Revises provisions governing the Nevada Educational Choice Scholarship Program. (BDR 34-1157)

EXEMPT

A.B. 599

- *AB599*

ASSEMBLY BILL NO. 599–COMMITTEE ON WAYS AND MEANS

(ON BEHALF OF THE OFFICE OF FINANCE
IN THE OFFICE OF THE GOVERNOR)

MAY 27, 2025
____________

Referred to Committee on Ways and Means

SUMMARY—Revises provisions governing the Nevada
Educational Choice Scholarship Program.
(BDR 34-1157)

FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Yes.

~

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

AN ACT relating to education; requiring a scholarship organization
to register in order to participate in the Nevada
Educational Choice Scholarship Program; limiting the
period that a donation to a scholarship organization may
be carried forward; requiring the Department of
Education and scholarship organizations to report certain
information; providing the procedure for applying for a
grant; requiring a scholarship organizatio n to establish
certain procedures; establishing the order of priority in
which grants must be awarded; requiring a school that
receives a grant on behalf of a pupil under the Program to
report certain information regarding the academic
progress of such pup ils; increasing the total amount of
credits the Department of Taxation is authorized to
approve each fiscal year under the Program; and
providing other matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law establishes the Nevada Ed ucational Choice Scholarship Program. 1
(NRS 388D.250 -388D.280) Under existing law, financial institutions, certain 2
mining businesses and other employers are required to pay an excise tax (the 3
modified business tax) on the wages paid by them. (NRS 363A.130, 363B.110) The 4
Program establishes a credit against the modified business tax paid by certain 5
businesses equal to an amount which is approved by the Department of Taxation 6

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and which must not exceed the amount of any donation of money which is made by 7
a taxp ayer to a scholarship organization that provides grants on behalf of pupils 8
who are members of a household with a household income which is not more than 9
300 percent of the federally designated level signifying poverty to attend schools in 10
this State, incl uding private schools, chosen by the parents or legal guardians of 11
those pupils. (NRS 363A.130, 363A.139, 363B.110, 363B.119, 388D.270) Existing 12
law authorizes the Department, each fiscal year, to approve applications for the 13
credit under the Program until the total amount of credits authorized and approved 14
by the Department is $6,655,000. (NRS 363A.139, 363B.119) Sections 11 and 12 15
of this bill increase the total amount of credits that the Department is authorized to 16
approve to $8,725,000 for Fiscal Year 2025 -2026 and $10,725,000 for Fiscal Year 17
2026-2027 and each subsequent fiscal year. 18
Existing law requires each school in which a pupil is enrolled for whom a grant 19
is provided by a scholarship organization to maintain a record of the academic 20
progress of the pupil in such a manner that the information may be aggregated and 21
reported for all such pupils if reporting is required by th e Department of Education. 22
(NRS 388D.270) Section 10 of this bill requires each school in which a pupil is 23
enrolled for whom a grant is provided by a schola rship organization to submit to 24
the Department of Education, on or before August 1 of each year, a report on the 25
academic progress of all such pupils during the immediately preceding school year. 26
Section 10 requires the report to include certain information regarding such pupils 27
and be accompanied by a statement from the owner, executive head or chair of the 28
governing body of the school certifying that the in formation included in the report 29
is complete and accurate. Section 10 requires the Department of Education to 30
compile and analyze the data included in such r eports to evaluate the impact of the 31
Program and submit an anonymized summary of the data to the Governor, the State 32
Board of Education and, in alternating years, the Legislature and the Joint Interim 33
Standing Committee on Education. Section 10 authorizes the Department of 34
Education to suspend or disqualify a school from receiving grants on behalf of 35
pupils if the school fails to comply with the reporting req uirement. Section 10 36
prohibits a scholarship organization from making a grant to a school that has been 37
suspended or disqualified from receiving grants. 38
Existing regulations include provisions governing the operation of the Nevada 39
Educational Choice Scholarship Program. (NAC 388D.030 -388D.130) Sections 2-40
7 of this bill codify certain provisions of these regulations into the Nevada Revised 41
Statutes. Section 2 requires a scholarship organization to register with the 42
Department of Education by submitting certain information. Section 3 requires: (1) 43
a registered scholarship organization to provide to the Department of Education 44
certain information concerning each pupil on behalf of whom it awards a grant; and 45
(2) the Department of Education to compile certain inf ormation submitted by each 46
scholarship organization and review the information to determine whether to 47
recommend a change to the Legislature in the priority for awarding grants. Section 48
4 requires a registered scholarship organization to: (1) provide to the Department of 49
Education certain financial statements; (2) notify the Department of Education if 50
the scholarship organization ceases to qualify as a scholar ship organization or 51
ceases to exist; and (3) allow the Superintendent of Public Instruction or his or her 52
designee to inspect the records of the scholarship organization. Section 5 requires a 53
registered scholarship organization to notify the Department of Taxation of each 54
donation received and prohibits a scholarship organization from carrying forward a 55
donation for more than 5 years. Section 6 requires the Department of Education to: 56
(1) maintain a directory of each scholarship organization registered with the 57
Department; (2) submit a list of scholarship organiz ations registered with the 58
Department to the Department of Taxation quarterly; and (3) submit a summary of 59
certain reports made to the Department of Education to certain entities annually. 60
Section 7 authorizes the parent or guardian of a pupil to apply directly to a 61

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scholarship organization for a grant and establishes the order of priority in which 62
a scholarship organization is required to award grants. Section 7 also requires a 63
scholarship organization to establish written procedures for determining whether a 64
pupil is qualified to receive a grant and awarding grants on behalf of pupils. 65
Section 8 of this bill adds sections 2-7 to the provisions that may be cited as the 66
Nevada Educational Choice Scholarship Program and section 9 of this bill applies 67
the existing definition of “scholarship organization” to those sections. 68

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 388D of NRS is hereby amended by 1
adding thereto the provisions set forth as sections 2 to 7, inclusive, 2
of this act. 3
Sec. 2. To participate in the Nevada Educational Choice 4
Scholarship Program, a scholarship organization must register 5
with the Department of Education by providing: 6
1. On a form provided by the Superintendent of Public 7
Instruction: 8
(a) The name, address and contact information of the 9
scholarship organization; and 10
(b) If the scholarship organization uses a fiscal year other 11
than July 1 to June 30, the period of the fiscal year used by the 12
scholarship organization; 13
2. Evidence of an official declaration by the Internal Revenue 14
Service that the scholarship organization qualifies as a tax-exempt 15
organization pursuant to 26 U.S.C. § 501(c); 16
3. Confirmation that the scholarship organization is 17
incorporated pursuant to chapter 82 of NRS; 18
4. A copy of the written procedures established pu rsuant to 19
subsection 2 of section 7 of this act; and 20
5. An affidavit signed by the chief executive officer or 21
president or chair of the board of directors of the scholarship 22
organization under penalty of perjury stating that: 23
(a) No member of the board of directors or employee of the 24
scholarship organization: 25
(1) Has declared bankruptcy within the 7 years immediately 26
preceding the date on which the affidavit is submitted; or 27
(2) Has ever been convicted of a felony; and 28
(b) Neither the scholarship organization nor any member of 29
the board of directors or employee thereof owns or operates a 30
school in this State that receives grant money from the Nevada 31
Educational Choice Scholarship Program. 32

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Sec. 3. 1. Each scholarship organization that is registered 1
with the Department of Education pursuant to section 2 of this act 2
shall: 3
(a) Not later than October 15, January 15, March 15 and 4
June 15 of each year, provide to the Department in a format 5
prescribed by the Department an electronic list of each pupil on 6
behalf of whom the scholarship organization awarded a grant 7
pursuant to NRS 388D.270 for the previous quarter. The 8
electronic list must include: 9
(1) Demographic information for each pupil, including, 10
without limitation, the name, date of birth, grade level, gender and 11
race or ethnicity of the pupil, whether the pupil has a disability, 12
the household income of the pupil calculated pursuant to section 7 13
of this act and the name and address of the parent or guardian of 14
the pupil; 15
(2) The amount of each grant provided on behalf of a 16
pupil; 17
(3) Whether the pupil received any other scholarships in 18
addition to the grant; 19
(4) The manner in which money from each grant has bee n 20
used, including, without limitation: 21
(I) The name of each school that has received money 22
from a grant; 23
(II) The tuition and fees charged by each school; and 24
(III) Any portion of such money that has been used to 25
pay for transportation to and from the school; and 26
(5) The number of applications for a grant received by the 27
scholarship organization for which a grant was not awarded and 28
the reason that a grant was not awarded in each case. 29
(b) Annually submit to the Department the name of: 30
(1) The school attended by each pupil on whose behalf a 31
grant is provided during the school year immediately preceding 32
the school year for which the grant is awarded or, if such a pupil 33
was not enrolled in a school, whether the pupil was a 34
homeschooled child, an opt-in child or was not required to attend 35
school pursuant to NRS 392.040 for that school year; and 36
(2) The last public school, if any, attended by each pupil on 37
whose behalf a grant is provided. 38
2. The Department of Education shall annually: 39
(a) Compile the information submitted by each scholarship 40
organization pursuant to subsection 1; and 41
(b) Review the information to determine whether to 42
recommend legislation to revise the priority for awarding grants to 43
the Legislature. 44

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Sec. 4. Each scholarship organization that is registered with 1
the Department of Education pursuant to section 2 of this act 2
shall: 3
1. Not more than 180 days after the conclusion of the fiscal 4
year of the scholarship organization, submit to the Department of 5
Education a copy of an audited or compiled financial statement of 6
the scholarship organization prepared by an independent certified 7
public accountant. 8
2. If the scholarship organization no longer meets the 9
qualifications prescribed by law to participate in the Nevada 10
Educational Choice Scholarship Program as a scholarship 11
organization or ceases to exist, notify the Department within 30 12
days. Upon receiving such notification, the Department of 13
Education shall update the directory maintain ed pursuant to 14
section 6 of this act and notify the Department of Taxation. 15
3. Within 72 hours after receiving notice from the 16
Superintendent of Public Instruction or his or her designee, make 17
any financial records of the scho larship organization or records 18
concerning a pupil maintained by the scholarship organization 19
available to the Superintendent or his or her designee for 20
inspection during regular business hours. 21
Sec. 5. 1. A scholarship organization that is registered with 22
the Department of Education pursuant to section 2 of this act shall 23
notify the Department of Taxation in writing not more than 10 24
days after receiving a donation from a taxpayer pursuant to NRS 25
363A.139 or 363B.119, as applicable, of the amount of the 26
donation. 27
2. Any donation received by a scholarship organization must 28
not be carried forward for more than 5 years after the last day on 29
the calendar year in which the donation is made. 30
Sec. 6. The Department of Education shall: 31
1. Maintain on its Internet website a directory of each 32
scholarship organization that is regist ered with the Department 33
pursuant to section 2 of this act and, not later than September 30, 34
December 30, March 30 and June 30 of each year, submit to the 35
Department of Taxation a list of each such scholarship 36
organization. 37
2. Not later than March 30 of each year, submit to the 38
Governor, the State Board of Education and the Director of the 39
Legislative Counsel Bureau a summary of the information 40
reported to the Department by each scholarship organization 41
pursuant to NRS 388D.280. 42
Sec. 7. 1. The parent or guardian of a pupil who meets the 43
requirements to receive a grant pursuant to NRS 388D.270 may 44
apply to a scholarship organization registered with the Department 45

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of Education pursuant to section 2 of this act for such a grant. A 1
scholarship organization may charge each family tha t applies for 2
a grant on behalf of one or more children of the family an 3
administrative fee of not more than $25. 4
2. A scholarship organization shall: 5
(a) Establish written procedures that the scholarship 6
organization will use to determine whether a pup il meets the 7
requirements to receive a grant pursuant to NRS 388D.270 and to 8
award grants on behalf of pupils. 9
(b) Post the procedures established pursuant to paragraph (a) 10
on an Internet website maintained by the scholarship organization 11
and provide a written copy of the procedures with each application 12
form. 13
(c) Provide an application form to be completed by an 14
applicant for a grant. A scholarship organization may only award 15
a grant on behalf of a pupil for whom a complete application is 16
submitted but i s not required to award a grant to a pupil solely 17
because his or her application is complete. 18
(d) Verify annually that each pupil on behalf of whom the 19
scholarship organization awards a grant is a member of a 20
household that has a household income which is not more than 21
300 percent of the federally designated level signifying poverty. 22
Such verification must: 23
(1) Use the most recent federal poverty guidelines published 24
in the Federal Register by the United States Department of Health 25
and Human Services; and 26
(2) Calculate household income based on the information 27
reported in the application submitted on behalf of the pupil and in 28
accordance with the most recent guidance established by the Food 29
and Nutrition Service of the United State Department of 30
Agriculture for determining eligibility of pupils for free and 31
reduced-price meals. 32
3. A scholarship organization shall award grants on behalf of 33
pupils in the following order of priority: 34
(a) A grant must be awarded for the current school year on 35
behalf of a pupil for whom a completed application was received 36
on or before the deadline for the submission of such applications 37
by the scholarship organization and on whose behalf a grant was 38
awarded for the immediately preceding school year before a grant 39
is awarded on behalf of any other pupil. 40
(b) A grant must be awarded on behalf of a pupil for whom a 41
completed application was received on or before the deadline for 42
the submission of such applications by the scholarship 43
organization and who is the sibling of a pu pil on whose behalf a 44

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grant has been awarded for the current school year before a grant 1
is awarded on behalf of other pupils. 2
(c) A grant must be awarded on behalf of a pupil who is not 3
described in paragraph (a) or (b) in the order in which the 4
completed application is received. If there are an insufficient 5
number of grants available to award a grant on behalf of each 6
pupil for whom a complete application was received on the same 7
day: 8
(1) A grant must be awarded on behalf of a pupil who is a 9
member of a household that has a lower household income before 10
a grant is awarded on behalf of a pupil who is a member of a 11
household that has a higher household income; 12
(2) If two or more applicants are members of households 13
that have the same household income, a grant must be awarded on 14
behalf of the pupil who is enrolled in a public school that has 15
received a lower rating based on the most recent annual report of 16
the statewide system of accountability for public schools before a 17
grant is awarded on behalf of a pu pil who is enrolled in a public 18
school that has received higher ratings; and 19
(3) If two or more applicants are members of households 20
that have the same household income and attend public schools 21
that received the same rating based on the most recent annual 22
report of the statewide system of accountability for public schools, 23
grants must be awarded on behalf of pupils in this category on a 24
random basis. 25
Sec. 8. NRS 388D.250 is hereby amended to read as follows: 26
388D.250 NRS 363A.139, 363B.119 and 388D.250 to 27
388D.280, inclusive, and sections 2 to 7, inclusive, of this act may 28
be cited as the Nevada Educational Choice Scholarship Program. 29
Sec. 9. NRS 388D.260 is hereby amended to read as follows: 30
388D.260 As used in NRS 388D.250 to 388D.280, inclusive, 31
and sections 2 to 7, inclusive, of this act, unless the context 32
otherwise requires, “scholarship organization” means an 33
organization in this State that meets the requirements set forth in 34
NRS 388D.270. 35
Sec. 10. NRS 388D.270 is hereby amended to read as follows: 36
388D.270 1. A scholarship organization must: 37
(a) Be exempt from taxation pursuant to section 501(c)(3) of the 38
Internal Revenue Code, 26 U.S.C. § 501(c)(3). 39
(b) Not own or operate any school in this State, including, 40
without limitation, a private school, which receives any grant money 41
pursuant to the Nevada Educational Choice Scholarship Program. 42
(c) Accept donations from taxpayers and other persons and may 43
also solicit and accept gifts and grants. 44

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(d) Not expend more than 5 percent of th e total amount of 1
money accepted pursuant to paragraph (c) to pay its administrative 2
expenses. 3
(e) Provide grants on behalf of pupils who are members of a 4
household that has a household income which is not more than 300 5
percent of the federally designated level signifying poverty to allow 6
those pupils to attend schools in this State chosen by the parents or 7
legal guardians of those pupils, including, without limitation, private 8
schools. The total amount of a grant provided by the scholarship 9
organization on behalf of a pupil pursuant to this paragraph must not 10
exceed $7,755 for Fiscal Year 2015-2016. 11
(f) Not limit to a single school the schools for which it provides 12
grants. 13
(g) Except as otherwise provided in paragraph (e), not limit to 14
specific pupils the grants provided pursuant to that paragraph. 15
2. The maximum amount of a grant provided by the 16
scholarship organization pursuant to paragraph (e) of subsection 1 17
must be adjusted on July 1 of each year for the fiscal year beginning 18
that day and ending Ju ne 30 in a rounded dollar amount 19
corresponding to the percentage of increase in the Consumer Price 20
Index (All Items) published by the United States Department of 21
Labor for the preceding calendar year. On May 1 of each year, the 22
Department of Education shal l determine the amount of increase 23
required by this subsection, establish the adjusted amounts to take 24
effect on July 1 of that year and notify each scholarship organization 25
of the adjusted amounts. The Department of Education shall also 26
post the adjusted amounts on its Internet website. 27
3. A grant provided on behalf of a pupil pursuant to subsection 28
1 must be paid directly to the school chosen by the parent or legal 29
guardian of the pupil. 30
4. A scholarship organization shall provide each taxpayer and 31
other person who makes a donation, gift or grant of money to the 32
scholarship organization pursuant to paragraph (c) of subsection 1 33
with an affidavit, signed under penalty of perjury, which includes, 34
without limitation: 35
(a) A statement that the scholarship organization satisfies the 36
requirements set forth in subsection 1; and 37
(b) The total amount of the donation, gift or grant made to the 38
scholarship organization. 39
5. Each school in which a pupil is enrolled for whom a grant is 40
provided by a scholarship organization shall maintain a record of the 41
academic progress of the pupil. The record must be maintained in 42
such a manner that the information may be aggregated and reported 43
for all such pupils . [if reporting is required by the regulations of the 44
Department of Education. ] On or before August 1 of each year, 45

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each school in which a pupil is enrolled for whom a grant is 1
provided by a scholarship organization shall submit to the 2
Department of Education a report on the academic progress of all 3
such pupils enrolled in the school during the immediately 4
preceding school year. The report must be in such form as the 5
Department may prescribe by regulation and: 6
(a) Include, without limitation: 7
(1) The name and grade level of each such pupil; 8
(2) Information c oncerning the academic performance of 9
each such pupil, including, without limitation, grades and 10
progress assessments; 11
(3) Information concerning any disciplinary action taken 12
against each such pupil, including, without limitation, if the pupil 13
was suspended or expelled; and 14
(4) A comparison of the academic performance of each 15
such pupil during the immediately preceding school year and the 16
school year before that, if the pupil attended the school both years 17
or information is otherwise available for both years. 18
(b) Be accompanied by a statement signed by the owner, 19
executive head or chair of the governing body of the school 20
certifying under penalty of perjury that, to the best of his or her 21
knowledge or belief, the information included in the report is 22
complete and accurate. 23
6. The Department of Education: 24
(a) Shall adopt regulations prescribing the contents of and 25
procedures for applications for grants provided pursuant to 26
subsection 1. 27
(b) May adopt such other regulations as the Department 28
determines necessary to carry out the provisions of this section. 29
(c) Shall compile and analyze the data submitted by schools 30
pursuant to subsection 5 to evaluate the impact of the Nevada 31
Educational Choice Scholarship Program and submit, on or 32
before February 1 o f each year, an anonymized summary of the 33
data and any recommendations for legislation to: 34
(1) The Governor; 35
(2) The State Board of Education; and 36
(3) The Director of the Legislative Counsel Bureau for 37
transmittal to: 38
(I) In odd -numbered years, th e next regular session of 39
the Legislature; and 40
(II) In even-numbered years, the Joint Interim Standing 41
Committee on Education. 42
7. The reporting required pursuant to subsections 5 and 6 43
must be performed in a manner that complies with the Family 44

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Educational Rights and Privacy Act of 1974, 20 U.S.C. § 1232g, 1
and any other applicable state and federal privacy laws. 2
8. If a school fails to comply with the provisions of subsection 3
5, the Department of Education may suspend or disqualify the 4
school from receiving grants on behalf of pupils under the Nevada 5
Educational Choice Scholarship Program. A scholarship 6
organization shall not make a grant on behalf o f a pupil to a 7
school that has been suspended or disqualified from receiving 8
grants pursuant to this subsection. 9
9. As used in this section, “private school” has the meaning 10
ascribed to it in NRS 394.103. 11
Sec. 11. 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 taxpay er 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 o r 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. 40
4. Except as otherwise provided in subsection 5, the 41
Department of Taxation may, for each fiscal year, approve 42
applications for t he credit authorized by subsection 1 until the total 43
amount of the credits authorized by subsection 1 and approved by 44

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the Department of Taxation pursuant to this subsection and 1
subsection 4 of NRS 363B.119 is [$6,655,000.] : 2
(a) For Fiscal Year 2025-2026, $8,725,000; and 3
(b) For Fiscal Year 2026 -2027 and each subsequent fiscal 4
year, $10,725,000. 5
 The amount of any credit which is forfeited pursuant to 6
subsection 2 must not be considered in calculating the amount of 7
credits authorized for any fiscal year. 8
5. Except as otherwise provided in this subsection, in addition 9
to the amount of credits authorized by subsection 4 for Fiscal Years 10
2019-2020, 2020-2021 and 2021 -2022, the Department of Taxation 11
may approve applications for the credit authorized by sub section 1 12
for each of those fiscal years until the total amount of the credits 13
authorized by subsection 1 and approved by the Department of 14
Taxation pursuant to this subsection and subsection 5 of NRS 15
363B.119 is $4,745,000. The provisions of subsection 4 do not 16
apply to the amount of credits authorized by this subsection and the 17
amount of credits authorized by this subsection must not be 18
considered when determining the amount of credits authorized for a 19
fiscal year pursuant to subsection 4. If, in Fiscal Y ear 2019 -2020, 20
2020-2021 or 2021 -2022, the amount of credits authorized by 21
subsection 1 and approved pursuant to this subsection and 22
subsection 5 of NRS 363B.119 is less than $4,745,000, the 23
remaining amount of credits pursuant to this subsection and 24
subsection 5 of NRS 363B.119 must be carried forward and made 25
available for approval during subsequent fiscal years until the total 26
amount of credits authorized by subsection 1 and approved pursuant 27
to this subsection and subsection 5 of NRS 363B.119 is equal t o 28
$14,235,000. The amount of any credit which is forfeited pursuant 29
to subsection 2 must not be considered in calculating the amount of 30
credits authorized pursuant to this subsection. 31
6. If a taxpayer applies to and is approved by the Department 32
of Taxation for the credit authorized by subsection 1, the amount of 33
the credit provided by this section is equal to the amount approved 34
by the Department of Taxation pursuant to subsection 2, which must 35
not exceed the amount of the donation made by the taxpayer t o a 36
scholarship organization. The total amount of the credit applied 37
against the taxes described in subsection 1 and otherwise due from a 38
taxpayer must not exceed the amount of the donation. 39
7. If the amount of the tax described in subsection 1 and 40
otherwise due from a taxpayer is less than the credit to which the 41
taxpayer is entitled pursuant to this section, the taxpayer may, after 42
applying the credit to the extent of the tax otherwise due, carry the 43
balance of the credit forward for not more than 5 yea rs after the end 44

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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. 12. 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 th e 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, no tify 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 applicatio n 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. 33
4. Except as otherwise provided in subsection 5, the 34
Department of Taxation may, for each fiscal year, approve 35
applications for the credit authorized by subsection 1 until the total 36
amount of the credits authorized by subsection 1 and approv ed by 37
the Department of Taxation pursuant to this subsection and 38
subsection 4 of NRS 363A.139 is [$6,655,000.] : 39
(a) For Fiscal Year 2025-2026, $8,725,000; and 40
(b) For Fiscal Year 2026 -2027 and each subsequent fiscal 41
year, $10,725,000. 42
 The amount of any credit which is forfeited pursuant to 43
subsection 2 must not be considered in calculating the amount of 44
credits authorized for any 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 an d 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 t o this subsection 6
and subsection 5 of NRS 363A.139 is $4,745,000. The provisions of 7
subsection 4 do not apply to the amount of credits authorized by this 8
subsection and the amount of credits authorized by this subsection 9
must not be considered when determ ining the amount of credits 10
authorized for a fiscal year pursuant to subsection 4. If, in Fiscal 11
Year 2019 -2020, 2020 -2021 or 2021 -2022, the amount of credits 12
authorized by subsection 1 and approved pursuant to this subsection 13
and subsection 5 of NRS 363A. 139 is less than $4,745,000, the 14
remaining amount of credits pursuant to this subsection and 15
subsection 5 of NRS 363A.139 must be carried forward and made 16
available for approval during subsequent fiscal years until the total 17
amount of credits authorized by subsection 1 and approved pursuant 18
to this subsection and subsection 5 of NRS 363A.139 is equal to 19
$14,235,000. The amount of any credit which is forfeited pursuant 20
to subsection 2 must not be considered in calculating the amount of 21
credits authorized pursuant to this subsection. 22
6. If a taxpayer applies to and is approved by the Department 23
of Taxation for the credit authorized by subsection 1, the amount of 24
the credit provided by this section is equal to the amount approved 25
by the Department of Taxation pursuant to subsection 2, which must 26
not exceed the amount of the donation made by the taxpayer to a 27
scholarship organization. The total amount of the credit applied 28
against the taxes described in subsection 1 and otherwise due from a 29
taxpayer must not exceed the amount of the donation. 30
7. If the amount of the tax described in subsection 1 and 31
otherwise due from a taxpayer is less than the credit to which the 32
taxpayer is entitled pursuant to this section, the taxpayer may, after 33
applying the credit to th e extent of the tax otherwise due, carry the 34
balance of the credit forward for not more than 5 years after the end 35
of the calendar year in which the donation is made or until the 36
balance of the credit is applied, whichever is earlier. 37
8. As used in this section, “scholarship organization” has the 38
meaning ascribed to it in NRS 388D.260. 39
Sec. 13. The provisions of subsection 1 of NRS 218D.380 do 40
not apply to any provision of this act which adds or revises a 41
requirement to submit a report to the Legislature. 42
Sec. 14. Notwithstanding the provisions of NRS 218D.430 and 43
218D.435, a committee may vote on this act before the expiration 44
of the period prescribed for the return of a fiscal note in 45

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- *AB599*
NRS 218D.475. This section applies retroactively from and after 1
May 26, 2025. 2
Sec. 15. This act becomes effective on July 1, 2025. 3

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