Under existing law, financial institutions, mining businesses and other employers are required to pay an excise tax (the modified business tax) on wages paid by them. (NRS 363A.130, 363B.110) Existing law also requires each insurer to pay to the Department of Taxation a tax upon net direct premiums and net direct considerations written at the rate of 3.5 percent (the general tax on insurance premiums). (NRS 680B.027) Existing law establishes a credit against the modified business tax for a taxpayer who makes a donation to a scholarship organization that provides grants on behalf of pupils who are members of a household with a household income of not more than 300 percent of the federally designated level signifying poverty to allow those pupils to attend schools in this State, including private schools, chosen by the parents or legal guardians of those pupils. (NRS 363A.139, 363B.119, 388D.270) Existing law authorizes the Department of Taxation to approve applications for such tax credits until the total amount of credits authorized for each fiscal year is $6,655,000. (NRS 363A.139, 363B.119) Sections 3 and 4 of this bill increase the amount of tax credits that the Department of Taxation is authorized to approve to: (1) $30,000,000 for Fiscal Year 2023-2024; and (2) for each succeeding fiscal year, 110 percent of the amount authorized for the immediately preceding fiscal year. Section 2 of this bill removes the requirement for a scholarship organization to make grants on behalf of pupils who are members of a household that has a household income which is not more than 300 percent of the federally designated level signifying poverty and instead requires a scholarship organization to make grants on behalf of pupils: (1) on whose behalf a grant was awarded for the immediately preceding school year; (2) who are the sibling of a pupil on whose behalf a grant was awarded for the current or immediately preceding school year; (3) who are members of a household that has a household income which is not more than 400 percent of the federally designated level signifying poverty; (4) who have an individualized education program; (5) who have a parent or legal guardian who is on active duty in the Armed Forces of the United States; or (6) who have a parent or legal guardian who is a police officer or firefighter. Section 2 establishes the order of priority in which a scholarship organization is required to award grants. Section 2 requires each grant made by a scholarship organization to be not less than $1,000. Sections 7 and 8 of this bill establish a credit against the general tax on insurance premiums for an insurer who makes a donation to a scholarship organization to be administered in the same manner as the credit against the modified business tax. Sections 1, 5 and 9-12 of this bill make conforming changes to indicate the proper placement of sections 7 and 8 in the Nevada Revised Statutes.

Statutes affected:
As Introduced: 388D.250, 388D.270, 363A.139, 363B.119, 679A.160, 680B.025, 680B.0395, 695B.320, 695F.090
BDR: 388D.250, 388D.270, 363A.139, 363B.119, 679A.160, 680B.025, 680B.0395, 695B.320, 695F.090