Payroll tax: Credit for matching employee contributions to prepaid tuition contracts and college savings trust accounts.

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1. An employer is entitled to a credit against the excise tax imposed on the employer pursuant to NRS 363A.130 if:

(a) The employer makes a contribution to the Nevada Higher Education Prepaid Trust Fund created by NRS 353B.140 on behalf of a qualified beneficiary on whose behalf a prepaid tuition contract is drawn pursuant to NRS 353B.100 and the contribution matches a contribution made on behalf of the qualified beneficiary by an employee of the employer; or

(b) The employer makes a contribution to a savings trust account in the Nevada College Savings Trust Fund created by NRS 353B.340 and the contribution matches a contribution made to the savings trust account by an employee of the employer.

2. A credit described in subsection 1 must be in an amount equal to 25 percent of the matching contribution but may not exceed $500 per contributing employee per year.

3. A credit described in subsection 1 may not be applied retroactively. If the amount of a credit exceeds the tax liability of an employer for a year, the excess may be applied to the tax liability of the employer for 5 years after the year in which the matching contribution was made. A credit applied pursuant to this subsection must be applied during the earliest year for which the employer has a tax liability. If credits for more than 1 year are available to an employer pursuant to this subsection, the credit from the earliest year must be applied first.

4. An employer claiming a credit pursuant to this section shall maintain any record required by the Department regarding the matching contribution for which the credit is claimed.

5. A contribution made by an employer as described in subsection 1 is the property of the employee whose contribution is being matched and may not be claimed in any manner by the employer.

6. As used in this section:

(a) "Prepaid tuition contract" has the meaning ascribed to it in NRS 353B.030.

(b) "Qualified beneficiary" has the meaning ascribed to it in NRS 353B.050.

(Added to NRS by 2015, 2448; A 2015, 2451)


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