Existing law requires employers to pay an excise tax, commonly referred to as the modified business tax, on the wages paid to their employees during each calendar quarter. (NRS 363A.130, 363B.110) Existing law also requires each insurer to pay to the Department of Taxation a tax upon net direct premiums and net direct considerations written at the rate of 3.5 percent (the general tax on insurance premiums). (NRS 680B.027) Sections 3, 5 and 9 of this bill authorize a taxpayer to receive a credit against the modified business tax or general tax on insurance premiums equal to an amount which is approved by the Department of Taxation and which must not exceed the amount of any donation of money made by a taxpayer to a career and technical program tax credit organization selected by the Executive Director of the Department. To claim the tax credit, sections 3, 5 and 9 require the career and technical program credit organization to apply to the Department for approval of the credit for a taxpayer who intends to make a donation to the career and technical program tax credit organization. If the Department approves the application, the career and technical program tax credit organization must provide notice to the taxpayer, who must make the donation within 30 days after receiving the notice. If the taxpayer does not make the donation within the requisite period, the taxpayer forfeits eligibility for the credit. The Department: (1) must approve or deny applications for the tax credit in the order in which the applications are received by the Department; (2) is authorized to approve applications for each fiscal year until the total amount of the tax credits approved for the fiscal year is $10,000,000. Sections 4 and 6 of this bill provide specifically for the application of the credit against the modified business tax. Section 10 of this bill provides specifically for the application of the credit against the general tax on insurance premiums. Section 1 of this bill requires the Executive Director of the Department to select a career and technical program tax credit organization to oversee and administer the donations received pursuant to the provisions of this bill. Section 1 requires the career and technical program tax credit organization to accept applications each year from programs of career and technical education who wish to receive a grant of money donated pursuant to the provisions of this bill and to make recommendations to the State Board of Education regarding the eligible programs that should receive a grant of money and the amount of any such grant. Section 1 requires the career and technical program tax credit organization to distribute donations once each fiscal year as directed by the State Board, which has the sole discretion to determine which eligible programs receive a grant and the amount of any grant. Finally, section 1: (1) authorizes the Executive Director of the Department of Taxation to terminate the selection of a career and technical education tax credit organization and select another such organization if the selected organization violates a provision of section 1 or engages in improper practices of financial administration; (2) provides that the termination of the selection of a career and technical education tax credit organization or the selection of another such organization is not a contested case requiring certain notice and administrative procedures but, instead, is a decision to terminate a contract; and (3) prohibits section 1 from being construed to require the Department of Taxation to audit a selected career and technical education tax credit organization. Section 2 of this bill makes a conforming change to indicate the proper placement of section 1 in the Nevada Revised Statutes. Sections 7 and 11-14 of this bill make conforming changes to indicate the proper placement of sections 9 and 10 in the Nevada Revised Statutes.

Statutes affected:
As Introduced: 388.400, 363A.130, 363B.110, 679A.160, 680B.025, 680B.0395, 695B.320, 695F.090
Reprint 1: 388.400, 363A.130, 363B.110, 679A.160, 680B.025, 680B.0395, 695B.320, 695F.090
BDR: 388.400, 363A.130, 363B.110, 679A.160, 680B.025, 680B.0395, 695B.320, 695F.090