Provides a credit against the modified business tax for certain donations to support graduate medical education. (BDR 32-578)

S.B. 269

- *SB269*

SENATE BILL NO. 269–SENATOR TITUS

MARCH 4, 2025
____________

Referred to Committee on Revenue and
Economic Development

SUMMARY—Provides a credit against the modified business tax
for certain donations to support graduate medical
education. (BDR 32-578)

FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Yes.

~

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

AN ACT relating to taxation; establishing a credit against the
modified business tax for taxpayers who donate money to
the Graduate Medical Education Grant Program
established and administered by the Office of Science,
Innovation and Technology within the Office of the
Governor; and providing other matters properly relating
thereto.
Legislative Counsel’s Digest:
Under existing law, financial institutions, certain mining businesses and other 1
employers are required to pay an exc ise tax (the modified business tax) on wages 2
paid by them. (NRS 363A.130, 363B.110) Existing law establishes the Graduate 3
Medical Education Grant Program, which is administered by the Office of Science, 4
Innovation and Technology within the Office of the Go vernor, for the purpose of 5
awarding grants to institutions seeking to create, expand or retain accredited 6
programs for residency training and postdoctoral fellowships for physicians. (NRS 7
223.631-226.639) 8
Sections 1-4 of this bill establish a credit against the modified business tax 9
equal to an amount which is approved by the Office and which must not exceed the 10
amount of any donation of money made by a taxpayer to the Program. Under 11
sections 1 and 3, the total credits authorized and approved by the Office for Fiscal 12
Year 2025-2026 must not exceed $4,000,000, and this limit is increased each year 13
by 3 percent of the amount authorized for the previous fiscal year. Finally, sections 14
1 and 3: (1) require a taxpayer who wishes to receive any credits authorized by 15
sections 1 and 3 to apply to the Office for the credits authorized; (2) require the 16
Office to approve or deny such applications in the order in which they are received; 17
(3) require the Office to notify the Department of Taxation of the approval of an 18
application of any credits authorized by sections 1 and 3, the issuance of such 19

– 2 –

- *SB269*
credits and any forfeiture of such credits; and (4) authorizes a taxpayer who is 20
issued an amount of credits that exceed the amount of tax due from the taxpayer to 21
carry the excess credit s forward for not more than 5 years after the end of the 22
calendar year in which the taxpayer made the donation to the Program or until the 23
entire amount of credits have been applied, whichever is earlier. 24

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 363A of NRS is hereby amended by 1
adding thereto a new section to read as follows: 2
1. Any taxpayer who is required to pay a tax pursuant to NRS 3
363A.130 may receive a credit against the tax otherwise due for 4
any donation of money made by the taxpayer to the Graduate 5
Medical Education Grant Program established by NRS 223.637 in 6
the manner provided by this section. 7
2. To receive the credit authorized by subsection 1, a taxpayer 8
who intends to make a donation of money to the Graduate Medical 9
Education Grant Program shall, before making suc h a donation, 10
apply to the Office of Science, Innovation and Technology for 11
approval of the credit authorized by subsection 1 for the donation. 12
The Office shall, within 20 days after receiving the application, 13
approve or deny the application and provide to the taxpayer notice 14
of the decision and, if the application is approved, the amount of 15
the credit authorized. Upon receipt of notice that the application 16
has been approved, the taxpayer must, not later than 30 days after 17
receiving the notice, make the don ation of money to the Program. 18
Upon receipt of the donation, the Office shall issue a certificate of 19
the credit authorized by subsection 1. If the taxpayer does not 20
make the donation of money to the Program within 30 days after 21
receiving the notice, the ta xpayer forfeits any claim to the credit 22
authorized by subsection 1. The Office shall notify the Department 23
of Taxation of each application approved pursuant to this 24
subsection, the issuance of each certificate of the credit authorized 25
by subsection 1 and t he forfeiture of any claim to a credit 26
authorized by subsection 1. 27
3. The Office of Science, Innovation and Technology shall 28
approve or deny applications for the credit authorized by 29
subsection 1 in the order in which the applications are received. 30
4. The Office of Science, Innovation and Technology may, 31
for each fiscal year, approve applications for the credit authorized 32
by subsection 1 until the total amount of the credits authorized by 33
subsection 1 and approved by the Office pursuant to this 34
subsection and subsection 4 of section 3 of this act is: 35
(a) For Fiscal Year 2025-2026, $4,000,000; 36

– 3 –

- *SB269*
(b) For Fiscal Year 2026-2027, $4,120,000; and 1
(c) For each s ubsequent fiscal year, an amount equal to 103 2
percent of the amount authorized for the immediately preceding 3
fiscal year. 4
 The amount of any credit which is forfeited pursuant to 5
subsection 2 must not be considered in calculating the amount of 6
credits authorized for any fiscal year. 7
5. If a taxpayer applies to and is approved by the Office of 8
Science, Innovation and Technology for the credit authorized by 9
subsection 1, the amount of the credit provided by this section is 10
equal to the amount approved by the Office pursuant to subsection 11
2, which must not exceed the amount of the donation made by the 12
taxpayer to the Graduate Medical Education Grant Program. The 13
total amount of the credit applied against the taxes described in 14
subsection 1 and otherwise d ue from a taxpayer must not exceed 15
the amount of the donation. 16
6. If the amount of the tax described in subsection 1 and 17
otherwise due from a taxpayer is less than the credit to which the 18
taxpayer is entitled pursuant to this section, the taxpayer may, 19
after applying the credit to the extent of the tax otherwise due, 20
carry the balance of the credit forward for not more than 5 years 21
after the end of the calendar year in which the donation is made 22
or until the balance of the credit is applied, whichever is earlier. 23
Sec. 2. NRS 363A.130 is hereby amended to read as follows: 24
363A.130 1. Except as otherwise provided in NRS 360.203, 25
there is hereby imposed an excise tax on each employer at the rate 26
of 2 percent of the wages, as defined in NRS 612.190, paid by the 27
employer during a calendar quarter with respect to employment in 28
connection with the business activities of the employer. 29
2. The tax imposed by this section: 30
(a) Does not apply to any person or other entity or any wages 31
this State is prohibited from taxing under the Constitution, laws or 32
treaties of the United States or the Nevada Constitution. 33
(b) Must not be deducted, in whole or in part, from any wages of 34
persons in the employment of the employer. 35
3. Each employer shall, on or before the last day of the month 36
immediately following each calendar quarter for which the 37
employer is required to pay a contribution pursuant to 38
NRS 612.535: 39
(a) File with the Department a return on a form prescribed by 40
the Department; and 41
(b) Remit to the Department any tax due pursuant to this section 42
for that calendar quarter. 43
4. In determining the amount of the tax due pursuant to this 44
section, an employer is entitled to subtract from the amount 45

– 4 –

- *SB269*
calculated pursuant to subsection 1 a credit in an amount equal to 50 1
percent of the amount of the commerce tax paid by the employer 2
pursuant to chapter 363C of NRS for the preceding taxable year. 3
The credit may only be used for any of the 4 calendar quarters 4
immediately following the end of the taxable year for which the 5
commerce tax was paid. The amount of credit used for a calendar 6
quarter may not exceed the amount calculated pursuant to 7
subsection 1 for that calendar quarter. Any unused credit may not be 8
carried forward beyond the fourt h calendar quarter immediately 9
following the end of the taxable year for which the commerce tax 10
was paid, and a taxpayer is not entitled to a refund of any unused 11
credit. 12
5. An employer who makes a donation of money to a 13
scholarship organization during t he calendar quarter for which a 14
return is filed pursuant to this section is entitled, in accordance with 15
NRS 363A.139, to a credit equal to the amount authorized pursuant 16
to NRS 363A.139 against any tax otherwise due pursuant to this 17
section. As used in th is subsection, “scholarship organization” has 18
the meaning ascribed to it in NRS 388D.260. 19
6. An employer who makes a donation of money to the 20
Graduate Medical Education Grant Program established by NRS 21
223.637 during the calendar quarter for which a retu rn is filed 22
pursuant to this section is entitled, in accordance with section 1 of 23
this act, to a credit equal to the amount authorized pursuant to 24
section 1 of this act against any tax otherwise due pursuant to this 25
section. 26
Sec. 3. Chapter 363B of NRS is hereby amended by adding 27
thereto a new section to read as follows: 28
1. Any taxpayer who is required to pay a tax pursuant to NRS 29
363B.110 may receive a credit against the tax otherwise due for 30
any donation of money made by the taxpayer to the Graduate 31
Medical Education Grant Program established by NRS 223.637 in 32
the manner provided by this section. 33
2. To receive the credit authorized by subsection 1, a taxpayer 34
who intends to make a donation of money to the Graduate Medical 35
Education Grant Program shall, before making suc h a donation, 36
apply to the Office of Science, Innovation and Technology for 37
approval of the credit authorized by subsection 1 for the donation. 38
The Office shall, within 20 days after receiving the application, 39
approve or deny the application and provide to the taxpayer notice 40
of the decision and, if the application is approved, the amount of 41
the credit authorized. Upon receipt of notice that the application 42
has been approved, the taxpayer must, not later than 30 days after 43
receiving the notice, make the don ation of money to the Program. 44
Upon receipt of the donation, the Office shall issue a certificate of 45

– 5 –

- *SB269*
the credit authorized by subsection 1. If the taxpayer does not 1
make the donation of money to the Program within 30 days after 2
receiving the notice, the ta xpayer forfeits any claim to the credit 3
authorized by subsection 1. The Office shall notify the Department 4
of Taxation of each application approved pursuant to this 5
subsection, the issuance of each certificate of the credit authorized 6
by subsection 1 and t he forfeiture of any claim to a credit 7
authorized by subsection 1. 8
3. The Office of Science, Innovation and Technology shall 9
approve or deny applications for the credit authorized by 10
subsection 1 in the order in which the applications are received. 11
4. The Office of Science, Innovation and Technology may, 12
for each fiscal year, approve applications for the credit authorized 13
by subsection 1 until the total amount of the credits authorized by 14
subsection 1 and approved by the Office pursuant to this 15
subsection and subsection 4 of section 1 of this act is: 16
(a) For Fiscal Year 2025-2026, $4,000,000; 17
(b) For Fiscal Year 2026-2027, $4,120,000; and 18
(c) For each subsequent fiscal year, an amount equal to 103 19
percent of the amount authorized for the immediately preceding 20
fiscal year. 21
 The amount of any credit which is forfeited pursuant to 22
subsection 2 must not be considered in calculating the amount of 23
credits authorized for any fiscal year. 24
5. If a taxpayer applies to and is approved by the Office of 25
Science, Innovation and Technology for the credit authorized by 26
subsection 1, the amount of the credit provided by this section is 27
equal to the amount approved by the Office pursuant to subsection 28
2, which must not exceed the amount of the donation made by the 29
taxpayer to the Graduate Medical Education Grant Program. The 30
total amount of the credit applied against the taxes described in 31
subsection 1 and otherwise due from a taxpayer must not exceed 32
the amount of the donation. 33
6. If the amount of the tax described in subsection 1 and 34
otherwise due from a taxpayer is less than the credit to which the 35
taxpayer is entitled pursuant to this section, the taxpayer may, 36
after applying the credit to the extent of the tax otherwise due, 37
carry the balance of the credit forward for not more than 5 years 38
after the end of the calendar year in which the donation is made 39
or until the balance of the credit is applied, whichever is earlier. 40
Sec. 4. NRS 363B.110 is hereby amended to read as follows: 41
363B.110 1. Except as otherwise provided in NRS 360.203, 42
there is hereby imposed an excise tax on each employer at the rate 43
of 1.475 percent of the amount by which the sum of all the wages, 44
as defined in NRS 612.190, paid by the employer during a calendar 45

– 6 –

- *SB269*
quarter with respect to employment in connection with the business 1
activities of the employer exceeds $50,000. 2
2. The tax imposed by this section: 3
(a) Does not apply to any person or other entity or any wages 4
this State is prohibited from taxing under the Constitution, laws or 5
treaties of the United States or the Nevada Constitution. 6
(b) Must not be deducted, in whole or in part, from any wages of 7
persons in the employment of the employer. 8
3. Each employer shall, on or before the last day of the month 9
immediately following each calendar quarter for which the 10
employer is required to pay a contribution pursuant to 11
NRS 612.535: 12
(a) File with the Department a return on a form prescribed by 13
the Department; and 14
(b) Remit to the Department any tax due pursuant to this chapter 15
for that calendar quarter. 16
4. In determining the amount of the tax due pursuant to this 17
section, an employer is entitled to subtract from the amount 18
calculated pursuant to subsection 1 a credit in an amount equal to 50 19
percent of the amo unt of the commerce tax paid by the employer 20
pursuant to chapter 363C of NRS for the preceding taxable year. 21
The credit may only be used for any of the 4 calendar quarters 22
immediately following the end of the taxable year for which the 23
commerce tax was pai d. The amount of credit used for a calendar 24
quarter may not exceed the amount calculated pursuant to 25
subsection 1 for that calendar quarter. Any unused credit may not be 26
carried forward beyond the fourth calendar quarter immediately 27
following the end of th e taxable year for which the commerce tax 28
was paid, and a taxpayer is not entitled to a refund of any unused 29
credit. 30
5. An employer who makes a donation of money to a 31
scholarship organization during the calendar quarter for which a 32
return is filed pursuant to this section is entitled, in accordance with 33
NRS 363B.119, to a credit equal to the amount authorized pursuant 34
to NRS 363B.119 against any tax otherwise due pursuant to this 35
section. As used in this subsection, “scholarship organization” has 36
the meaning ascribed to it in NRS 388D.260. 37
6. An employer who makes a donation of money to the 38
Graduate Medical Education Grant Program established by NRS 39
223.637 during the calendar quarter for which a return is filed 40
pursuant to this section is entitled, in a ccordance with section 3 of 41
this act, to a credit equal to the amount authorized pursuant to 42
section 3 of this act against any tax otherwise due pursuant to this 43
section. 44

– 7 –

- *SB269*
Sec. 5. This act becomes effective on July 1, 2025. 1

H