Child care tax break proposed for businesses
pose a financial needs test for employees to qualify.
But Senate Assistant Minority Leader Ben Kieckhefer, R-Reno, questioned how a business would determine need, especially in two-income households.
“I liked it without the means test,” he said. “It was clean and easy to administer.”
Senate Minority Leader Michael Roberson, R-Henderson, questioned the cost to the state budget. The tax generated $566 million in fiscal year 2016.
Spearman said the cost is difficult to calculate, because it’s unknown how many employers would participate or how many employees would qualify if a means test were included.
“I like the concept. I like the idea behind the bill. But I think we have to know somewhat close to the ballpark” how it would impact revenues, Roberson said.
No one testified against the bill, though the Retail Association of Nevada and the Nevada Manufacturers Association raised concerns.
Bryan Wachter with the retail group suggested that the state consider something like health savings accounts that could be used for child care expenses.
Ray Bacon with the manufacturers association said employers like the modified business tax for its predictability and simplicity.
“To start playing around with that … causes our members concern,” he said.
No action was taken by the committee, and Spearman said she was willing to work on a compromise. Contact Sandra Chereb at schereb@reviewjournal.com or 775-461-3821. Follow @SandraChereb on Twitter.