Under existing law, financial institutions, certain mining businesses and other employers are required to pay an excise tax (the modified business tax) on wages paid by them. (NRS 363A.130, 363B.110) Existing law establishes the Graduate Medical Education Grant Program, which is administered by the Office of Science, Innovation and Technology within the Office of the Governor, for the purpose of awarding grants to institutions seeking to create, expand or retain accredited programs for residency training and postdoctoral fellowships for physicians. (NRS 223.631-226.639) Sections 1-4 of this bill establish a credit against the modified business tax equal to an amount which is approved by the Office and which must not exceed the amount of any donation of money made by a taxpayer to the Program. Under sections 1 and 3, the total credits authorized and approved by the Office for Fiscal Year 2025-2026 must not exceed $4,000,000, and this limit is increased each year by 3 percent of the amount authorized for the previous fiscal year. Finally, sections 1 and 3: (1) require a taxpayer who wishes to receive any credits authorized by sections 1 and 3 to apply to the Office for the credits authorized; (2) require the Office to approve or deny such applications in the order in which they are received; (3) require the Office to notify the Department of Taxation of the approval of an application of any credits authorized by sections 1 and 3, the issuance of such credits and any forfeiture of such credits; and (4) authorizes a taxpayer who is issued an amount of credits that exceed the amount of tax due from the taxpayer to carry the excess credits forward for not more than 5 years after the end of the calendar year in which the taxpayer made the donation to the Program or until the entire amount of credits have been applied, whichever is earlier.

Statutes affected:
As Introduced: 363A.130, 363B.110
BDR: 363A.130, 363B.110