Nevada MBT Tax Credit

With Nevada rolling out the new Commerce Tax there is a credit that can be claimed on Modified Business Tax (MBT). Unless exempt, every entity conducting business in Nevada must file a Commerce Tax return beginning 2015-16 fiscal year. Commerce Tax is only due on revenue (sales receipts, etc.) that is greater than $4,000,000.00. The return is due 45 days following the close of the fiscal year (June 30), i.e. August 15, 2016 for the current year and must have been filed timely.

The credit given will allow for a deduction of 50% of the Commerce Tax paid. The credit is good for 4 calendar quarters following payment of the Commerce Tax and the credit, itself, cannot be more than the MBT liability.

You can claim this credit starting third quarter of 2016.The following requirements apply:

•  The credit received cannot be greater than the NV MBT due for that quarter.
• The credit can be carried forward to the following quarter if it cannot be claimed in full.
• The credit can only be claimed on the four quarters following the close of the fiscal year, e.g. Q3 16, Q4 16, Q1 17, and Q2 17.
• Any remaining credit is forfeited after four quarters if it cannot be claimed during the allowed time frame.

Note: Paylocity will include a reminder regarding this credit for any Client Filing Nevada Unemployment for the tax periods the credit is in effect.

Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.

This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.