State Assembly Passes New Tax Bill In Nevada
Assembly Bill 3 was voted into law with a 39-0 vote. It will eliminate tax benefits for Nevada insurance companies.
Las Vegas, NV, September 11, 2014 (Newswire.com) - On Sept. 11, the Assembly passed a bill on a 39-0 vote that will eliminate a tax benefit for Nevada insurance companies. Once Assembly Bill 1 is enacted, the saved money is set to go to the state’s general fund. The tax incentives would be used for the proposed Tesla, a massive battery manufacturing plant in Nevada.
Another bill regarding Tesla, Assembly Bill 3, is currently going through the State Senate. It concerns the omnibus tax credit and abatement legislation.
The current law states that insurance companies with their home office in Nevada get an annual subsidy. For 2013, the amount was $27 million between the 12 companies that qualified.
The new bill will reduce the amount to $5 million and eventually be wiped out within the next 7 years.
The initial tax break allowed for insurance companies was enacted 43 years ago. Since its inception, the law has turned into a subsidy.
Assembly Bill 1 is set to lower power rates for Tesla. This incentive is already in law, but it was going to expire in 2018. Lawmakers wanted to extend it eight more years. Tesla will now be able to save 30 percent of its power bills for two years, 20 percent for four years and 10 percent the final two years.
Stewart, Archibald & Barney is an accounting firm designed to help small businesses with their finances and taxes. With a new bill approaching law, companies need to keep their finances in line. Contact Stewart, Archibald & Barney to learn more about new tax laws in Las Vegas. Call 702.579.7000 or visit www.sabcpa.com. You can visit the firm in-person at 7881 W. Charleston Blvd, Suite 250, Las Vegas, NV 89117.
