A snack manufacturer in Carson City and a lithium company with plans to build a facility in Northern Nevada were among six companies to receive tax abatements as part of the state’s latest round of incentives.
The Governor’s Office of Economic Development approved a total of $16.25 million in tax abatements at its quarterly board meeting held this month.
The six companies that received the incentives are required to create a total 750 jobs at an average wage of $25.17 per hour in the first two years, rising to 1,786 jobs within five years. The companies will also make $164.1 million in capital investments over two years and are expected to generate more than $147 million in net new tax revenues over 10 years.
One of the companies is Stellar Snacks in Carson City, which was awarded $1.8 million in abatements.
As part of the deal, the pretzel maker is required to create at least 58 jobs within two years at an average wage of $28.32 per hour. Stellar Snacks also pledged to make $23.4 million in capital investments within the same period. The state expects the company to generate $12.3 million in net new tax revenues over the next decade.
The other company to receive incentives in Northern Nevada is Western Ceramics Co. 1 LLC. The company is a subsidiary of Oakland-based Lilac Solutions, which specializes in developing technology and materials for lithium products.
Western Ceramics is looking to construct a 450,000-square-foot facility in Lyon County and received $2.3 million in tax abatements from the state. The company will be required to create 24 jobs within the first two years with an hourly wage of $46.63. Western Ceramics will also make $25.1 million in capital investment during the same period. The state expects to generate $8.3 million in new tax revenue from the company over 10 years.
“We have another company starting up in Lyon County that will contribute to the emerging lithium mining and production industry in the state,” said GOED Executive Director Michael Brown. “We are seeing major manufacturers moving here that will continue to diversify our economy.”
The other companies to receive incentives have operations in Clark County:
- Haas Automation: The company received $10.5 million in abatements and is expected to create 500 jobs at an average wage of $24.04 an hour.
- Airgas Safety: The national supplier of industrial, medical and specialty gas was approved for $362,882 in tax abatements. It must create 55 jobs at an average hourly wage of $23.10 as part of the deal.
- ENTEK Manufacturing: The company was approved for $1 million in tax abatements and is required to create 53 jobs with an average wage of $29.44 per hour.
- Society Manufacturing: The cosmetic product producer and wholesaler of cosmetic products was approved for $162,357 in tax abatements. It will need to create 60 jobs in the first two years with an average hourly wage of $25.50.
Tax abatements, which were used in high-profile deals such as the Tesla Gigafactory, are seen as a controversial measure by critics of such business incentives. Gov. Steve Sisolak, however, defended the practice during the latest round of approvals, saying that they help create jobs and new tax revenue.
“Since January of 2019, the 80 companies that have received abatements will create 11,727 jobs over five years,” Sisolak said. “These companies are making $2.1 billion in capital investments and will generate $1.1 billion in new net tax revenues over the next decade.”
Jason Hidalgo covers business and technology for the Reno Gazette Journal, and also reviews the latest video games. Follow him on Twitter @jasonhidalgo. Like this content? Support local journalism with an RGJ digital subscription.