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October 22, 2014

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State board OKs tax abatements for new, expanding companies

The Governor’s Office of Economic Development met in a teleconference meeting in Las Vegas and Carson City.

The issue: Sales tax, modified business tax and personal property tax abatement requests for New York-based Take-Two Interactive, a new company moving to downtown Las Vegas.

The vote: 11-0

What it means: Under terms approved by the board, sales tax would be abated to 2 percent for a year, an estimated $61,000; the modified business tax would be abated by 50 percent for four years to $109,225; and personal property tax would be abated by 50 percent for 10 years to $34,914.

The total tax incentive package is $205,139. Take-Two Interactive develops, markets and publishes interactive entertainment under the labels Rockstar Games and 2K, including 2K Games, 2K Sports and 2K Play. The company’s game titles include Grand Theft Auto, L.A. Noire, Max Payne, Midnight Club and Red Dead.

The company would create 150 jobs with an average wage of $18 an hour and capital investment of $1 million. Over 10 years, the company would support 268 new jobs, $108.1 million in new payroll and have an economic impact of $1,669 for every abatement dollar. It would generate $8.4 million in new tax revenue. The company has started hiring locally and has relocated executives to Las Vegas.

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The issue: Sales tax abatement request for Loves Park, Ill.-based TH Foods, a company expanding in Henderson.

The vote: 11-0

What it means: Under terms approved by the board, sales tax would be abated to 2 percent for a year, an estimated $1 million.

TH Foods exports about 99 percent of its snack food products manufactured in Henderson. The company’s expansion would create 24 new jobs with an average wage of $13.26 an hour and capital investment of $16.5 million. Over 10 years, the company would support 42 new jobs, $16.1 million in new payroll, have an economic impact of $36 for every abatement dollar and generate $5.6 million in new tax revenue.

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The issue: Sales tax and modified business tax abatement and sales tax deferral requests for Painesville, Ohio-based American Roll Formed Products, a new company moving to North Las Vegas.

The vote: 11-0

What it means: Under terms approved by the board, sales tax would be abated to 2 percent for a year, an estimated $153,884; the modified business tax would be abated by 50 percent for four years to $18,101; and sales tax would be deferred for up to 60 months to $50,454.

In addition, the company is seeking ten $1,000 training grants for a total tax incentive package of $232,439.

American Roll Formed Products, a metals fabrication and manufacturing operation, would create 23 jobs with an average wage of $21.47 an hour and capital investment of $2.5 million.

Over 10 years, the company would support 39 new jobs and $18.4 million in new payroll, have an economic impact of $475 for every abatement dollar and generate $1.5 million in new tax revenue.

The company will manufacture materials for the growing solar energy industry. An executive with the company said the incentives and site beat out consideration to relocate to Utah and Arizona.

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The issue: Sales tax and modified business tax abatement requests for Irvine, Calif.-based California Republic Bank, a new company moving to Southern Nevada.

The vote: 11-0

What it means: Under terms approved by the board, sales tax would be abated to 2 percent for a year, an estimated $63,196; and the modified business tax would be abated by 50 percent for four years to $51,506.

In addition, the company is seeking 58 $880 training grants for a total tax incentive package of $165,702.

California Republic Bank would locate an auto finance call center and create 76 jobs with an average wage of $19.90 an hour and capital investment of $1 million.

Over 10 years, the company would support 157 new jobs, $66 million in new payroll, have an economic impact of $312 for every abatement dollar and generate $4.8 million in new tax revenue.

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The issue: Sales tax and modified business tax abatement and sales tax deferral requests for Bridgeport, N.J.-based Chelton House Products, a new company moving to North Las Vegas.

The vote: 11-0

What it means: Under terms approved by the board, sales tax would be abated to 2 percent for a year, an estimated $212,950; the modified business tax would be abated by 50 percent for four years to $42,565; and sales tax would be deferred for up to 60 months to $69,820.

In addition, the company is seeking 30 $3,000 training grants for a total tax incentive package of $325,335.

Chelton House Products, a food processing and manufacturing operation, would create 41 jobs with an average wage of $28.68 an hour and capital investment of $3.5 million. Over 10 years, the company would support 108 new jobs, $59.3 million in new payroll, have an economic impact of $1,332 for every abatement dollar and generate $6 million in new tax revenue. The company will develop an 86,000-square-foot manufacturing and warehousing facility.

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