Nevada 2017 Regular Session Status: In Committee

AB 266 — Provides for a deduction from certain taxes for certain wages paid by an employer under a qualifying paid family medical leave policy. (BDR 32-709)

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2017 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

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198 line(s) added, 290 removed.

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A.B.
(Reprinted with amendments adopted on April 24, 2017) FIRST REPRINT A.B.
266–COMMITTEE ON T AXATION M ARCH 7, 2017 ____________ Referred to Committee on Taxation SUMMARY—Authorizes tax credits for employers who provide paid family medical leave for employees.
266–COMMITTEE ON TAXATION M ARCH 7, 2017 ____________ Referred to Committee on Taxation SUMMARY—Provides for a deduction from certain taxes for certain wages paid by an employer under a qualifying paid family medical leave policy.
authorizing credits against the payroll tax or commerce tax imposed on a business for certain amounts paid by the business for paid family medical leave for employees;
providing a deduction from the payroll tax for certain amounts of wages paid by an employer under a qualifying paid family medical leave policy for employees;
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 imposes an annual commerce tax on each business entity engaged in business in this State whose Nevada gross revenue in a fiscal year exceeds $4,000,000 at a rate that is based on the industry in which the business entity is primarily engaged.
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 empSections 1 and 2 of this bill authorize an employer to deduct from the total amount of wages reported and upon which the tax is imposed the family medical leave wages paid by the employer to an employee who has taken leave under the employer’s paid family medical leave policy:
(NRS 363C.200) Sections 1 and 2 of this bill entitle an employer who provides paid family medical leave to a credit against the modified business tax based on the amount paid by the employer for paid family medical leave to the employees of the the commerce tax if the business entity has not also applied for a credit against the modified business tax based on paid family medical leave paid in the same quarter.
(1) for the birth of a child or placement of a child with the employee for adoption or foster care;
To be eligible for the credit, an employer must provide paid family medical leave under a family medical leave policy that satisfies certain requirements.
(2) to care for a spouse, domestic partner, child, ward, grandchild or parent who has a serious health perform the essential functions of his or her position;
The amount of the credit is equal to the family medical leave wages paid by the employer during the period for which the tax is paid, but an employer is not allowed to receive a exceeds $500 per week or for family medical leave wages paid to an employee for a period of more than 12 weeks.
or (4) for any exigency arising out of the fact that a spouse, child or parent of the employee is a member of the Armed Forces of the United States assigned to active duty or called to active duty.
Sections 1-3 also authorize the credit to be carried forward to future years under certain circumstances, except that any credit expires on the date that is 5 years after the end of the period in which the credit is claimed - *AB266* – 2 – and prohibit the carry forward or application of the credit to any tax liability of the employer incurred after that date.
To be eligible for the deduction, an employer must provide paid family medical leave under a family medical leave policy that satisfies certain requirements.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
The amount of the deduction is equal to the family medical leave wages paid by the employer during the period for which the tax is paid, but an that exceed $500 per employee per week.
In addition, an employer is not authorized to receive a deduction for family medical leave wages paid to an employee after the employee has taken 12 weeks of leave in a 12-month period.
Finally, an employer is not authorized to receive a deduction for family medical leave wages paid to an - *AB266_R1* – 2 – employee if the employer receives from a governmental agency any benefit or employee.ion directly relating to the family medical leave wages paid to the THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
An employer is entitled to a credit against the tax imposed upon the employer by NRS 363A.130 in an amount provided for in subsection 2, which is based on the amount of family medical leave wages paid by the employer to an employee of the employer pursuant to a family medical leave policy that satisfies the requirements of subsections 3 and 4.
Except as otherwise provided in subsections 2 and 3, an employer may deduct from the total amount of wages reported and upon which the excise tax is imposed pursuant to NRS 363A.130 the family medical leave wages paid in a calendar quarter by the employer to an employee under a paid family medical leave policy that satisfies the requirements of subsections 4 and 5, if the employee has taken leave under the policy for one or more of the following reasons:
(a) The birth of a child or placement of a child with the employee for adoption or foster care.
(b) To care for a spouse, domestic partner as defined in NRS 122A.030, child, ward, grandchild or parent of the employee who has a serious health condition.
(c) For a serious health condition that makes the employee unable to perform the essential functions of his or her position.
(d) For any qualifying exigency arising out of the fact that a spouse, child or parent of the employee is a member of the Armed Forces of the United States assigned to active duty or called to active duty.
Except as otherwise provided in this subsection, a credit authorized by subsection 1 must be in an amount equal to the family medical leave wages paid by the employer to employees of the employer during the calendar quarter for which the tax is paid.
The total amount of the family medical leave wages that may be deducted pursuant to subsection 1 may not exceed $500 per employee per week, and no family medical leave wages may be deducted for any employee receiving family medical leave wages for any leave taken after the employee has taken 12 weeks of leave in a 12-month period.
An employer may not receive credit for the portion of the family medical leave wages paid to an employee that exceeds $500 per week or for family medical leave wages paid to an employee for a period of more than 12 weeks.
To qualify for a credit authorized by subsection 1, an employer must provide paid family medical leave to employees of the employer pursuant to a family medical leave policy that:
An employer may not claim a deduction for family medical leave wages paid to an employee if the employer receives from a governmental agency any benefit or compensation directly relating to the family medical leave wages paid to the employee.
(a) Must allow an employee to take up to 12 weeks of leave in a 12-month period for one or more of the following reasons:
(1) The birth of a child or placement of a child with the employee for adoption or foster care.
(2) To care for a spouse, child or parent who has a serious health condition.
(3) For a serious health condition that makes the employee unable to perform the essential functions of his or her position.
(4) For any qualifying exigency arising out of the fact that a spouse, child or parent is a member of the Armed Forces of the United States assigned to active duty or called to active duty.
(b) Must require the payment of family medical leave wages to the employee while the employee is taking leave that may not be less than 75 percent of his or her normal wages.
(c) Upon approval of the employer, may allow an employee to take paid family medical leave on an intermittent or reduced- schedule basis.
(d) Must provide that the health coverage of the employee under any health insurance or health benefit plan provided by the employer is maintained on the same terms as if the employee had - *AB266* – 3 – not taken leave and that the taking of leave may not result in the loss of any employment benefit that accrued before the start of his or her leave.
(e) Must provide that upon the employee’s return from leave, the employee is restored to his or her original or equivalent position with equivalent pay, benefits and other terms of employment.
A paid family medical leave policy that meets the requirements of subsection 3 may require an employee to:
To qualify for a credit authorized by subsection 1, an employer must provide paid family medical leave to employees of the employer pursuant to a family medical leave policy that must:
(a) Request leave under the family medical leave policy within a reasonable time before taking the leave except that such time may not be significantly different from the time required to request paid time off, sick leave, annual leave or other leave offered by the employer.
(a) Allow an employee to take up to 12 weeks of leave in a 12- month period for one or more of the reasons set forth in paragraphs (a) to (d), inclusive, of subsection 1.
(b) Provide to the employer certification from a provider of health care that confirms or supports the reason the employee provided for requesting leave.
- *AB266_R1* – 3 – (b) Provide for the payment of family medical leave wages to the employee while the employee is taking leave that may not be less than 75 percent of his or her normal wages.
(c) Use any accrued paid leave before taking paid family medical leave.
(c) Provide that the health coverage of the employee under any health insurance or health benefit plan provided by the employer is maintained on the same terms as if the employee had not taken leave and that the taking of leave may not result in the loss of any employment benefit that accrued before the start of his or her leave.
(d) Provide that upon the employee’s return from leave, the employee is restored to his or her original or equivalent position with equivalent pay, benefits and other terms of employment.
A credit described in subsection 1 must not be applied retroactively.
A paid family medical leave policy that meets the requirements of subsection 4 may:
(a) Allow an employee, upon approval of the employer, to take paid family medical leave on an intermittent or reduced-schedule basis.
(b) Require an employee to request leave under the family medical leave policy within a reasonable time before taking the leave except that such time may not be significantly different from the time required to request paid time off, sick leave, annual leave or other leave offered by the employer.
(c) Require an employee to provide to the employer certification that confirms or supports the reason the employee provided for requesting leave.
(d) Require an employee to use any other accrued paid leave before taking paid family medical leave.
If the amount of a credit described in subsection 1 exceeds the tax liability of an employer pursuant to this chapter for the calendar quarter in which the credit is claimed, the excess amount of the credit may be carried forward and applied to the tax liability of the employer pursuant to this chapter for the next following calendar quarter or calendar quarters for which the employer has a tax liability pursuant to this chapter, except that any credit or the excess amount of any credit expires on the date that is 5 years after the end of the calendar quarter in which the credit is claimed and must not be applied to any tax liability of the employer incurred pursuant to this chapter on or after that date.
To claim a deduction pursuant to subsection 1, the employer must:
If the excess amounts of credits for more than 1 calendar quarter are carried forward by an employer pursuant to this subsection, the excess amount of the credit from the earliest calendar quarter must be applied first.
(a) Obtain from each employee to whom family medical leave wages are paid documentation to verify that the employee took leave for one or more of the reasons specified in paragraphs (a) to (d), inclusive, of subsection 1;
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and (b) Submit to the Department an affidavit under penalty of perjury stating that the requirements for claiming the deduction pursuant to this section have been satisfied.
As used in this section:
An employer claiming the deduction allowed pursuant to this section shall, upon the request of the Department, provide the Department with such documentation as the Department deems appropriate to substantiate that claim.
(a) “Employee” means an employee whose wages are included within the measure of the tax imposed upon an employer by NRS 363A.130.
8.
(b) “Family medical leave wages” means wages paid to an employee while the employee is taking paid family medical leave.
As used in this section, “family medical leave wages” means wages paid to an employee while the employee is taking paid family medical leave.
- *AB266* – 4 – Sec.
- *AB266_R1* – 4 – Sec.
An employer is entitled to a credit against the tax imposed upon the employer by NRS 363B.110 in an amount provided for in subsection 2, which is based on the amount of family medical leave wages paid by the employer to an employee of the employer pursuant to a family medical leave policy that satisfies the requirements of subsections 3 and 4.
Except as otherwise provided in subsections 2 and 3, an employer may deduct from the total amount of wages reported and upon which the excise tax is imposed pursuant to NRS 363B.110 the family medical leave wages paid in a calendar quarter by the employer to an employee under a paid family medical leave policy that satisfies the requirements of subsections 4 and 5, if the employee has taken leave under the policy for one or more of the following reasons:
(a) The birth of a child or placement of a child with the employee for adoption or foster care.
(b) To care for a spouse, domestic partner as defined in NRS 122A.030, child, ward, grandchild or parent of the employee who has a serious health condition.
(c) For a serious health condition that makes the employee unable to perform the essential functions of his or her position.
(d) For any qualifying exigency arising out of the fact that a spouse, child or parent of the employee is a member of the Armed Forces of the United States assigned to active duty or called to active duty.
Except as otherwise provided in this subsection, a credit authorized by subsection 1 must be in an amount equal to the family medical leave wages paid by the employer to employees of the employer during the calendar quarter for which the tax is paid.
The total amount of the family medical leave wages that may be deducted pursuant to subsection 1 may not exceed $500 per employee per week and no family medical leave wages may be deducted for any employee receiving family medical leave wages for any leave taken after the employee has taken 12 weeks of leave in a 12-month period.
An employer may not receive credit for the portion of the family medical leave wages paid to an employee that exceeds $500 per week or for family medical leave wages paid to an employee for a period of more than 12 weeks.
To qualify for a credit authorized by subsection 1, an employer must provide paid family medical leave to employees of the employer pursuant to a family medical leave policy that:
An employer may not claim a deduction for family medical leave wages paid to an employee if the employer receives from a governmental agency any benefit or compensation directly relating to the family medical leave wages paid to the employee.
(a) Must allow an employee to take up to 12 weeks of leave in a 12-month period for one or more of the following reasons:
(1) The birth of a child or placement of a child with the employee for adoption or foster care.
(2) To care for a spouse, child or parent who has a serious health condition.
(3) For a serious health condition that makes the employee unable to perform the essential functions of his or her position.
(4) For any qualifying exigency arising out of the fact that a spouse, child or parent is a member of the Armed Forces of the United States assigned to active duty or called to active duty.
(b) Must require the payment of family medical leave wages to the employee while the employee is taking leave that may not be less than 75 percent of his or her normal wages.
(c) Upon approval of the employer, may allow an employee to take paid family medical leave on an intermittent or reduced- schedule basis.
(d) Must provide that the health coverage of the employee under any health insurance or health benefit plan provided by the employer is maintained on the same terms as if the employee had not taken leave and that the taking of leave may not result in the loss of any employment benefit that accrued before the start of his or her leave.
(e) Must provide that upon the employee’s return from leave, the employee is restored to his or her original or equivalent - *AB266* – 5 – position with equivalent pay, benefits and other terms of employment.
A paid family medical leave policy that meets the requirements of subsection 3 may require an employee to:
To qualify for a credit authorized by subsection 1, an employer must provide paid family medical leave to employees of the employer pursuant to a family medical leave policy that must:
(a) Request leave under the family medical leave policy within a reasonable time before taking the leave except that such time may not be significantly different from the time required to request paid time off, sick leave, annual leave or other leave offered by the employer.
(a) Allow an employee to take up to 12 weeks of leave in a 12- month period for one or more of the reasons set forth in paragraphs (a) to (d), inclusive, of subsection 1.
(b) Provide to the employer certification from a provider of health care that confirms or supports the reason the employee provided for requesting leave.
(b) Provide for the payment of family medical leave wages to the employee while the employee is taking leave that may not be less than 75 percent of his or her normal wages.
(c) Use any accrued paid leave before taking paid family medical leave.
(c) Provide that the health coverage of the employee under any health insurance or health benefit plan provided by the employer is maintained on the same terms as if the employee had not taken leave and that the taking of leave may not result in the loss of any - *AB266_R1* – 5 – employment benefit that accrued before the start of his or her leave.
(d) Provide that upon the employee’s return from leave, the employee is restored to his or her original or equivalent position with equivalent pay, benefits and other terms of employment.
A credit described in subsection 1 must not be applied retroactively.
A paid family medical leave policy that meets the requirements of subsection 4 may:
(a) Allow an employee, upon approval of the employer, to take paid family medical leave on an intermittent or reduced-schedule basis.
(b) Require an employee to request leave under the family medical leave policy within a reasonable time before taking the leave except that such time may not be significantly different from the time required to request paid time off, sick leave, annual leave or other leave offered by the employer.
(c) Require an employee to provide to the employer certification that confirms or supports the reason the employee provided for requesting leave.
(d) Require an employee to use any other accrued paid leave before taking paid family medical leave.
If the amount of a credit described in subsection 1 exceeds the tax liability of an employer pursuant to this chapter for the calendar quarter in which the credit is claimed, the excess amount of the credit may be carried forward and applied to the tax liability of the employer pursuant to this chapter for the next following calendar quarter or calendar quarters for which the employer has a tax liability pursuant to this chapter, except that any credit or the excess amount of any credit expires on the date that is 5 years after the end of the calendar quarter in which the credit is claimed and must not be applied to any tax liability of the employer incurred pursuant to this chapter on or after that date.
To claim a deduction pursuant to subsection 1, the employer must:
If the excess amounts of credits for more than 1 calendar quarter are carried forward by an employer pursuant to this subsection, the excess amount of the credit from the earliest calendar quarter must be applied first.
(a) Obtain from each employee to whom family medical leave wages are paid documentation to verify that the employee took leave for one or more of the reasons specified in paragraphs (a) to (d), inclusive, of subsection 1;
and (b) Submit to the Department an affidavit under penalty of perjury stating that the requirements for claiming the deduction pursuant to this section have been satisfied.
As used in this section:
An employer claiming the deduction allowed pursuant to this section shall, upon the request of the Department, provide the Department with such documentation as the Department deems appropriate to substantiate that claim.
(a) “Employee” means an employee whose wages are included within the measure of the tax imposed upon an employer by NRS 363B.110.
8.
(b) “Family medical leave wages” means wages paid to an employee while the employee is taking paid family medical leave.
As used in this section, “family medical leave wages” means wages paid to an employee while the employee is taking paid family medical leave.
Chapter 363C of NRS is hereby amended by adding thereto a new section to read as follows:
(Deleted by amendment.) Sec.
1.
A business entity is entitled to a credit against the tax imposed upon the business entity by NRS 363C.200 in an amount provided for in subsection 2, which is based on the amount of family medical leave wages paid by the business entity to an employee of the business entity pursuant to a family medical leave policy that satisfies the requirements of subsections 3 and 4.
- *AB266* – 6 – 2.
Except as otherwise provided in this subsection, a credit authorized by subsection 1 must be in an amount equal to the family medical leave wages paid by the business entity to employees of the business entity during the taxable year.
An employer may not receive credit for the portion of the family medical leave wages paid to an employee that exceeds $500 per week or for family medical leave wages paid to an employee for a period of more than 12 weeks.
3.
To qualify for a credit authorized by subsection 1, the business entity must provide paid family medical leave pursuant to a family medical leave policy that:
(a) Must allow an employee to take up to 12 weeks of leave in a 12-month period for one or more of the following reasons:
(1) The birth of a child or placement of a child with the employee for adoption or foster care.
(2) To care for a spouse, child or parent who has a serious health condition.
(3) For a serious health condition that makes the employee unable to perform the essential functions of his or her position.
(4) For any qualifying exigency arising out of the fact that a spouse, child or parent is a member of the Armed Forces of the United States assigned to active duty or called to active duty.
(b) Must require the payment of family medical leave wages to the employee while the employee is taking leave that may not be less than 75 percent of his or her normal wages.
(c) Upon approval of the business entity, may allow an employee to take paid family medical leave on an intermittent or reduced-schedule basis.
(d) Must provide that the health coverage of the employee under any health insurance or health benefit plan provided by the business entity is maintained on the same terms as if the employee had not taken leave and that the taking of leave may not result in the loss of any employment benefit that accrued before the start of his or her leave.
(e) Must provide that upon the employee’s return from leave, the employee is restored to his or her original or equivalent position with equivalent pay, benefits and other terms of employment.
A paid family medical leave policy that meets the requirements of subsection 3 may require an employee to:
(a) Request leave under the family medical leave policy within a reasonable time before taking the leave except that such time may not be significantly different from the time required to request paid time off, sick leave, annual leave or other leave offered by the business entity.
- *AB266* – 7 – (b) Provide to the business entity certification from a provider of health care that confirms or supports the reason the employee provided for requesting leave.
(c) Use any accrued paid leave before taking paid family medical leave.
5.
A credit described in subsection 1 must not be applied retroactively.
6.
If the amount of a credit described in subsection 1 exceeds the tax liability of a business entity pursuant to this chapter for the taxable year in which the credit is claimed, the excess amount of the credit may be carried forward and applied to the tax liability of the business entity pursuant to this chapter for the next following taxable year or taxable years for which the business entity has a tax liability pursuant to this chapter, except that any credit or the excess amount of any credit expires on the date that is 5 years after the end of the taxable year in which the credit is claimed and must not be applied to any tax liability of the business entity incurred pursuant to this chapter on or after that date.
If the excess amounts of credits for more than 1 taxable year are carried forward by a business entity pursuant to this subsection, the excess amount of the credit from the earliest taxable year must be applied first.
7.
A business entity that receives a credit pursuant to section 1 or 2 of this act for any wages paid during a calendar quarter is not entitled to the credit described in subsection 1 for any wages paid during the same calendar quarter.
8.
As used in this section:
(a) “Employee” means a natural person whose manner and means of performance of work are subject to the right of control of, or are controlled by, the business entity.
The term does not include independent contractors or persons rendering professional services to a business entity on a fee, retainer or contract basis.
(b) “Family medical leave wages” means wages paid to an employee while the employee is taking paid family medical leave.
Sec.
4.
3.
H - *AB266_R1*
Section 3 of this act becomes effective on July 1, 2018, for all other purposes.
H - *AB266*
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Action History

  1. (No further action taken.)

  2. From printer. To engrossment. Engrossed. First reprint . To committee.

  3. Read second time. Amended. (Amend. No. 580.) Rereferred to Committee on Ways and Means. Exemption effective. To printer.

  4. Placed on Second Reading File.

  5. From committee: Amend, and do pass as amended.

  6. Waiver granted effective: April 12, 2017.

  7. Notice of eligibility for exemption.

  8. From printer. To committee.

  9. Read first time. Referred to Committee on Taxation. To printer.

Sponsors

  • Taxation · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 66 not signed on

Sponsors (1)

  • Taxation

Co-sponsors (0)

None.

Not signed on (66)

66 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation labor health-insurance
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Frequently asked questions

Who sponsors AB 266?
AB 266 is sponsored by Taxation.
What is the current status of AB 266?
This bill died with 2017 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 266?
Track AB 266 free on One Click Politics — get push/email alerts when it moves.

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