Existing law imposes a tax, commonly known as the modified business tax, on financial institutions and other businesses based on the amount of wages paid to employees each calendar quarter. (NRS 363A.130, 363B.110) Sections 1-4 of this bill entitle an employer to receive a credit against the modified business tax if the employer pays money to a licensed child care facility or a registered small child care establishment for the purpose of providing child care assistance to an employee. To qualify for the credit, the employee for whom the assistance is provided must: (1) have a household income that does not exceed 150 percent of the median household income in this State; (2) use the assistance for the purpose of providing child care to a dependent child who is less than 13 years of age or a dependent child with special needs who is less than 19 years of age; (3) select a provider of child care who participates in or is eligible for the Program for Child Care and Development administered by the Division of Welfare and Support Services of the Department of Health and Human Services; and (4) pay directly to the provider of child care any portion of the cost of the child care that is not covered by the employer. Sections 1 and 3 of this bill require the Division to, either quarterly or as requested, submit to the Department of Taxation a list of providers of child care who participate in or are eligible for the Program for Child Care and Development. Under sections 1 and 3: (1) the amount of the credit is equal to 50 percent of the amount paid by the employer to the Division for the cost of child care, but the amount of the credit must not exceed $5,000 per employee per year; and (2) any unused credits may be carried forward for 5 years. To claim the tax credit, sections 1 and 3 require the employer to apply to the Department of Taxation. Finally, sections 1 and 3 limit the total amount of credit which may be awarded to taxpayers to: (1) for Fiscal Years 2023-2024 and 2024-2025, $5,000,000 and $5,500,000, respectively; and (2) for subsequent fiscal years, an amount equal to 110 percent of the amount authorized for the immediately preceding fiscal year.
Section 5 of this bill requires the Division of Public and Behavioral Health of the Department of Health and Human Services to make available to businesses in this State information concerning worksite wellness and family-friendly policies, including, without limitation, information concerning the tax credits established by sections 1 and 3.Statutes affected:
As Introduced: 363A.130, 363B.110, 432A.024
Reprint 1: 363A.130, 363B.110
BDR: 363A.130, 363B.110, 432A.024