SB 144 — Establishes a credit against certain taxes for a taxpayer who donates money to a career and technical program tax credit organization that makes grants to programs of career and technical education. (BDR 34-866)

EXEMPT (Reprinted with amendments adopted on April 24, 2023) FIRST REPRINT S.B.

providing for the appointmentselection of a career and technical program tax credit organization to distribute donations to eligible programs of career and technical education at the direction of the State Board of Education;

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 calendarinsurer quarter.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 363A.130,680B.027) 363B.110)Sections Existing3, law5 alsoand requires9 eachof insurerthis bill authorize a taxpayer to payreceive 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 aand taxwhich uponmust netnot directexceed premiumsthe andamount insuranceof premiums).any donation of money made the Executive Director of the Department.

(NRSTo 680B.027)claim Sections 3, 5 and 9 of this bill authorize a taxpayer to receive a credit against the modified business tax orcredit, generalsections tax3, on5 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 9 require the career and technical program credit organization to apply to the 5 and Department for approval of the credit for a taxpayer who intends to make a - *SB144**SB144_R1* – 2 – donation to the career and technical program tax credit organization.

orderThe inDepartment: which the applications are received by the Department;

(2)(1) ismust authorizedapprove toor approvedeny applications for eachthe fiscaltax yearcredit untilin the totalorder amountin ofwhich the taxapplications creditsare approvedreceived forby the fiscalDepartment; year is $10,000,000.

(2) is authorized to approved for the fiscal year is $10,000,000.til the total amount of the tax credits Sections 4 and 6 of this bill provide specifically for the application of the credit against the modified business tax.

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 has amount of any grant.

SectionFinally, 2 of this bill makes a conforming change to indicate the proper placement of section 11: in the Nevada Revised Statutes.

(1) authorizes the Executive Director of the 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.

placement of section 1 in the Nevada Revised Statutes.

- *SB144_R1* – 3 – (b) Be incorporated in this State;

- *SB144* – 3 – 2.

- *SB144_R1* – 4 – 6.

The career and technical program tax credit organization shall take into consideration any preference expressed by a taxpayer pursuant to sections 3, 5 and 9 - *SB144* – 4 – of this act identifying a particular eligible program to receive the donation made by the taxpayer.

The career and technical program tax credit organization shall make the records available for - *SB144_R1* – 5 – inspection by the Department of Taxation upon demand at reasonable times during regular business hours.

AnyA provisiondecision of anthe agreementExecutive betweenDirector of the Department of Taxation to terminate the selection of an -entity *SB144*or –to 5select –another entity andas the Departmentcareer ofand Taxationtechnical whichprogram conflictstax withcredit organization pursuant to this sectionsubsection is void.not a contested case as defined in NRS 233B.032, but is a decision to terminate a contract.

Nothing in this section shall be construed to require the Department of Taxation to audit an entity selected pursuant to subsection 1 as a career and technical education tax credit organization.

13.

The career and technical program tax credit organization shall, before accepting any such donation, - *SB144_R1* – 6 – apply to the Department for approval of the credit authorized by subsection 1.

If the taxpayer does not make the donation of money to the career and technical program tax credit organization within 30 days after receiving the notice, the career and technical program tax credit organization shall provide notice of the failure - *SB144* – 6 – to the Department and the taxpayer forfeits any claim to the credit authorized by subsection 1.

- *SB144_R1* – 7 – (a) “Career and technical program tax credit organization” means the career and technical program tax credit organization selected by the Executive Director pursuant to section 1 of this act.

- *SB144* – 7 – (b) Must not be deducted, in whole or in part, from any wages of persons in the employment of the employer.

An employer who makes a donation of money to a scholarship organization during the calendar quarter for which a return is filed pursuant to this section is entitled, in accordance with NRS 363A.139, to a credit equal to the amount authorized pursuant to NRS 363A.139 against any tax otherwise due pursuant to this - *SB144_R1* – 8 – section.

Any taxpayer who is required to pay a tax pursuant to NRS 363B.110 may receive a credit against the tax otherwise due for any donation of money made by the taxpayer to the career and - *SB144* – 8 – technical program tax credit organization in the manner provided by this section.

- *SB144_R1* – 9 – 3.

The total amount of the credit applied against the taxes described in subsection 1 and - *SB144* – 9 – otherwise due from a taxpayer must not exceed the amount of the donation.

- *SB144_R1* – 10 – 3.

Any unused credit may not be - *SB144* – 10 – carried forward beyond the fourth calendar quarter immediately following the end of the taxable year for which the commerce tax was paid, and a taxpayer is not entitled to a refund of any unused credit.

- *SB144_R1* – 11 – 2.

- *SB144* – 11 – Sec.

Upon receipt of the notice that the application has been approved, the career and technical program tax credit organization shall provide notice of the approval to the taxpayer who must, not later than 30 - *SB144_R1* – 12 – days after receiving the notice, make the donation of money to the career and technical program tax credit organization.

- *SB144* – 12 – 5.

An insurer who makes a donation of money to the career and technical program tax credit organization during the calendar quarter for which a report is filed pursuant to - *SB144_R1* – 13 – NRS 680B.032 or during a calendar year in which a report is filed pursuant to NRS 680B.030 is entitled, in accordance with section 9 of this act, to a credit equal to the amount authorized pursuant to section 9 of this act against any tax otherwise due pursuant to NRS 680B.027.

- *SB144* – 13 – (b) Does not include payments received by an insurer from the Secretary of Health and Human Services pursuant to a contract entered into pursuant to section 1876 of the Social Security Act, 42 U.S.C.