2023 Nevada Revised Statutes › Chapter 363C - Commerce Tax › NRS 363C.210 - Deductions from gross revenue.

1. In computing the commerce tax owed by a business entity pursuant to this chapter, the business entity is entitled to deduct from its gross revenue the following amounts, to the extent such amounts are included in gross revenue of the business entity:
(a) Any gross revenue which this State is prohibited from taxing pursuant to the Constitution or laws of the United States or the Nevada Constitution.
(b) Any gross revenue of the business entity attributable to dividends and interest upon any bonds or securities of the Federal Government, the State of Nevada or a political subdivision of this State.
(c) If a business entity is required to pay a license fee pursuant to NRS 463.370, the amount of its gross receipts used to determine the amount of that fee.
(d) If the business entity is required to pay a tax on the net proceeds from mineral extraction and royalties subject to the excise tax pursuant to the provisions of NRS 362.100 to 362.240, inclusive, the amount of the gross proceeds used to determine the amount of that tax.
(e) If the business entity is required to pay the tax imposed by chapter 369 of NRS, an amount equal to the amount of the excise tax paid pursuant to that chapter by the business entity.
(f) If the business entity is required to pay the tax imposed pursuant to chapter 680B of NRS:
(1) The amount of the total income derived from direct premiums written and all other considerations for insurance, bail or annuity contracts used to determine the amount of the tax imposed pursuant to chapter 680B of NRS;
(2) Any amounts excluded from total income derived from direct premiums pursuant to NRS 680B.025; and
(3) Gross premiums upon policies on risks located in this State received by a factory mutual and amounts deducted from such gross premiums to determine the amount of the tax imposed by NRS 680B.027 upon the factory mutual pursuant to NRS 680B.033.
(g) If the business entity is required to pay the tax imposed pursuant to NRS 694C.450, the amount of the net direct premiums, as defined in that section, used to determine the amount of that tax.
(h) If the business entity is required to pay the tax imposed pursuant to NRS 685A.180, the amount of the premiums, as defined in that section, used to determine the amount of that tax.
(i) Except as otherwise provided by paragraph (j), the total amount of payments received by a health care provider:
(1) From Medicaid, Medicare, the Children’s Health Insurance Program, the Fund for Hospital Care to Indigent Persons created pursuant to NRS 428.175 or TRICARE;
(2) For professional services provided in relation to a workers’ compensation claim; and
(3) For the actual cost to the health care provider for any uncompensated care provided by the health care provider, except that if the health care provider later receives payment for all or part of that care, the health care provider must include the amount of the payment in his or her gross receipts for the calendar quarter in which the payment is received.
(j) If the business entity is engaging in a business in this State as a health care provider that is a health care institution, an amount equal to 50 percent of the amounts described in paragraph (i) that are received by the health care institution.
(k) If the business entity is engaging in business in this State as a professional employer organization, the amount of any payments received from a client company for wages, payroll taxes on those wages, employee benefits and workers’ compensation benefits for employees leased to the client company.
(l) The amount of any pass-through revenue of the business entity.
(m) The tax basis of securities and loans sold by the business entity, as determined for the purposes of federal income taxation.
(n) The amount of revenue received by the business entity that is directly derived from the operation of a facility that is:
(1) Located on property owned or leased by the Federal Government; and
(2) Managed or operated primarily to house members of the Armed Forces of the United States.
(o) Interest income other than interest on credit sales.
(p) Dividends and distributions from corporations, and distributive or proportionate shares of receipts and income from a pass-through entity.
(q) Receipts from the sale, exchange or other disposition of an asset described in section 1221 or 1231 of the Internal Revenue Code, 26 U.S.C. § 1221 or 1231, without regard to the length of time the business entity held the asset.
(r) Receipts from a hedging transaction, as defined in section 1221 of the Internal Revenue Code, 26 U.S.C. § 1221, or a transaction accorded hedge accounting treatment under Statement No. 133 of the Financial Accounting Standards Board, Accounting for Derivative Instruments and Hedging Activities, to the extent the transaction is entered into primarily to protect a financial position, including, without limitation, managing the risk of exposure to foreign currency fluctuations that affect assets, liabilities, profits, losses, equity or investments in foreign operations, to interest rate fluctuations or to commodity price fluctuations. For the purposes of this paragraph, receipts from the actual transfer of title of real or tangible personal property to another business entity are not receipts from a hedging transaction or a transaction accorded hedge accounting treatment.
(s) Proceeds received by a business entity that are attributable to the repayment, maturity or redemption of the principal of a loan, bond, mutual fund, certificate of deposit or marketable instrument.
(t) The principal amount received under a repurchase agreement or on account of any transaction properly characterized as a loan.
(u) Proceeds received from the issuance of the business entity’s own stock, options, warrants, puts or calls, from the sale of the business entity’s treasury stock or as contributions to the capital of the business entity.
(v) Proceeds received on account of payments from insurance policies, except those proceeds received for the loss of business revenue.
(w) Damages received as a result of litigation in excess of amounts that, if received without litigation, would not have been included in the gross receipts of the business entity pursuant to this section.
(x) Bad debts expensed for the purposes of federal income taxation.
(y) Returns and refunds to customers.
(z) Amounts realized from the sale of an account receivable to the extent the receipts from the underlying transaction were included in the gross receipts of the business entity.
(aa) If the business entity owns an interest in a passive entity, the business entity’s share of the net income of the passive entity, but only to the extent the net income of the passive entity was generated by the gross revenue of another business entity.
2. As used in this section:
(a) "Children’s Health Insurance Program" means the program established pursuant to 42 U.S.C. §§ 1397aa to 1397jj, inclusive, to provide health insurance for uninsured children from low-income families in this State.
(b) "Client company" has the meaning ascribed to it in NRS 611.400.
(c) "Health care institution" means:
(1) A medical facility as defined in NRS 449.0151; and
(2) A pharmacy as defined in NRS 639.012.
(d) "Health care provider" means a business that receives any payments listed in paragraph (i) of subsection 1 as a provider of health care services, including, without limitation, mental health care services.
(e) "Medicaid" means the program established pursuant to Title XIX of the Social Security Act, 42 U.S.C. §§ 1396 et seq., to provide assistance for part or all of the cost of medical care rendered on behalf of indigent persons.
(f) "Medicare" means the program of health insurance for aged persons and persons with disabilities established pursuant to Title XVIII of the Social Security Act, 42 U.S.C. §§ 1395 et seq.
(g) "Professional employer organization" has the meaning ascribed to it in NRS 611.400.
(Added to NRS by 2015, 2885; A 2021, 1932)