A.B. 364
- *AB364*
ASSEMBLY BILL NO. 364–ASSEMBLYMEMBER ANDERSON
MARCH 4, 2025
____________
Referred to Committee on Revenue
SUMMARY—Revises provisions governing the Nevada
Educational Choice Scholarship Program.
(BDR 34-1082)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State: No.
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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
AN ACT relating to taxation; revising the pupils on whose behalf a
scholarship organization is authorized to provide a grant
under the Nevada Education Choice Scholarship Program;
requiring a scholarship organization to notify the
Department of Taxation if there are no pupils on whose
behalf the scholarship organization is authorized to
provide a grant; prohibiting the Department from
approving applications for tax credits under the Program
made by such a scholarship organization; requiring a
scholarship organization to repay certain tax credits under
certain circumstances; and providing other matters
properly relating thereto.
Legislative Counsel’s Digest:
Under existing law, financial institutions, certain mining businesses and other 1
employers are required to pay an excise tax (the modified business tax) on the 2
wages paid by them. (NRS 363A.130, 363B.160) Existing law establishes a credit 3
against the modified business tax paid by certain businesses equal to an amount 4
which is approved by the Department of Taxation and which must not exceed the 5
amount of any donation of money which is made by a taxpayer to a scholarship 6
organization that provides grants on behalf of pupils who are members of a 7
household with a household income which is not more than 300 percent of the 8
federally designated level signifying poverty to attend schools in this State, 9
including private schools, chosen by the parents or legal guardians of those pupils. 10
(NRS 363A.130, 363A.139, 363B.110, 363B.119, 388D.270) Section 1 of this bill: 11
(1) prohibits a scholarship organization from using a donation for which the donor 12
received a tax credit to provide a grant on behalf of a pupil unless the scholarship 13
organization also used a donation for which a donor received a tax credit to provide 14
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a grant on behalf of the pupil for the immediately preceding school year at the same 15
school; and (2) requires a scholarship organization to repay the amount of any tax 16
credit approved by the Department if the scholarship organization violates this 17
provision. Section 1 requires a scholarship organization to notify the Department if 18
there ceases to be any pupil on whose behalf the scholarship organization is 19
authorized to make a grant. Sections 2 and 3 of this bill prohibit the Department 20
from approving an application for a tax credit made by a scholarship organization 21
that has provided or is required to provide this notification. Section 1 requires a 22
scholarship organization which, at the time it is required to provide this 23
notification, has not expended all of the donations for which a tax credit was 24
received by a taxpayer to repay to the Department the tax credits received in an 25
amount equal to the amount of the unexpended donations. 26
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 388D.270 is hereby amended to read as 1
follows: 2
388D.270 1. A scholarship organization must: 3
(a) Be exempt from taxation pursuant to section 501(c)(3) of the 4
Internal Revenue Code, 26 U.S.C. § 501(c)(3). 5
(b) Not own or operate any school in this State, including, 6
without limitation, a private school, which receives any grant money 7
pursuant to the Nevada Educational Choice Scholarship Program. 8
(c) Accept donations from taxpayers and other persons and may 9
also solicit and accept gifts and grants. 10
(d) Not expend more than 5 percent of the total amount of 11
money accepted pursuant to paragraph (c) to pay its administrative 12
expenses. 13
(e) Provide grants on behalf of pupils who are members of a 14
household that has a household income which is not more than 300 15
percent of the federally designated level signifying poverty to allow 16
those pupils to attend schools in this State chosen by the parents or 17
legal guardians of those pupils, including, without limitation, private 18
schools. The total amount of a grant provided by the scholarship 19
organization on behalf of a pupil pursuant to this paragraph must not 20
exceed $7,755 for Fiscal Year 2015-2016. 21
(f) Not limit to a single school the schools for which it provides 22
grants. 23
(g) Except as otherwise provided in paragraph (e) [,] and 24
subsection 6, not limit to specific pupils the grants provided 25
pursuant to [that] paragraph [.] (e). 26
2. The maximum amount of a grant provided by the 27
scholarship organization pursuant to paragraph (e) of subsection 1 28
must be adjusted on July 1 of each year for the fiscal year beginning 29
that day and ending June 30 in a rounded dollar amount 30
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corresponding to the percentage of increase in the Consumer Price 1
Index (All Items) published by the United States Department of 2
Labor for the preceding calendar year. On May 1 of each year, the 3
Department of Education shall determine the amount of increase 4
required by this subsection, establish the adjusted amounts to take 5
effect on July 1 of that year and notify each scholarship organization 6
of the adjusted amounts. The Department of Education shall also 7
post the adjusted amounts on its Internet website. 8
3. A grant provided on behalf of a pupil pursuant to subsection 9
1 must be paid directly to the school chosen by the parent or legal 10
guardian of the pupil. 11
4. A scholarship organization shall provide each taxpayer and 12
other person who makes a donation, gift or grant of money to the 13
scholarship organization pursuant to paragraph (c) of subsection 1 14
with an affidavit, signed under penalty of perjury, which includes, 15
without limitation: 16
(a) A statement that the scholarship organization satisfies the 17
requirements set forth in subsection 1; and 18
(b) The total amount of the donation, gift or grant made to the 19
scholarship organization. 20
5. Each school in which a pupil is enrolled for whom a grant is 21
provided by a scholarship organization shall maintain a record of the 22
academic progress of the pupil. The record must be maintained in 23
such a manner that the information may be aggregated and reported 24
for all such pupils if reporting is required by the regulations of the 25
Department of Education. 26
6. A scholarship organization shall not use a donation for 27
which a taxpayer received a tax credit pursuant to NRS 363A.139 28
or 363B.119 to provide a grant pursuant to this section on behalf 29
of a pupil unless the scholarship organization used a donation for 30
which a taxpayer received a tax credit pursuant to NRS 363A.139 31
or 363B.119 to provide a grant pursuant to this section on behalf 32
of the pupil for the immediately preceding school year for the 33
same school. A scholarship organization that violates this 34
subjection shall repay to the Department of Taxation the amount 35
of the tax credit received by the taxpayer pursuant to NRS 36
363A.139 or 363B.119, as applicable. 37
7. If, pursuant to subsection 6, there ceases to be any pupil on 38
whose behalf a scholarship organization is authorized to provide a 39
grant, the scholarship organization shall notify the Department of 40
Taxation of that fact. If a scholarship organization has not, at that 41
time, expended all of the donations for which a taxpayer received 42
a tax credit pursuant to NRS 363A.139 or 363B.119, the 43
scholarship organization shall repay to the Department of 44
Taxation an amount of the tax credit received by taxpayers 45
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pursuant to NRS 363A.139 or 363B.119 which is equal to the 1
amount of such donations that were not expended by the 2
scholarship organization. 3
8. The Department of Education: 4
(a) Shall adopt regulations prescribing the contents of and 5
procedures for applications for grants provided pursuant to 6
subsection 1. 7
(b) May adopt such other regulations as the Department 8
determines necessary to carry out the provisions of this section. 9
[7.] 9. As used in this section, “private school” has the 10
meaning ascribed to it in NRS 394.103. 11
Sec. 2. NRS 363A.139 is hereby amended to read as follows: 12
363A.139 1. Any taxpayer who is required to pay a tax 13
pursuant to NRS 363A.130 may receive a credit against the tax 14
otherwise due for any donation of money made by the taxpayer to a 15
scholarship organization in the manner provided by this section. 16
2. To receive the credit authorized by subsection 1, a taxpayer 17
who intends to make a donation of money to a scholarship 18
organization must, before making such a donation, notify the 19
scholarship organization of the taxpayer’s intent to make the 20
donation and to seek the credit authorized by subsection 1. A 21
scholarship organization shall, before accepting any such donation, 22
apply to the Department of Taxation for approval of the credit 23
authorized by subsection 1 for the donation. The Department of 24
Taxation shall, within 20 days after receiving the application, 25
approve or deny the application and provide to the scholarship 26
organization notice of the decision and, if the application is 27
approved, the amount of the credit authorized. Upon receipt of 28
notice that the application has been approved, the scholarship 29
organization shall provide notice of the approval to the taxpayer 30
who must, not later than 30 days after receiving the notice, make the 31
donation of money to the scholarship organization. If the taxpayer 32
does not make the donation of money to the scholarship 33
organization within 30 days after receiving the notice, the 34
scholarship organization shall provide notice of the failure to the 35
Department of Taxation and the taxpayer forfeits any claim to 36
the credit authorized by subsection 1. 37
3. The Department of Taxation shall approve or deny 38
applications for the credit authorized by subsection 1 in the order in 39
which the applications are received. The Department of Taxation 40
shall not approve an application for the credit authorized by 41
subsection 1 made by a scholarship organization which has 42
provided or is required to provide the notice described in 43
subsection 7 of NRS 388D.270. 44
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4. Except as otherwise provided in subsection 5, the 1
Department of Taxation may, for each fiscal year, approve 2
applications for the credit authorized by subsection 1 until the total 3
amount of the credits authorized by subsection 1 and approved by 4
the Department of Taxation pursuant to this subsection and 5
subsection 4 of NRS 363B.119 is $6,655,000. The amount of any 6
credit which is forfeited pursuant to subsection 2 must not be 7
considered in calculating the amount of credits authorized for any 8
fiscal year. 9
5. Except as otherwise provided in this subsection, in addition 10
to the amount of credits authorized by subsection 4 for Fiscal Years 11
2019-2020, 2020-2021 and 2021-2022, the Department of Taxation 12
may approve applications for the credit authorized by subsection 1 13
for each of those fiscal years until the total amount of the credits 14
authorized by subsection 1 and approved by the Department of 15
Taxation pursuant to this subsection and subsection 5 of NRS 16
363B.119 is $4,745,000. The provisions of subsection 4 do not 17
apply to the amount of credits authorized by this subsection and the 18
amount of credits authorized by this subsection must not be 19
considered when determining the amount of credits authorized for a 20
fiscal year pursuant to subsection 4. If, in Fiscal Year 2019-2020, 21
2020-2021 or 2021-2022, the amount of credits authorized by 22
subsection 1 and approved pursuant to this subsection and 23
subsection 5 of NRS 363B.119 is less than $4,745,000, the 24
remaining amount of credits pursuant to this subsection and 25
subsection 5 of NRS 363B.119 must be carried forward and made 26
available for approval during subsequent fiscal years until the total 27
amount of credits authorized by subsection 1 and approved pursuant 28
to this subsection and subsection 5 of NRS 363B.119 is equal to 29
$14,235,000. The amount of any credit which is forfeited pursuant 30
to subsection 2 must not be considered in calculating the amount of 31
credits authorized pursuant to this subsection. 32
6. If a taxpayer applies to and is approved by the Department 33
of Taxation for the credit authorized by subsection 1, the amount of 34
the credit provided by this section is equal to the amount approved 35
by the Department of Taxation pursuant to subsection 2, which must 36
not exceed the amount of the donation made by the taxpayer to a 37
scholarship organization. The total amount of the credit applied 38
against the taxes described in subsection 1 and otherwise due from a 39
taxpayer must not exceed the amount of the donation. 40
7. If the amount of the tax described in subsection 1 and 41
otherwise due from a taxpayer is less than the credit to which the 42
taxpayer is entitled pursuant to this section, the taxpayer may, after 43
applying the credit to the extent of the tax otherwise due, carry the 44
balance of the credit forward for not more than 5 years after the end 45
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of the calendar year in which the donation is made or until the 1
balance of the credit is applied, whichever is earlier. 2
8. As used in this section, “scholarship organization” has the 3
meaning ascribed to it in NRS 388D.260. 4
Sec. 3. NRS 363B.119 is hereby amended to read as follows: 5
363B.119 1. Any taxpayer who is required to pay a tax 6
pursuant to NRS 363B.110 may receive a credit against the tax 7
otherwise due for any donation of money made by the taxpayer to a 8
scholarship organization in the manner provided by this section. 9
2. To receive the credit authorized by subsection 1, a taxpayer 10
who intends to make a donation of money to a scholarship 11
organization must, before making such a donation, notify the 12
scholarship organization of the taxpayer’s intent to make the 13
donation and to seek the credit authorized by subsection 1. A 14
scholarship organization shall, before accepting any such donation, 15
apply to the Department of Taxation for approval of the credit 16
authorized by subsection 1 for the donation. The Department of 17
Taxation shall, within 20 days after receiving the application, 18
approve or deny the application and provide to the scholarship 19
organization notice of the decision and, if the application is 20
approved, the amount of the credit authorized. Upon receipt of 21
notice that the application has been approved, the scholarship 22
organization shall provide notice of the approval to the taxpayer 23
who must, not later than 30 days after receiving the notice, make the 24
donation of money to the scholarship organization. If the taxpayer 25
does not make the donation of money to the scholarship 26
organization within 30 days after receiving the notice, the 27
scholarship organization shall provide notice of the failure to the 28
Department of Taxation and the taxpayer forfeits any claim to 29
the credit authorized by subsection 1. 30
3. The Department of Taxation shall approve or deny 31
applications for the credit authorized by subsection 1 in the order in 32
which the applications are received. The Department of Taxation 33
shall not approve an application for the credit authorized by 34
subsection 1 made by a scholarship organization which has 35
provided or is required to provide the notice described in 36
subsection 7 of NRS 388D.270. 37
4. Except as otherwise provided in subsection 5, the 38
Department of Taxation may, for each fiscal year, approve 39
applications for the credit authorized by subsection 1 until the total 40
amount of the credits authorized by subsection 1 and approved by 41
the Department of Taxation pursuant to this subsection and 42
subsection 4 of NRS 363A.139 is $6,655,000. The amount of any 43
credit which is forfeited pursuant to subsection 2 must not be 44
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considered in calculating the amount of credits authorized for any 1
fiscal year. 2
5. In addition to the amount of credits authorized by subsection 3
4 for Fiscal Years 2019-2020, 2020-2021 and 2021-2022, the 4
Department of Taxation may approve applications for the credit 5
authorized by subsection 1 for each of those fiscal years until the 6
total amount of the credits authorized by subsection 1 and approved 7
by the Department of Taxation pursuant to this subsection and 8
subsection 5 of NRS 363A.139 is $4,745,000. The provisions 9
of subsection 4 do not apply to the amount of credits authorized by 10
this subsection and the amount of credits authorized by this 11
subsection must not be considered when determining the amount of 12
credits authorized for a fiscal year pursuant to subsection 4. If, in 13
Fiscal Year 2019-2020, 2020-2021 or 2021-2022, the amount of 14
credits authorized by subsection 1 and approved pursuant to this 15
subsection and subsection 5 of NRS 363A.139 is less than 16
$4,745,000, the remaining amount of credits pursuant to this 17
subsection and subsection 5 of NRS 363A.139 must be carried 18
forward and made available for approval during subsequent fiscal 19
years until the total amount of credits authorized by subsection 1 20
and approved pursuant to this subsection and subsection 5 of NRS 21
363A.139 is equal to $14,235,000. The amount of any credit which 22
is forfeited pursuant to subsection 2 must not be considered in 23
calculating the amount of credits authorized pursuant to this 24
subsection. 25
6. If a taxpayer applies to and is approved by the Department 26
of Taxation for the credit authorized by subsection 1, the amount of 27
the credit provided by this section is equal to the amount approved 28
by the Department of Taxation pursuant to subsection 2, which must 29
not exceed the amount of the donation made by the taxpayer to a 30
scholarship organization. The total amount of the credit applied 31
against the taxes described in subsection 1 and otherwise due from a 32
taxpayer must not exceed the amount of the donation. 33
7. If the amount of the tax described in subsection 1 and 34
otherwise due from a taxpayer is less than the credit to which the 35
taxpayer is entitled pursuant to this section, the taxpayer may, after 36
applying the credit to the extent of the tax otherwise due, carry the 37
balance of the credit forward for not more than 5 years after the end 38
of the calendar year in which the donation is made or until the 39
balance of the credit is applied, whichever is earlier. 40
8. As used in this section, “scholarship organization” has the 41
meaning ascribed to it in NRS 388D.260. 42
Sec. 4. This act becomes effective on July 1, 2025. 43
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