Nevada § 363A.137 - Payroll tax: Credit for matching employee contributions to prepaid tuition contracts and college savings trust accounts

§ 363A.137. Payroll tax: Credit for matching employee contributions to prepaid tuition contracts and college savings trust accounts

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 .