by McKenna Ross, Las Vegas Review-Journal, September 26, 2022
Five companies are expected to bring at least 126 jobs and $113.2 million in capital investments to Nevada over the next two years using tax incentives provided by the Governor’s Office of Economic Development.
GOED announced Thursday it awarded nearly $9 million in tax abatements to companies in the manufacturing, energy, logistics and retail industries. In return, the companies are required to create those jobs in the next two years with an average weighted hourly wage of $29.36.
Officials estimate that in five years the firms will create 435 jobs and generate about $36.7 million in net new tax revenues over the next 10 years.
“Nevada continues to attract companies who are making significant investments, creating good jobs and expanding our tax base,” GOED Executive Director Michael Brown said in a statement. “One of these companies is making $69 million in capital investments, another is generating $12 million in net tax revenues over the next decade.”
Two of the companies receiving tax incentives are located in the Reno area with one each in Clark, Nye and Storey counties.
“Since January of 2019, the 86 companies that have received abatements will create 13,227 jobs over five years,” Gov. Steve Sisolak said in a statement. “These companies are making $2.4 billion in capital investments and will generate $1.2 billion in new net tax revenues over the next decade.”
In Southern Nevada, beauty retailer Sephora is expected to expand its North Las Vegas warehouse and distribution facility, which first opened in 2019.
“Sephora’s Las Vegas Distribution Center has been critical to the accelerated growth of our U.S. business,” Mike Racer, senior vice president of supply chain at Sephora, said in a news release from the Las Vegas Global Economic Alliance. “The team’s performance in the last few years has been incredibly strong and is a clear testament to the area’s favorable operating environment and robust talent pool. We will continue to build out and invest in this facility.”
Abatement approvals for the five companies:
ARES Nevada LLC
Awarded tax abatement: $2.5 million
Average hourly wage: $42.40
ARES Nevada is developing a merchant energy storage facility at a working gravel mine in Pahrump. It plans to make an estimated $26.7 million in capital investments in the first two years, and grow to 51 jobs in five years.
Electronic Evolution Technologies Inc.
Awarded tax abatement: $35,863
Average hourly wage: $24.40
EE Technologies plans to expand its 54,000-square-foot facility in Reno, where it works with domestic and international companies manufacturing circuit board assembly and box-builds. It’s expected to grow to 57 jobs in five years.
Post Consumer Brands LLC
Awarded tax abatement: $5.2 million
Average hourly wage: $28.22
Post, a cereal manufacturer whose brands include Raisin Bran and Honey Bunches of Oats, plans to expand its manufacturing facility in Sparks. It’s expected to make $69.5 million in capital investments within two years.
Sephora USA Inc.
Awarded tax abatement: $779,612
Average hourly wage: $27.20
The beauty retailer is planning on expanding its 715,000-square-foot warehouse and distribution center in North Las Vegas, which fulfills online orders for much of the western U.S. Its expansion will allow the facility to support its retail stores in the region. The company will make $12 million in capital investments and in five years, expects to create a total of 147 jobs.
TLS Supply Chain Solutions Inc.
Awarded tax abatement: $479,204
Average hourly wage: $33.58
TLS plans to establish a 125,875-square-foot facility in Storey County to launch its U.S. headquarters and third-party logistics services that will include fulfillment and transportation operations. It’s expected to add up to 150 jobs in five years and make $4.5 million in capital investments within the first two years of operation.
McKenna Ross is a corps member with Report for America, a national service program that places journalists into local newsrooms. Contact her at [email protected] Follow @mckenna_ross_ on Twitter.