$2.2M in tax abatements awarded to companies expanding in Nevada
Five companies have been granted a combined $2.2 million in tax abatements by the state of Nevada to either bring or expand their operations in the state.
The largest abatement, about $1.5 million, was given to Indigo Pharmaceutical, which is set to place a manufacturing facility in the Las Vegas Medical District, according to a news release from the Las Vegas Global Economic Alliance. This facility is expected to make ready-to-use syringes and single-use intravenous bags for hospitals, office-based medical practices and veterinary practices.
The five companies combined — all located in Clark and Storey counties — are projected to create 235 jobs in the next two years with an average hourly wage of $31.91 and add 605 jobs in the next five years, according to the Governor’s Office of Economic Development.
It’s expected these companies will make a total capital investment of $22.2 million in their first two years of operation and generate $34.5 million in tax revenue over a 10-year period, the office said in a news release.
The abatements and the investments promised were touted by Gov. Joe Lombardo as a way to add jobs in the state.
“Nevada continues to attract quality companies who are creating good jobs,” Lombardo said in a statement.
Here is a breakdown of the companies that received abatements and their expected economic impact.
Clark County
— The Indigo Pharmaceutical facility is projected to create 100 jobs in its first two years with an average hourly wage of $34.20. The company is expected to make $13.2 million in capital investments within its first two years and provide $12.4 million in tax revenues over a 10-year period.
— Rechargeable Power Energy North America received just over $164,000 in abatements to expand its operations in Clark County, which should help the company to manufacture and supply solar generators, battery systems and chargers, according to a news release.
The planned expansion will increase its existing 8,000 square feet facility to 20,000 square feet. This expansion should create 88 jobs in its first two years with an average hourly wage of $28.50 and 104 jobs within its first five years. The company should make a capital investment of just over $906,000 in its first two years and provide $7.3 million in tax revenue over a 10-year period.
— Tranzonic Cos. received just over $227,000 in abatements to expand its manufacturing and distribution facility in Clark County from 136,207 square feet to 397,740 square feet, according to a news release. This expansion is projected to create 18 jobs in its first two years with an average hourly wage of $28.28 and 48 jobs in five years. The company should make $2.7 million in capital investments within its first two years and provide $8.1 million in tax revenue over a 10-year period.
The expanded facility will be located in North Las Vegas and open in the next few months, according to the LVGEA.
Storey County
— Trivium Packaging USA received just over $364,000 in abatements to expand its metal packaging operation in Storey County. This expansion is projected to add 17 jobs in its first two years with average hourly wage of $30.29 and 56 jobs in five years. The company should make a capital investment of $5.1 million within its first two years and provide $1.4 million in tax revenue over a 10-year period.
— Pallas Industries received an abatement of just under $34,000 as the company is considering placing a 21,500-square-foot aerospace and defense manufacturing and propulsion development center in Storey County. The facility would make rocket motors for the “next generation” of missiles and interceptors. The center should create 12 jobs in the first two years of operation with an average hourly wage of $45.67 and grow to 297 jobs in the first five years. The company should make a capital investment of over $307,000 within its first two years and provide $5.4 million in tax revenue over a 10-year period.
State officials applaud announcement
Lombardo stated that since he took office 10 abatements have been issued that should create 3,739 jobs over five years. The abated companies should make $3.7 billion in capital investments and generate $838.3 million in tax revenue.
The five companies receiving the most recent round of abatements were selected because they match the profile of companies sought in GOED’s economic development plan, Tom Burns, the executive director of GOED, said.
“We believe that realizing Nevada’s electric, innovative, and connected future provides a roadmap for state leadership to leverage Nevada’s assets, build upon its emerging growth, diversification, and innovation, and ensure inclusive growth,” Burns said in a statement.
The state’s economic development plan was published by GOED in February and stated its vision for Nevada’s economy is “a vibrant, innovative, and sustainable economy with high-paying jobs for Nevadans. This economic future will be realized by pursuing clean energy, strengthening innovation ecosystems, and bolstering critical infrastructure.”
Contact Sean Hemmersmeier at shemmersmeier@reviewjournal.com. Follow @seanhemmers34 on Twitter.