SB 278 — Revises provisions governing child care. (BDR 32-290)

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

exempting certain persons who provide care for the children of friends and neighbors from regulation as child care facilities;

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 thisthisto bill entitle an employer to receive a credit against the modified business tax if the Departmentemployer ofpays Healthmoney andto Humana Serviceslicensed child care facility or a registered small child care establishment for the purpose of providing child care assistance to an employee.

(1) have a household income that does not exceed 85150 percent of theproviding medianchild householdcare incometo ina thisdependent State;child who is less than 13 years of age or ase of dependent child with special needs who is less than 19 years of age;

(2)(3) beselect determineda eligibleprovider byof thechild Divisioncare who participates in or is eligible for the Program for Child Care and Development;Development administered by the Division of Welfare and Support Services of the Department of Health and Human Services;

(3)and use(4) pay directly to the thanprovider 13of yearschild care any portion of age;the cost of the child care that is not 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 - *SB278_R1* – 2 – Care and Development.

(4)Under selectsections a1 provider of child care who participates in thess Quality Rating and Improvement3: System administered by the Office of Early Learning and Development of the Department of Education;

and(1) (5)the payamount directlyof the credit is equal to the50 providerpercent of childthe careamount anypaid portionby ofthe employer to the Division for the cost of child care, but the childamount careof thatthe iscredit must not coveredexceed by$5,000 per employee per tax credit, sections 1 and 3 require the employer.employer to apply to the Department ofhe Taxation.

Under sections 1 and 3 of this bill:

(1) the amount of the - *SB278* – 2 – 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 Division and, upon receipt of the application and determining that the employer is Taxation for approval of the credit.

If the Department of Taxation approves thef application, the Division is required to notify:

(1) the taxpayer of the approval of the credit;

and (2) the Department of Taxation of payments made to the Division by the taxpayer within 30 days after receipt of the payment.

and (2) for subsequent fiscal years, an amount equal to 110 percent of the amount autSectionauthorized for the immediately preSection 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.

Existing law provides for the licensure of child care facilities, which are defined as:

(1) an establishment operated and maintained for the purpose of operated by a place of business to provide care for the children of its employees;

(3) a child care institution;

or (4) an outdoor youth program.

(NRS 432A.024, 432A.0275, 432A.131-432A.220) Section 6 of this bill revises that definition to provide that a home in which a person provides care for six or fewer children of a friend or neighbor, or a combination thereof, is not deemed a child care facility and, thus, is not subject to licensure requirements under existing law.

Except as otherwise provided in subsection 2, any taxpayer who is required to pay the excise tax imposed pursuant to NRS 363A.130 may receive a credit against the tax otherwise due based on the amount paid by the employer to thea Divisionchild care facility that is licensed pursuant to NRS 432A.131 or a small child care establishment registered pursuant to NRS 432A.1756 for the purpose of assisting an employee who meets the qualifications of subsection 3 in paying for the cost of child care.

(a) Have a household income that does not exceed 85150 percent of the median household income in this State;

- *SB278* – 3 – (b) BeUse determined eligible by the Divisionassistance forfor: the Program for Child Care and Development, as defined in NRS 422A.055;

(c)(1) UseA the assistance for a dependent child who is less than 13 years of age;

(d)or Select(2) aA providerdependent of child carewith whospecial participatesneeds inwho theis Qualityless Ratingthan and19 Improvementyears System administered by the Office of Earlyage; Learning and Development of the Department of Education;

and(c) (e)Select Paya directly to the provider of child care anywho portionparticipates ofin theor costis ofeligible for the childProgram carefor notChild paidCare and Development administered by the taxpayer.Division;

4.and (d) Pay directly to the provider of child care any portion of the cost of the child care not paid by the taxpayer.

To- receive*SB278_R1* the– credit3 authorized– by4. subsection 1, a taxpayer must apply to the Division in the manner prescribed by the Division.

TheTo Divisionreceive shallthe usecredit theauthorized applicationby tosubsection verify1, thea taxpayer’staxpayer intentmust apply to qualifythe forDepartment in the creditmanner authorizedprescribed by subsectionthe 1.Department.

UponThe receiptDepartment ofshall theuse application, the Division,application afterto determiningverify that the requirementstaxpayer’s ofintent subsections 2 and 3 are satisfied, shall apply to thequalify Department of Taxation for approval of the credit authorized by subsection 1.

TheUpon Departmentreceipt of Taxationthe shall,application, withinthe 20Department, days after receivingdetermining anthat application,the approverequirements orof denysubsections the2 application and provide3 toare thesatisfied, Divisionshall noticeapprove ofor thedeny decisionan and,application iffor the applicationcredit isauthorized approved,by thesubsection amount1 ofin the creditorder authorized.in which such applications are received.

Upon receipt of the notice from the Department of Taxation, the Division shall provide notice of the approval to the taxpayer.

If the taxpayer does not make the payment for the cost of child care to the Division pursuant to subsection 1 within 30 days after receiving the notice, the Division shall provide notice of the failure to the Department of Taxation and the taxpayer forfeits any claim to the credit authorized by subsection 1.

5.

Upon receipt of a payment from a taxpayer who received a notice of approval, the Division shall:

(a) Provide notice of the payment to the Department of Taxation within 30 days after receipt of the payment;

and (b) Transfer the payment received from the taxpayer directly to the provider of child care.

6.