A.B. 441
- *AB441*
ASSEMBLY BILL NO. 441–ASSEMBLYMEMBER MONROE-MORENO
MARCH 17, 2025
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Referred to Committee on Revenue
SUMMARY—Revises provisions governing the Nevada
Educational Choice Scholarship Program.
(BDR 32-6)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Yes.
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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; requiring a scholarship organization to
use a donation for which a tax credit was received under
the Nevada Educational Choice Scholarship Program
within a certain time after the application for the tax credit
was approved; and providing other matters properly
relating thereto.
Legislative Counsel’s Digest:
Existing law imposes a payroll tax on: (1) financial institutions and on mining 1
companies subject to the tax on the net proceeds of minerals, with the rate of the 2
payroll tax set at 2 percent of the amount of the wages, as defined under existing 3
law, paid by the financial institution or mining company during each calendar 4
quarter in connection with its business activities; and (2) other business entities, 5
with the rate of the payroll tax set at 1.475 percent of the amount of the wages, as 6
defined under existing law but excluding the first $50,000 thereof, paid by the 7
business entity during each calendar quarter in connection with business activities. 8
(NRS 363A.030, 363A.130, 363B.110, 612.190) Existing law provides a credit 9
against the payroll tax equal to an amount which must not exceed the amount of 10
any donation of money which is made by a taxpayer to a scholarship organization 11
that provides grants on behalf of pupils who are members of a household with a 12
household income below a certain level to attend schools in this State, including 13
private schools, chosen by the parents or legal guardians of those pupils. (NRS 14
363A.130, 363B.110, 388D.270) Existing law requires a scholarship organization, 15
before accepting a donation on behalf of a taxpayer, to apply to the Department of 16
Taxation for approval of the tax credit for the donation. (NRS 363A.139, 17
363B.119) Sections 1 and 2 of this bill require a scholarship organization to 18
expend the entire amount of any donation for which a taxpayer receives a tax credit 19
not later than 18 months after the date on which the application for the tax credit 20
was approved by the Department. Sections 1 and 2 require a scholarship 21
organization that does not expend the entire amount of a donation within this time 22
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period to repay to the Department the tax credit that was allowed for the donation in 23
an amount equal to the amount of the donation that was not expended. 24
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 363A.139 is hereby amended to read as 1
follows: 2
363A.139 1. Any taxpayer who is required to pay a tax 3
pursuant to NRS 363A.130 may receive a credit against the tax 4
otherwise due for any donation of money made by the taxpayer to a 5
scholarship organization in the manner provided by this section. 6
2. To receive the credit authorized by subsection 1, a taxpayer 7
who intends to make a donation of money to a scholarship 8
organization must, before making such a donation, notify the 9
scholarship organization of the taxpayer’s intent to make the 10
donation and to seek the credit authorized by subsection 1. A 11
scholarship organization shall, before accepting any such donation, 12
apply to the Department of Taxation for approval of the credit 13
authorized by subsection 1 for the donation. The Department of 14
Taxation shall, within 20 days after receiving the application, 15
approve or deny the application and provide to the scholarship 16
organization notice of the decision and, if the application is 17
approved, the amount of the credit authorized. Upon receipt of 18
notice that the application has been approved, the scholarship 19
organization shall provide notice of the approval to the taxpayer 20
who must, not later than 30 days after receiving the notice, make the 21
donation of money to the scholarship organization. If the taxpayer 22
does not make the donation of money to the scholarship 23
organization within 30 days after receiving the notice, the 24
scholarship organization shall provide notice of the failure to 25
the Department of Taxation and the taxpayer forfeits any claim to 26
the credit authorized by subsection 1. 27
3. The Department of Taxation shall approve or deny 28
applications for the credit authorized by subsection 1 in the order in 29
which the applications are received. 30
4. Except as otherwise provided in subsection 5, the 31
Department of Taxation may, for each fiscal year, approve 32
applications for the credit authorized by subsection 1 until the total 33
amount of the credits authorized by subsection 1 and approved by 34
the Department of Taxation pursuant to this subsection and 35
subsection 4 of NRS 363B.119 is $6,655,000. The amount of any 36
credit which is forfeited pursuant to subsection 2 must not be 37
considered in calculating the amount of credits authorized for any 38
fiscal year. 39
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5. Except as otherwise provided in this subsection, in addition 1
to the amount of credits authorized by subsection 4 for Fiscal Years 2
2019-2020, 2020-2021 and 2021-2022, the Department of Taxation 3
may approve applications for the credit authorized by subsection 1 4
for each of those fiscal years until the total amount of the credits 5
authorized by subsection 1 and approved by the Department of 6
Taxation pursuant to this subsection and subsection 5 of NRS 7
363B.119 is $4,745,000. The provisions of subsection 4 do not 8
apply to the amount of credits authorized by this subsection and the 9
amount of credits authorized by this subsection must not be 10
considered when determining the amount of credits authorized for a 11
fiscal year pursuant to subsection 4. If, in Fiscal Year 2019-2020, 12
2020-2021 or 2021-2022, the amount of credits authorized by 13
subsection 1 and approved pursuant to this subsection and 14
subsection 5 of NRS 363B.119 is less than $4,745,000, the 15
remaining amount of credits pursuant to this subsection and 16
subsection 5 of NRS 363B.119 must be carried forward and made 17
available for approval during subsequent fiscal years until the total 18
amount of credits authorized by subsection 1 and approved pursuant 19
to this subsection and subsection 5 of NRS 363B.119 is equal to 20
$14,235,000. The amount of any credit which is forfeited pursuant 21
to subsection 2 must not be considered in calculating the amount of 22
credits authorized pursuant to this subsection. 23
6. If a taxpayer applies to and is approved by the Department 24
of Taxation for the credit authorized by subsection 1, the amount of 25
the credit provided by this section is equal to the amount approved 26
by the Department of Taxation pursuant to subsection 2, which must 27
not exceed the amount of the donation made by the taxpayer to a 28
scholarship organization. The total amount of the credit applied 29
against the taxes described in subsection 1 and otherwise due from a 30
taxpayer must not exceed the amount of the donation. 31
7. If the amount of the tax described in subsection 1 and 32
otherwise due from a taxpayer is less than the credit to which the 33
taxpayer is entitled pursuant to this section, the taxpayer may, after 34
applying the credit to the extent of the tax otherwise due, carry the 35
balance of the credit forward for not more than 5 years after the end 36
of the calendar year in which the donation is made or until the 37
balance of the credit is applied, whichever is earlier. 38
8. A scholarship organization shall expend the entire amount 39
of any donation for which a taxpayer received a tax credit 40
pursuant to this section not later than 18 months after the date on 41
which the application for the tax credit was approved pursuant to 42
subsection 2. A scholarship organization shall repay to the 43
Department of Taxation the amount of any tax credit which was 44
authorized and approved pursuant to this section and for which 45
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the underlying donation was not expended within the time 1
required by this subsection. The amount of the credit which the 2
scholarship organization is required to repay pursuant to this 3
subsection shall be equal to the amount of the donation that was 4
not expended within the time required. 5
9. As used in this section, “scholarship organization” has the 6
meaning ascribed to it in NRS 388D.260. 7
Sec. 2. NRS 363B.119 is hereby amended to read as follows: 8
363B.119 1. Any taxpayer who is required to pay a tax 9
pursuant to NRS 363B.110 may receive a credit against the tax 10
otherwise due for any donation of money made by the taxpayer to a 11
scholarship organization in the manner provided by this section. 12
2. To receive the credit authorized by subsection 1, a taxpayer 13
who intends to make a donation of money to a scholarship 14
organization must, before making such a donation, notify the 15
scholarship organization of the taxpayer’s intent to make the 16
donation and to seek the credit authorized by subsection 1. A 17
scholarship organization shall, before accepting any such donation, 18
apply to the Department of Taxation for approval of the credit 19
authorized by subsection 1 for the donation. The Department of 20
Taxation shall, within 20 days after receiving the application, 21
approve or deny the application and provide to the scholarship 22
organization notice of the decision and, if the application is 23
approved, the amount of the credit authorized. Upon receipt of 24
notice that the application has been approved, the scholarship 25
organization shall provide notice of the approval to the taxpayer 26
who must, not later than 30 days after receiving the notice, make the 27
donation of money to the scholarship organization. If the taxpayer 28
does not make the donation of money to the scholarship 29
organization within 30 days after receiving the notice, the 30
scholarship organization shall provide notice of the failure to 31
the Department of Taxation and the taxpayer forfeits any claim to 32
the credit authorized by subsection 1. 33
3. The Department of Taxation shall approve or deny 34
applications for the credit authorized by subsection 1 in the order in 35
which the applications are received. 36
4. Except as otherwise provided in subsection 5, the 37
Department of Taxation may, for each fiscal year, approve 38
applications for the credit authorized by subsection 1 until the total 39
amount of the credits authorized by subsection 1 and approved by 40
the Department of Taxation pursuant to this subsection and 41
subsection 4 of NRS 363A.139 is $6,655,000. The amount of any 42
credit which is forfeited pursuant to subsection 2 must not be 43
considered in calculating the amount of credits authorized for any 44
fiscal year. 45
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5. In addition to the amount of credits authorized by subsection 1
4 for Fiscal Years 2019-2020, 2020-2021 and 2021-2022, the 2
Department of Taxation may approve applications for the credit 3
authorized by subsection 1 for each of those fiscal years until the 4
total amount of the credits authorized by subsection 1 and approved 5
by the Department of Taxation pursuant to this subsection and 6
subsection 5 of NRS 363A.139 is $4,745,000. The provisions 7
of subsection 4 do not apply to the amount of credits authorized by 8
this subsection and the amount of credits authorized by this 9
subsection must not be considered when determining the amount of 10
credits authorized for a fiscal year pursuant to subsection 4. If, in 11
Fiscal Year 2019-2020, 2020-2021 or 2021-2022, the amount of 12
credits authorized by subsection 1 and approved pursuant to this 13
subsection and subsection 5 of NRS 363A.139 is less than 14
$4,745,000, the remaining amount of credits pursuant to this 15
subsection and subsection 5 of NRS 363A.139 must be carried 16
forward and made available for approval during subsequent fiscal 17
years until the total amount of credits authorized by subsection 1 18
and approved pursuant to this subsection and subsection 5 of NRS 19
363A.139 is equal to $14,235,000. The amount of any credit which 20
is forfeited pursuant to subsection 2 must not be considered in 21
calculating the amount of credits authorized pursuant to this 22
subsection. 23
6. If a taxpayer applies to and is approved by the Department 24
of Taxation for the credit authorized by subsection 1, the amount of 25
the credit provided by this section is equal to the amount approved 26
by the Department of Taxation pursuant to subsection 2, which must 27
not exceed the amount of the donation made by the taxpayer to a 28
scholarship organization. The total amount of the credit applied 29
against the taxes described in subsection 1 and otherwise due from a 30
taxpayer must not exceed the amount of the donation. 31
7. If the amount of the tax described in subsection 1 and 32
otherwise due from a taxpayer is less than the credit to which the 33
taxpayer is entitled pursuant to this section, the taxpayer may, after 34
applying the credit to the extent of the tax otherwise due, carry the 35
balance of the credit forward for not more than 5 years after the end 36
of the calendar year in which the donation is made or until the 37
balance of the credit is applied, whichever is earlier. 38
8. A scholarship organization shall expend the entire amount 39
of any donation for which a taxpayer received a tax credit 40
pursuant to this section not later than 18 months after the date on 41
which the application for the tax credit was approved pursuant to 42
subsection 2. A scholarship organization shall repay to the 43
Department of Taxation the amount of any tax credit which was 44
authorized and approved pursuant to this section and for which 45
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the underlying donation was not expended within the time 1
required by this subsection. The amount of the credit which the 2
scholarship organization is required to repay pursuant to this 3
subsection shall be equal to the amount of the donation that was 4
not expended within the time required. 5
9. As used in this section, “scholarship organization” has the 6
meaning ascribed to it in NRS 388D.260. 7
Sec. 3. This act becomes effective on July 1, 2025. 8
H