NAC362.035. Deductions: Interpretation of certain statutory terms. [Effective January 1, 2016.]

For the purposes of:

     1. Paragraph (k) of subsection 3 of NRS 362.120, the Nevada Tax Commission will interpret the term “developmental work” to have the meaning ascribed to it in NAC 362.006.

     2. Paragraph (c) of subsection 7 of NRS 362.120, the Nevada Tax Commission will interpret the term “costs of severing the employment of any employees” to:

     (a) Exclude, without limitation, the costs of:

          (1) Any wages, salary or production bonuses earned by an employee before the date of termination of his or her employment; and

          (2) Any pension benefits, vacation leave and sick leave accrued by an employee before the date of termination of his or her employment; and

     (b) Except as otherwise provided in paragraph (a), include, without limitation, the costs of any:

          (1) Additional payments based on length of service;

          (2) Cash bonuses;

          (3) Stock options;

          (4) Medical insurance, dental insurance and life insurance;

          (5) Payments made in lieu of a required period of notice;

          (6) Negotiated financial sums paid pursuant to an agreement absolving the employer from any further liability to an employee;

          (7) Voluntary redundancy packages offered by an employer to attract volunteers to leave the employment of the employer; and

          (8) Assistance in searching for new positions of employment.

     3. Paragraph (f) of subsection 7 of NRS 362.120, the Nevada Tax Commission will interpret the term “mineral exploration” to have the meaning ascribed to it in NAC 362.007.

     (Added to NAC by Tax Comm’n by R058-11, 12-30-2011, eff. 1-1-2012; A by R058-11, 12-30-2011, eff. 1-1-2014)