Revises provisions relating to education. (BDR 34-635)

S.B. 252

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SENATE BILL NO. 252–SENATORS BUCK AND STONE

FEBRUARY 27, 2025
____________

Referred to Committee on Education

SUMMARY—Revises provisions relating to education.
(BDR 34-635)

FISCAL NOTE: Effect on Local Government: May have Fiscal Impact.
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 education; establishing the Nevada Education
Savings Account Program by which certain children may
receive a grant of money for deposit into an education
savings account; authorizing an account -granting
organization to apply to the Department of Education for
a certificate to open an d manage education savings
accounts; setting forth the duties and authority of a
certified account -granting organization; establishing
certain limitations on the use of money in an education
savings account; exempting a child who receives an
education savi ngs account from certain educational
enrollment and attendance requirements; establishing a
credit against the modified business tax for taxpayers who
donate money to an account -granting organization; and
providing other matters properly relating thereto.
Legislative Counsel’s Digest:
Existing law establishes the Nevada Educational Choice Scholarship Program, 1
whereby a scholarship organization may provide a grant of money to allow certain 2
pupils to attend a private school. (NRS 388D.250 -388D.280) Section 2 of this bill 3
establishes the Nevada Education Savings Account Program, whereby, under 4
certain circumstances, an account-granting organization may establish an education 5
savings account for a child. 6
Existing law establishes a credit against the payroll tax paid by certain 7
businesses equal to an amount approved by the Department of Taxation and which 8
must not exceed the amount of any donation of money which is made by a taxpayer 9
to a scholarship organization that provides grants on behalf of certain pupils. (NRS 10
363A.130, 363B.110) Sections 28 and 30 of this bill establish similar tax credits 11

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for a donation of money which is made by a taxpayer to an account -granting 12
organization that provides grants of money to education savings accounts. 13
Section 12 of this bill: (1) requires an account-granting organization to apply to 14
the Department of Education for a certifi cate to participate in the Program; and (2) 15
sets forth certain application requirements. Section 12 further provides that, if the 16
application is approved, an account-granting organization may: (1) solicit and 17
accept donations from certain taxpayers; and (2) provide grants to education 18
savings accounts pursuant to the provisions of the Program. 19
Section 21 of this bill sets forth certain requirements for an account -granting 20
organization to apply annually to renew its certificate issued by the Department. 21
Section 13 of this bill: (1) requires each account -granting organization to 22
implement a system for administering education savings accounts; and (2) 23
authorizes each account -granting organization to contract with a private financial 24
institution for the administration of education savings accounts. 25
Section 14 of this bill requires that an account-granting organization ensure that 26
at least 90 percent of the money received pursuant to sections 28 and 30 is 27
allocated to education savings accounts. 28
Section 15 of this bill imposes certain duties on an account -granting 29
organization. 30
Section 16 of this bill: (1) authorizes the parent of any child required to attend 31
public school to apply to an account -granting organization for an education savings 32
account; and (2) sets forth certain requirements for an agreement between a parent 33
and account -granting organization in order to open an education savings account 34
for a child. 35
Section 17 of this bill requires the account-granting organization to deposit in a 36
child’s education savings account an amount that is equal to the ba se per pupil 37
funding plus any weighted funding that the child would be entitled to if the child 38
were enrolled in a public school. 39
Section 18 of this bill requires an account -granting organization to establish a 40
process for approving an education service provider to receive money from an 41
education savings account. 42
Section 19 of this bill sets forth certain allowable uses of money deposited in a 43
child’s education savings account. 44
Section 20 of this bill aut horizes unused money remaining in a child’s 45
education savings account to be used within a certain period of time for any 46
postsecondary education. 47
Section 22 of this bill requires the Department of Education to maintain on its 48
Internet website a list of account -granting organizations to which a parent may 49
apply for an education savings account pursuant to the Program. 50
Section 23 of this bill authorizes the Department to audit or investigate an 51
account-granting organization to ensure compliance with the provisions of sections 52
2-26 of this bill and any regulations adopted pursuant thereto. 53
Section 24 requires each account -granting organization to submit an annual 54
report of its activities to the Department. 55
Section 25 provides that no obligation or liability may be incurred by th e 56
Department, a school district or any public school in this State by the provisions of 57
sections 2-26. 58
Section 26 requires the Department to adopt any regulations necessary to carry 59
out the provisions of the Program. 60
Existing law requires each child between the ages of 6 and 18 years to attend a 61
public school of the State, attend a private school or be homeschooled. (NRS 62
392.040, 392.070) Sections 16 and 27 of this bill provide an exemption to this 63
requirement for a child who receives an education savings account pursuant to the 64
Program. 65
Sections 3-11 define certain terms relating to the Program. 66

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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 26, inclusive, 2
of this act. 3
Sec. 2. 1. The Nevada Education Savings Account 4
Program is hereby established. 5
2. Sections 2 to 26, inclusive, of this act, may be cited as the 6
Nevada Education Savings Account Program Act. 7
Sec. 3. As used in sections 2 to 26, inclusive, of this act, 8
unless the context otherwise requires, the words and terms defined 9
in sections 4 to 11, inclusive, of this act have the meanings 10
ascribed to them in those sections. 11
Sec. 4. “Account-granting organization” means a private, 12
nonprofit organization that is certified by the Department 13
pursuant to section 12 or 21 of this act. 14
Sec. 5. “Child” means a resident of this State who is eligible 15
to enroll in a public elementary or secondary school. 16
Sec. 6. “Department” means the Department of Education. 17
Sec. 7. “Education savings account” means an account 18
established for a child by an account -granting organization 19
pursuant to section 16 of this act. 20
Sec. 8. “Education service provider” means a person or 21
organization that is approved by an account-granting organization 22
pursuant to section 18 of this act to receive money from an 23
education savings account for an expense that is authorized 24
pursuant to section 19 of this act. 25
Sec. 9. “Parent” means the parent, custodial parent, legal 26
guardian or other person in this State who has control or charge 27
of a child and the legal right to direct the education of the child. 28
Sec. 10. “Private school” means a nonprofit pr ivate 29
elementary or secondary educational institution that is licensed in 30
this State. 31
Sec. 11. “Program” means the Nevada Education Savings 32
Account Program established by section 2 of this act. 33
Sec. 12. 1. An account-granting organization must apply to 34
the Department to participate in the Program. An application must 35
include, without limitation: 36
(a) A copy of the documents indicating that the account -37
granting organization has incorporated in this State as a nonprofit 38
organization; 39
(b) A copy of the determination by the Internal Revenue 40
Service that the account -granting organization i s exempt from 41

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taxation pursuant to section 501(c)(3) of the Internal Revenue 1
Code, 26 U.S.C. § 501(c)(3); 2
(c) A description of the methodology that the account-granting 3
organization will use to evaluate whether a child is eligible for an 4
education savings account; 5
(d) A description of the application process that the account -6
granting organization will use for parents applying for an 7
education savings account; 8
(e) A description of how the account -granting organization 9
will approve education service providers to receive money from an 10
education savings account; 11
(f) A description of the process that the account -granting 12
organization will use to inform parents of approved education 13
service providers; 14
(g) The process and procedures that will be used by the 15
account-granting organization for crediting refunds from an 16
education service provider back to an education savings account; 17
and 18
(h) An acknowledgment that the account -granting 19
organization is prohibited from discriminating against a parent or 20
child o n the basis of race, color, ethnicity or national origin in 21
approving or denying any application for an education savings 22
account. 23
2. To obtain approval and certification from the Department, 24
an account-granting organization must: 25
(a) Be exempt from tax ation pursuant to section 501(c)(3) of 26
the Internal Revenue Code, 26 U.S.C. § 501(c)(3); 27
(b) Not own or operate any school in this State, including, 28
without limitation, a private school; and 29
(c) Meet any other requirement established by regulation of 30
the Department. 31
3. The Department shall process an application for 32
certification within 60 days after receipt. 33
4. If certified by the Department, an account -granting 34
organization shall: 35
(a) Solicit and accept donations from taxpayers pursuant to 36
sections 28 and 30 of this act; 37
(b) Not expend more than 10 percent of the total amount of 38
money accepted pursuant to paragraph ( a) to pay its 39
administrative expenses; and 40
(c) Provide grants to education savings accou nts on behalf of 41
children whose parents enter into an agreement with the account -42
granting organization pursuant to section 16 of this act. 43
Sec. 13. 1. Each account-granting organization: 44

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(a) Shall implement a commercially viable, cost -effective and 1
user-friendly system for administering education savings 2
accounts; and 3
(b) May contract with a private financial institution for the 4
administration of education savings accounts. 5
2. An account-granting organization: 6
(a) Shall not implement a system that requires parents to be 7
reimbursed for expenses; and 8
(b) May implement a system that provides for the preapproval 9
of a particul ar expense to be reimbursed from an education 10
savings account. 11
Sec. 14. 1. An account -granting organization shall ensure 12
that at least 90 percent of the money received pursuant to sections 13
28 and 30 of this act is allocated to education savings accounts. 14
2. An account-granting organization may, after notifying the 15
Department, transfer revenue received pursuant to section 28 or 16
30 of this act to any other account -granting organization for 17
allocation to education savings accounts. 18
Sec. 15. 1. Each account-granting organization shall: 19
(a) Create a standard application process that is publicly 20
available on the Internet website of the account -granting 21
organization for parents to apply for an education savings account 22
pursuant to section 16 of this act; and 23
(b) Provide each parent whose application for an education 24
savings account is approved a written explanation of: 25
(1) The responsibilities of the parent resulting from the 26
creation of an education savings account; 27
(2) The duties of the account-granting organization; 28
(3) The role of any private financial institution with which 29
the account -granting organization is contracted to administer 30
education savings accounts; and 31
(4) The education service providers who are eligible to 32
receive payment out of the education savings account for an 33
expense that is authorized pursuant to section 19 of this act. 34
2. If a parent of a child with a disability applies to receive an 35
education savings account, the account -granting organization 36
must notify the parent: 37
(a) That receiving an education savings account is a parental 38
placement pursuant to 20 U.S.C. § 1412; and 39
(b) Of the rights that the child has pursuant to 20 U.S.C. § 40
1412 and any applicable state law. 41
Sec. 16. 1. The parent of any child required to enroll in 42
and attend a public school pursuant to NRS 392.040 may apply to 43
an account -granting organization for an education savings 44
account. To the extent that money is available to make a grant 45

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pursuant to section 17 of this act, the account -granting 1
organization may enter into an agreement pursuant to this section 2
and open an education savings account for the child. The 3
agreement must provide that: 4
(a) The child will receive instruction in this State for the 5
school year in at least the subjects of reading, language, 6
mathematics, science and social studies; 7
(b) The parent will not use any money in the education savings 8
account, except as authorized pursuant to section 19 or 20 of this 9
act; 10
(c) The child will not be enrolled in any public school while an 11
education service provider is receiving money from the education 12
savings account of the child; 13
(d) The parent will not obtain another educational savings 14
account for the child from another account -granting 15
organization; and 16
(e) The parent will comply with any applicable statute or 17
regulation relating to education savings accounts. 18
2. To the extent that money is available to make a grant to an 19
education savings account pursuant to section 17 of this act, if an 20
agreement is entered into pursuant to subsection 1, an education 21
savings account must be established by the account -granting 22
organization on behalf of the child. 23
3. To the extent that money is available to make an additional 24
grant to an education savings account pursuant to section 17 of 25
this act, the parent and the account -granting organization may 26
renew an agreement for each school year. 27
4. The account -granting organization may terminate the 28
agreement with the parent for an education savings account if the 29
parent intentionally and substantially misuses money in an 30
education savings account. The Dep artment shall adopt 31
regulations setting forth the procedures for determining whether a 32
parent has intentionally and substantially misused money in an 33
education savings account. 34
5. Nothing in this section requires a parent to enroll a child 35
who receives an education savings account into a private school or 36
program of distance education. If a parent enters into an 37
agreement with an account-granting organization pursuant to this 38
section, the child is ex cused from compulsory enrollment and 39
attendance pursuant to NRS 392.070. 40
Sec. 17. 1. If a parent enters into or renews an agreement 41
pursuant to section 16 of this act, the account -granting 42
organization shall deposit in the education savings account 43
established by the account -granting organization an amount that 44
is equal to the base per pupil funding plus any weighted funding 45

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that the child would be entitled to if the child w ere enrolled in a 1
public school. 2
2. If a parent enrolls a child in a public school during any 3
school year for which the child received a grant of money in an 4
education savings account: 5
(a) The parent must immediately inform the account -granting 6
organization; and 7
(b) The account -granting organization shall immediately 8
freeze the education savings account. 9
Sec. 18. 1. Each account -granting organization shall 10
establish a process for approving an educatio n service provider to 11
receive money from an education savings account. If an account -12
granting organization approves an education service provider: 13
(a) The account -granting organization shall inform the 14
Department of such approval; and 15
(b) The education service provider is eligible to receive money 16
from an education savings account only to pay an expense that is 17
authorized pursuant to section 19 or 20 of this act. 18
2. Except as otherwise provided in sections 2 to 26, inclusive, 19
of this act, approval as an education service provider must not 20
limit the independence or autonomy of an education service 21
provider and does not make the actions of an education service 22
provider the actions of the State Government. 23
3. An account-granting organization shall revoke approval of 24
an education service provider to receive money from an education 25
savings account if the education service provider: 26
(a) Intentionally and substantially misrepresents information 27
to a parent; 28
(b) Routinely fails to provide a child with the service for which 29
the education service provider received money from an education 30
savings account; or 31
(c) Violates any applicable regulation adopted by the 32
Department. 33
4. An education service provider has no right to appeal the 34
decision of an account -granting organization to revoke the 35
approval of the education service provider to receive money from 36
an education savings account. 37
Sec. 19. 1. Money deposited in a child’s education savings 38
account pursuant to section 17 of this act must be used only to pay 39
an education service provider for: 40
(a) Tuition and fees; 41
(b) Uniforms; 42
(c) Textbooks and other instructional materials; 43
(d) Computer hardware or software; 44
(e) Tutoring or other teaching services; 45

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(f) Tuition and fees for a program of distance education; 1
(g) Fees for any national norm -referenced achievement 2
examination, advanced placement or similar examination or 3
standardized examination required for admission to a college or 4
university; 5
(h) Transportation required for the child to travel to and from 6
a private school; 7
(i) Fees for any extracurricular activity that the child 8
participates in at a public school or private school; 9
(j) Educational services or therapies, including, without 10
limitation, any occupational, behavioral, phy sical, speech -11
language or audiology therapy; 12
(k) Before- or after -school activities and summer school, but 13
not including after-school childcare; and 14
(l) Any other educational expense approved by the account -15
granting organization. 16
2. An education servi ce provider , private school or other 17
entity that receives a payment authorized pursuant to subsection 1 18
shall not: 19
(a) Refund any portion of the payment to the parent who 20
authorized the payment unless the refund is for an item that is 21
being returned or an item or service that has not been provided; or 22
(b) Rebate or otherwise share any portion of the payment with 23
the parent who authorized the payment. 24
3. A parent who receives a refund pursuant to subsection 2 25
shall deposit the refund in the education sav ings account from 26
which the money refunded was paid. 27
4. Except as otherwise provided in subsection 3, a parent 28
shall not deposit any money into an education savings account. 29
5. Nothing in this section shall be deemed to prohibit a parent 30
or child from making a payment for any tuition, fee, service or 31
product described in subsection 1 from a source other than the 32
education savings account of the child. 33
Sec. 20. Notwithstanding the provisions of section 19 of this 34
act, any unused money in an education savings account may be 35
used by the child to pay for any postsecondary education within 4 36
years after graduating high school. Any unused money in an 37
education savings account must be reverted to the account -38
granting organization upon the earlier of: 39
1. The parent enrolling the child in a public school; 40
2. The child graduat ing from any postsecondary education al 41
institution; or 42
3. The child reaching 26 years of age. 43
Sec. 21. 1. An account -granting organization must apply 44
annually for the renewal of certification to participate in the 45

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Program. An application for renewal must include, without 1
limitation: 2
(a) A copy of the account -granting organization’s Internal 3
Revenue Service Form 990; 4
(b) A copy of any audit that is required by the Department; and 5
(c) An annual report that includes, without limitation: 6
(1) The number of applications tha t the account -granting 7
organization received for education savings account s pursuant to 8
section 16 of this act during the immediately preceding school 9
year, by county and grade level; 10
(2) The names and addresses of all children who received 11
money in their education savings accounts during the immediately 12
preceding school year; 13
(3) The total number of education savings accounts that the 14
account-granting organization maintains; 15
(4) The amounts of money that the account -granting 16
organization received and distributed during the immediately 17
preceding fiscal year; 18
(5) The amount of money retained and spent by the 19
account-granting organization as administrative costs during the 20
immediately preceding fiscal year; 21
(6) The amount of money spent on fees to private financial 22
institutions to manage or administer education savings accounts; 23
(7) A list of education service providers approved by the 24
account-granting organization; and 25
(8) An attestation that the account -granting organization 26
complied with all applicable requirements set forth in sections 2 to 27
26, inclusive, of this act, and any regulation s adopted by the 28
Department pursuant thereto. 29
2. The annual report required by subsection 1 must: 30
(a) Comply with uniform accounting standards established by 31
the Department; 32
(b) Be certified as accurate by a certified public accountant; 33
and 34
(c) Be free of material misstatements or errors. 35
3. The Department shall process an application for the 36
renewal of certification within 30 days after receipt. 37
Sec. 22. The Department shall maintain on its Internet 38
website a list of account -granting organizations to which a parent 39
may apply for an education savings account pursuant to the 40
Program. 41
Sec. 23. 1. The Department may audit or investigate any 42
account-granting organization to ensure compliance with the 43
provisions of sectio ns 2 to 26, inclusive, of this act and any 44
regulations adopted pursuant thereto. 45

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2. If the Department finds that any account -granting 1
organization has violated any applicable provision of sections 2 to 2
26, inclusive, of this act, the Department may, after notice and a 3
hearing, revoke the certificat ion of the account -granting 4
organization. 5
Sec. 24. 1. Each account -granting organization shall 6
submit an annual report of its activities to the Department, in the 7
form and by the deadline prescribed by the Department. 8
2. The Department shall prepare and publish on its Internet 9
website a summary of all annual reports received from account -10
granting organizations. The Department shall not include any 11
identifying information about any parent or child who receives an 12
education savings account. 13
Sec. 25. No obligation or liability may be incurred by the 14
Department, a school district or any public school in this State by 15
the provisions of sections 2 to 26, inclusive, of this act, including, 16
without limitation, for any misconduct by an account -granting 17
organization or an education service provider. 18
Sec. 26. The Department shall adopt any regulation s 19
necessary to carry out the Program. 20
Sec. 27. NRS 392.070 is hereby amended to read as follows: 21
392.070 Enrollment and attendance of a child required by the 22
provisions of NRS 392.040 must be excused when: 23
1. The child is enrolled in a private school pursuant to chapter 24
394 of NRS; [or] 25
2. A parent of the child chooses to provide education to the 26
child and files a notice of intent to homeschool the child wi th the 27
superintendent of schools of the school district in which the child 28
resides in accordance with NRS 388D.020 [.] ; or 29
3. The parent of the child and an account -granting 30
organization have entered into an agreement for the establishment 31
of an educati on savings account for the child pursuant to section 32
16 of this act. 33
Sec. 28. Chapter 363A of NRS is hereby amended by adding 34
thereto a new section to read as follows: 35
1. Any taxpayer who is required to pay the tax imposed 36
pursuant to NRS 363A.130 may receive a credit against the tax 37
otherwise due for any donation of money made by the taxpayer to 38
an account-granting organization in the manner provided by this 39
section. 40
2. To receive the credit authorized by subsection 1, a taxpayer 41
who intends to make a donation of money to an account -granting 42
organization must, before making such a donation, notify the 43
account-granting organization of the taxpayer’s intent to make the 44
donation and to seek the credit authorized by subsection 1. An 45

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account-granting organization shall, before accepting any such 1
donation, apply to the Department of Taxation for approval of the 2
credit authori zed by subsection 1 for the donation. The 3
Department of Taxation shall, within 20 days after receiving the 4
application, approve or deny the application and provide to 5
the account -granting organization notice of the decision and, if 6
the application is appro ved, the amount of the credit authorized. 7
Upon receipt of notice that the application has been approved, the 8
account-granting organization shall provide notice of the approval 9
to the taxpayer who must, not later than 30 days after receiving 10
the notice, mak e the donation of money to the account -granting 11
organization. If the taxpayer does not make the donation of money 12
to the account -granting organization within 30 days after 13
receiving the notice, the account -granting organization shall 14
provide notice of the failure to the Department of Taxation and 15
the taxpayer forfeits any claim to the credit authorized by 16
subsection 1. 17
3. The Department of Taxation shall approve or deny 18
applications for the credit authorized by subsection 1 in the order 19
in which the applications are received. 20
4. The Department of Taxation may, for each fiscal year, 21
approve applications for the credit authorized by subsection 1 until 22
the total amount of the credits authorized by subsection 1 and 23
approved by the Department of Taxation purs uant to this 24
subsection and subsection 4 of section 30 of this act is $6,655,000. 25
The amount of any credit which is forfeited pursuant to subsection 26
2 must not be considered in calculating the amount of credits 27
authorized for any fiscal year. 28
5. If a taxpayer applies to and is approved by the Department 29
of Taxation for the credit authorized by subsection 1, the amount 30
of the credit provided by this section is equal to the amount 31
approved by the Department of Taxation pursuant to subsection 2, 32
which must n ot exceed the amount of the donation made by the 33
taxpayer to an account-granting organization. The total amount of 34
the credit applied against the taxes described in subsection 1 and 35
otherwise due from a taxpayer must not exceed the amount of the 36
donation. 37
6. If the amount of the tax described in subsection 1 and 38
otherwise due from a taxpayer is less than the credit to which the 39
taxpayer is entitled pursuant to this section, the taxpayer may, 40
after applying the credit to the extent of the tax otherwise due , 41
carry the balance of the credit forward for not more than 3 years 42
after the end of the calendar year in which the donation is made 43
or until the balance of the credit is applied, whichever is earlier. 44

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7. As used in this section, “account -granting organi zation” 1
has the meaning ascribed to it in section 4 of this act. 2
Sec. 29. NRS 363A.130 is hereby amended to read as follows: 3
363A.130 1. Except as otherwise provided in NRS 360.203, 4
there is hereby imposed an excise t ax on each employer at the rate 5
of 2 percent of the wages, as defined in NRS 612.190, paid by the 6
employer during a calendar quarter with respect to employment in 7
connection with the business activities of the employer. 8
2. The tax imposed by this section: 9
(a) Does not apply to any person or other entity or any wages 10
this State is prohibited from taxing under the Constitution, laws or 11
treaties of the United States or the Nevada Constitution. 12
(b) Must not be deducted, in whole or in part, from any wages of 13
persons in the employment of the employer. 14
3. Each employer shall, on or before the last day of the month 15
immediately following each calendar quarter for which the 16
employer is required to pay a contribution pursuant to 17
NRS 612.535: 18
(a) File with the D epartment a return on a form prescribed by 19
the Department; and 20
(b) Remit to the Department any tax due pursuant to this section 21
for that calendar quarter. 22
4. In determining the amount of the tax due pursuant to this 23
section, an employer is entitled to s ubtract from the amount 24
calculated pursuant to subsection 1 a credit in an amount equal to 50 25
percent of the amount of the commerce tax paid by the employer 26
pursuant to chapter 363C of NRS for the preceding taxable year. 27
The credit may only be used for any of the 4 calendar quarters 28
immediately following the end of the taxable year for which the 29
commerce tax was paid. The amount of credit used for a calendar 30
quarter may not exceed the amount calculated pursuant to 31
subsection 1 for that calendar quarter. Any unused credit may not be 32
carried forward beyond the fourth calendar quarter immediately 33
following the end of the taxable year for which the commerce tax 34
was paid, and a taxpayer is not entitled to a refund of any unused 35
credit. 36
5. An employer who makes a donation of money to a 37
scholarship organization during the calendar quarter for which a 38
return is filed pursuant to this section is entitled, in accordance with 39
NRS 363A.139, to a credit equal to the amount authorized pursuant 40
to NRS 363A.139 against any tax otherwise due pursuant to this 41
section. As used in this subsection, “scholarship organization” has 42
the meaning ascribed to it in NRS 388D.260. 43
6. An employer who makes a donation of money to an 44
account-granting organization during the calendar quart er for 45

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which a return is filed pursuant to this section is entitled, in 1
accordance with section 28 of this act , to a credit equal to the 2
amount authorized pursuant to section 28 of this act against any 3
tax otherwise due pursuant to this section. As used in this 4
subsection, “account -granting organization” has the meaning 5
ascribed to it in section 4 of this act. 6
Sec. 30. Chapter 363B of NRS is hereby amended by adding 7
thereto a new section to read as follows: 8
1. Any taxpayer who is required to pay the tax imposed 9
pursuant to NRS 363B.110 may receive a credit against the tax 10
otherwise due for any donation of money made by the tax payer to 11
an account-granting organization in the manner provided by this 12
section. 13
2. To receive the credit authorized by subsection 1, a taxpayer 14
who intends to make a donation of money to an account-granting 15
organization must, before making such a donation, notify the 16
account-granting organization of the taxpayer’s intent to make the 17
donation and to seek the credit authorized by subsection 1. An 18
account-granting organizations shall, before acc epting any such 19
donation, apply to the Department of Taxation for approval of the 20
credit authorized by subsection 1 for the donation. The 21
Department of Taxation shall, within 20 days after receiving the 22
application, approve or deny the application and prov ide to 23
the account -granting organization notice of the decision and, if 24
the application is approved, the amount of the credit authorized. 25
Upon receipt of notice that the application has been approved, the 26
account-granting organization shall provide notice of the approval 27
to the taxpayer who must, not later than 30 days after receiving 28
the notice, make the donation of money to the account -granting 29
organization. If the taxpayer does not make the donation of money 30
to the account -granting organization within 30 days after 31
receiving the notice, the account -granting organization shall 32
provide notice of the failure to the Department of Taxation and 33
the taxpayer forfeits any claim to the credit authorized by 34
subsection 1. 35
3. The Department of Taxation shall approv e or deny 36
applications for the credit authorized by subsection 1 in the order 37
in which the applications are received. 38
4. The Department of Taxation may, for each fiscal year, 39
approve applications for the credit authorized by subsection 1 until 40
the total amount of the credits authorized by subsection 1 and 41
approved by the Department of Taxation pursuant to this 42
subsection and subsection 4 of section 28 of this act is $6,655,000. 43
The amount of any credit which is forfeited pursuant to 44

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subsection 2 must not be considered in calculating the amount of 1
credits authorized for any fiscal year. 2
5. If a taxpayer applies to and is approved by the Department 3
of Taxation for the credit authorized by subsection 1, the amount 4
of the credit provided by this section is e qual to the amount 5
approved by the Department of Taxation pursuant to subsection 2, 6
which must not exceed the amount of the donation made by the 7
taxpayer to an account-granting organization. The total amount of 8
the credit applied against the taxes describe d in subsection 1 and 9
otherwise due from a taxpayer must not exceed the amount of the 10
donation. 11
6. If the amount of the tax described in subsection 1 and 12
otherwise due from a taxpayer is less than the credit to which the 13
taxpayer is entitled pursuant to this section, the taxpayer may, 14
after applying the credit to the extent of the tax otherwise due, 15
carry the balance of the credit forward for not more than 3 years 16
after the end of the calendar year in which the donation is made 17
or until the balance of the credit is applied, whichever is earlier. 18
7. As used in this section, “account -granting organization” 19
has the meaning ascribed to it in section 4 of this act. 20
Sec. 31. NRS 363B.110 is hereby amended to read as follows: 21
363B.110 1. Except as otherwise provided in NRS 360.203, 22
there is hereby imposed an excise tax on each employer at the rate 23
of 1.475 percent of the amount by which the sum of all the wages, 24
as defined in NRS 612.190, paid by the employer during a calendar 25
quarter with respect to employment in connection with the business 26
activities of the employer exceeds $50,000. 27
2. The tax imposed by this section: 28
(a) Does not apply to any person or other entity or any wages 29
this State is prohibited from taxing under the Constitution, laws or 30
treaties of the United States or the Nevada Constitution. 31
(b) Must not be deducted, in whole or in part, from any wages of 32
persons in the employment of the employer. 33
3. Each employer shall, on or before the last day of the month 34
immediately following each calendar quarter for which the 35
employer is required to pay a contribution pursuant to 36
NRS 612.535: 37
(a) File with the Department a return on a form prescribed by 38
the Department; and 39
(b) Remit to the Department any tax due pursuant to this chapter 40
for that calendar quarter. 41
4. In determining the amount of the tax due pursuant to this 42
section, an employer is entitled to subtract from the amount 43
calculated pursuant to subsection 1 a credit in an amount equal to 50 44
percent of the amount of the commerce tax paid by the employer 45

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pursuant to chapter 363C of NRS for the preceding taxable year. 1
The credit may only be used for an y of the 4 calendar quarters 2
immediately following the end of the taxable year for which the 3
commerce tax was paid. The amount of credit used for a calendar 4
quarter may not exceed the amount calculated pursuant to 5
subsection 1 for that calendar quarter. Any unused credit may not be 6
carried forward beyond the fourth calendar quarter immediately 7
following the end of the taxable year for which the commerce tax 8
was paid, and a taxpayer is not entitled to a refund of any unused 9
credit. 10
5. An employer who makes a donation of money to a 11
scholarship organization during the calendar quarter for which a 12
return is filed pursuant to this section is entitled, in accordance with 13
NRS 363B.119, to a credit equal to the amount authorized pursuant 14
to NRS 363B.119 against an y tax otherwise due pursuant to this 15
section. As used in this subsection, “scholarship organization” has 16
the meaning ascribed to it in NRS 388D.260. 17
6. An employer who makes a donation of money to an 18
account-granting organization during the calendar quar ter for 19
which a return is filed pursuant to this section is entitled, in 20
accordance with section 30 of this act , to a credit equal to the 21
amount authorized pursuant to section 30 of this act against any 22
tax otherwise due pursuant to this section. As used i n this 23
subsection, “account -granting organization” has the meaning 24
ascribed to it in section 4 of this act. 25
Sec. 32. 1. This section becomes effective upon passage and 26
approval. 27
2. Sections 1 to 31, inclusive, of this act become effective: 28
(a) Upon passage and approval for the purpose of adopting any 29
regulations and performing any other preparatory administrative 30
tasks that are necessary to carry out the provisions of this act; and 31
(b) On January 1, 2026, for all other purposes. 32

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