel, including material from:

      1. (1) Industrial or domestic waste, other than hazardous waste, even though it includes a product made from oil, natural gas or coal, such as plastics, asphalt shingles or tires;
      2. (2) Agricultural crops, whether terrestrial or aquatic, and agricultural waste, such as manure and residue from crops; and

      3. (3) Municipal waste, such as sewage and sludge.

         The term includes all the equipment in the facility used to process and convert into electricity the energy derived from a recycled material fuel and a facility for the generation of electricity through modified microbial fuel cells.

   5. (e) “Facility for the production of biofuels, biomass or other primary fuels from recycled material” means a facility for the production of biofuels, biomass or other primary fuels that uses recycled material to produce biofuels, biomass or other primary fuels for use in the generation of energy, including material from:

      1. (1) Industrial or domestic waste, other than hazardous waste, even though it includes a product made from oil, natural gas or coal, such as plastics, asphalt shingles or tires;
      2. (2) Agricultural crops, whether terrestrial or aquatic, and agricultural waste, such as manure and residue from crops; and

      3. (3) Municipal waste, such as sewage and sludge.

         The term includes all the equipment in the facility used to process and convert into biofuels, biomass or other primary fuels the energy derived from a recycled material and a facility for the production of biofuels, biomass or other primary fuels through gasification and pyrolysis, anaerobic digestion, the recovery of gas from landfills or triboelectric devices.

   6. (f) “Gasification and pyrolysis” means the use of heat to convert waste into synthesis gas.
   7. (g) “Modified microbial fuel cell” means the use of microorganisms to convert the chemical energy in organic waste into electricity while simultaneously treating wastewater.
   8. (h) “Recycled material” includes, without limitation, critical materials, waste materials from the extraction of minerals and products for the production or storage of renewable energy that are recycled or repurposed.
   9. (i) “Renewable energy” means biomass. The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy.
   10. (j) “Triboelectric device” means a device that converts energy from ambient vibrations into electricity.

(Added to NRS by 2007, 3378; A 2011, 3477; 2025, 3496)